Planning to invest in Mutual funds -Systamatic Investment plan(SIP). My budget is 4000 per month.?

I have short listed some companies for SIP. They are 1. Reliance regular savings Equity(Dividend or growth) 2. Sundaram BNP paribas SMILE (Div or grwth) and sundaram capex (div or grwth) 3. ICICI prud discovery and ICICI Focused equity fund (Div or growth each) 4. IDFC premier equity (Div or grwth)
5. Birla sunlife. From the five companies suggest me which has given good returns in the past and will give in the future. Also which option(dividend or growth) should I choose. since i am planning to invest around 4000/- permonth. I will split it accordingly.

Planning to invest in Mutual funds -Systamatic Investment plan(SIP). My budget is 4000 per month.?
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3 Replies to “Planning to invest in Mutual funds -Systamatic Investment plan(SIP). My budget is 4000 per month.?”

  1. Firstly, whether you should invest in dividend or growth schemes would depend on what are you looking for. If you are young and don’t need money, go for growth funds. These will grow your NAV and any returns you get would be reflected in the NAV.

    However, if you want regular income or want to put aside the returns you are earning then a Dividend Scheme would be better. Choice of dividend payout or growth will depend therefore on your investment objective.
    Imp thing to note here is, dividend reinvestment and growth works the same say, and when you redeem you’ll get the same amount under both the options.

    Now coming to fund to invest in. I would say that instead of going for Reliance Regular Saving, Sundaram SMILE or ICICI Pru Discvery Funds, choose a good fund which has a longer track record.

    ICICI is a bit aggressive and their returns are very sharp, whih is kind of high risk taking venture.

    Instead, go for HDFC Equity, DSP BlackRock Equity Fund, SBI Taxgain Fund (for ELSS). They have a onger track record, have given good returns and also have capped the losses better than their peers in the market correction phase.

    Choose 2 MF schemes of Rs 2000 for SIP. One of them could be a tax saving scheme that will give you the benefit of saving tax under Section 80 C.

    If you need more info on the schemes or other details related to MF investments you can also contact:
    [email protected]

  2. If you risk appetite is medium then i would suggest that you put 1,000 in HDFC Top 200 Fund, 1000 in Reliance Growth, 1000 in Reliance Regular Savings Fund and another 1000 in ICICI Infrastructure fund. All the above should be with Growth options.

    If you need further guidance then contact me [email protected]

    Hardik Parekh

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