SIP is very famous in India. It is the best way to invest in mutual funds and get a good interest rate from it.
But what actually a SIP means? It is a way of investing in Mutual Funds. Any individual can invest any amount for a decided period of time. The person has the flexibility to decide the duration of their investment.
How SIP works?
- In SIP, the money automatically gets debited from your bank account.
- Then that money gets invested in the specific mutual fund scheme decided by the investor.
- You NAV is the number of units that will be provided based on the current status of market.
- Finally, you can invest in any mutual fund through SIP.
Here is a list of some best SIP plans:
- ICICI Prudential Focused Bluechip Equity Fund
This fund focuses on investing in the top 20 companies out of the 200 top companies which are listed by the NSE. As the fund crossed the Rs. 1,000 crores as the minimum additional investment, it has started putting its money outside the top list. Nowadays, major investments are in large cap that provides stability with consistency for the people looking for capital appreciation. As a result of this constant record and satisfied customers, ICICI Focused Bluechip Equity Fund is counted as one of the best SIP plans.
- HDFC Equity Fund
HDFC Equity Fund is one of the best equity mutual funds available in India. This scheme provides its investors with long term satisfaction through investments mainly made into high growth firms that feature solid financials and noticeable advantage and flexibility to invest in debt/money market investments when required. If you take a look at the current portfolio which reveals it to be overweight in the large-capsegment with an allocation of almost 75% with mid caps accounting for a major portion of the balance with consistent performance over the years, this fund is one of the best SIP plans that an investor can opt for.
- Axis Long Term Equity Fund
This fund is the most preferred SIP plan available for people looking for high returns on their investments. This mutual fund scheme performance can be best explained by stating the fact that this fund has provided high returns surpassing its benchmark since the launch. The fund is mainly focused on creating consistent ROI with including equity derivatives and equity stocks in the portfolio. With returns more than 17% and 23% for 3 year & 5 year tenure, this ELSS fund has been the first choice for investors.
- Reliance Tax Saver Fund
This fund is the best amongst ELSS funds that provide high returns. This fund which is allowed under 80C deduction is believed to be best for investors looking for growth in principal amount over a period of time and most of the times the fund invest in equities. The fund is following the multi cap way till date as it has invested around 60% in large cap stocks and the balance in small and mid cap investments. Reliance Tax Saver Fund’s returns for 3 & 5 year tenure is between 17% to 22%, which is undoubtedly more than fund’s benchmark level.
- Aditya Birla Sun Life Pure Value Fund
A very consistent fund in terms of investments is taking the high possibility of the long cap appreciation. This has appeared kind of mid-cap inclined fund, but the stock continues to provide results in the high growth area. Individual investing in the scheme can anticipate outperformance, specifically during the first phase with the ability to bear losses during several phases. This fund is for sure one of the best ELSS funds available in India.