Best Mutual Funds for SIP Investments of ?5000 per Month in the Current Market
Investing ?5000 per month via Systematic Investment Plan (SIP) can effectively grow your wealth over a long period. The current market conditions present multiple opportunities to tap into the potential of equity markets. In this article, we explore some of the top mutual fund options available for regular monthly investments, ensuring diversified growth and tax-efficiency.
1. Birla Sun Life Tax Relief 96
Birla Sun Life Tax Relief 96 is an open-ended Equity Linked Savings Scheme (ELSS) with a three-year lock-in period. This fund is ideal for those looking to save tax under Section 80C and also generate capital appreciation through equity investments. Since its inception in 1996, the fund has demonstrated commendable track record, with annualized SIP returns of 17.37%.
2. Reliance Tax Saver Fund
Reliance Tax Saver Fund is another excellent ELSS option. It balances investments between large-cap and mid-cap companies, offering high growth potential over the next 2 to 3 years. It also includes allocations to MNCs (Multinational Companies) and high conviction mid-cap firms. Given its track record, this fund has generated impressive SIP returns of 18.23% since inception.
3. Mirae Asset India Opportunities Fund
The Mirae Asset India Opportunities Fund is an open-end equity scheme that provides exposure to both large and mid-cap stocks. Managed by Neelesh Surana and Harshad Borawake since its inception in 2008, this fund has consistently managed to contain losses during market corrections and outperform benchmarks. With annualized SIP returns of 20.06%, it stands out as a reliable long-term investment option.
4. Mirae Asset Emerging Bluechip Fund
The Mirae Asset Emerging Bluechip Fund, a shining star in the mutual fund industry, has delivered exceptional returns. Under the management of Neelesh Surana, this fund has shown remarkable resilience, maintaining a low-risk profile during market corrections while delivering strong capital appreciation. It has generated outstanding SIP returns of 29.10% since its inception in 2010.
5. MOSt Focused MultiCap 35 Fund
The MOSt Focused MultiCap 35 Fund is designed to focus on a carefully selected portfolio of up to 35 equities. Managed since its inception in 2014, the fund has delivered impressive returns of 23.59% annually. However, its performance can be volatile, depending on the success of its focused bets. The fund is benchmarked against the Nifty 500 Index and provides a diversified exposure to both large and small-cap sectors.
6. HDFC Mid-Cap Opportunities Fund
The HDFC Mid-Cap Opportunities Fund is a consistent performer, focusing on mid-cap companies. Managed by Chirag Setalvad since its inception in 2000, it aims to generate long-term capital appreciation. The fund has delivered commendable SIP returns of 22.94% since inception and remains true to its mandate even with expanding assets under management.
7. Reliance Small-Cap Fund
Reliance Small-Cap Fund has emerged as a standout performer during the recent rally. With impressive SIP returns of 31.52% since inception, despite high valuations, this fund is highly recommended for SIP investments. It focuses on smaller capitalisation companies with quality management and rational valuations, making it an attractive option for long-term investors.
8. ICICI Prudential Value Discovery Fund
The ICICI Prudential Value Discovery Fund is a diversified equity scheme that aims to generate returns through a combination of dividend income and capital appreciation. Managed by Mrinal Singh since February 2011, this fund follows a value investing philosophy and has delivered a consistent CAGR of 22.11% since inception. It is ideal for patient investors looking for long-term growth.
9. SBI Bluechip Fund
The SBI Bluechip Fund is a well-diversified equity scheme, primarily invested in large-cap and mid-cap companies. With a primary focus on financial services sector, it maintains a balanced portfolio with 71.97% allocation to large-caps, 18.50% to mid-caps, and 9.53% in other current assets as of December 2017. This fund has generated 17.87% returns since inception and is a solid choice for first-time investors.
10. HDFC Balanced Fund
The HDFC Balanced Fund is a balanced fund that provides a mix of equity and debt investments, aiming for long-term growth. Managed by Chirag Setalvad since 2000, it offers a moderate risk profile with a blend of 55.5% equity, 40.5% debt, and 4% cash as of September 11, 2000. The fund has delivered impressive returns of 17.87% since inception, making it an excellent choice for those seeking a balanced portfolio.
Choosing the right SIP plan based on your investment goals and current market conditions is crucial. Each of these funds offers unique advantages, ranging from tax savings to long-term growth, making them suitable for different investor profiles. It is essential to conduct thorough research, considering your risk tolerance and financial goals before making any investment decisions.