Systematic Investments Plans (SIPs) are becoming increasingly popular in India, especially among the younger generation. With the markets extremely volatile over the last 1-year due to covid-19, it makes sense to park money through SIPs. Here are 4 funds that have given exceptianal returns by way of SIPs up to 25 per cent in the last 1-year.
BOI Axa Tax Advantage Fund
If you had invested in the BOI Axa Tax Advantage Fund, the returns would be close to 26 per cent by way of SIP in 1-year. The Fund has also given superlative returns over a 5 and 7-year period as well. One can start an SIP with a minimum investment of Rs 500 every year. Crisil has accorded this fund a 5-star rating.
The benchmark indices have had a solid run in the last one year, which has pushed the indices to record levels. This has helped funds like BOI Axa Tax Advantage Fund to do rather well and offer solid returns. BOI Axa Tax Advantage Fund has a good portfolio, which incudes names like HDFC Bank, Reliance Industries, PI Industries etc.
Invesco India Contra Fund
If one had to start an SIP about a year back, the returns from this fund would be close to 21 per cent. The minimum amount that is required for the SIP in Invesco India Contra Fund is Rs 1,000 every month.
The portfolio of the fund includes name like Reliance Industries, HDFC Bank, Infosys and ICICI Bank. The assets under management of the fund is close to Rs 5,000 crores.
The net asset value under the growth plan is Rs 61.62, while under the dividend plan the same is Rs 33.38. We wish to state that the markets have run-up sharply and it is not advised to place large sums currently and hence SIP is a good means to invest.
Canara Robeco Equity Tax Saver Fund
This fund has a 5-star rating from Crisil as well as Value Research. An SIP in the fund would have generated returns of close to 22 per cent, if you had to invest a year ago. The portfolio of the fund includes names like Infosys, HDFC Bank, ICICI Bank, Reliance Industries, Tata Consultancy Services etc.
The fund also offers tax benefits under Sec80C of the Income Tax Act. One can invest in the fund through a small amount of Rs 500 every month. We wish to once again reiterate that the markets are at record levels and hence the risk to reward ratio right now is much lower. Therefore, caution is advised if you are considering lumpsum investments.
Mirae Asset Tax Saver Fund
The Mirae Asset Tax Saver Fund is an Equity Linked Savings Scheme that offers tax benefits under Sec80C of the Income Tax Act. The growth fund has an NAV of Rs 21.73, while the dividend fund has an NAV of Rs 17.42.
The fund has assets under management of Rs 4,400 crores. This is a good fund for those looking to start an SIP.
About the author
Sunil Fernandes has spent 26 years covering business and finance in India and abroad. Sunil has worked with frontline daily newspapers including Hindustan Times, Deccan Herald and Gulf Times. He has also worked with investment magazines like Dalal Street Investment Journal and Oman Economic Review. Sunil's areas of interest include commodities, equities, mutual funds, tax planning and debt instruments.