A minimum investment is the smallest dollar or share quantity that an investor can purchase when investing in a specific security, fund, or opportunity. A hedge fund, for example, may require that their clients deposit at least $100,000 with the firm. Or, a mutual fund may require at least $3,000 to be invested.
List of Mutual Fund for Beginners in India Ranked by Last 5 Year Returns
Now, you can invest in SIPs with as low as Rs.Best SIP Plans For 1,000 Per Month.
|Fund Name||Fund Type||Risk Profile|
|Mirae Asset Tax Saver Fund||SIP ELSS Fund||Moderately High Risk|
|Aditya Birla Sun Life Digital India Fund||SIP Equity Fund||Very High Risk|
|Kotak Opportunities Fund||SIP Equity Fund||Very High Risk|
Here’s the list of the five best mutual funds for SIP:
|Fund Name||3-year Return (%)*|
|Mirae Asset Emerging Bluechip Fund Direct-Growth||23.90%|
|PGIM India Flexi Cap Fund Direct-Growth||26.63%|
|SBI Focused Equity Fund Direct Plan-Growth||18.48%|
|Canara Robeco Bluechip Equity Fund Direct-Growth||19.90%|
|Fund||3-Year Returns||5-Year Returns|
|Axis Banking & PSU Debt Fund Growth||9.22%||8.68%|
|DSP Banking & PSU Debt Fund Regular Growth||8.73%||8.60%|
|ICICI Prudential Banking and PSU Debt Fund Growth||8.06%||8.58%|
|SBI Banking and PSU Fund Regular Plan Growth||9.07%||8.44%|
Benefits of mutual funds
High returns: Mutual funds are known to generate high returns since there’s no cap on earnings. Depending on the performance of the security where the money is invested, returns are generated. Since financial experts invest money on your behalf, returns are generally high.
Systematic Investment Plan is a better investment option in comparison to Fixed Deposit especially if you consider the flexibility of investment, advantage of diversification, tax benefits, and higher returns. That is why it is better to invest in a systematic investment plan than in fixed deposit.
If you invest just Rs 10,000 per month in an equity fund through SIP for 30 years, you can accumulate a corpus of Rs 3.53 crore. The power of compounding grows wealth and makes you rich.
Short-term mutual funds are suitable for those investors having an investment horizon of shorter than three months. These funds are a better option than a regular savings bank to park your surplus funds. Short-term funds are capable of providing much higher returns than bank deposits and provide much-needed liquidity.
There is no fixed tenure for SIP. However, the minimum period is six months. RDs are not prone to risks and are a safe form of investment.
Therefore, your investments in mutual funds should be 20% of your monthly salary. If you are able to cut down on spending on wants, then you can utilise the same in increasing your mutual fund investment.
Mutual funds are largely a safe investment, seen as being a good way for investors to diversify with minimal risk. But there are circumstances in which a mutual fund is not a good choice for a market participant, especially when it comes to fees.
Mutual fund fees are expressed as a percentage, or expense ratio, of your overall investment. They typically range from . 5% to 1.5% for actively managed funds, and . 2% for passively managed funds.
High Return Mutual Funds
If you are actually looking at equity funds to help you achieve your long term goals then you at least need to give yourself a holding period of 8-10 years. For debt funds, the outlook on rates should be your key driver for holding period.. Unlike equity funds, the debt funds do not really depend on long term holding.
Unless you are dealing in a significant number of stocks at the same time, your money will be at high risk. Mutual funds have a longer-term growth trajectory and will give good returns only after 5-7 years, while shares could give you quick returns if you buy and sell at the right time and choose high-growth stocks.
Top 10 mutual funds to invest in 2022
5 Best Banking Funds SIP To Invest In India 2021
|Banking Mutual Funds||1 Year Return||5 Years Return|
|SBI Banking & Financial Services Fund||83.11%||20.01%|
|Tata Banking and Financial Services Fund||71.13%||19.5%|
|Invesco India Financial Services Fund||74.97%||18.25%|
|Sundaram Fin Services Opp Reg||81.58%||16.63%|
Growth funds invest primarily in stocks. Over a long-term holding period, stocks tend to outperform all other asset classes, including bonds and money market funds, with a long-term average return approaching 10 percent annually. At that rate, a stock fund would double in a little over seven years.
Once you are ready to continue making your SIP payments, you can intimate your bank and your mutual fund company. However, you need to keep in mind that if you give the ‘stop payment’ instruction for a period of more than 2 months, then your SIP will be cancelled by the AMC.
SIPs have a few limitations that you must keep in mind before investing in them. They are meant for the long term and may not give you a good return in the short term. You can’t invest and forget through SIPs.