SIPs have carved a distinct space in the investment choices of Indians. By breaking down investments into manageable chunks, they make mutual funds more accessible. But with this ease, there's a challenge: selecting the right mutual fund. Your choice can be a determinant of your financial growth. Looking for growth avenues and the best mutual funds to invest in? Let us help you find the right SIP investment match for your portfolio.
Understanding Mutual Fund Categories
When diving into mutual funds, you'll often hear about 'Bluechip' and 'Small Cap' funds. Here's a simple breakdown.
Bluechip funds? Think big, established firms. They're the industry giants that have proven their worth over time. Investing here means stability and consistent returns, but often with moderate growth.
Small Cap funds, on the other hand, are the young guns. They're dynamic, have a lot of potential, and can offer excellent growth rates. But remember, with potential high rewards, there's potential high risk. It's vibrant and volatile, all at once.
So, when choosing between them, it's all about your appetite for risk versus your desire for stability. Let’s see some of the best Mutual funds to invest in -
1. Kotak Bluechip Fund
Stepping into the ring of bluechip funds, the Kotak Bluechip Fund has made its presence felt. It presents an NAV of ₹479.13 as of September 26, 2023, experiencing a minor 1-day drop of 0.12%. Yet, since its inception, it has delivered a robust 14.52% p.a. returns. The market positioning? It's seen as a resilient performer, balancing a mix of the top 100 companies. It is ideal for those who want to blend the security of large caps with potential growth opportunities.
2. Kotak Small Cap Fund
Making waves in the investment sphere is the Kotak Small Cap Fund. As the data from September 26, 2023, suggests, this fund, with an NAV of ₹226.92, is the best performer in the small-cap sector. Since its inception, the fund has boasted an impressive return rate of 20.54% p.a., sweetened by up to 1.25% extra returns. If you're an investor with a penchant for risk, aiming for substantial long-term growth, this fund's dynamism might just align with your aspirations.
3. Tata Small Cap Fund
Tata Small Cap Fund presents a compelling choice for SIP investors aiming for long-term wealth creation. With an impressive CAGR of 35.12% in just a single year, and assets worth Rs 5,683 crores, this fund primarily invests in small-cap equities. Its top holdings include IDFC Ltd. and Radico Khaitan Ltd. The fund has outperformed the Nifty Midcap 100 and exhibits favourable risk-reward ratios, making it a standout option for SIP investments.
4. Canara Robeco Bluechip Equity Fund
When one speaks of steadfast performance coupled with specific advantages in the blue-chip sector, the Canara Robeco Bluechip Equity Fund surfaces as a formidable choice. Marking its stance as of September 26, 2023, the fund showcases an NAV of ₹52.5, ticking a modest growth of 0.02% in a day. Its inception journey has been laudable with a return of 14.63% p.a., and there’s an added zest with up to 1.26% extra returns. The spotlight on this fund? Its ability to seamlessly blend large-cap security with growth potential is backed by Canara Robeco's strategic asset allocation.
5. Kotak Multi Cap Fund
Kotak Multicap Fund offers investors a diversified approach to wealth creation. Launched on September 29, 2021, and with assets totalling Rs 5,585 crores, this multi-cap fund focuses on long-term capital appreciation. It primarily invests in a broad spectrum of equity and equity-related securities across market capitalisation. Notably, it holds substantial positions in Maruti Suzuki India Ltd., ITC Ltd., and Hero Motocorp Ltd. Consider this fund if you are looking for the best mutual fund to start as SIP.
Benefits of Diversifying Investment Across These Funds
By splitting your investments between the reliability of blue-chip funds and the aggressive potential of small-cap ones, you strike a balance. It’s the finance world's yin and yang; the steadiness of blue-chip funds complements the high-return prospects of small caps, ensuring both safety and growth.
Key Considerations Before Investing
Considering investing in mutual funds through SIPs? It's crucial to first introspect. Gauge your risk tolerance – are you a daredevil or a safety-seeker? Pinpoint your investment horizon. Lastly, get crystal clear on your financial objectives. It's these factors that will shape your investment decisions.
Investing in SIPs isn’t just about throwing money into funds. It's an art – of making enlightened choices tailored to your personal financial portrait. Remember, diversifying across varied fund types could be your ticket to a balanced investment portfolio, marrying both stability and growth. We hope this short read helps you find new funds to invest in.
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