Top 5 mutual funds for sip
You want to be part of the profitable investments in stock, bonds or other similar assets, but your funds are small and you don’t want to take loans – the mutual funds are your way.
The mutual funds is an investment vehicle, which is made of “pool of funds”, from mutual investors; which has one purpose – to be invested in different investment assets. The money are controlled by a money manager, which invest them attempting to grow the investor’s capital. Of course, the portfolio of the mutual fund always follows the structure and objectives, which were stated in the initial prospect.
In other words – if you have small capital, you and others like you – will invest in mutual funds, to unite the capital; then the funds will have enough capital to play with. Of course, you and the rest of the members of the fund, will have your share of winnings and losses that will occur. It is the best option for everyone, who wants to invest in this type of business.
While choosing the preferred mutual funds, we recommend you to search well and check the economical sources – Financial Times, The Street etc. There you will find information about the top mutual funds, compared by many criteria; one thing that you won’t be able to do, considering that they compare over 20 000 funds. Usually investors look at top 10-20, in order to have more options, but many ambitious people want to invest at top 5, which often guarantee profitable investments. It is another question that buying share of mutual fund from top 5 in India can cost a lot.
Still which are top five now, the most stable, reliable and profitable mutual funds for small investors?
1)According to MyInvestmentIdeas in India – the top five mutual funds for SIP in India are:
2)ICICI Pru Focussed Blue Chip Fund – the objective of this fund is to invest in 20 large cap companies, from top 200 stocks. This is the most profitable mutual fund for the period 2010-2015 – it has return of 17%, beating all of its peers. For an investment of 1000 INR per month for five years(60 000INR) – you would have return of 101 000INR.
3)UTY Equity Mutual Fund – the objective of the fund is to invest 80% of its assets in equity and related instruments – with medium and high risk. The funds has 16% return the last five years, which make it the second profitable.
HDFC Top 200 is on third position, with primary objective to invest 90% of its assets in equity and to balance with 10% in investment debt. This MF has return of 15% the last five years, beating its peers, which make it very good investment option.
4)HDFC MidCap Opportunity Fund – its objective is to create long term capital appreciation investing in small cap and mid-cap companies. The return of the MF beats the rest 25% return the last five years – if you invest 1000Rs a month for 5 years (60 000) at the end you will have profit of 124 000Rs.
5)Franklin India Smaller Companies Fund – with objective to invest in mid and small-cap companies; up to 75% of its assets are invested in smaller companies. The Fund generate long-term appreciation of the capital, too. It has 24% of return the last five years and is one of the best investment solutions for 8-10 years.