At the very basic, wealth creation refers to the process of deploying your money in a manner that there is real-value accretion over the long run. In other words, you should deploy your savings in such a way that the rate of return on your money beats the rate of inflation.
Mutual funds are excellent means to participate in equity markets and and Systematic Investment Plans (SIPs) are best way to create wealth via mutual funds.Let us look at couple some of the Top Systematic Investment Plans in Equity Funds which have given consistent returns over the past few years,as of 2014.
Check out the table below, which shows the trailing 1,3 and 5 year SIP returns of HDFC Equity and HDFC Top 200 growth schemes.
As you can from the above table, the returns are exceptionally good, if invested with a 3 to 5 year time frame.
Why invest through SIP?
Systematic Investment Plan (SIP) helps you to 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.
Other advantages of investing in mutual funds include no-entry-load, SIP amount as low as Rs.500 ( even Rs.100 in some of the funds) and auto-debit from bank accounts etc.. With such ease of investing and consistent returns which beats the rate of inflation, what else one can ask for more ?
Invest through SIP – it has a strong potential to create wealth in the long run.