Investing in mutual funds has become a popular option for investors over the past few years. There are plenty of, systematic investment plans, SIP plans, that are available based on the investor’s preferences.
Mutual funds pool funds from various investors and the fund manager keep a track of the growth of the invested funds in the form of securities, bonds, and stocks. Professional management of funds ensures that the principal amount is reinvested in the best possible manner yielding maximum profit.
Since there are so many options to choose from making it a difficult task to select SIP plans best suited for investors. However, this article lists out the best mutual funds to invest in 2022, which are as follows:
- Aditya Birla Frontline Sun Life Equity Fund
- Reliance Small Cap Fund
- SBI Blue Chip Fund
- ICICI Pru Mutual Fund Balanced
- Franklin India Companies Higher Growth Fund
- Kotak Select Focus Fund
Aditya Birla Frontline Sun Life Equity Fund
Birla Sun’s SIP plans are an excellent option for investors who aim to maintain a portfolio of long-term investments. The stocks invested are diversified across industries with a target of 100% allocation of equity.
As for performance, this fund has been able to outperform competition assuring a 17.7 percent returns over the last five years. Even as a short-term investment option, investors can expect to receive a 15 percent return.
If an investor an amount of Rs 1,000 over a period of five years then the total investment will be Rs 60,000 and investing in this mutual fund can yield Rs 91,000. This investment plan has remained one of the top performing SIP plans for the last 10 years.
Reliance Small Cap Fund
The Reliance Small Cap Fund is another top performing SIP plan that investors should consider investing in. As the name suggests, this mutual fund invests in small companies.
This fund has an excellent track record as it has been able to generate 30 percent annual returns. If an investor saves Rs 1,000 then over a period of 5 years, for example, the invested amount will be Rs 60,000 but the investment will grow to Rs 1,36,000.
For this reason, Reliance Small Cap Fund has a place on the top SIP plans investors should invest in 2022.
SBI Blue Chip Fund
SBI Blue Chip Fund invests is one of the popular SIP plans and it is a large-cap fund. This fund has been able to provide 18 percent annual return in a five-year period.
On investing Rs 1,000 in this mutual fund and investing in it over a 5-year period the investment will grow to Rs 96,000. Additionally, Crisil ranks this fund as number 1 due to the returns and the fact that it is a low risk and high returns.
In order to receive the best returns on this mutual fund investors are encouraged to invest in this fund for a period of 10 to 20 years.
ICICI Pru Mutual Fund Balanced
The approach taken by ICICI Pru Mutual Fund Balanced is investing in 20 large cap companies from the 200 top stocks listed in NSE. The fund has been able to compete with peers and providing investors 16 percent annualized returns over the last five years.
For an investment of Rs 1,000 over a period of 5 years in this fund would yield Rs 90,5000. One of the highlights of this fund is that it has performed well in different market cycles.
This investment plan yields best results over the period of 10 to 15 years. Also, the risk involved in investing in this fund is below average, which is a source of relief to investors.
Franklin India Companies Higher Growth Fund
The main aim of this fund is to invest in Indian companies or sectors that have high growth rate. The focus is on companies that offer best risk, growth, and valuation.
The fund has an annual 22 percent return over the last five years. If an investor invests Rs 1,000 per month then at the end of years of investing in the find the principal amount grows to 1 lakh.
The benefit of investing in sip plan is that the diversified fund’s performance across various cycles has been excellent. To receive best returns investors should invest in this fund for 5 to 10 years.
Kotak Select Focus Fund
The Kotak Select Focus Fund aims at creating a diversified portfolio of equity and related instruments. The fund provides a 20 percent return over the last five years.
If an investor invests Rs 1,000 per month then the principal amount invested grows to 1 lakh. It is an excellent mutual fund to invest in since the diversified fund since Crisil ranks it as number 1 with good returns.
These six SIP plans are excellent investment options to invest in this year.
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