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| Best mutual funds to invest in sip |
In this article, I will cover some best mutual funds to invest in sip along with their historical performance. But first, let's talk about what is a sip investment plan.
As we all know, sip investment plan is the most easier and disciplined way through which investors can process their investment in mutual funds and earn wealth in the long term. Basically, sip investment plan processes money form the investor's bank account and is the investors are assigned a number of units, as per the live NAV(Net Asset Value). Due to the added advantage and flexibility in SIP Investors can start SIP in quarterly, monthly or weekly basis or increase, decrease or even stop the investment whenever they want.
SIP works three major things Power of Compounding and Rupee Cost Averaging and the last one is
best mutual funds to invest in SIP.
Now you must be thinking what is the Power of Compounding?
If an investor is ready to invest for longer-term hence in that case the power of compounding helps investors to generate high wealth over a longer period of time. Since the interest of the invested money compounded and accumulated over a period of time. Therefore the longer you invest the higher wealth you can be generated through the power of compounding.
Now you must be thinking what is Rupee Cost Averaging?
Rupee cost averaging gives an advantage to investors in which the invested money earns fewer units when the cost is high and more units when the price is low. As the stock market is unpredictable, hence to overcome the problem ie. which is the best time to invest, investors can take the help of the Rupee cost Averaging to start their sip investment plan. Below is the simple formula on which it works.
Average Cost = Total Amount/Total Unit
Average Price= Sum of All NAVs/Investment span.
Since I've explained a lot about the sip investment plan. Now let's talk about the major problem always which bothers investors till date and the problem is which are the best mutual funds to invest in sip. Don't worry I've got you covered with some of the best mutual funds to invest in sip.
Below are some of the best sip mutual funds in 2019 which their historical performance and type.
- SBI Balanced Magnum Gilt Short Term
It belongs to debt mutual funds which have given an average return of 8.56% in 3 years and 9.38% return in 5 years.
- HDFC Balanced
It belongs to balanced mutual funds which have given an average return of 10.65% in 3 years and 18.96% return in 5 years.
- HDFC Small Cap
It belongs to equity mutual funds which have given an average return of 21.52% in 3 years and 24.32% return in 5 years.
- L&T India Prudence Fund
It belongs to balanced mutual funds which have given an average return of 10.3% in 3 years and 18.36% return in 5 years.
- Reliance Credit Risk Fund
It belongs to debt mutual funds which have given an average return of 7.87% in 3 years and 8.33% return in 5 years.
- ICICI Prudential Value Discovery
It belongs to equity mutual funds which have given an average return of 7.34% in 3 years and 21.25% return in 5 years.
- Reliance Liquid-Treasury Plan(G)
It belongs to equity mutual funds which have given an average return of 6.82% in 3 years and 7.32% return in 5 years.
- Aditya Birla Sun Life Short Term Fund
It belongs to debt mutual funds which have given an average return of 7.83% in 3 years and 8.37% return in 5 years.
- ICICI Prudential Balanced Advantage Fund
It belongs to balanced mutual funds which have given an average return of 9.16% in 3 years and 14.39% return in 5 years.
- Birla SL Equity Fund
It belongs to equity mutual funds which have given an average return of 13.70 % in 3 years and 21.78% return in 5 years.
- DSP BlackRock Midcap Fund
It belongs to equity mutual funds which have given an average return of 16.77% in 3 years and 21.78% return in 5 years.
- Birla SL Balanced '95 Fund
It belongs to balanced mutual funds which have given an average return of 9.34% in 3 years and 16.77% return in 5 years.
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