SIP is an option to promote investment in the long term. In this, instead of investing lump sum money in a fund, there is a facility of monthly investment.
Best Mutual Funds for SIP: Mutual funds are a safe way to invest in equities. In this, instead of investing money directly in any stock, mutual fund managers invest money in different stocks, which gives investors the benefit of diversification. However, a more secure way to invest money in mutual funds is Systematic Investment Plan ie SIP. This is a long-term promotion option, in which many of the market risks are reduced. Advisors always talk about running SIP for a long time. This also gives tremendous advantage of compounding.
Basically, in SIP, investors get the facility of monthly investment instead of investing lump sum money in a fund. There are many such funds, in which investment can be started with a minimum of Rs 100. This is a better approach for small retail investors. They have to invest a fixed amount every month from their savings. In this, they can also review their investments from time to time. On the basis of which the facility to top up or pause the SIP is also available. There are many such schemes in the market, which have made investors millionaires in the long run.
ICICI Prudential Technology Fund
SIP return in 20 years: 20% p.a.
Value of Rs 5000 Monthly SIP: Rs 1.25 crore
Value of 1 lakh lumpsum investment: Rs 42.37 lakh
Minimum SIP: Rs 100
Assets: 8478 crore (as on 30th April, 2022)
Expense Ratio: 2.03% (as on 30th April, 2022)
SBI Consumption Opportunities Fund
SIP return in 20 years: 19% p.a.
Value of Rs 5000 Monthly SIP: Rs 1.14 crore
Value of 1 lakh lumpsum investment: Rs 42.43 lakh
Minimum SIP: Rs 500
Assets: 953 crore (as on 30th April, 2022)
Expense Ratio: 2.51% (as on 30th April, 2022)
Nippon India Growth Fund
SIP return in 20 years: 19% p.a.
Value of Rs 5000 Monthly SIP: Rs 1.12 crore
Value of 1 lakh lump sum investment: Rs 73 lakh
Minimum SIP: Rs 100
Assets: 12,178 crore (as on April 30, 2022)
Expense Ratio: 1.89% (as on April 30, 2022)
SBI Magnum Global Fund
SIP return in 20 years: 18.75% per annum
Value of Rs 5000 Monthly SIP: Rs 1.05 crore
Value of 1 lakh lumpsum investment: Rs 53 lakh
Minimum SIP: Rs 500
Assets: 4953 crore (as on 30th April, 2022)
Expense Ratio: 2.03% (as on 30th April, 2022)
ICICI Prudential FMCG Fund
SIP return in 20 years: 18.53% p.a.
Value of Rs 5000 Monthly SIP: Rs 1 crore
Value of 1 lakh lumpsum investment: Rs 41 lakh
Minimum SIP: Rs 100
Assets: 908 crore (as on April 30, 2022)
Expense Ratio: 2.50% (as on 30th April, 2022)
SBI Large & Midcap Fund
SIP return in 20 years: 18.22% p.a.
Value of Rs 5000 Monthly SIP: Rs 1 crore
Value of 1 lakh lump sum investment: Rs 44 lakh
Minimum SIP: Rs 500
Assets: 6599 crore (as on 30th April, 2022)
Expense Ratio: 2.08% (as on 30th April, 2022)
(source: value research)
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