Before choosing from among the best SIP plans in India, it is extremely important to consider certain essential points in order to better steer the course of fund selection.
Therefore, toward that ambition, it is essential to consider certain fundamental parameters for fund selection in order to be able to choose the best SIP plan.
Parameters for Fund Selection
In order to select the best SIP portfolio for long-term investment, the following parameters must be kept in mind:
• In order to select a particular fund, the potential policyholder should always first consider the performance of that fund. Generally speaking, the fund’s performance in the previous five years is of special significance.
• Secondly, it is equally important to concentrate on the fundholding. Generally speaking, most funds tend to hold blue chip large cap stocks or make an investment primarily in stocks that would appreciate in the days to come.
• In order to understand the mutual funds returns better, one of the most important parameters to consider is the expense ratio. It must be thoroughly kept in mind that higher the expense ratio, lower the returns.
• One should be sure to consider the aspect of the fund manager. To be clear, the rate of returns depends considerably on the performance of the concerned fund manager and the associated expertise.
• Yet another significant parameter to consider while investing in a SIP mutual fund is the scheme and the size of the asset.
• The most important parameter to precisely judge a particular SIP mutual fund is its performance ranking. Having an idea of the rankings of the funds helps engender a better relativism in research.
Best SIP Plans to Invest in India
The following are some of the best SIP plans to invest in India:
Birla Sun Life Top 100 Fund
• Primarily aimed at investing in equity and equity related instruments of the top 100 companies, the said fund is meant to garner medium and long-term capital appreciation.
• As far as the performance of the fund is concerned, it has generated over twenty percent returns in the last three years and over fourteen percent in the last five.
• Till now, the said fund has invested in over seventy shares. It is certainly one of the most relevant SIP mutual funds in the investment world.
SBI Blue Chip Fund
• Yet another relevant SIP mutual fund to invest in is the SBI blue-chip fund. The hallmark of the fund is that it primarily invests in stocks whose overall market capitalization is either more than or equal to the least market stock capitalized of BSE 100 Index.
• As far as the performance of the said fund is concerned, it is important to underscore that in the last three years the fund has generated over twenty percent returns while in the last five years, over fifteen percent returns.
• It is important to note that the expense ratio of the fund is low and the fund manager has an experience of six years to his credit.
Franklin India High Growth Companies Fund
• Primarily a multi-cap fund, it is important to note that the fund seeks to generate long-term capital appreciation in Indian sectors with high growth potential.
• As far as the performance of this particular fund is concerned, it is important to note that in the last three years, the fund has reported over thirty percent returns while over nineteen percent returns in the last five years.
• Major investments done by the fans are in the financial sector. Therefore, the fund has emerged as one of the most sought-after SIP mutual funds in the investment sphere.
ICICI Pru Value Discovery Fund – Reg
• It must be said that this particular fund is certainly one of the best performing funds in the country. Of special mention is the fact that this fund has generated over thirty percent in the last three years.
• Additionally, it is equally significant to note that the fund is managed by an experienced fund manager.
Axis Long Term Equity
• Primarily aimed at investing in equity and equity-related investments, the fund also invests in companies beefed up with a potent growth model and sustainable business operations.
• As far as the performance of this particular fund is concerned, it must be mentioned that it has generated over twenty percent returns in the last three years and over fifteen percent returns during the course of the last five years.
• Additionally, it is important to note that as far as the expense ratio of this fund, it is extremely low. Also, considering the solid performance of the fund and the expertise of its fund manager, it may be said that it is one of the best for tax planning purpose.