Last Updated on September 20, 2021 by Shiv Nath Hari
Top SIP Fund: Investors got rich by investing in SIP, investors got more than 30% return from these funds
Top SIP Fund: There are some SIP schemes that have given investors more than 30 percent returns in five years.
Top SIP Fund: SIP is a very good way of investment to achieve long term goals. This proves to be effective for such investors who are afraid of market volatility. The biggest advantage of investing in SIP is that instead of investing in lump sum, you can get great returns by depositing a fixed amount regularly. Not only long term but also medium term goals can be achieved through SIP. There are some schemes which have given investors returns of more than 30 per cent in five years.
Top SIP Funds With Strong Returns
Fund Name -5 YEAR RETURN
Reliance Small Cap Fund – 35.82%
SBI Small Cap Fund – 34.74%
Aditya Birla Sun Life Pure Value Fund – 30.80%
UTI Transformation & Logistics Fund – 30.16%
Mirae Asset Emerging Bluechip – 29.80%
How does SIP work?
In SIP Mutual Fund investors can invest a fixed amount on a fixed time interval monthly, weekly or quarterly basis. To start this, investors have to fill up a SIP form and give mandate to the bank to invest the amount at regular intervals so that the automatically fixed amount gets invested in the fund from the account at regular intervals. You get units based on the NAV (Net Asset Value) at the time the amount is deducted from the account i.e. if the markets are down then you will get more units.
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Better to invest at regular intervals rather than lump sum
It is better to invest in SIP instead of lump sum investment because the units are allotted according to the NAV at that time on investing the lump sum amount. On the contrary, units are allotted according to the NAV at the time of investment in SIP, that is, when the market is down, more units are available and when the markets are high, fewer units are available. In a long run, you are more likely to have more units than a lump sum investment thus increasing your chances of getting higher returns. In this way, investing in SIP does not have to worry much about the volatility of the market.
(Note: This report is based on the past performance of the fund and is for informational purposes only. Before taking any investment decision, please consult your advisor.)