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SIP or Systematic Investment plan is one of the best ways to invest in Mutual Funds. It is a smart and hassle-free mode of Investing your money in Mutual Fund schemes. Here, you can invest a certain pre-determined amount at a regular interval (monthly/quarterly, etc.). As you can start your SIP investment with just INR 500, it makes the most affordable means of investment. Your money is auto-debited from your Bank account and invested into the scheme, which indirectly creates a habit of savings in the long-run. SIP investments are a great way to plan your Financial goals. You need to set a specific goal and estimate the time and amount required to fulfil it. Below are the best mutual funds for SIP based on the investment tenure and risk appetite. Investors can target their investment goals and achieve them on time by investing in these schemes.
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Equity Funds are expected to deliver high returns in the long-run, but are risky funds. Investors who can invest for more than 5 years are advised to invest in equity funds. One can also plan their long-term financial goals by investing in these funds.
Fund NAV Net Assets (Cr) Min SIP Investment 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2020 (%) Aditya Birla Sun Life Digital India Fund Growth ₹92.09
↓ -1.67 ₹735 1,000 23.8 60.5 61.1 27 21.2 59 ICICI Prudential Technology Fund Growth ₹103.96
↓ -2.34 ₹938 100 23.3 70.1 70.8 28.9 20.9 70.6 Franklin India Feeder - Franklin U S Opportunities Fund Growth ₹49.5076
↓ -0.62 ₹2,545 500 3.8 13.9 39.6 25 20.8 45.2 SBI Banking & Financial Services Fund Growth ₹21.704
↓ -0.25 ₹1,997 500 33.6 45.3 7.3 11.3 20.6 4.8 Mirae Asset Tax Saver Fund Growth ₹24.179
↓ -0.22 ₹5,044 500 25.8 40.9 23.9 11.4 20.4 21.5 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 15 Jan 21
Debt fund are a good way to secure your money and generate average consistent returns. Investors who are looking for stable returns or those who want to invest for less than three years should consider investing in these funds.
Fund NAV Net Assets (Cr) Min SIP Investment 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 2020 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity IDFC Government Securities Fund - Investment Plan Growth ₹27.8077
↓ -0.05 ₹2,178 1,000 1.1 1.9 14 11.4 13.7 6.02% 6Y 3M 25D 8Y 5M 5D Kotak Gilt Investment Fund - Provident Fund & Trust Plan Growth ₹78.34
↓ -0.12 ₹890 1,000 2.3 2.9 13.5 10.2 13.3 5.99% 7Y 29D 12Y 3M 4D Kotak Gilt Investment Fund - Regular Investment Plan Growth ₹76.5741
↓ -0.12 ₹890 1,000 2.3 2.9 13.5 10.2 13.3 5.99% 7Y 29D 12Y 3M 4D ICICI Prudential Constant Maturity Gilt Fund Growth ₹19.0893
↓ -0.04 ₹327 1,000 1.1 2.6 13.5 11.8 13.6 0% IDFC Government Securities Fund - Constant Maturity Plan Growth ₹35.8333
↓ -0.09 ₹344 1,000 1.2 2 13.3 12.8 13.2 6.01% 6Y 5M 26D 8Y 10M 2D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 15 Jan 21
Balanced Fund invest their money both in equity and debt funds. These are less volatile than pure equity Mutual Funds. Balanced funds deliver superior returns over a period of more than three years. Investors who want to invest in equity funds, balanced funds are a great way to start off with.
Fund NAV Net Assets (Cr) Min SIP Investment 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2020 (%) BNP Paribas Substantial Equity Hybrid Fund Growth ₹15.4949
↓ -0.13 ₹483 300 19.4 24.4 16.2 11.3 14.9 Canara Robeco Equity Debt Allocation Fund Growth ₹205.62
↓ -1.81 ₹3,906 1,000 16.2 25.3 20.2 11.1 13.8 19.7 Axis Triple Advantage Fund Growth ₹25.5215
↓ -0.17 ₹630 1,000 17.3 25.1 17.2 10.9 12 18 Edelweiss Balanced Advantage Fund Growth ₹31.06
↓ -0.20 ₹1,924 500 16 23.4 24.4 10.9 11.7 22.6 Mirae Asset Hybrid Equity Fund Growth ₹18.41
↓ -0.15 ₹4,139 1,000 18.6 26.1 15.9 9.5 14 13.7 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 15 Jan 21
The investment objective of the scheme is to seek long term capital appreciation by investing atleast 80% of its net assets in equity/equity related instruments of the companies in Information Technology Sector in India.However, there is no assurance or guarantee that the investment objective of the Scheme will be achieved.The Scheme does not assure or guarantee any returns. TATA Digital India Fund is a Equity - Sectoral fund was launched on 28 Dec 15. It is a fund with High risk and has given a Below is the key information for TATA Digital India Fund Returns up to 1 year are on To generate long-term capital appreciation for you from a portfolio made up predominantly of equity and equity-related securities of technology intensive companies. ICICI Prudential Technology Fund is a Equity - Sectoral fund was launched on 3 Mar 00. It is a fund with High risk and has given a Below is the key information for ICICI Prudential Technology Fund Returns up to 1 year are on To provide long-term capital appreciation by predominantly investing in equity and equity related securities of technology and technology related companies. Franklin India Technology Fund is a Equity - Sectoral fund was launched on 22 Aug 98. It is a fund with High risk and has given a Below is the key information for Franklin India Technology Fund Returns up to 1 year are on (Erstwhile Aditya Birla Sun Life New Millennium Fund) A multi-sector open-ended growth scheme with the objective of long term growth of capital, through a portfolio with a target allocation of 100% equity, focusing on investing in technology and technology dependent companies, hardware, peripherals and components, software, telecom, media, internet and e-commerce and other technology enabled companies. The secondary objective is income generation and distribution of dividend. Aditya Birla Sun Life Digital India Fund is a Equity - Sectoral fund was launched on 15 Jan 00. It is a fund with High risk and has given a Below is the key information for Aditya Birla Sun Life Digital India Fund Returns up to 1 year are on (Erstwhile SBI IT Fund) To provide the investors maximum growth opportunity through equity
investments in stocks of growth oriented sectors of the economy. SBI Technology Opportunities Fund is a Equity - Sectoral fund was launched on 9 Jan 13. It is a fund with High risk and has given a Below is the key information for SBI Technology Opportunities Fund Returns up to 1 year are on 1. TATA Digital India Fund
CAGR/Annualized
return of 19.8% since its launch. Return for 2020 was 54.8% , 2019 was 7.5% and 2018 was 24.9% . TATA Digital India Fund
Growth Launch Date 28 Dec 15 NAV (15 Jan 21) ₹24.9307 ↓ -0.63 (-2.47 %) Net Assets (Cr) ₹673 on 30 Nov 20 Category Equity - Sectoral AMC Tata Asset Management Limited Rating Risk High Expense Ratio 2.05 Sharpe Ratio 1.1 Information Ratio -0.74 Alpha Ratio -4.44 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-3 Months (0.25%),3 Months and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Dec 15 ₹10,000 31 Dec 16 ₹9,405 31 Dec 17 ₹11,251 31 Dec 18 ₹14,055 31 Dec 19 ₹15,105 31 Dec 20 ₹23,386 Returns for TATA Digital India Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 15 Jan 21 Duration Returns 1 Month 16.6% 3 Month 21.7% 6 Month 59.6% 1 Year 57.7% 3 Year 29% 5 Year 20.1% 10 Year 15 Year Since launch 19.8% Historical performance (Yearly) on absolute basis
Year Returns 2020 54.8% 2019 7.5% 2018 24.9% 2017 19.6% 2016 -6% 2015 2014 2013 2012 2011 Fund Manager information for TATA Digital India Fund
Name Since Tenure Rahul Singh 20 Apr 20 0.7 Yr. Meeta Shetty 20 Apr 20 0.7 Yr. Data below for TATA Digital India Fund as on 30 Nov 20
Equity Sector Allocation
Sector Value Technology 89.85% Industrials 2.64% Communication Services 2.07% Asset Allocation
Asset Class Value Cash 5.44% Equity 94.56% Top Securities Holdings / Portfolio
Name Holding Value Quantity Infosys Ltd (Technology)
Equity, Since 31 Jan 16 | INFY28% ₹230 Cr 1,830,000
↑ 125,000 Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Jan 16 | TCS11% ₹90 Cr 314,000 HCL Technologies Ltd (Technology)
Equity, Since 31 Jan 16 | HCLTECH9% ₹75 Cr 794,000
↑ 41,000 Persistent Systems Ltd (Technology)
Equity, Since 31 Jan 16 | PERSISTENT9% ₹71 Cr 470,363
↑ 60,000 Tech Mahindra Ltd (Technology)
Equity, Since 30 Apr 16 | 5327556% ₹51 Cr 525,000 Wipro Ltd (Technology)
Equity, Since 31 Jul 18 | 5076856% ₹45 Cr 1,176,000 MindTree Ltd (Technology)
Equity, Since 31 Jul 19 | 5328195% ₹41 Cr 245,000 Birlasoft Ltd (Technology)
Equity, Since 31 Jul 20 | 5324004% ₹31 Cr 1,240,000 KPIT Technologies Ltd (Technology)
Equity, Since 31 Jan 19 | 5426513% ₹24 Cr 1,665,000 Tata Elxsi Ltd (Technology)
Equity, Since 31 May 20 | 5004083% ₹23 Cr 124,000 2. ICICI Prudential Technology Fund
CAGR/Annualized
return of 11.9% since its launch. Ranked 37 in Sectoral
category. Return for 2020 was 70.6% , 2019 was 2.3% and 2018 was 19.1% . ICICI Prudential Technology Fund
Growth Launch Date 3 Mar 00 NAV (15 Jan 21) ₹103.96 ↓ -2.34 (-2.20 %) Net Assets (Cr) ₹938 on 30 Nov 20 Category Equity - Sectoral AMC ICICI Prudential Asset Management Company Limited Rating ☆☆ Risk High Expense Ratio 2.6 Sharpe Ratio 1.35 Information Ratio -0.48 Alpha Ratio 4.59 Min Investment 5,000 Min SIP Investment 100 Exit Load 0-1 Years (1%),1 Years and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Dec 15 ₹10,000 31 Dec 16 ₹9,603 31 Dec 17 ₹11,505 31 Dec 18 ₹13,704 31 Dec 19 ₹14,026 31 Dec 20 ₹23,927 Returns for ICICI Prudential Technology Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 15 Jan 21 Duration Returns 1 Month 12.7% 3 Month 23.3% 6 Month 70.1% 1 Year 70.8% 3 Year 28.9% 5 Year 20.9% 10 Year 15 Year Since launch 11.9% Historical performance (Yearly) on absolute basis
Year Returns 2020 70.6% 2019 2.3% 2018 19.1% 2017 19.8% 2016 -4% 2015 3.9% 2014 26.3% 2013 62.6% 2012 17.1% 2011 -18.9% Fund Manager information for ICICI Prudential Technology Fund
Name Since Tenure Sankaran Naren 14 Jul 17 3.47 Yr. Priyanka Khandelwal 8 Jul 20 0.48 Yr. Vaibhav Dusad 2 May 20 0.67 Yr. Data below for ICICI Prudential Technology Fund as on 30 Nov 20
Equity Sector Allocation
Sector Value Technology 67.26% Communication Services 16.32% Industrials 9.44% Consumer Cyclical 1.26% Financial Services 0.83% Consumer Defensive 0.74% Health Care 0.53% Asset Allocation
Asset Class Value Cash 3.62% Equity 96.38% Top Securities Holdings / Portfolio
Name Holding Value Quantity Infosys Ltd (Technology)
Equity, Since 30 Apr 08 | INFY21% ₹247 Cr 1,966,037
↑ 40,000 HCL Technologies Ltd (Technology)
Equity, Since 30 Sep 20 | HCLTECH8% ₹98 Cr 1,039,744
↑ 260,000 Tech Mahindra Ltd (Technology)
Equity, Since 31 Oct 16 | 5327556% ₹73 Cr 749,505
↑ 126,374 Persistent Systems Ltd (Technology)
Equity, Since 31 May 20 | PERSISTENT4% ₹48 Cr 317,847
↑ 79,802 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 May 20 | BHARTIARTL4% ₹48 Cr 936,840
↓ -50,000 IndiaMART InterMESH Ltd (Communication Services)
Equity, Since 30 Jun 20 | 5427264% ₹43 Cr 66,804
↑ 4,000 Tata Consultancy Services Ltd (Technology)
Equity, Since 30 Sep 19 | TCS3% ₹34 Cr 120,185 Cyient Ltd (Industrials)
Equity, Since 30 Jun 18 | CYIENT3% ₹34 Cr 657,374
↑ 52,966 Coforge Ltd (Technology)
Equity, Since 31 Jul 20 | 5325413% ₹32 Cr 118,903
↓ -10,000 Firstsource Solutions Ltd (Technology)
Equity, Since 31 Aug 20 | 5328093% ₹31 Cr 3,049,435
↓ -100,000 3. Franklin India Technology Fund
CAGR/Annualized
return of 19.7% since its launch. Ranked 41 in Sectoral
category. Return for 2020 was 56.8% , 2019 was 12.4% and 2018 was 11.9% . Franklin India Technology Fund
Growth Launch Date 22 Aug 98 NAV (14 Jan 21) ₹281.347 ↓ -1.06 (-0.37 %) Net Assets (Cr) ₹418 on 30 Nov 20 Category Equity - Sectoral AMC Franklin Templeton Asst Mgmt(IND)Pvt Ltd Rating ☆ Risk High Expense Ratio 2.46 Sharpe Ratio 1.34 Information Ratio 0.52 Alpha Ratio 7.26 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-1 Years (1%),1 Years and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Dec 15 ₹10,000 31 Dec 16 ₹9,737 31 Dec 17 ₹11,595 31 Dec 18 ₹12,978 31 Dec 19 ₹14,587 31 Dec 20 ₹22,867 Returns for Franklin India Technology Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 15 Jan 21 Duration Returns 1 Month 13.4% 3 Month 21% 6 Month 55.4% 1 Year 62.7% 3 Year 27.2% 5 Year 20.4% 10 Year 15 Year Since launch 19.7% Historical performance (Yearly) on absolute basis
Year Returns 2020 56.8% 2019 12.4% 2018 11.9% 2017 19.1% 2016 -2.6% 2015 3.8% 2014 16.8% 2013 53.3% 2012 0.3% 2011 -15.5% Fund Manager information for Franklin India Technology Fund
Name Since Tenure Anand Radhakrishnan 3 Mar 07 13.84 Yr. Varun Sharma 30 Nov 15 5.09 Yr. Mayank Bukrediwala 24 Aug 20 0.35 Yr. Data below for Franklin India Technology Fund as on 30 Nov 20
Equity Sector Allocation
Sector Value Technology 67.78% Communication Services 17.28% Consumer Cyclical 4.7% Industrials 2.36% Financial Services 0.64% Real Estate 0.24% Health Care 0.11% Asset Allocation
Asset Class Value Cash 6.7% Equity 93.14% Other 0.16% Top Securities Holdings / Portfolio
Name Holding Value Quantity Infosys Ltd (Technology)
Equity, Since 29 Feb 12 | INFY25% ₹119 Cr 945,647 Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Aug 04 | TCS10% ₹49 Cr 170,000 HCL Technologies Ltd (Technology)
Equity, Since 30 Jun 14 | HCLTECH9% ₹43 Cr 450,000 Franklin Technology I Acc USD
Investment Fund | -8% ₹37 Cr 91,868 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Jan 18 | BHARTIARTL6% ₹31 Cr 600,000 Info Edge (India) Ltd (Communication Services)
Equity, Since 31 Jan 17 | NAUKRI5% ₹22 Cr 46,300 Tech Mahindra Ltd (Technology)
Equity, Since 28 Feb 14 | 5327555% ₹21 Cr 220,000 MakeMyTrip Ltd (Consumer Cyclical)
Equity, Since 31 Mar 20 | MMYT3% ₹13 Cr 60,135 Taiwan Semiconductor Manufacturing Co Ltd (Technology)
Equity, Since 30 Nov 18 | 23303% ₹12 Cr 88,000 Larsen & Toubro Infotech Ltd (Technology)
Equity, Since 30 Apr 19 | 5400052% ₹11 Cr 31,000 4. Aditya Birla Sun Life Digital India Fund
CAGR/Annualized
return of 11.2% since its launch. Ranked 33 in Sectoral
category. Return for 2020 was 59% , 2019 was 9.6% and 2018 was 15.6% . Aditya Birla Sun Life Digital India Fund
Growth Launch Date 15 Jan 00 NAV (15 Jan 21) ₹92.09 ↓ -1.67 (-1.78 %) Net Assets (Cr) ₹735 on 30 Nov 20 Category Equity - Sectoral AMC Birla Sun Life Asset Management Co Ltd Rating ☆☆ Risk High Expense Ratio 2.6 Sharpe Ratio 1.2 Information Ratio 0.46 Alpha Ratio 4.42 Min Investment 1,000 Min SIP Investment 1,000 Exit Load 0-365 Days (1%),365 Days and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Dec 15 ₹10,000 31 Dec 16 ₹9,653 31 Dec 17 ₹11,810 31 Dec 18 ₹13,656 31 Dec 19 ₹14,963 31 Dec 20 ₹23,795 Returns for Aditya Birla Sun Life Digital India Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 15 Jan 21 Duration Returns 1 Month 13.3% 3 Month 23.8% 6 Month 60.5% 1 Year 61.1% 3 Year 27% 5 Year 21.2% 10 Year 15 Year Since launch 11.2% Historical performance (Yearly) on absolute basis
Year Returns 2020 59% 2019 9.6% 2018 15.6% 2017 22.4% 2016 -3.5% 2015 11.2% 2014 21.1% 2013 50.2% 2012 3.7% 2011 -21.8% Fund Manager information for Aditya Birla Sun Life Digital India Fund
Name Since Tenure Kunal Sangoi 15 Jan 14 6.97 Yr. Data below for Aditya Birla Sun Life Digital India Fund as on 30 Nov 20
Equity Sector Allocation
Sector Value Technology 72.92% Communication Services 14.28% Industrials 9.77% Asset Allocation
Asset Class Value Cash 3.03% Equity 96.96% Other 0.01% Top Securities Holdings / Portfolio
Name Holding Value Quantity Infosys Ltd (Technology)
Equity, Since 30 Apr 05 | INFY25% ₹217 Cr 1,724,259
↑ 64,563 Tata Consultancy Services Ltd (Technology)
Equity, Since 30 Apr 05 | TCS11% ₹92 Cr 322,076
↑ 41,479 HCL Technologies Ltd (Technology)
Equity, Since 31 Dec 10 | HCLTECH8% ₹67 Cr 709,931
↑ 142,924 Tech Mahindra Ltd (Technology)
Equity, Since 31 May 13 | 5327557% ₹63 Cr 642,992 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Aug 19 | BHARTIARTL7% ₹58 Cr 1,146,907
↑ 256,493 Cyient Ltd (Industrials)
Equity, Since 31 May 14 | CYIENT5% ₹39 Cr 769,609 Just Dial Ltd (Communication Services)
Equity, Since 30 Sep 19 | 5356484% ₹38 Cr 603,953 Honeywell Automation India Ltd (Industrials)
Equity, Since 30 Jun 18 | 5171744% ₹30 Cr 8,159 Apple Inc (Technology)
Equity, Since 30 Nov 18 | AAPL3% ₹24 Cr 24,481 Persistent Systems Ltd (Technology)
Equity, Since 31 Jul 13 | PERSISTENT3% ₹24 Cr 156,326
↑ 5,000 5. SBI Technology Opportunities Fund
CAGR/Annualized
return of 20.7% since its launch. Ranked 42 in Sectoral
category. Return for 2020 was 47.3% , 2019 was 12.2% and 2018 was 17.1% . SBI Technology Opportunities Fund
Growth Launch Date 9 Jan 13 NAV (15 Jan 21) ₹103.862 ↓ -1.70 (-1.61 %) Net Assets (Cr) ₹367 on 30 Nov 20 Category Equity - Sectoral AMC SBI Funds Management Private Limited Rating ☆ Risk High Expense Ratio 2.62 Sharpe Ratio 1.12 Information Ratio 0.48 Alpha Ratio 1.21 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-15 Days (0.5%),15 Days and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Dec 15 ₹10,000 31 Dec 16 ₹9,670 31 Dec 17 ₹10,928 31 Dec 18 ₹12,801 31 Dec 19 ₹14,367 31 Dec 20 ₹21,168 Returns for SBI Technology Opportunities Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 15 Jan 21 Duration Returns 1 Month 12.2% 3 Month 20.4% 6 Month 47.6% 1 Year 49% 3 Year 25.8% 5 Year 18.4% 10 Year 15 Year Since launch 20.7% Historical performance (Yearly) on absolute basis
Year Returns 2020 47.3% 2019 12.2% 2018 17.1% 2017 13% 2016 -3.3% 2015 2.4% 2014 29.2% 2013 2012 2011 Fund Manager information for SBI Technology Opportunities Fund
Name Since Tenure Anup Upadhyay 1 Jun 11 9.59 Yr. Data below for SBI Technology Opportunities Fund as on 30 Nov 20
Equity Sector Allocation
Sector Value Technology 74.3% Communication Services 13.79% Industrials 2.9% Financial Services 2.55% Asset Allocation
Asset Class Value Cash 6.45% Equity 93.55% Top Securities Holdings / Portfolio
Name Holding Value Quantity Infosys Ltd (Technology)
Equity, Since 31 Jan 03 | INFY25% ₹105 Cr 839,700
↑ 67,400 Tata Consultancy Services Ltd (Technology)
Equity, Since 30 Apr 06 | TCS13% ₹55 Cr 191,411
↓ -2,353 HCL Technologies Ltd (Technology)
Equity, Since 31 Mar 06 | HCLTECH10% ₹42 Cr 439,074
↑ 14,300 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 May 18 | BHARTIARTL9% ₹38 Cr 750,830 Tech Mahindra Ltd (Technology)
Equity, Since 31 Aug 15 | 5327558% ₹34 Cr 352,935 Firstsource Solutions Ltd (Technology)
Equity, Since 31 Oct 20 | 5328096% ₹26 Cr 2,567,000
↑ 640,485 Alphabet Inc A (Communication Services)
Equity, Since 30 Sep 18 | GOOGL5% ₹20 Cr 1,615 Cyient Ltd (Industrials)
Equity, Since 30 Apr 20 | CYIENT3% ₹12 Cr 241,150
↑ 72,600 Persistent Systems Ltd (Technology)
Equity, Since 31 Aug 20 | PERSISTENT3% ₹12 Cr 81,100 Oracle Financial Services Software Ltd (Technology)
Equity, Since 31 Aug 20 | 5324663% ₹12 Cr 36,600
Some of the major advantages of investing in a SIP are as follows:
Most investors are skeptical about the best time to invest in the market. They are worried about the volatile markets. But, rupee cost averaging breaks all the worries. Since you become a regular investor with a SIP, your money fetches more units when the price of shares is low and lesser when the price is high. During the volatile cycle, it may allow you to achieve a lower average cost per unit. Thus, the positives of investing through a SIP becomes quite evident in the times of market fluctuations.
SIPs work on Power of Compounding. Investors can put in a small amount of money and can see how the value increase over time. The longer you stay invested, the greater the value of your investment becomes. As, the returns earned at regular intervals are reinvested in the fund, investors get a return on the return. And the same cycle continues for years. To benefit the most out of the power of compounding, investors should start a savings at an early age to make the most out of it.
With a SIP, investors don’t need to worry about the market timings. SIP helps investors ride the market volatility by averaging out the cost as they invest a fixed sum regularly at various levels.
As you become a regular investor via a SIP, you can easily plan your financial goals. For example, if your short-term goal is buying a car in 2 years, then you can invest in debt funds, and if you have set Retirement planning as your long-term goal then, you should invest in equity funds via a SIP. SIPs also create a regular habit of savings over the long-run. Investors who want to avail all the benefits in their investments should take a SIP route in Mutual Funds.
A sip calculator is the smartest tool to use while investing in Mutual Funds. It helps to determine the expected returns on your SIP investment. You can calculate the amount required for your investment and time period that you need to stay invested to reach the particular financial goal.
When using a SIP calculator, one has to fill certain variables, that includes-
Once you feed all the above-mentioned information, the calculator will estimate the amount that you will receive after your investment tenure, along with the net profit that you will earn.
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