- About Coverfox
Is SIP the best method of investing in a mutual fund? Read ahead to know more.
A Systematic Investment Plan in a mutual fund is your ultimate best friend when it comes to savings. Well, a systematic investment plan in a mutual fund is more commonly known as SIP. You must have definitely come across this term at some point in life. In this article, we will help you understand more about investing in a mutual fund via systematic investment plan.
Under a SIP, you are required to make deposits of small amounts on a regular basis. The money invested via SIP is utilised to purchase units of your chosen mutual fund. These mutual funds are managed by expert finance professionals who intend to improve the returns of the fund via strategic investment planning. SIP is one of the most popular methods of investing in mutual funds as it offers multiple benefits to the investor.
SIP in mutual funds are so popular that as per the Association of Mutual Funds in India, Mutual Fund SIPs accounts stood at 2.62 CRORE! And the total amount collected through SIP during March 2019 was ₹8,055 crore. This means that currently, Indian Mutual Funds have about 2.62 crore (26.2 million) SIP accounts through which investors regularly invest in Indian Mutual Fund schemes. To help you understand better, we have created a list of 10 points. These are ten things to know before investing in mutual funds via SIP.
Note: All information has been sourced from the official website of the mutual fund companies.
Investment Objective: The investment objective of this fund is to achieve long term capital appreciation by investing in a diversified portfolio predominantly consisting of equity and equity related securities of Large Cap companies including derivatives.
|Type||Equity: Large Cap|
|Fund Manager||Shreyash Devalkar|
|Benchmark||NIFTY 50 Total Return|
|Return Rate 1 Yr (%)||8.37|
|Return Rate 3 Yr (%)||14.34|
|Return Rate 5 Yr (%)||13.72%|
Investment Objective: The investment objective of this fund is to generate regular income through investments predominantly in debt and money market instruments. The Scheme also seeks to generate long term capital appreciation from the portion of equity investments under the Scheme.
|Fund Manager||Equity : Rajat Chandak Debt : Manish Banthia|
|Benchmark||NIFTY 50 Hybrid Composite Debt 15:85|
|Return Rate 1 Yr (%)||6.85|
|Return Rate 3 Yr (%)||10.01|
|Return Rate 5 Yr (%)||11.21|
Investment Objective: The investment objective of this fund is to achieve long term capital appreciation by primarily investing in a maximum of 35 equity & equity related instruments across sectors and market capitalization levels.
|Type||Equity: Multi Cap|
|Fund Manager||Mr. Gautam Sinha Roy|
|Benchmark||NIFTY 500 TRI|
|Return Rate 1 Yr (%)||-5.96|
|Return Rate 3 Yr (%)||14.25|
|Return Rate 5 Yr (%)||NA|
Investment Objective: The investment objective of this fund is to invest predominantly in debt and money market instruments and part of the portfolio into equity/equity related securities with a view to generating income and aim for capital appreciation.
|Fund Manager||Amandeep Chopra Ajay Tyagi|
|Benchmark||CRISIL Short Term Debt Hybrid 75+25 Fund|
|Return Rate 1 Yr (%)||4.33|
|Return Rate 3 Yr (%)||8.22|
|Return Rate 5 Yr (%)||9.89|
Investment Objective: The investment objective of this fund is to provide investors with opportunities for long-term growth in capital along with the liquidity of an open ended scheme through an active management of investments in a diversified basket of equity stocks spanning the entire market capitalization spectrum and in debt and money market instruments.
|Type||Equity: Multi Cap|
|Fund Manager||Mr. Anup Upadhyay|
|Benchmark||S & P BSE 500 TRI|
|Return Rate 1 Yr (%)||0.66|
|Return Rate 3 Yr (%)||13.08|
|Return Rate 5 Yr (%)||17.68|
If you are new to investing in mutual funds, it is sure-shot option to go via Systematic Investment Planning. Investing in mutual funds via SIP will lessen the financial burden on a beginner. Also, it will help you understand how to effectively build your mutual fund portfolio.