Best Mutual Fund SIP Portfolios to Invest in 2022

The new year is the perfect time to start your systematic mutual fund investment plans. However, the problem is that most investors don’t know how to create a mutual fund portfolio 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 creating a wallet. You don’t have to shortlist top performers in categories that fit your risk profile and goals. You can leave it to us. You can also entrust us with the composition, monitoring and review of the portfolio.

ETMutualFunds.com launched its recommended mutual fund portfolios for investing via SIPs in October 2016. Since then, we have been closely monitoring the patterns of these portfolios and regularly providing an update on them. We also tell our readers to replace bad performers. 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 check the portfolio to see if all of your programs have held their place.

The best mutual fund SIP 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 5,000, between Rs 5,000 and 10,000 and over Rs 10,000 – when creating these wallets. 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 every month.

Recommended portfolio for conservative investors:

AND online

Recommended portfolio for moderate investors:

sip the wallet 2AND online


Recommended portfolio for aggressive investors:

sip an aggressive portfolioAND online

Here is our methodology:

Methodology for equity funds:

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

1.
Average rolling yields: Rided daily for the past 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 show low volatility compared to funds with a low H.

i) When H = 0.5, the return series is said to be 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 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 the trend of the series.

3.
Downside risk: We considered only the negative returns given by the mutual fund plan 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 last 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 expected by the market.

Average returns generated by the MF Scheme =

[Risk-FreeRate+MFSchemeBeta*{(AverageIndexReturn-Risk-FreeRate}

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

Methodology for debt funds:

1.
Average rolling yields: Rided daily for the past 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 net asset value series. Funds with a high H tend to show low volatility compared to funds with a low H.

i) When H = 0.5, the return series is said to be 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 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 the trend of the series.

3.
Downside risk: We considered only the negative returns given by the mutual fund plan 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 returns rolled daily are used to calculate the return of the fund and the benchmark, and then the active return of the fund.

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

Methodology for hybrid funds:

1.
Average rolling yields: Rided daily for the past 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 net asset value series. Funds with a high H tend to show low volatility compared to funds with a low H.

i) When H = 0.5, the return series is said to be 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.
Downside risk: We considered only the negative returns given by the mutual fund plan 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 of equity: It is measured by Jensen’s Alpha for the last 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 expected by the market.

Average returns generated by the MF Scheme =

[Risk-FreeRate+MFSchemeBeta*{(AverageIndexReturn-Risk-FreeRate}

ii)
Debt part: Fund return – Benchmark return. The rolling returns rolled daily are used to calculate the return of the fund and the benchmark, and then the active return of the fund.

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

(Disclaimer: past performance is not indicative of future performance.)

Dolores W. Simon