5 Best Mutual Fund SIP Plans to Invest in 2021 for Newbies, First Investor for High Returns

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What is Mutual Fund SIP?

SIP stands for Systematic Investment Plan and is a form of investment in mutual funds. Another investment choice is a lump sum or a one-time payment.

SIP allows you to invest as little as Rs 500 in a mutual fund, which is not possible for most other investment options. There are a variety of mutual funds to choose from, and you can invest in those whose investment objectives and risk levels match your risk profile. A systematic investment plan does not require a large sum of money to start, as the minimum investment is as low as Rs 500, and some funds also provide SIPs for as little as Rs 100 per month. Therefore, one of the most important strategies for prudent investment is the establishment of systematic investment plans.

Why are SIPs best for beginners?

Why are SIPs best for beginners?

There is no need to time the market when using a SIP for your investing needs. There is also a methodical approach to investing. In addition, you will benefit from two effective investment strategies: capitalization and average cost in rupees. Your mutual fund investments are managed by a knowledgeable fund manager with the help of a research team. The asset allocation investment plan is drawn up by the fund manager. Investing in fixed deposits can only bring you additional income. However, if you want to build wealth, SIP mutual funds are a good option. And at the interval you wish to spend, this balance is automatically deducted from your bank account. Individuals can diversify their portfolios by investing in a variety of stocks as well as other assets such as debt, gold, and other precious metals.

Tax advantages on mutual funds

Tax advantages on mutual funds

Tax deductions are available for various financial instruments under section 80C of the Income Tax Act, up to a limit of Rs 1.5 lakh per fiscal year, and economy mutual funds tax are part of it. Due to its higher yields and the shortest three-year lock-in period among all Section 80C options, the Equity Linked Savings Plan (ELSS) has become a tax saving choice. common for Indians in recent years.

The 5 best SIP plans to invest in 2021 for newbies

The 5 best SIP plans to invest in 2021 for newbies

The 5 best SIP plans to invest in 2021

Fund name NAV Minimum SIP 1 year return 3 year returns Expense ratio
Quantitative active fund Rs 361.36 Rs 1000 118.7% 26.94% 0.57%
Mirae Asset Tax Saver Fund 29 Rupees Rs 500 88.32% 20.69% 0.30%
PGIM India Midcap Opp RS 37.29 Rs 1000 116.93% 22.75% 0.45%
Mirae Asset Emerging Bluechip Fund Rs 90 Rs 1000 86.54% 21.14% 0.73%
Parag Parikh Flexi Cap Fund Rs 43.13 Rs 1000 70.41% 21.54% 0.91%
Quantitative active fund

Quantitative active fund

The 1-year returns of the Quant Active Fund Direct-Growth are 118.17%. It has produced an average annual return of 20.87% since its inception. The healthcare, financials, metals, chemicals and tech sectors represent the majority of the fund’s holdings. Compared to the group’s other funds, it is less exposed to the healthcare and finance sectors. If an individual invested Rs 10,000 monthly SIP for 3 years, his canceled return would be 45.62%. This is the ELSS fund.

Example: for an investment of Rs 3.6 Lakhs, its returns will be Rs 6.76 Lakh, or a profit of Rs 3.16 lakh (45.62% of returns)

Mirae Asset Tax Saver Fund

Mirae Asset Tax Saver Fund

The 1 year direct growth returns of the Mirae Asset Tax Saver Fund are 88.32%. It has returned an average of 21.79 percent each year since its inception. Every two years, the fund doubles the capital invested in it. Value Research Online awarded the fund 5 stars. It is a stock linked system and the minimum blocking period is 3 years. The net asset value of the fund is Rs 29 and the fund size is Rs 7,251 crore. The fund’s expense ratio is 0.30%. The minimum SIP amount is Rs 500. The one-year and 3-year return of the fund is higher than the average returns for the category. The top 5 holdings of the fund are found in HDFC Bank Ltd., ICICI Bank Ltd., Infosys Ltd., Axis Bank Ltd., Tata Consultancy Services Ltd.

PGIM India Midcap Opp

PGIM India Midcap Opp

The 1-year direct growth returns of the PGIM India Midcap Opportunities Fund are 116.93%. It has produced an average annual return of 19.26% since its inception. The top 5 holdings of the fund are in ICICI Bank Ltd., Aarti Industries Ltd., MindTree Ltd., Federal Bank Ltd., Voltas Ltd. As of May 21, 2021, the net asset value of PGIM India Midcap Opportunities Fund is 37.29. The EtMoney ranking of the PGIM India Midcap Opportunities Fund is # 1 out of 19 funds, with a consistency score of 5.

Therefore, the PGIM India Midcap Opportunities Fund may be suitable for your portfolio. The Value Research Online awarded the funds 5 stars. This suggests that the fund has not only generated strong returns in the past, but has done so consistently.

Mirae Asset Emerging Bluechip Fund

Mirae Asset Emerging Bluechip Fund

Mirae Asset Emerging Bluechip Fund

Emerging Asset Mirae Asset Mirae Asset Mirae Asset Mirae Asset had assets under management (AUM) of 69,772 Crores, making it a mid-sized fund within its group. The fund has a cost ratio of 0.64% which is lower than most other Large & MidCap funds. The 1-year direct growth returns of the Mirae Asset Emerging Bluechip Fund are 86.54%. It has returned an average of 24.74 percent per year since its inception. Every two years, the fund doubles the capital invested in it. The fund invests the majority of its money in the financial, healthcare, tech, automotive and energy sectors.

Parag Parikh Flexi Cap Fund

Parag Parikh Flexi Cap Fund

It has returned an average of 20.08 percent each year since its inception. Every two years, the fund doubles the capital invested in it. The returns of the Parag Parikh Flexi Cap Fund direct growth fund over the past year were 70.41% and the net asset value of the Parag Parikh Flexi Cap Fund for May 21, 2021 is 43.13%. The top 5 holdings of the fund are Alphabet Inc Class C, ITC Ltd., Microsoft Corportion (US), Bajaj Holdings & Investment Ltd., Facebook Co.

Conclusion

Conclusion

“Investments in mutual funds are subject to market risk,” we have all read and heard. Plans should be selected based on your desired risk percentage. If you don’t want to take any risk, you can invest in debt or equity savings funds, all with no equity exposure and low risk. You can invest in neutral or balanced benefit funds if you think you have a moderate tolerance for risk. You can invest in pure equity funds if you are a high risk taker and able to invest for at least five years.

Diversification is, in fact, one of the most important benefits of investing in a mutual fund. It guarantees that a drop in the price of one or even a few securities has no significant impact on the efficiency of the portfolio.

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