Top 5 Mutual Funds For SIP to Invest in 2022
When it comes to investing in mutual funds, there is a lot of information to consider. For example, if you are a new investor, you may want to compare equity mutual funds with debt mutual funds and figure out which ones offer the best returns. In addition, you should look at the historical performance of the mutual funds.
Annualized historical returns of mutual funds for sip to invest in 2022
The best SIP investment plans offer you complete control of your investment decisions. You can pause your SIPs anytime you like and resume them later. Moreover, these plans are intended for the long term. The longer you invest, the more returns you’ll see. This is because periodic investments in a SIP compound over years.
In addition, SIPs are easily accessible to the common investor. You can start your SIP with as little as Rs 100. You can choose a variety of investment funds to diversify your investment portfolio. There are equity funds, debt funds, and hybrid funds that you can choose for your SIP.
However, you should keep in mind the market and economic conditions. While an investor may consider a 3% return an excellent return, he would be disappointed if the return dipped under different conditions.
Comparison of equity and debt mutual funds
If you are looking for investment options for your retirement plan, equity mutual funds may be the way to go. These funds are riskier, but they can provide you with superior returns to other assets. On the other hand, debt funds can provide you with moderate returns, a low risk profile, and capital protection. However, before you make a final decision, it is wise to talk to a financial advisor about your specific situation.
While past performance is not relevant when judging a fund, it can be useful to understand market cycles and potential future performance. You should consider rolling returns as well as annualized returns when choosing an SIP fund scheme. This can help you determine which investment option is best for your medium to long-term goals. In addition, direct mutual fund schemes can have low expense ratios, which can lead to higher returns.
Kotak Small Cap Fund
Small-cap mutual funds have the potential to produce superior returns over the long term. This is because small-cap companies typically have high growth potential, and plenty of room for the stock price to rise. However, these types of investments also have a high degree of risk. Investors with a low risk tolerance should avoid them.
Small-cap funds invest in stocks with a market capitalization of less than Rs. 500 crore. They are characterized by high volatility, but tend to offer higher returns than mid and large-cap companies. While these types of funds carry a higher risk of failure, they can be among the best wealth creation tools for long-term financial goals.
Axis Midcap Fund
For investors who are looking for long-term investment opportunities, Axis Midcap Fund is an excellent choice. This fund has proven to be a good performer in the past, and it offers high returns and stability. It is an open-end equity growth fund that falls under the mid-cap category.
It is also important to note that mid-cap mutual funds carry the same risks as other types of equity funds, including market and business risk. While they tend to be less risky than large-cap and blue-chip funds, they are more risky than small cap funds. It is important to note, though, that long-term investing helps minimize risk.
Mid-cap mutual funds are taxed like equity funds. Short-term gains from investments are subject to 15% STCG tax. Long-term gains are taxed at 10%. In addition, dividends are subject to TDS and are taxed at the investor’s income tax slab.
Edelweiss Government Securities Fund Direct-Growth
Edelweiss Government Securities Fund Direct-Ggrowth is a tax-saving mutual fund that focuses on government securities and has a maturity of 6.4 years. The fund has an average duration of 4.14 years, and investors with low risk appetites will likely seek funds with low duration and shorter maturities. When selecting a fund, investors should also consider liquidity and credit quality.
The Edelweiss Government Securities Fund is a debt fund that invests in Indian and global government securities. Its minimum investment is Rs.500 and it doesn’t attract exit loads. The fund’s expense ratio is 0.69 percent and its NAV is Rs 20.9 as of 04 November 2022.