With the help of SIP one can invest in mutual fund in both systematic and automated manner. It is best to stick to monthly SIP plan as you can easily contribute towards it on monthly. If you are new to investment then SIP is the plan to stick to. In systematic investment plan a fixed amount is auto-debited per month from the bank account of the investor on a particular date. According to the investors choice the money get invested automatically.
Initially it becomes little confusing for new investors to decide which mutual fund they should choose for investment. However, with the help of relationship manager and by checking the information online one can easily choose mutual fund. One of the major aspects of SIP is that it hassle-free and easy to deal with.
Moreover, it also provides a disciplined approach to investments and the investors can take advantage of two powerful investment strategies like power of compounding and rupee cost averaging. As there are various mutual funds available in the market here we have discussed some of the best SIP plans to invest in the year.
1. UTI Equity Fund: UTI equity funds runs with a main objective to invest minimum 80% of the funds in equity and instruments related to it. In UTI equity fund the risk factor remains medium to high and the remaining 20% of money is invested in debt instruments with medium to low risk. The UTI equity fund provides low volatility returns during difficult period in equity market.
The major aim of UTI Equity Fund is to invest a minimum of 80% of its funds in equity related instruments and equity. The risk related will be medium to high. The remaining 20% will be invested in debt instruments with medium to low-risk profile. In a particularly difficult period in equity markets, the fund has provided low volatility returns. As compared to S&P and BSE, UTI has given a return of 15.5% in the last year.
2. Birla SL Frontline Equity Fund-
The main objective of this fund is to provide long term capital appreciation to the investors by diversifying across various sections in BSE200. This mutual fund is best known for its consistence performance and can be considered as one of the best SIP plan to consider in case of fulfilling the medium-term goals like planning your child’s education and planning your child marriage.
3. ICICI Pru Focussed Blue Chip Fund-
ICICI Pru Focussed Blue Chip Fund has been a consistent performer form a very long run. This mutual fund provides 11% annualized returns as compared to the other mutual fund schemes. This mutual fund performs best to achieve the sort term goals.
4. Franklin India Smaller Companies Fund
This fund invests up to 75 % of the money in smaller companies. The main aim of this mutual fund is to provide long term capital appreciation from small cap and mid cap companies. Under this fund the major chunk of amount is invested in smaller companies and the rest amount is invested in large caps. This fund is suitably also known as stock fund. As compared to the other mutual fund options the franklin India Smaller Companies fund has provided 19% of the annualized return over 5 years.
So, these are some of the best SIP plans that the investors can choose to invest according to their own requirements.
This is Yash sharma Sr. creative writer. I have written several articles on finance, insurance & loans & I like very much to write insurance articles.