Mutual funds are excellent means to participate in equity markets and we have seen some of the mutual fund schemes like HDFC Top 200 which have given exceptional returns over 3-5 year periods. Similarly, let us look some of the Top Systematic Investment Plans in Equity Funds which have given consistent returns over the past few years.
Why invest through SIP?
Systematic Investment Plan (SIP) a good plan offered by mutual funds to help you save systematically and regularly. SIP makes you to take part in the equity markets without trying to second-guess its movements and one need not worry too much about ups and downs of the markets.
So how the investments through SIP have performed?
Check out the table below, which shows the 1,3 and 5 year SIP returns of HDFC Equity, Reliance Growth, HDFC Top 200 and Reliance Regular Savings . The 3 year returns are 22-28% per annum and 5 year returns are 20-21% p.a as on date.
As you see above, the returns are exceptionally good, if invested with a 3 to 5 year time frame. SIP makes you disciplined in your savings and to get the most out of it, invest with a long term view. Also the advantages of investing in mutual funds are many like, no-entry-load, SIP amount as low as Rs.500 ( even Rs.100 in some of the funds) and auto-debit from bank accounts.
Hence apart from your one-time or single investments in mutual funds, SIP investments should be integral part your investment planning. When it comes to investing, long term results are rewarding and disciplined investing rewards you more !
Very useful article. Systematic investments are always rewarding.
Yes Financial Planning. Consistency is the important point.