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Best mutual fund SIP portfolios to invest in 2019

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Best mutual fund SIP portfolios to invest in 2019

Are you looking for an equity mutual fund portfolio to achieve your long-term financial goals?

Here is a monthly update on our recommended mutual fundSIP portfoliosto invest in 2019. There are two changes in our portfolios in March. One, there is a new addition to the large cap category:Axis Bluechip Fund. Two, we have put SBI Bluechip Fund in the watchlist.

What does these changes mean to investors? As you know we follow a quant-based model to choose schemes. As schemes get in and out of the list, we inform our readers. However, this doesnt mean they have to keep changing their schemes every time there is a change in our recommendation list.

This months changes mean simply this: if you are a new investor, you should choose Axis Bluechip Fund. If you are investing in SBI Bluechip Fund, keep a close track of it. We will also closely watch SBI Bluechip Fund for some time. We recommended SBI Bluechip Fund in June 2018, after the Sebi-enforced recategorisaton of mutual fund schemes. New investors may give this scheme a miss and choose Axis Bluechip Fund in its place.

Well, we put together the best mutual fundSIPportfolios to help investors looking to invest in a mix ofmutual fundsto achieve their various financial goals. If you are looking for a mutual fund portfolio to achieve your long-term financial goals, you are at the right place. We have put together some mutual fund portfolios that investors can choose based on their risk profile and SIP amount.

Our reason to launch these portfolios was simple. We have observed that many mutual fund investors find it extremely difficult to stitch together to a few schemes (or create a mutual fund portfolio, in technical parlance) that would help them to meet their various long-term financial goals. This is especially true for new investors.

Indeed, creating a mutual fund portfolio involves several complicated steps. To begin with, you should shortlist some schemes with a consistent long-term performance record. Next, you should pick the schemes that are in line with your risk profile andinvestmentgoals.

Then you would hit the next roadblock: how to fix the composition of the portfolio? The task is not finished yet. You should also need to monitor and review the performance of the portfolio regularly and take remedial steps if needed. Too much to handle?

Well, do not worry. That is why we are here mhas created mutual fund SIP portfolios for three different individual risk profiles: conservative, moderate and aggressive. We have also considered three SIP baskets between Rs 2,000-5,000, between Rs 5,000-10,000 and above Rs 10,000 while creating these portfolios. These are the schemes that made it into our recommendation list:

Recommended portfolio for conservative investors

Recommended portfolios for aggressive investors

Mirae Asset Emerging Bluechip Fund- Regular Plan -G

Mirae Asset Emerging Bluechip Fund- Regular Plan -G

Note, we have assumed that the investor is investing with an investment horizon of at least five years.

ET.com Mutual Funds has employed the following parameters for shortlisting the equity mutual fund schemes.

1. Mean rolling returns: Rolled daily for the last three years.

2. Consistency in the last three years: Hurst Exponent, H is used for computing the consistency of a fund. The H exponent is a measure of randomness of NAV series of a fund. Funds with high H tend to exhibit low volatility compared to funds with low H.

i) When H = 0.5, the series of return is said to be a geometric Brownian time series. These type of time series is difficult to forecast.

ii) When H is less than 0.5, the series is said to be mean reverting.

iii) When H is greater than 0.5, the series is said to be persistent. The larger the value of H, the stronger is the trend of the series

3. Downside risk: We have considered only the negative returns given by the mutual fund scheme for this measure.

Z = Y/number of days taken for computing the ratio

4. Outperformance: It is measured by Jensens Alpha for the last three years. Jensens Alpha shows the risk-adjusted return generated by a mutual fund scheme relative to the expected market return predicted by the Capital Asset Pricing Model (CAPM). Higher Alpha indicates that the portfolio performance has outstripped the returns predicted by the market.

[Risk Free Rate + Beta of the MF Scheme * (Average return of the index – Risk Free Rate

5. Asset size: For Equity funds, the threshold asset size is Rs 50 crore

ET.com Mutual Funds has employed the following parameters for shortlisting the debt mutual fund schemes.

1. Mean rolling returns: Rolled daily for the last three years.

2. Consistency in the last three years: Hurst Exponent, H is used for computing the consistency of a fund. The H exponent is a measure of randomness of NAV series of a fund. Funds with high H tend to exhibit low volatility compared to funds with low H.

i) When H = 0.5, the series of return is said to be a geometric Brownian time series. These type of time series is difficult to forecast.

ii) When H is less than 0.5, the series is said to be mean reverting.

iii) When H is greater than 0.5, the series is said to be persistent. The larger the value of H, the stronger is the trend of the series

3. Downside risk: We have considered only the negative returns given by the mutual fund scheme for this measure.

Z = Y/number of days taken for computing the ratio

4. Outperformance: Fund Return Benchmark return. Rolling returns rolled daily is used for computing the return of the fund and the benchmark and subsequently the Active return of the fund.

Asset size: For Debt funds, the threshold asset size is Rs 50 crore

ET.com Mutual Funds has employed the following parameters for shortlisting the hybrid mutual fund schemes.

1. Mean rolling returns: Rolled daily for the last three years.

2. Consistency in the last three years: Hurst Exponent, H is used for computing the consistency of a fund. The H exponent is a measure of randomness of NAV series of a fund. Funds with high H tend to exhibit low volatility compared to funds with low H.

i) When H = 0.5, the series of return is said to be a geometric Brownian time series. These type of time series is difficult to forecast.

ii) When H 0.5, the series is said to be mean reverting.

iii) When H0.5, the series is said to be persistent. The larger the value of H, the stronger is the trend of the series

3. Downside risk: We have considered only the negative returns given by the mutual fund scheme for this measure.

Z = Y/number of days taken for computing the ratio

i) Equity portion: It is measured by Jensens Alpha for the last three years. Jensens Alpha shows the risk-adjusted return generated by a mutual fund scheme relative to the expected market return predicted by the Capital Asset Pricing Model (CAPM). Higher Alpha indicates that the portfolio performance has outstripped the returns predicted by the market.

[Risk Free Rate + Beta of the MF Scheme * (Average return of the index – Risk Free Rate

ii) Debt portion: Fund Return Benchmark return. Rolling returns rolled daily is used for computing the return of the fund and the benchmark and subsequently the Active return of the fund.

5. Asset size: For Hybrid funds, the threshold asset size is Rs 50 crore

Planning to invest in mutual funds to build a retirement corpus? Here is what you should know.

Invest in zero commissions direct mutual funds with ETMONEY. Start SIP as low as ₹500/month.

(%)Mirae Asset Tax Saver Direct-G1.838.9516.109.4122.01Invest NowMirae Asset Tax Saver Reg-G1.668.4715.077.9120.37Invest NowMotilal Oswal Long Term Equity Fund Direct-Growth

ELSS0.276.6011.69-6.8016.86Invest NowFeatured

ELSS1.9210.4519.595.2615.46Start SIPMotilal Oswal Focused 25 Fund Direct-Growth

Large Cap2.388.2515.161.2913.87Invest NowDHFL Pramerica Gilt Direct Plan – Growth

Gilt0.151.985.628.257.35Invest NowDSP Midcap Direct Plan-Growth

Mid Cap1.086.9314.63-4.7615.29Start SIPDHFL Pramerica Hybrid Debt Fund Direct Plan-Growth

Conservative Hybrid1.013.846.768.659.39Invest NowDSP Focus Direct Plan-Growth

Multi Cap1.8510.3416.432.8811.66Start SIPMotilal Oswal Multicap 35 Fund Direct-Growth

Multi Cap1.266.5714.84-4.7315.35Invest NowMotilal Oswal Midcap 30 Fund Direct-Growth

Mid Cap1.698.8813.43-2.789.27Invest NowDHFL Pramerica Large Cap Fund Direct Plan-Growth

Large Cap2.077.5914.885.8912.44Invest NowDSP Small Cap Direct Plan-Growth

Small Cap1.157.2410.33-16.099.24Start SIPDSP Equity Opportunities Direct Plan-Growth

Large & MidCap0.918.3815.721.2714.81Start SIPDSP Credit Risk Direct Plan-Growth

Credit Risk0.492.160.02-0.705.09Start SIPMotilal Oswal Long Term Equity Fund Direct-Growth

ELSS0.276.6011.69-6.8016.86Invest NowDSP Tax Saver Direct Plan-Growth

ELSS1.9210.4519.595.2615.46Start SIPDSP Liquidity Direct-Growth

Liquid0.641.823.737.587.22Start SIPICICI Prudential Savings Fund Direct Plan -Growth

Low Duration0.622.054.378.017.85Invest NowDSP Savings Direct Plan-Growth

Money Market0.581.944.087.926.88Start SIPDSP Strategic Bond Direct Plan-Growth

Dynamic Bond-0.422.336.108.837.02Start SIPDSP 10Y G-Sec Fund Direct-Growth

Gilt with 10 year Constant Duration0.191.695.688.837.03Start SIPDSP Bond Direct-Growth

Medium Duration0.192.243.775.257.40Start SIPDSP Short Term Direct Plan-Growth

Short Duration0.202.014.747.777.45Start SIPDSP Ultra Short Fund Direct Plan-Growth

Ultra Short Duration0.642.003.076.116.95Start SIPDSP Equity Savings Fund Direct-Growth

Equity Savings1.055.147.583.489.00Start SIPDSP Dynamic Asset Allocation Fund Direct-Growth

Dynamic Asset Allocation0.832.886.117.389.19Start SIPDSP Regular Savings Direct Plan-Growth

Conservative Hybrid0.614.134.57-0.816.82Start SIPDSP Equity & Bond Direct-Growth

Aggressive Hybrid1.748.2915.344.2612.77Start SIP

– Returns less then 1 year are absolute and above 1 year are annualised.

– Returns of 1 year are absolute and above 1 year are annualised..

Best equity mutual fund SIP portfolios to invest in 2019

An SIP portfolio for long-term wealth creation

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