There are so many factors that come together when you, as an investor, are looking for the best SIP Fund to invest in that will not rob you off your money by giving you minimal to zero rate of interest once the investment period ends.
Factors that range from mean rolling returns, consistency that the fund has shown in the past three years, the downside risk, asset size, and lastly the percentage of growth fund had shown from what was expected of it.
Now, while these factors in themselves are very crucial to analyse if we need to get the most returns out of our invested amount, but the amount of time crunch that surrounds millennial investors (one of the reason why they choose SIP investment in the first place), it is next to impossible to make time to analyse the market and dissect a fund before investing.
Understanding how difficult it is for the modern day investors to be on top of their market game, especially when they have a 9 hours job blocking their mind, we will be giving you insights into which Systematic Investment Plan Funds you should invest in, in this article today.
Process we followed to select these funds out of the lot
If your aim is to generate high returns on a short term investment basis, SBI SIP should be your first choice.
SBI SIP Plans have given 35% annual rate of return in the past 5 years. If you invest Rs.1000 in SIP every month in SBI Mutual funds for 5 years, your invested amount would be Rs.60000 in the end of the period, while your investment value would be Rs1.31 lakh.
SBI Large cap funds have a similar story to share. They are offering 15% returns in one year, 10.6% in 3 years, and 20.6% in 5 years tenure.
2. HDFC Balanced Fund
If hybrid funds are something that belongs to your investor appetite, HDFC Mutual Funds can prove to be the best option.
The fund has given investors 19% annual return in the past 5 years. If you invest Rs.1000 every month via SIP for the next 5 years, your investment would be Rs.60000 and the investment value would grow to Rs.90000 after 5 years through HDFC SIP Plan.
Another reason, beyond the high rate of return, why you should consider HDFC SIP is because the fund has been ranked number 1 by Crisil and 4 star by Value Research Online.
3. Axis Long Term Equity Fund
The Axis Mutual Fund has been an ideal plan for the investors looking for constant returns on tax saving investment amounts. Focused on giving constant ROI in long term, Axis SIP has a portfolio containing both equity derivatives and high-quality equity stocks.
In the past 8 years of its launch, Axis SIP Plans have given the investors return of 12.5% with moderate high risk quotient involved.
If we look at the returns, the ROI that you can expect from Axis SIP is 24.3% in 1 year, 14% in 3 years, and 18.2% in 5 year time.
So these were the three SIP funds that we are betting for in 2018. Do you think there is some other SIP Fund that we should keep a lookout for? Let us know in the comments below.
Factors that range from mean rolling returns, consistency that the fund has shown in the past three years, the downside risk, asset size, and lastly the percentage of growth fund had shown from what was expected of it.
Now, while these factors in themselves are very crucial to analyse if we need to get the most returns out of our invested amount, but the amount of time crunch that surrounds millennial investors (one of the reason why they choose SIP investment in the first place), it is next to impossible to make time to analyse the market and dissect a fund before investing.
Understanding how difficult it is for the modern day investors to be on top of their market game, especially when they have a 9 hours job blocking their mind, we will be giving you insights into which Systematic Investment Plan Funds you should invest in, in this article today.
Process we followed to select these funds out of the lot
- These funds were picked on the basis of highest returns that they received in the past 1, 3 and 5 years.
- Since we are in September, a time of the year when the markets have already reached their peak and are volatile too, we have also noted the 3 months returns while ranking all the funds.
- Mutual Fund Schemes which have been rated by the Crisil board as Rank-1, 2 and 3 are have been given special preference for they signal good fundamentals.
- We have included funds which have been given 3, 4, or 5 stars by Value research Online (VRO).
- Funds have been filtered further on the basis of AUM (Assets under management) score above 500 Crores. A higher AUM score signals a higher investor confidence for these specific mutual funds.
- We have excluded the Direct Plans from this list.
SIP To Invest in 2018
1. SBI Small Cap FundIf your aim is to generate high returns on a short term investment basis, SBI SIP should be your first choice.
SBI SIP Plans have given 35% annual rate of return in the past 5 years. If you invest Rs.1000 in SIP every month in SBI Mutual funds for 5 years, your invested amount would be Rs.60000 in the end of the period, while your investment value would be Rs1.31 lakh.
SBI Large cap funds have a similar story to share. They are offering 15% returns in one year, 10.6% in 3 years, and 20.6% in 5 years tenure.
2. HDFC Balanced Fund
If hybrid funds are something that belongs to your investor appetite, HDFC Mutual Funds can prove to be the best option.
The fund has given investors 19% annual return in the past 5 years. If you invest Rs.1000 every month via SIP for the next 5 years, your investment would be Rs.60000 and the investment value would grow to Rs.90000 after 5 years through HDFC SIP Plan.
Another reason, beyond the high rate of return, why you should consider HDFC SIP is because the fund has been ranked number 1 by Crisil and 4 star by Value Research Online.
3. Axis Long Term Equity Fund
The Axis Mutual Fund has been an ideal plan for the investors looking for constant returns on tax saving investment amounts. Focused on giving constant ROI in long term, Axis SIP has a portfolio containing both equity derivatives and high-quality equity stocks.
In the past 8 years of its launch, Axis SIP Plans have given the investors return of 12.5% with moderate high risk quotient involved.
If we look at the returns, the ROI that you can expect from Axis SIP is 24.3% in 1 year, 14% in 3 years, and 18.2% in 5 year time.
So these were the three SIP funds that we are betting for in 2018. Do you think there is some other SIP Fund that we should keep a lookout for? Let us know in the comments below.
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