Best Mutual Funds For SIP in 2022
If you’re looking for the best mutual funds for SIP in 2022, here are some ideas to consider: Aggressive hybrid schemes, Quant Tax Plan Direct-Growth, UTI Flexi Cap Fund, and Axis Blue Chip Fund. Each of these funds has its own pros and cons, so consider them all carefully before committing to a plan. This article will explain the basic features of each and offer tips for investing in them.
Aggressive hybrid schemes
If you are a first time investor, you might get advice on the “Best mutual funds for SIP in 2022”. While stocks are popular, they may not be suitable for everyone. Before you invest in stocks, you should do your own research. Check if investing through SIP is right for you and that the fund fits your investment needs. For example, if you are interested in short to medium term investment, a pure large category fund might be a good bet.
You can also look for aggressive hybrid schemes if you are new to equity mutual funds. Such schemes invest in a mix of debt and equity. As they have lower volatility than pure equity schemes, they are perfect for those who are new to the stock market. If you are a conservative equity investor, you should opt for a balanced fund. Finally, if you are unsure of your investment strategy, you can also opt for a low-risk, conservative hybrid scheme.
Quant Tax Plan Direct-Growth
If you are looking for a tax-saving equity fund for your SIP in 2022, you may want to look at Quant Tax Plan (G) by Quant Money Managers Limited. The fund was launched on 31 Mar 2000 and has over Rs1,370 crores in AUM. Fund managers Ankit Pande and Vasav Sahgal manage this fund. It is benchmarked to the Nifty 500 TR INR and delivers annual returns of 15%. The fund has a low expense ratio of 0.57%, which is lower than most of its peers.
The cost of the fund is low – you can invest as little as Rs. 500 in this scheme. Its net asset value, or NAV, is the price of a single unit and is published after the stock market closes. In deciding which SIP to invest in, consider upcoming IPOs and the extended internal rate of return. These types of investment are often better suited for first-time investors as they allow for regular and small investments.
Axis Blue Chip Fund
The Axis Blue Chip Fund is a process-driven equity mutual fund which focuses on investing in quality stocks from the large-cap sector. Its top holdings include Infosys, Bajaj Finance, Kotak Mahindra Bank, Avenue Supermarts, HDFC Ltd., and Motherson Sumi Systems. The fund has a bottom-up approach to stock picking and follows a Fair value-based research process. It selects companies with robust business models and sustainable competitive advantage.
It is important to keep in mind that stocks are not suited for everyone. The Axis Blue Chip Fund and Canara Robeco Blue Chip Fund have consistently generated returns over the past seven years. However, they are not suited for all investors and may not be suitable for the short-term. If you want to invest for the long-term, consider investing in a large-cap fund through an SIP, and you may also opt to add it to your lump sum investment during market corrections.
UTI Flexi Cap Fund
If you want to invest for long term, a flexi cap fund can help you achieve your investment goal. This type of fund invests in stocks of different companies across different market caps, making it ideal for moderate investors. However, it is important to note that investing in one particular type of mutual fund will only increase your risk and volatility, so it is better to diversify your portfolio.
The UTI Flexi Cap Fund (G) is a fund for investors with a five to seven-year investment horizon, and is benchmarked to the IISL Nifty 500 TR INR index. It is rated a 4 fund in the Equity category, and it has generated a negative return of 1.8% for the past year. To compare mutual funds, use Scripbox’s comparative tool.
ICICI Prudential Equity Fund
When you start investing in the stock market, the best investment to make is in a diversified mutual fund such as the ICICI Prudential Equity Fund. The fund combines debt and equity instruments to provide a stable income stream. While debt securities seek to minimize volatility, equity funds seek to maximize income generation. ICICI Mutual Fund’s hybrid schemes provide an excellent opportunity for both experienced investors and newbies to invest.
With SIPs, you can invest automatically, and there’s no need to time the market or worry about missing out on high returns. Over time, your investments will even out and produce steady returns, regardless of market conditions. Before investing, make a list of your goals and determine how much you need to invest each month or quarter to achieve these goals. By following these steps, you’ll have the confidence to invest your money in a diversified mutual fund and enjoy superior returns.