Systematic Investment Plans (SIPS) are increasingly becoming a favourite of investors as they tend to more or less smoothen out the anxiety related to market volatility.
There are several investments where investors can invest a small sum of Rs 500-Rs 1000 every month and build a solid mutual fund portfolio. Here is a list of 6 such investments.
Birla Sun Life Top 100 Fund
In this fund you can invest a small sum of Rs 1000 every month under the SIP. Birla Sun Life Top 100 Fund has generated a return of 28 per cent in the last one year and a return of 10.64 per cent in the last three years.
To invest in this fund you would need a minimum of 6 cheques. The top holdings of Birla Sun Life Top 100 includes names like HDFC Bank, ICICI Bank, ITC and Infosys. The net asset value of the fund is Rs 57.81 under the growth plan and Rs 17.99 under the dividend plan. A good option for long term investors.
BNP Paribas Equity Fund
BNP Paribas Equity Fund has assets under management of Rs 1,032 crores. Like most other schemes, the fund has generated pretty decent returns in the last one year.
You can invest through the SIP route in the fund for a minimum of Rs 500. The initial investment though would be Rs 5,000. In the last one year the fund has generated a return of almost 30 per cent, which is higher than the Nifty returns of 27 per cent.
It has large holdings in stocks like HDFC Bank, ICICI Bank, Bharti Airtel and Maruti Suzuki. Again, being an equity mutual fund performance would largely depend on prevailing market conditions.
Kotak Opportunities Fund
This fund is a multicap fund with large exposure to large cap stocks. A minimum SIP investment of Rs 1,000 can be done through the Kotak Opportunities Fund. The fund has a good portfolio of stocks comprising the likes of HDFC Bank, Reliance Industries, ICICI Bank, Infosys and State Bank of India.
In the last one year the fund has given a return of 31 per cent, while the returns in the last three years has been more modest at 14 per cent.
If you are looking to invest in the fund, you need to do it at a net asset value of Rs 117.22 under the growth plan and Rs 28.7 under the dividend plan. Remember that dividend plans are tax free in the hands of the investors.
UTI Equity Fund
This is again a large fund with assets under management to the tune of Rs 5,200 crores. You can invest in the UTI Equity Fund through a small sum of Rs 500 by way of SIP.
The fund has given a one year return of close to 24 per cent. There is an exit load of one per cent for early redemption of less than a year.
UTI Equity has large holdings in HDFC Bank, IndusInd Bank, Infosys, Yes Bank and ITC among others. The fund last declared a dividend of Rs 2.2 in June. The dividend plan currently has an NAV of Rs 96.81.
SBI Magnum Multiplier Fund
You can start investing with a small sum of Rs 1000 and than gradually move to Rs 500 through Systematic Investment Plans. The SBI Magnum Multiplier Fund has generated decent returns of 34 per cent in the last one year and remains a good pick.
By investing each month in a systematic way you can build a solid portfolio in many years. The SIP route is not a bad idea and investors should consider the route to help hedge against volatility and build a good portfolio.
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