Best mutual fund for sip

Through sip mutual fund investment an investor is in a position to invest a fixed amount in mutual fund over a certain period. This therefore results in averaging the cost of investing enabling your money to earn more over years. Sip is often described as a method of investing a fixed amount of money on a regular basis so that one can achieve his/her investment plan. This brings about the advantage of not timing the market. In most instances, when one is timing the market, there is a huge probability that one may enter the market a the wrong time e.g. when the funds are declining

Most investors in Sip have the ability to pre-determine fixed amounts of scheme in an yearly basis based on their convenience through auto-debit facility and postdated cheques. An investor will only need to fill an application form and indicate the type of SIP the would like to invest in. SIP will then be auto-debited through standing instruction after the cheque has been offered.

The following include some of the essential considerations to have so that you get the best mutual fund

Investment objective

When investing in sip it is very appropriate to have a set, time objective to invest in. time objective usually ranges between short term and long term. The investors risk appetite mostly influences this.

Know the fund house

Whenever investors invest in SIP, they give the fund house the mandate to manage the invested money. It is expected that the fund house take care of the invested amounts. A failure of this can result in the fund house losing their significance to client.

Fund performance

It is quite essential that investors should keenly consider the rate of return of certain SIP funds at different periods and compare them with other funds in the same category. For equity funds, it is only effective to check the long term performance

Load and recurring expenses

These are small cost which usually have a large impact in the long-run. Recurring cost are usually referred to as the expense ratio.

Fund manager

It is very essential to keenly note the fund manager. This is through analyzing performance of the funds, which are managed by him especially in periods when the market is under difficult times.

One of the best mutual funds for sip is the Franklin India Opportunities Fund. This fund was launched in 2000 with the main aim of diversifying growth scheme and generates capital appreciation through full utilization of the long-term growth opportunities within the Indian economy. This scheme is ranked number 1 in the large cap section