Systematic Investment Plans (SIPs) is a mechanism where you invest money each month or periodically, such that you grow a corpus after a specified period.
HDFC Equity is amongst the largest equity mutual funds in the country. It has a sizeable corpus of Rs 18,000 crores.
Since launch in 1995, the fund has given a return of almost 20 per cent in the last 2 decades. This is pretty decent and way above returns once could get from banks or other traditional deposits.
The portfolio of the fund is heavily skewed in favour of financials. State Bank of India and ICICI Bank are the leading shares that form a part of the portfolio. Apart from these the portfolio has stocks like Infosys, Maruti and Larsen and Toubro.
One can initially invest a sum of Rs 5000 and then a sum of Rs 500 can be invested through the Systematic Investment Plan route in the fund. There is an exit load of one per cent for exiting the fund before a period of one year.
Why HDFC Equity is amongst the best SIP Plans?
The fund has been a consistent performer over the years. In fact, a returns of 20 per cent since launch and also in the last 10 years makes the fund a very attractive buy. Secondly, the portfolio is skewed slightly in favour of financials, which should do well in the next few years, should the economy recover. This makes the fund attractive from a slightly medium term perspective.
SBI Blue Chip Fund
SBI Blue Chip Fund is amongst the few funds that has given returns of almost 24 per cent in the last one year. This is because in the top three in its portfolio is Maruti and Sun Pharma, both of which have rallied significantly in the last one year.
The Fund was launched in 2006 and has given a return of 11 per cent since its launch. However, the three year returns is as high as 26 per cent. One can invest in the fund with a sum of Rs 5000 and then a small sum of Rs 1000. One can give 12 post dated cheques for investing in the systematic investment plan.
Why SBI Blue Chip Fund is the best SIP plan to invest in?
There are a few things that are likely to work for SBI Blue Chip Fund. One is that it portfolio has the highest weightage for stocks like Maruti and Sun Pharma. Both these stocks have been outperformers in the last one year. This makes the portfolio solid, given that both these companies are expected to show solid growth. The other stocks in the portfolio are also good including the likes of Reliance and HDFC Bank.
All in all SBI Blue Chip Fund and HDFC are good SIP plans to invest in.