Best mutual funds for SIP

SIP usually gives an investor the chance to invest in funds at whichever time he/she choose to. This gives him/her the chance to enter the market whenever they feel like without having to keenly wait for specific moment, which might seem lucrative. The following are some of the best mutual fund for SIP.

Reliance Equity Opportunities Fund

This fund was established with the main objective being to invest in different stocks across sectors, which are influenced, by any economic reforms, FDI inflow and infrastructural changes. The staring benchmark set for this fund has been surpassed and it has provided a 22% annual return rate for the last five years. When you currently invest Rs, 100 per month through SIP for a duration of 5 years you would achieve a total investment of Rs 60,000 but your funds will have a value of Rs 116,000. This fund has been claimed to be the best to invest for longer durations e.g. 8-10 years

Franklin High Growth Cos fund

This fund was started with the main aim being to invest in the Indian companies, which have a high growth rate or the potential to achieve a high growth rate. This fund focuses on companies, which are offering the best trade-off by balancing between growth, valuation and risk. This fund overcame it’s benchmark and achieved a 20% annualized return rate in 5 years. For investors who invest in this fund and invest Rs 1,000 per month in five years the funds will have accumulated to Rs 60000 but the value of the funds will be at Rs 123,000. This fund is best when investing over extended periods.

HDFC Balanced Fund

This is a mutual fund scheme, which has the main aim of generating capital appreciation by use of a combined portfolio and debt instrument. This scheme usually invests up to 60% in equity and balanced in debt related instrument. This fund provides a 20% annual return rate in the past 5 years. A total investment of Rs 60,000 would achieve a value of 106,00.

ICICI Balanced Fund

This fund usually invests in equities and related securities and also fixed income and market securities. Investors invest a minimum of 60% in equity and balanced debt related instrument. This fund overcame its benchmark and provides a 18% annualized return rate for the last five years. An investment worthy Rs 60,000 would achieve a value of 105,000 over five years.

UTI Equity Mutual Funds

This fund was formed with the main objective of investing above 80% of its funds in both equity and related instruments. This was for the medium and high risk profile. The remaining 20% would be invested in money market, which had a low and medium profile risk. This fund has for the last five years been providing about 16% return. This fund is appropriate for individuals investing for long duration, which includes 10-20 years.