Low Risk High Return SIP: Those who start investment often want to avoid risk. In such a situation, low risk SIP plans are excellent options, which give safe and better returns in a safe manner. See what are the top 10 funds …
Low Risk Mutual Funds for Beginners: If you are starting investment for the first time and want the risk to be low but get good returns, then low risk SIP plans are the best options for you. These funds mainly invest in safe places such as Debt Instruments, Government Bonds and Real Estate, which keeps the returns stable and your money is one step ahead of inflation. Let’s know the best SIP plans of the country, which are considered to give less risk and more returns for Biginers.
What is SIP and how does it work?
SIP (Systematic Investment Plan) is an investment strategy in which you put a fixed amount in mutual funds every month or at a fixed time. Whether the market is high or low, you invest continuously. The total cost of investment reduces the risk. Compounding is benefited in a long time.
Also read- Want ₹ 5 crore? Know the most vigorous trick of SIP
Why is SIP best for initial investors?
- You can start investment with just 100 or 500 rupees.
- Low risk options are there. You can invest by making balance of equity and date.
- Discipline investment occurs. There is no need to invest and market time every month.
- You can give good returns in long term i.e. 5 to 10 years.
Why are the risk mutual funds special?
Asset Allocation: Most investment is made in debate instruments, which keeps volatility low.
Risk Risk Balance: The risk in these funds is extremely low and returns also remain stable.
Tax Benefit: 20% tax rate and indexation benefit in long term (more than 3 years). Tax according to your income slab in short term (less than 3 years). TDS does not seem.
What are the benefits of low risk mutual funds?
Complete short term goals: Best for financial targets to be completed in 1 year.
Minimum risk: The interest rate and credit are almost safe from risk.
Regular Income: Can be used as side income.
Tax Saving: Savings from indexation benefit for high slabs.
Better returns from FD: Security the same, but more profits.
High liquidity: Meaning when needed, you can withdraw money immediately.
Also read- SIP Myths vs Reality: Does Mutual Fund be closed due to missing 1 SIP?
What should be kept in mind before investing money?
- Best for 1 year or less.
- Decide in advance to invest for how much money and how much time.
- Be prepared for small effects from inflation.
- Check the last 3 years of return and expenses ratio.
- Do see the quality of bonds.
Top 10 Risk Mutual Funds for SIP
| Fund | Return of last 3 years | Return of last 5 years | Category | Minimum investment | |
|---|---|---|---|---|---|
| 1 | Invesco India Arbitrage Fund Direct Growth | 7.91% | 6.5% | Hybrid (Arbitrage) | Lump SUM ₹ 1,000, SIP ₹ 500 |
| 2 | Tata Arbitrage Fund Direct Growth | 7.8% | 6.44% | Hybrid (Arbitrage) | Lump SUM ₹ 5,000, SIP ₹ 150 |
| 3 | Bank of India Overnight Fund Direct Growth | 6.54% | 5.32% | Debt (overnight fund) | , |
| 4 | Axis overnight fund direct growth | 6.49% | 5.26% | Debt (overnight fund) | , |
| 5 | Quant overnight fund direct growth | , | , | Debt (overnight fund) | Lump SUM ₹ 5,000, SIP ₹ 1,000 |
| 6 | Kotak Arbitrage Fund Direct Growth | 7.84% | 6.48% | Hybrid (Arbitrage) | Lump SUM ₹ 100, SIP ₹ 100 |
| 7 | Edelweiss Arbitrage Fund Direct Growth | 7.78% | 6.43% | Hybrid (Arbitrage) | Lump SUM ₹ 100, SIP ₹ 100 |
| 8 | Kotak equity arbitrage fund directed growth | 7.72% | 6.35% | Hybrid (Equity Arbitrage) | Lump SUM ₹ 100, SIP ₹ 100 |
| 9 | Bandhan Arbitrage Fund Direct Growth | 7.72% | 6.28% | Hybrid (Arbitrage) | , |
| 10 | Aditya Birla Sun Life Arbitrage Fund Direct Growth | 7.72% | 6.33% | Hybrid (Arbitrage) | , |
Source- Groww.in
Disclaimer: This article is only to give information. The information given here is not a financial advice. Be sure to consult your financial advisor or certified investment experts before investing.