Systematic Investment Plans (SIPs) allow you to invest small amounts each month, which can be as small as Rs 500. These SIPs have given returns more than bank deposits in the last 3 years and offer you better tax efficiency than bank deposits.
Here are some of the SIPs, which are rated well, have a solid track record of returns and where you can invest a little amount every month. Check declared dividends from mutual funds here
SBI Blue Chip Fund
This is one of the best performing large cap funds. It has given returns of 21.10 per cent in the last three years, thus beating returns of bank deposits.
You can invest a small sum of as little as Rs 500 per month in the scheme by way of SIP in SBI Blue Chip Fund.
The net asset value under the growth plan is Rs 32.22. The fund has exposure to many blue chip stocks like HDFC Bank, L&T etc., and has a good track record.
Reliance Top 200 Fund - Retail Plan
You can invest in the Reliance Top 200 Fund - Retail Plan, with a small sum of Rs 100. Of course, the initial investment needed is Rs 5,000. The Reliance Retail fund has generated a superb returns of 20.58 per cent on an average each year, in the last three years.
The net asset value under the growth plan is Rs 26.54. The fund has exposure to quality stocks like State Bank of India, ICICI Bank, Infosys and Larsen and Toubro.
SBI Magnum Equity Fund
SBI Magnum Equity Fund is another fund that has given good returns. The fund has generated a returns of 17.69 per cent in the last thee years. This again is almost double the returns generated by bank deposits.
You can invest a small monthly sum of Rs 500 in the scheme. The net asset value of the fund is Rs 82.57 per cent under the growth plan. Remember, that the dividend plans are more tax efficient as there is no tax on dividends received from mutual funds.
Good solid portfolio
Reliance Focused Large Cap Fund currently has an NAV of Rs 17.73 under the dividend plan. You can invest in the fund with a small sum of Rs 100. The fund has given returns of near 27.25 per cent in the last one year. The expense ratio of the fund is slightly high at 2.23 per cent.
Reliance Focused Large Cap Fund has good holding including stocks like Maruti Suzuki, HDFC Bank and Larsen and Toubro
ICICI Prudential Focused Bluechip Equity
This fund has sizeable assets under management of more than Rs 12,000 crores.
This is another fund where you can invest with a small sum of as little as Rs 500. The fund has generated a returns of as much as 18.16 per cent in the last 3 years.
The fund has top holdings in HDFC Bank and ICICI Bank.
ICICI Prudential Focused Bluechip Equity has an NAV of Rs 33.45 under the growth plan and Rs 21 under the dividend plan. As suggested earlier go for the dividend plan as they are more tax efficient.
Invesco India Growth Fund
This is a fund, where you can invest small amounts through SIP of Rs 500. The fund has a solid portfolio including the likes of HDFC Bank, ITC and Maruti Suzuki.
The fund has generated a returns of 18.85per cent on an average for the last three years, each year. The current net asset value under the dividend plan is Rs 13.99. We suggest that you go for the dividend plan, as explained last year.
The article is not a solicitation to buy, sell in securities or other financial instruments. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and the author do not accept culpability for losses and/or damages arising based on information in this article. The author and his family do not own any units in the above mentioned mutual funds.