Best Mutual Funds Investment Plan in 2019 | Mutual Funds
Mutual Funds are investment schemes that are professionally managed and are invested in stocks, bonds, securities, money market instruments and commodities.
In Mutual Funds, a fund manager pools in money from several investors to purchase securities. An investor can invest in various assets keeping in mind the objective of the investment. The best part about investing in mutual fund is that a person can start with a comparatively small sum of money. Your money will be managed by experienced fund managers.
How to Invest in Mutual Fund?
SIP and lumpsum (one-time) are two ways in which you can invest in mutual funds. If you have a large amount of money to invest then lumpsum is the best option for you. If you are a conservative investor and do not wish to invest a lumpsum amount in one-go then SIP is for you. Interestingly, SIP has several advantages compared to lumpsum investment option.
What is SIP investment?
Systematic Investment Plan or SIP is a simple and disciplined way to invest in mutual fund. You can invest a small amount of money at regular intervals. The amount will be debited from your bank account and invested in the mutual fund of your choice. SIP also offers you the benefit of the power of compounding and Rupee Cost Averaging. In other words, SIP Investment is a great way to build wealth in the long-term.
How to select a Mutual Fund?
Here are some aspects that you should consider while choosing a mutual fund
- Fund History
You may shortlist a fund that has been around for at least five years. A fund that has been around for a long time indicates the accuracy of its strategies. A newly launched fund may or may not perform well.
So, you need to thoroughly research a few mutual funds before investing in the one.
- Financial objectives
You must assess your own financial objectives before looking for a mutual fund scheme. All mutual funds come with some amount of risk associated with it. You will have to analyze the risk as well your financial objective before investing in a mutual fund.
- Financial Ratio
Risks and returns are part and parcel of mutual funds. You will have to understand the risk-return potential of a mutual fund scheme before finalizing it.
- Expense Ratio
Expense ratio is the fee charged by the fund house annually. It is usually expressed in the form of a percentage. A higher expense ratio translates means the investor can get low returns while a lower expense ratio translates into better returns. Ideally, you must choose a fund that has a lower expense ratio.
- Fund manager
A manager takes responsibility of the entire investment process and ensures that your portfolio gives you consistent returns in every market condition. It also indicates the manager’s efforts. Therefore, it is important that you hire an experienced fund manager to handle you portfolio.
Have a look at some of the best SIP plans in 2019 that you may consider.
Fund Names
- SBI Small Cap Fund
- Reliance Small Cap Fund
- L&T Emerging Businesses Fund
- Aditya Birla SL Banking & Financial Services Fund
- UTI Transportation & Logistics Fund
- Mirae Asset Emerging Bluechip
Debt funds
- Reliance Credit Risk Fund
- L&T Low Duration Fund Growth
- Aditya Birla Sun Life Savings Fund Growth Regular Plan
- Aditya Birla Sun Life Short Term Opportunities Fund Regular Plan Growth
- SBI Magnum Gilt Fund Regular Growth
Equity Funds
- L&T India Value Growth
- Aditya Birla Sun Life Frontline Equity Fund Growth
- SBI Magnum Multi Cap Fund Regular Growth
- SBI Bluechip Fund Regular Growth
- Mirae Asset India Equity Fund Regular Growth
- ICICI Prudential Bluechip Fund Growth
Balanced Fund
- HDFC Balanced Fund
- ICICI Prudential Equity & Debt Fund
- SBI Equity Hybrid Fund
- L&T Hybrid Equity Fund
Do thorough research about mutual fund before investing in it. You may also take help of expert financial advisors who will ensure that you are on the right track.
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