Latest update February 14th, 2019 10:40 AM
Best SIP plans that can beat the market volatility in 2019
2018 was quite volatile for Indian stock markets. So, fresh off such an unpredictable year, investors are looking for investment options that can contain such market volatility. Systematic Investment Plans (SIPs) are well suited to manage extreme up and down market movement because they are based on the principle of rupee cost averaging. This allows them to own less units when markets are up and more units when they are down, thereby averaging their holdings over the long-term. So, as far as investment in 2019 are concerned, investors would do well to know the best mutual funds which can manage market volatility in 2019 via the SIP route.
The following table presents the top 5 funds which can be used for the aforementioned purpose. All of the following plans are direct and the option is growth:
L&T Emerging Businesses Fund – Direct Plan (G)
The fund has been in existence since May 2014 and the Direct Plan has returned 21.9% since launch. The minimum lumpsum investment in the fund is Rs 5,000 while the minimum SIP amount is Rs 500. Its performance is benchmarked to the S&P BSE Small Cap Total Return Index and was managing assets worth Rs 5,631 cr at the end of December 2018. Its expense ratio is 0.88%.
The fund is managed by S.N. Lahiri and Karan Desai (for overseas investments) who have been managing the fund since inception and since February 2017 respectively.
The fund invests in small-cap stocks and carries the highest risk among those featured in this list. It can be used as a portfolio diversifier to provide an edge to an equity portfolio by benefitting it from stocks of up and coming companies whose profit can potentially grow quicker than broader market.
Mirae Asset India Equity Fund – Direct Plan (G)
Mirae Asset India Equity Fund was formerly known as Mirae Asset India Opportunities Fund. The fund has been in existence since April 2008 but the Direct Plan was launched in January 2013. Since launch, the plan has returned 17.6%. The minimum lumpsum investment in the fund is Rs 5,000 while the minimum SIP amount is Rs 1,000. Its performance is benchmarked to the S&P BSE 200 Total Return Index and was managing assets worth Rs 10,036 cr at the end of December 2018. Its expense ratio is 0.79%.
The fund is managed by Neelesh Surana and Harshad Borawake who have been managing the fund since May 2008 and May 2017 respectively. Other funds managed by Neelesh include Mirae Asset Emerging Bluechip Fund, Mirae Asset Hybrid Equity Fund, and Mirae Asset Tax Saver Fund.
It is a multicap fund investing across the market spectrum and has the flexibility to invest across sectors and themes as well.
Motilal Oswal Multicap 35 Fund – Direct Plan (G)
Motilal Oswal Multicap 35 Fund was formerly known as Motilal Oswal MOSt Focused Multicap 35 Fund. The fund has been in existence since April 2014 and the Direct Plan has returned 22.3% since launch. The minimum lumpsum investment in the fund is Rs 500 and the minimum SIP amount is also Rs 500. Its performance is benchmarked to the Nifty 500 Total Return Index and was managing assets worth Rs 13,180 cr at the end of December 2018. Its expense ratio is 0.86%.
The fund is managed by Gautam Sinha Roy (Equity Component), Abhiroop Mukherjee (Debt Component), and Swapnil Mayekar (Foreign Securities) and Snigdha Sharma who functions as an associate fund manager. While Abhiroop manages the debt component of Motilal Oswal Focused 25 Fund, Motilal Oswal Long Term Equity Fund, among other, Swapnil manages the Motilal Oswal NASDAQ-100 ETF.
The fund invests across market caps and sectors and invests in a maximum of 35 equity & equity related instruments.
Axis Long Term Equity Fund – Direct Plan (G)
The fund has existed since December 2009 while the Direct Plan has been in existence since January 2013 and has returned 19.7% since launch. The minimum lumpsum investment in the fund is Rs 500 and the minimum SIP amount is also Rs 500. Its performance is benchmarked to the S&P BSE 200 Total Return Index and was managing assets worth Rs 17,852 cr at the end of December 2018. Its expense ratio is 0.95%.
The fund is managed by Jinesh Gopani who has been managing the fund since April 2011. Other funds managed by him include Axis Focused 25 Fund and Axis Emerging Opportunities Fund – Series I, among others.
The fund is an ELSS (Equity Linked Savings Scheme) which means that it offers tax benefits under Section 80C of the Income Tax Act, 1961 and comes with a lock-in of three years. It mainly focuses on large and mid-cap stocks but invests across market caps.
Aditya Birla Sun Life Tax Relief ’96 – Direct Plan (G)
The fund has been in existence for over two decades, having been launched in March 1996. The Direct Plan has been in existence since January 2013 and has returned 17.7% since launch. The minimum lumpsum investment in the fund is Rs 500 and the minimum SIP amount is also Rs 500. Its performance is benchmarked to the S&P BSE 200 Total Return Index and was managing assets worth Rs 7,220 cr at the end of December 2018. Its expense ratio is 1.06%.
The fund is managed by Ajay Garg who also manages Aditya Birla Sun Life MNC Fund and Aditya Birla Sun Life Index Fund offered by the fund house.
The fund is an ELSS (Equity Linked Savings Scheme) which means that it offers tax benefits under Section 80C of the Income Tax Act, 1961 and comes with a lock-in of three years. There are several options which you can refer online such as best SIP plans by Orowealth to get proper knowledge in the area.
