Best Aggressive Mutual Funds for SIP Investments of Rs 50000 for 15-20 Years
Starting a SIP (Systematic Investment Plan) for 15-20 years is a wise financial move. The magic of compounding will significantly enhance the value of your investments over this long period. To ensure your investments are robust and diversified, an aggressive portfolio can be highly beneficial. Here, I will outline a comprehensive approach, highlighting the best mutual funds for such an aggressive SIP strategy.
Key Considerations for an Aggressive Portfolio
When considering an aggressive portfolio, it's essential to understand that every investor’s financial goals and risk appetite are unique. Factors such as your income profile, family responsibilities, and personal risk tolerance significantly impact the suitability of a particular investment strategy. Thus, it's crucial to tailor your portfolio to your specific situation. Additionally, while an aggressive portfolio can offer higher returns, it also comes with higher risk. Regular monitoring and rebalancing are necessary to optimize risk-adjusted returns.
Recommended Aggressive Mutual Funds
Based on my experience and insights from financial experts, the following mutual funds are well-suited for an aggressive SIP investment strategy:
1. SBI Magnum Ultra Short Duration Fund
Allocating Rs. 10,000 to this fund can provide you with short-term capital preservation and income generation. Ultra-short duration funds are less risky and can provide stability in a volatile market environment.
2. Nippon India Large Cap Fund
Investing Rs. 15,000 in this Large Cap Fund can expose your portfolio to high growth potential. Large Cap funds typically invest in large and well-established companies, which can provide good returns over the long term.
3. Kotak Corporate Bond Fund
Allocating Rs. 15,000 to this fund provides a balanced mix of debt and equity. Corporate Bond funds are relatively stable and can generate steady income, making them a reliable addition to a diversified portfolio.
4. IDFC Bond Fund
Another Rs. 10,000 can be allocated to this bond fund, which focuses on delivering steady income through investments in government and corporate bonds. Bond funds are generally riskier than debt funds but provide better returns.
Customizing Your Portfolio
While the above allocation is highly recommended, it's essential to customize your portfolio based on your specific needs and risk tolerance. For instance, younger investors with a higher risk appetite can allocate a larger portion of their portfolio to equity-based funds, while older investors should opt for a more balanced approach with a higher allocation to debt and fixed-income funds.
Rebalancing and Monitoring
Regular monitoring and rebalancing are critical to maintaining the health of your aggressive portfolio. Market conditions, performance of individual funds, and your personal risk tolerance can all change over time. Regularly reviewing your portfolio can help you make informed decisions and optimize your returns.
Top Performing Aggressive Mutual Funds
Based on historical performance and expert recommendations, here are the top 7 best performing aggressive mutual funds:
1. Motilal Oswal Hybrid Funds
With a robust track record, Motilal Oswal Hybrid Funds can be a strong addition to your SIP portfolio. Its flexibility in balancing between equity and debt can help in achieving higher returns while managing risks.
2. Mirae Asset Hybrid Equity Funds
Mirae Asset Hybrid Equity Funds offer a dynamic approach to managing risks and returns. These funds can be ideal for investors who want to balance equity exposure with fixed-income securities for a well-diversified portfolio.
3. Kotak Equity Hybrid Funds
Kotak Equity Hybrid Funds are known for their strategic approach to equity and debt allocation. They can provide a good balance between higher growth potential and risk management.
4. HDFC Hybrid Equity Funds
HDFC Hybrid Equity Funds are popular choices for investors seeking a balanced approach to equity and debt. These funds can provide stable returns with a focus on capital appreciation.
5. Canara Robeco Equity Debt Allocation Funds
Canara Robeco Equity Debt Allocation Funds are designed to provide a mix of equity and debt, helping investors manage risk and achieve better returns.
6. BNP Paribas Substantial Equity Hybrid Funds
BNP Paribas Substantial Equity Hybrid Funds offer a strong focus on equity with a strategic blend of hybrid components. They can be ideal for investors looking for high growth potential alongside risk management.
7. DSP Equity 7 Bond Funds
DSP Equity 7 Bond Funds provide a balanced portfolio with a mix of equity and debt, optimizing returns and reducing risks. These funds can be suitable for investors seeking a diversified approach.
Remember, investing in mutual funds and setting up an aggressive portfolio requires careful consideration of your financial goals, risk tolerance, and market conditions. It's also advisable to consult with a financial advisor to ensure your investments align with your long-term financial objectives.