Best SIP Mutual Funds to Invest in 2018
Investing in mutual funds has become
a popular option for investors over the past few years. There are plenty of,
systematic investment plans, SIP plans, that are available based on the
investor’s preferences.
Mutual funds pool funds from various investors and the fund
manager keep a track of the growth of the invested funds in the form of
securities, bonds, and stocks. Professional management of funds ensures that
the principal amount is reinvested in the best possible manner yielding maximum
profit.
Since there are so many options to choose from making it a
difficult task to select SIP plans
best suited for investors. However, this article lists out the best mutual
funds to invest in 2018, which are as follows:
• Aditya Birla Frontline Sun
Life Equity Fund
• Reliance Small Cap Fund
• SBI Blue Chip Fund
• ICICI Pru Mutual Fund
Balanced
• Franklin India
Companies Higher Growth Fund
• Kotak Select Focus
Fund
Aditya Birla Frontline Sun Life Equity
Fund
Birla Sun’s SIP plans are an excellent option for investors who
aim to maintain a portfolio of long-term investments. The stocks invested are
diversified across industries with a target of 100% allocation of equity.
As for performance, this fund has been able to outperform
competition assuring a 17.7 percent returns over the last five years. Even as a
short-term investment option, investors can expect to receive a 15 percent
return.
If an investor an amount of Rs 1,000 over a period of five years
then the total investment will be Rs 60,000 and investing in this mutual fund
can yield Rs 91,000. This investment plan has remained one of the top
performing SIP plans for the last 10 years.
Reliance Small Cap Fund
The Reliance Small Cap Fund is another top performing SIP plan
that investors should consider investing in. As the name suggests, this mutual
fund invests in small companies.
This fund has an excellent track record as it has been able to
generate 30 percent annual returns. If an investor saves Rs 1,000 then over a
period of 5 years, for example, the invested amount will be Rs 60,000 but the
investment will grow to Rs 1,36,000.
For this reason, Reliance Small Cap Fund has a place on the top
SIP plans investors should invest in 2018.
SBI Blue Chip Fund
SBI Blue Chip Fund invests is one of the popular SIP plans and it
is a large-cap fund. This fund has been able to provide 18 percent annual
return in a five-year period.
On investing Rs 1,000 in this mutual fund and investing in it over
a 5-year period the investment will grow to Rs 96,000. Additionally, Crisil
ranks this fund as number 1 due to the returns and the fact that it is a low
risk and high returns.
In order to receive the best returns on this mutual fund investors
are encouraged to invest in this fund for a period of 10 to 20 years.
ICICI Pru Mutual Fund Balanced
The approach taken by ICICI Pru Mutual Fund Balanced is investing
in 20 large cap companies from the 200 top stocks listed in NSE. The fund has
been able to compete with peers and providing investors 16 percent annualized
returns over the last five years.
For an investment of Rs 1,000 over a period of 5 years in this
fund would yield Rs 90,5000. One of the highlights of this fund is that it has
performed well in different market cycles.
This investment plan yields best results over the period of 10 to
15 years. Also, the risk involved in investing in this fund is below average,
which is a source of relief to investors.
Franklin India Companies Higher
Growth Fund
The main aim of this fund is to invest in Indian companies or
sectors that have high growth rate. The focus is on companies that offer best
risk, growth, and valuation.
The fund has an annual 22 percent return over the last five years.
If an investor invests Rs 1,000 per month then at the end of years of investing
in the find the principal amount grows to 1 lakh.
The benefit of investing in sip plan is that the diversified
fund’s performance across various cycles has been excellent. To receive best
returns investors should invest in this fund for 5 to 10 years.
Kotak Select Focus Fund
The Kotak Select Focus Fund aims at creating a diversified
portfolio of equity and related instruments. The fund provides a 20 percent
return over the last five years.
If an investor invests Rs 1,000 per month then the principal
amount invested grows to 1 lakh. It is an excellent mutual fund to invest in
since the diversified fund since Crisil ranks it as number 1 with good returns.
These six SIP plans are excellent investment options to invest in
this year.
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