Best SIP Mutual Fund Portfolios to Invest in 2022


The New Year is a great time to start your systematic investment plans in mutual funds. However, the problem is, most investors don’t know how to create a portfolio of mutual funds that will help them achieve their long-term goals. Do not worry. We will help you. We will offer you different mutual fund portfolios depending on your risk profile and the amount of your investment.

Simply put, you don’t have to go through the tedious process of building a portfolio. You don’t need to shortlist consistent artists into categories that suit your risk profile and goals. You can leave it to us. You can also leave the job of portfolio composition, portfolio monitoring and review to us.

ETMutualFunds.com launched its recommended mutual fund portfolios for investing through SIPs in October 2016. Since then, we have been monitoring the plans in these portfolios closely and regularly updating them. We also tell our readers to replace the underperforming ones. In this article, we’ll tell you about the programs you can choose from if you’re starting your investing journey in 2022. If you’ve invested according to our previous recommendations, you can look at the portfolio to see if all of your programs have held their place.

The best SIP mutual fund portfolios from ETMutualFunds.com are aimed at three different individual risk profiles: conservative, moderate and aggressive. We also considered three SIP baskets – between Rs 2,000 and Rs 5,000, between Rs 5,000 and Rs 10,000 and above Rs 10,000 – when creating these portfolios. Take a look at our recommended wallets.

Keep an eye out for our monthly updates. We would closely monitor these programs and update you on their performance on a monthly basis.

Recommended portfolio for conservative investors:

AND online

Recommended portfolio for moderate investors:

sip wallet 2AND online


Recommended portfolio for aggressive investors:

sipping an aggressive walletAND online

Here is our methodology:

Methodology for equity funds:

ETMutualFunds.com used the following parameters to preselect equity mutual funds.

1.
Average sliding returns: Rolled daily for three years.

2.
Consistency over the past three years: the Hurst exponent, H is used to calculate the consistency of a fund. The exponent H is a measure of the randomness of a fund’s net asset value series. Funds with a high H tend to exhibit low volatility compared to funds with a low H.

i) When H = 0.5, the return series is called a geometric Brownian time series. This type of time series is difficult to predict.

ii) When H is less than 0.5, the series is said to have mean return.

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

3.
The downside risk: We have only considered the negative returns given by the UCITS for this measure.

X = returns below zero

Y = Sum of all squares of X

Z = Y / number of days taken to calculate the ratio

Downside risk = Square root of Z

4.
Outperformance: It is measured by Jensen’s Alpha for the past three years. Jensen’s Alpha shows the risk-adjusted return generated by a mutual fund relative to the expected market return predicted by the Capital Asset Pricing Model (CAPM). A higher Alpha indicates that the performance of the portfolio has exceeded the returns predicted by the market.

Average returns generated by the MF Scheme =

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

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

Methodology for debt funds:

1.
Average sliding returns: Rolled daily for three years.

2.
Consistency over the past three years: Hurst Exponent, H is used to calculate the consistency of a fund. The exponent H is a measure of the randomness of a fund’s NAV series. Funds with a high H tend to exhibit low volatility compared to funds with a low H.

i) When H = 0.5, the return series is called a geometric Brownian time series. This type of time series is difficult to predict.

ii) When H is less than 0.5, the series is said to have mean return.

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

3.
The downside risk: We have only considered the negative returns given by the UCITS for this measure.

X = returns below zero

Y = Sum of all squares of X

Z = Y / number of days taken to calculate the ratio

Downside risk = Square root of Z

4.
Outperformance: Fund return – Benchmark return. The rolling daily rolling returns are used to calculate the performance of the fund and the benchmark index, then the active performance of the fund.

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

Methodology for hybrid funds:

1.
Average sliding returns: Rolled daily for three years.

2.
Consistency over the past three years: Hurst Exponent, H is used to calculate the consistency of a fund. The exponent H is a measure of the randomness of a fund’s NAV series. Funds with a high H tend to exhibit low volatility compared to funds with a low H.

i) When H = 0.5, the return series is called a geometric Brownian time series. This type of time series is difficult to predict.

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

3.
The downside risk: We have only considered the negative returns given by the UCITS for this measure.

X = returns below zero

Y = Sum of all squares of X

Z = Y / number of days taken to calculate the ratio

Downside risk = Square root of Z

4.
Outperformance

I)
Share in equity: It is measured by Jensen’s Alpha for the past three years. Jensen’s Alpha shows the risk-adjusted return generated by a mutual fund relative to the expected market return predicted by the Capital Asset Pricing Model (CAPM). A higher Alpha indicates that the performance of the portfolio has exceeded the returns predicted by the market.

Average returns generated by the MF Scheme =

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

ii)
Part of the debt: Fund return – Benchmark return. The rolling daily rolling returns are used to calculate the performance of the fund and the benchmark index, then the active performance of the fund.

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

(Disclaimer: Past performance is no guarantee of future performance.)

About Myra R.

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