Affordable Investment in Mutual Funds with Minimum Rs.100 SIP
Investment in mutual funds has become all the more ‘mutual’ with fund schemes offering a minimum SIP investment of Rs.100. Following is the list of some top-performing funds in this category that have provided considerable returns in the last five years:
1. ICICI Prudential Technology Fund: This mutual fund scheme has delivered a remarkable 5 year return of 29.36%. This fund primarily focuses on the rapidly growing technology sector and, as such, is a good avenue for all technology enthusiasts who wish to make some money from innovation. The reason for this probably is that India’s tech industry has boomed, and this fund has leveraged many prevailing trends in digital transformation and software development. Its diversified portfolio includes major tech company stocks that help the fund maintain steady growth. The volatile nature of technology stocks notwithstanding, the performance of the fund has been consistent to be accepted by investors with a long-term horizon.
2. Aditya Birla Sun Life Digital India Fund: This is another related scheme that focuses on technology and is at a 5 year return of 27.81%. The fund shall endeavour to seek rewarding opportunities coming from the digital revolution sweeping across India, by investing in companies engaged in leading the technological development of the country. This is a diversified play from IT services to digital infrastructure. Strong returns point to growth possibilities in this space, hence a good option for those who believe in the ‘Digital India’ story.
3. ICICI Prudential Retirement Fund – Pure Equity Plan: This is a retirement-oriented fund that has been specifically aimed at long-term wealth creation and has returned 25.13% over a 5 year period. This scheme predominantly invests the corpus in equity securities and helps investors in amassing a substantial retirement corpus. In this fund, an investor will surely get financial security during their old age. It focuses on equity investment, hence providing the scope for high growth. Thus, it is a good option for a long-term investment horizon and/or an investor with a relatively higher risk appetite.
4. ICICI Prudential All Seasons Bond Fund: This bond fund is a little conservative in its investment, offering stability with an average 5 year return of 8.07%. Essentially, this scheme invests in fixed-income securities and is hence apt for investors who have a lesser tolerance for risks and are willing to settle down for reasonable returns with low volatility. This fund is no different, generally known for its lower volatility than other bond funds. It focuses on debt instruments and, therefore, has a dependable income stream that is good for investors seeking stable and low-risk investments.
5. Nippon India Small Cap Fund: With an impressive 5 year return of 39.74%, this fund invests in small-cap companies that are usually under-researched but have huge growth potential. Small-cap funds are bound to be more volatile, but the upside could be pretty significant. The Nippon India Small Cap Fund has ridden the growth of emerging companies and given excellent returns to investors who can afford higher risk. This fund will suit investors who look to catch up with the emerging potential of smaller companies that have space for expansion.
6. ICICI Prudential Equity and Debt Fund: This hybrid fund, with a 5 year return of 23.99%, is invested in both equities and debt, hence offering a balance to its investors who seek both growth and stability. In other words, it offers the best of both worlds; hybrid funds balance the volatility of equities with the stability of debt instruments. This is therefore good for investors who don’t want to concentrate too much on equities or bonds.
Conclusion
These mutual funds also guarantee heavy returns, making it more viable for investors to come into the market with a minimum SIP of Rs 100. This helps them get small and let their wealth grow incrementally. Basically, an investor should select any fund after carefully considering their financial goals and risk appetite, but these schemes provide a great starting point for beginners and experienced investors alike.
In all, strong performance coupled with low SIP requirements makes these funds a good option for investors keen on starting or augmenting an investment portfolio.
