Systematic Investment Plans (SIPs) are one of the best ways for parents to build a corpus over time for child's education and marriage. Mutual fund SIPs can be a good bet when considered for the long term if you have best funds in your portfolio.
Best diversified funds will make sure that your corpus is not eroded and receive decent returns even when markets are down. As the cost of education is reaching sky high, it becomes difficult to manage finances. Here are some SIPs which you can consider to build a corpus over time.
Aditya Birla Sunlife Equity Fund
Aditya Birla Sunlife Equity Fund is an equity dedicated fund with assets under management of more than Rs 8,600 crores.
Parents with children under 10 years can consider this fund given the sterling performance of the past. The fund has generated a one year returns of close to 14.32 per cent, which is more or less in line with the benchmark indices.
Investment in the fund can be made with a small sum of Rs 1,000. The fund has investment in blue chip names including HDFC Bank, ICICI Bank, ITC, Vedanta and Maruti Suzuki. A good bet for long term growth.
Mirae Asset Emerging Bluechip Fund
Individuals can start to invest in the Mirae Asset Emerging Bluechip with a sum of Rs 5,000 and a monthly sum of Rs 1000 thereafter. Investors can give 6 post dated cheques for investing in the Systematic Investment Plan.
The last three-year returns of the fund has been close to 17 per cent on an average each year, while the one-year return is around 19.21 which is very good when compared to other funds.
The fund will attract an exit load of 1 per cent if the fund is redeemed within 365 days of the investment.
The portfolio of the fund consists of stocks like Tata Global Beverages, Federal Bank, Kotak Mahindra Bank, ICICI Bank, Raymond etc. The NAV under the growth plan is Rs 48.09 and under the dividend plan is Rs 28.86.
Aditya Birla Sun Life Frontline Equity Fund
This is again an equity oriented fund that can generate long term gains.
Investor can give 6 post dated cheques for investing in the systematic investment plan. You can also invest online in the fund for which you can check with the mutual fund house.This fund can help build corpus for your child's education through SIP.
The fund has holding in blue chip names including the likes of ICICI Bank, HDFC Bank, ITC and Infosys. Aditya Birla Sun Life Frontline Equity Fund has generated returns of 12.60 per cent in the last one year, while in the last three years it has generated returns of almost 7.71 per cent on an average each year.
Reliance Top 200 Fund - Retail Plan
Reliance Top 200 Fund - Retail Plan has an NAV of Rs 31.69 under the growth plan and Rs 16.02 under the dividend plan. The fund largely invests money in large cap equity stocks.
Among the top holdings of the company include names like HDFC Bank, State Bank of India, ITC and Infosys.The fund has generated a return of 18.60 per cent in the last one year, with a 5 year returns of 17.16 per cent. This is not a bad bet as an SIP for children with a small sum of Rs 100 each month.
Canara Robeco Emerging Equities
Canara Robeco Emerging Equities is a midcap fund.
The minimum SIP Investment that can be made is Rs 1,000. The last three-year returns of the fund has been close to 15.3 per cent on an average each year.
The Fund was launched in 2005 and has given a return of 18.52 per cent on an average each year since its launch.
The portfolio of the fund consist of stocks like ITC, Bajaj Finserv, Reliance Industries, Atul, Piramal Enterprises etc. The fund presently has an NAV of Rs 45.57 under the dividend plan.
ICICI Prudential Balanced Fund
Individuals can start to invest in this fund with a sum of Rs 5,000 and a monthly sum of Rs 1000 thereafter. Investors can give 6 post dated cheques for investing in the Systematic Investment Plan.
The last three-year returns of the fund has been close to 10.30 per cent while on average each year, while the one-year return is around 12.3 per cent.
The fund will attract an exit load of 1 per cent if the fund is redeemed within 365 days of the investment. the fund has holdings in Motherson Sumi, HDFC Bank, Hindustan Unilever, Infosys and State Bank of India. It also has exposure to debt of HDFC Bank and ICICI Bank. Check mutual fund dividends here
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What are SIPs?
SIP stands for Systematic Investment Plan. SIP is one of the best ways of investing your money, where a small amount of money is invested over regular intervals of time and this investment is chanelled in the stock market and generates good returns over time. SIPs are usually considered to be an excellent way to spend money since the investment is divided out over time, unlike a lump sum investment which takes place all at once. SIP's are very widely used for investing and for meeting financial goals for individuals over time. SIP is used in Mutual Funds also for an easy way to inculcate the habit of saving money. SIP does not require a massive amount to investing and needs only Rs 500 for starting. SIP helps an investor in financial goals in a free manner.