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SIP Investments in ELSS Mutual Fund, Balanced Funds, Large-Cap Funds

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SIP Investment: For First Time Investors

Updated on September 16, 2019 , 1282 views

SIP or a Systematic Investment plan is an investment mode that allows you to invest your money in a fixed duration of time. Generally, a SIP investment starts the process of wealth creation over a regular interval of time that can be monthly, quarterly and annually. The investment through a SIP or Systematic Investment Plan is invested in stock markets, thus generates good returns when invested for a long duration. A SIP investment is considered to be one of the Best ways to invest money as the money invested is distributed over a certain duration. Unlike lump sum investment, SIP investment does not take place all at once, therefore, it is convenient for investors. With a simple SIP investment, one can start Investing small sums of money from a young age. We have a list of some of the Top SIP investments for you. Have a look!

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Best Mutual Funds for SIP 2019

To make a SIP investment it's important to understand the Best SIP Plans based on your risk appetite. There is a huge category of Equity Mutual Funds in which you can invest through a SIP. These include Large Cap, mid cap funds, Small cap funds, Multi Cap Funds. One can also invest in Balanced Funds via a SIP. But, for the first time investors, the best investment options for SIP might be-

1. Large-Cap Mutual Funds

Investing in Large cap funds via a SIP or Systematic Investment Plan is beneficial. Usually, Large-cap Funds invest in firms that have a possibility of showing steady growth and earning high profits year after year. These funds are generally stable and offer stable returns when invested over a long period of time.

FundNAVNet Assets (Cr)Min SIP Investment3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2018 (%)
SBI Bluechip Fund Growth ₹37.5472
↑ 0.12
₹21,585 500 -6.1-2.6-2.25.18.5-4.1
JM Core 11 Fund Growth ₹8.541
↑ 0.04
₹48 500 -4-6.3-2.56.59.3-5
Indiabulls Blue Chip Fund Growth ₹19.91
↑ 0.06
₹222 500 -7.1-4.9-3.66.67.8-1.4
Essel Large Cap Equity Fund Growth ₹21.744
↑ 0.06
₹104 500 -6.2-4-4.35.37-6
ICICI Prudential Bluechip Fund Growth ₹40.09
↑ 0.04
₹21,125 100 -6-4.1-4.47.37.9-0.8
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 18 Sep 19

2. Mid-Cap Mutual Funds

Mid-cap funds invest in most emerging companies. To attain good returns one should invest for a longer duration in these funds. Longer than large-cap funds. Therefore, SIP benefits the most. Investing via a SIP tends to lower the risk and maintains the stability of returns.

FundNAVNet Assets (Cr)Min SIP Investment3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2018 (%)
Kotak Emerging Equity Scheme Growth ₹36.329
↑ 0.12
₹4,321 1,000 -5.2-4.5-5.75.111.2-11.7
Sundaram Mid Cap Fund Growth ₹421.589
↑ 1.14
₹5,446 250 -7.5-9-12.71.48.1-15.4
L&T Midcap Fund Growth ₹120.65
↑ 0.53
₹4,805 500 -6.3-8.4-12.85.910.4-12
Taurus Discovery (Midcap) Fund Growth ₹39.12
↑ 0.18
₹46 1,000 -6.3-8-13.54.48.1-7
DSP BlackRock Midcap Fund Growth ₹51.71
↑ 0.21
₹5,856 500 -3.5-3.7-4.65.210.4-10.2
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 18 Sep 19

3. ELSS or Tax Saving Mutual Funds

ELSS or Equity Linked Savings Scheme is equity diversified Mutual Fund that invests the major part of the fund corpus, generally more than 80%, in equity instruments and provides market linked returns. Under Section 80C of the Income Tax Act, ELSS funds act as a tax saving Mutual Funds and allow tax deductions upto INR 1,50,000 for the taxable income. So, all those you have just started earning a taxable income can now invest in ELSS funds to save tax and earn good returns as well.

FundNAVNet Assets (Cr)Min SIP Investment3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2018 (%)
Tata India Tax Savings Fund Growth ₹17.2584
↑ 0.07
₹1,807 500 -6.5-3.3-0.57.6 -8.4
IDFC Tax Advantage (ELSS) Fund Growth ₹51.05
↑ 0.29
₹1,902 500 -8.9-8.4-10.66.68.3-9.4
DSP BlackRock Tax Saver Fund Growth ₹46.515
↑ 0.13
₹5,434 500 -3.4-1.80.679.7-7.6
Principal Tax Savings Fund Growth ₹190.62
↑ 0.54
₹381 500 -7.4-7.6-10.15.67.5-9.2
L&T Tax Advantage Fund Growth ₹49.982
↑ 0.15
₹3,186 500 -6.7-5.3-10.25.67.8-8.1
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 18 Sep 19

4. Small-Cap Mutual Funds

Small-cap funds come after large and mid cap funds. These funds invest in startups or small-sized companies, therefore these funds take time to grow and generate returns. The performance of the fund depends on the growth of the companies. Thus, investors are advised to take a SIP route and stay invested for a long-term, ideally for more than 7 years.

FundNAVNet Assets (Cr)Min SIP Investment3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2018 (%)
SBI Small Cap Fund Growth ₹49.3294
↓ -0.05
₹2,255 500 -2.5-3.7-9.51115.2-19.6
L&T Emerging Businesses Fund Growth ₹21.839
↑ 0.10
₹5,611 500 -6.8-11.1-17.26.911.1-13.7
Aditya Birla Sun Life Small Cap Fund Growth ₹29.5102
↑ 0.10
₹2,174 1,000 -11.1-15.9-21.4-1.47.3-22.6
Franklin India Smaller Companies Fund Growth ₹47.6044
↑ 0.12
₹6,729 500 -10-11.9-14.20.17.5-17.4
DSP BlackRock Small Cap Fund  Growth ₹49.669
↓ -0.02
₹4,571 500 -9.2-9.5-14.7-1.19-25.5
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 18 Sep 19

5. Multi-Cap Mutual Funds

These funds invest across large, mid and small caps, thus the name-multi-cap. Multi-cap funds are a good option for diversifying a portfolio. As, these funds invest across market capitalization, it balances risks and returns very well. Taking a SIP route can benefit by generating stable returns in the long-run.

FundNAVNet Assets (Cr)Min SIP Investment3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2018 (%)
Kotak Standard Multicap Fund Growth ₹33.686
↑ 0.13
₹24,960 500 -6.1-3.4-18.210.8-0.9
Mirae Asset India Equity Fund  Growth ₹48.547
↑ 0.19
₹13,492 1,000 -5.3-4-1.49.610.4-0.6
Motilal Oswal Multicap 35 Fund Growth ₹24.6721
↑ 0.09
₹12,413 500 -5.5-4.6-5.67.113-7.8
JM Multicap Fund Growth ₹31.0318
↑ 0.12
₹129 500 -1.10.5-0.48.29.2-5.4
SBI Magnum Multicap Fund Growth ₹47.1211
↑ 0.12
₹7,465 500 -4.5-1.6-0.57.710.8-5.5
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 18 Sep 19

6. Balanced Funds or Hybrid Funds

Another Mutual fund that is suitable for first-time SIP investment is Balanced Fund. Balanced Mutual Funds invest more than 65% of their assets in equity instruments and the remaining assets in debt instruments. These funds are less risky than Equity Funds while providing equity comparable returns. This makes balanced funds one of the ideal investment options for beginners.

FundNAVNet Assets (Cr)Min SIP Investment3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2018 (%)
Edelweiss Arbitrage Fund Growth ₹14.1438
↓ 0.00
₹3,757 500 1.53.56.56.26.86.1
Aditya Birla Sun Life Equity Hybrid 95 Fund Growth ₹717.6
↑ 1.62
₹11,790 100 -4.3-4.5-4.83.77.5-5
Principal Hybrid Equity Fund Growth ₹72.06
↑ 0.20
₹1,600 500 -4.6-6.4-6.57.38.5-1.5
SBI Multi Asset Allocation Fund Growth ₹27.5651
↑ 0.12
₹257 500 2.73.77.15.980.4
Reliance Arbitrage Fund Growth ₹19.5311
↓ 0.00
₹8,904 100 1.53.56.76.36.86.8
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 18 Sep 19

Benefits of SIP Investment

Benefits-of-SIP-Investment

Generally, a SIP investment is considered to be an ideal way, when investing in Mutual Funds for the first time. Investing, for beginners, is usually very complicated and chaotic. They are often found facing challenges to channelize their savings into investments. Consider the above-mentioned best mutual funds for SIP to make your first SIP investment. Don’t miss an opportunity to save big by fearing to take the first step. Your first salary credited, make a wise SIP investment now!

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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