Mutual Funds have become a household name with investors as they include unparalleled investment options for wealth creation in India. Not everyone possesses an acute sense of making such investments. To begin with, you need time and energy to understand the investment space followed with detailed research and analysis on the best performing ones. With the market flooded with wide-ranging Mutual Funds, you are likely to be more confused than ever. Investing in Mutual Funds for long term Systematic Investment Planning (SIP), offer you benefits even in a volatile market. Such investments follow a disciplined plan whereby you invest on a daily, monthly or weekly basis and enjoy compounded benefits.
Large Cap Funds with regards to Systematic Investment Planning (SIP) are best defined as Equity Mutual Funds which invest more than 75% in Large Cap stocks for a time period of at least six months and more. You can enjoy a generous return of at least 17% and perhaps even more ever year. Some noteworthy names under this category are UTI Equity Fund, SBI Blue Chip Fund, UTI Top 100 Fund and the ICICI Prudential Focussed Blue Chip Equity Fund. These constitute some of the best Mutual Funds for SIP long term investments. Equity Mutual Funds which invest in both, large-cap as well as mid-cap stocks are known as large & mid-cap funds. These have maintained a return of 15% every year. The high performers in this category are BNP Paribas Equity Fund, Franklin India Prima Plus, and Franklin India Flexi Cap. Equity Mutual Funds which invest their money in Mid Cap and Small Cap stocks are categorised as Mid Cap Small Cap funds. The average rate of return in this category is 29% per annum. Some of the good ones to invest in include BNP Paribas Mid Cap Fund, SBI Magnum Mid Cap and Franklin India Smaller Companies Fund. SIP funds offer you the ease of investing a small amount on a regular basis. This serves as assured savings &complements your financial security in the long run. You can re-invest the returns and avail of incremental principal amount for the entire time-frame you invest your money in. You enjoy tax-free returns after one year of investments in equity mutual funds and after three years of investments in debt mutual funds. You can also enjoy tax deductions under both RGESS and ELSS segments. SIP investments have a history of consistent performance with feasible growth returns. |
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September 2016
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