#FinancialBytes: Top 5 SIP plans, for all kinds of investors
What's the story
Systematic Investment Plan (SIP) is a unique financial planning tool that lets an individual invest a fixed amount in a mutual fund scheme.
By helping investors create wealth in a disciplined fashion, no doubt, it is one of the best available investment options.
Let's read about the top 5 SIP plans which can help you multiply your money.
Conservative Investors
First Pick: SBI Bluechip Fund
If you are an investor with a low-risk appetite and seek long-term capital growth, then the SBI Bluechip Fund could be the best choice for you.
It invests in the stock of blue-chip companies (market leaders).
Monthly investment could be as low as Rs. 1000 for upto six months or Rs. 500 for a year.
Over the last five years, it has earned a CAGR return of 17.5%.
Moderate Risk
Second Pick: HDFC Balanced Fund
Our second pick is the HDFC Balanced fund. It would be a suitable option for you if you are ready to take a moderate amount of risk.
Being a hybrid fund scheme, it invests primarily in equity along with a proportion of debt instruments.
Monthly investment can be just Rs. 500.
Over the last 5 years, the fund has generated a CAGR return of 18.6%.
Moderate Risk
Pick No. 3: ICICI Prudential Equity & Debt Fund
The moderate risk takers can also go for the ICICI Prudential Equity & Debt Fund.
Like our second pick, this one is also a balanced fund - a mix of equity and debt investments.
Monthly investment is Rs. 1,000 with 5 post-dated cheques.
Over the last 5 years, the fund has earned its investors a CAGR return of 17.2%.
High Risk
On spot 4: Axis Focused 25 Fund
If you are willing to take a moderately high risk for high returns, then the Axis Focused 25 Fund is the right choice for you. It is an open-ended equity scheme.
This fund invests investors' money in diversified equity.
You can begin your monthly investment with just Rs. 1000.
This fund has showered a CAGR return of 18% for its investors over the last 5 years.
Aggressive Investors
Last but not the least: Mirae Asset Emerging Bluechip Fund
Our last pick is primarily meant for the aggressive risk takers - The Mirae Asset Emerging Bluechip Fund.
The fund invests in companies (all sizes) with the potential to perform well in the coming future.
You can start an SIP in this fund with a minimum of Rs. 1000/month.
Over the last 5 years, the fund has given a CAGR return of 29.7%.