The year has just begun and if you have plans for investing, look at some of the mutual fund schemes. Systematic Investment Plans are now the favorite of investors, as they help build a corpus along with superior gains from the stock market. If you are looking at investing there are many plans from the SBI, which offer superior returns over the longer term. Here are a few of these SIP plans from SBI, which are worth considering.
SBI Blue Chip Fund
SBI has many SIP plans, but, the best has to be the SBI Blue Chip Fund, which is also the largest. The fund has been a consistent performer in the last many years, delivering returns every now and then. For example, in the last three years SBI Blue Chip Fund has generated returns of 19.33 per cent, while in the last 1 year the returns have been 1 per cent. The last 5 year returns have been a superb 19.76 per cent. It goes to show that the longer you hold, the higher amounts that you would make through this investment.
Rating and ranking of SBI Blue Chip Fund
Crisil has rated the fund as number one while Value Research online has accorded the fund a 5-star rating. Both of these are the highest in terms of ratings. If you are hence looking to invest in the scheme, you can do so at an NAV of Rs 30.18 under the growth plan, while you can invest at Rs 17.17 under the dividend plan. It is important to remember that the dividends received from mutual funds is completely tax free in the hands of the investors.
The SBI Blue Chip Fund has a really blue chip portfolio which is why it is amongst the best SBI Mutual funds to invest in for SIP purposes. The portfolio consists of stocks like Sun Pharma, Bharat Electronics, Mahindra and Mahindra, HPCL and Reliance Industries. These are all sound companies with solid fundamentals. This makes SBI Blue Chip among the preferred SIP bets from the SBI stable. You can initial start with an amount of Rs 5,000 and then invest in small amounts of Rs 500 as well.
SBI Magnum Equity Fund
SBI Magnum Equity Fund is another fund, where you can invest through a small SIP of as little as Rs 500. The fund like SBI Blue Chip Fund has been a good performer, but, returns have not been as high as it. The 1 year returns from the fund has been close to 6.75 per cent, while the 5 year returns have been as high as 15.30 per cent. Even the three year returns have been very good at around the 15 per cent mark.
Reasons to invest in the fund
There are plenty of reasons to invest in the fund. The first is that returns have been superior all along. Secondly, the portfolio is rather solid with stocks like HDFC Bank, Infosys, State Bank of India, HCL Technologies etc. Hence, if you are looking to invest this would be the right time to invest in the scheme. The fund has an NAV of Rs 77.49, under the growth plan, while the dividend plan has an NAV of Rs 28.81. Hence, if you are looking to invest, you can do so in small amounts, which will help build a corpus for something of a retirement. We wish to state that mutual funds are risky and there is an element of risk involved.
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 shares in the above mentioned stocks.