Buy best 5 mutual funds for sip 2022
Buy best 5 mutual funds for sip 2022
over 2,500 mutual fund schemes and 44 AMFI certified fund companies in India, it can be difficult to choose just 4-5 funds for your portfolio.
The availability of so many funds can make it difficult for investors to select the optimal plan for their needs. So to make that effort easier, we have compiled a list of the best five mutual funds in India where you can start a SIP.
In this blog, we will look new investors should consider investing in mutual funds to build wealth and achieve their long-term goals.
Why should you invest in Mutual Funds?
Investing in Mutual Funds is a simple, paperless process. Investors can keep an eye on the market and take decisions based on their needs.
Also, switching between mutual fund schemes and portfolio rebalancing helps in keeping the returns on track.
You can build a diversified mutual fund portfolio by investing Rs 500 per month in mutual fund schemes of your choice through SIP. You can also invest in a lump sum or as part of a Systematic Investment Plan (SIP).
Compared to lump-sum investment, however, a SIP can reduce the overall cost of investment while harnessing the power of compounding profits.
Then tax deduction is available for special financial instruments under Section 80C of the Income Tax Act, up to a maximum of Rs 1.5 lakh in each financial year, and tax-saving mutual funds are one of them.
Equity Linked Savings Scheme (ELSS) is a popular tax-saving option for Indians, owing to its high returns and the shortest lock-in period of three years among all the Section 80C options.
Your mutual fund investments are managed by a professional fund manager backed by a research team. The fund manager develops an investment strategy for your asset allocation.
The research team selects suitable securities based on the investment objectives of the fund.
Why should start SIP?
One of the most common reasons why people are attracted to SIP investments is to inculcate the habit of saving regularly at small and regular intervals.
Some of the advantages of SIP are as follows:
Makes a habit of investing regularly
SIP investments regularly monthly, quarterly, or every six months on a predetermined day. Investors benefit significantly from this disciplinary approach to regular investing because they are not required to actively track the market.
Investing through SIP is a simple process. An investor only has to ask his bank to enable auto-debit from his account. This eliminates the need for the investor to go out and pay his installment amount manually; Instead, technology does it for them.
Rupee cost averaging
Rupee cost averaging allows investors to beat market volatility and make their investments less volatile. When stock prices are at their lowest levels the investor allocates more units, and fewer units are at the highest levels, averaging savings.
The power of compounding implies making profits by investing your profits. To maximize the benefits of compounding in mutual funds, one should start investing early and stay invested for a long period.
owning more stock in smaller quantities
If investors decide to buy individual stocks directly to diversify their portfolios, they will need a large surplus. However, if you invest in mutual funds, you can buy these shares for as little as a few thousand rupees.
Now, let us have a look at the list of mutual funds that we have selected for you to start your SIP.
best 5 mutual funds for sip 2022
Axis Bluechip Fund
It is an equity-oriented fund. The fund’s primary objective is to achieve long-term capital growth by investing primarily in equity, and equity-related securities of large-cap companies including derivatives.
This fund is best suited for investors with a high-risk tolerance and wishing to earn high returns on investments over a long period.
SBI Focused Equity Fund
It is an open-ended equity fund that invests in equities and equity-related securities, to generate capital appreciation over a long period.
SBI Focused Equity Fund is a high-risk equity-oriented fund that offers a high return on investment.
Kotak Debt Hybrid Fund
It is an open-ended scheme that aims at increasing the returns on a portfolio of debt instruments while maintaining a moderate exposure to equity and equity-related instruments.
These funds are suitable for investors who cannot tolerate extreme volatility in the value of their investments and are satisfied with moderate returns that slightly exceed returns from fixed income options.
The debt portion of these funds generates a modest but consistent flow of income. It is recommended that you invest only if you have an investment horizon of three years or more.
Edelweiss Balanced Advantage Fund
Edelweiss Balanced Advantage fund one of the best SIP schemes is an open-ended fund, whose primary objective is to provide long-term capital growth primarily through investments in equity and debt instruments.
This fund is an excellent investment option for investors with a medium to high-risk tolerance and desire for profitable returns on investment.
UTI Nifty Index Fund
UTI Nifty Index Fund is an open-ended index fund scheme to replicate the performance of the Nifty 50 Index, which is subject to tracking error.
These funds help beat inflation over a long period and generate high returns, which are suitable for investment purposes with a tenure of 10-15 years or more (minimum five years).
We like to believe that the following schemes are good to invest in these funds to meet your long-term financial goals. One can invest in these schemes with a tenure of five to seven years. However, please do not assume that these plans are risk-free or will not fluctuate.
As Indians, you may not remember every ad you have seen, but we are sure you will remember the golden words that have been said over and over after every mutual fund ad – mutual funds ” best 5 mutual funds for sip” are subject to market risks, please read the offer document carefully before investing”