Investment is one of the crucial aspects of everyone’s life. People start from the early days choose to invest a portion of their savings in either gold, real estate or other traditional means of investment. But over the course of time, with the rise in the capital market and modern means of investment, things have changed completely. People these days are hardly investing much of their money into the traditional means of investment. There are various new avenues of investment such as shares, bonds, Money market instruments and Mutual Fund.
Mutual Fund is one of the simplest ways to get introduced to the capital market. It is the easiest and tension free means of investment as it automatically diversifies the investment.
A mutual fund is basically a pool of money collected from various investors and invest on their behalf. They invest in both debt and equity depending upon the scheme. To invest in mutual funds, there are two ways to invest in mutual fund i.e. lump sum or SIP. But for any type of investor, Sip is one of the best investment options. These funds adhere to the rule of periodic investment to take advantage of market inefficiencies such as ups and downs in the stock market. It provides discipline approach to your investment goals. It helps in financing the future dream and major goals of life like retirement, child’s education, purchase of a house and other asset class. Apart from that, it allows an investor to get the benefits of investing in different market cycle. So, when the market is in a bull or at a high peak, the fund manager can sell more units and when the market is in bear or at low, then the fund manager can buy more units. There are different types of mutual fund for SIP, which include debt, equity, balanced and ultra-short-term funds. Investor before investing in either of these funds must look upon the best fund each category. As the mutual fund industry has seen a sharp increase over the course of time. There are various numbers of mutual fund in each category. That’s the reason, the best performing mutual funds in the market keep on changing. There are various rating organization, which evaluate a mutual fund according to the return, standard deviation and fund performance against the benchmark. So, before investing, an investor must look upon the rating of the agencies over a course of time. It will help you in choosing the best SIP for the investor. Let’s look at some of the best sip to invest for highest growth in 2019 -2020:
- Axis Blue Chip Fund
- ICICI Prudential Regular Saving
- Motilal Oswal Multicap 35 Fund
- SBI Magnum Multicap
- Mirae Asset Emerging Blue-chip Fund
- Tata Equity PE Fund
- ICICI Prudential Blue-chip Fund
The onus of managing a mutual fund entirely lies with the fund manager of the AMC. But before investing in an investor, an investor should always look upon the past performance as well as his experience. Also, it will be better if an investor builds a portfolio and start investing according to it.
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*Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing.