What is minimum investment in mutual fund?
Although there are mutual funds with no minimums, most retail mutual funds do require a minimum initial investment of between $500 to $5,000, with institutional class funds and hedge funds requiring minimums of at least $1 million or more.
A minimum investment is the smallest dollar or share quantity that an investor can purchase when investing in a specific security, fund, or opportunity. A hedge fund, for example, may require that their clients deposit at least $100,000 with the firm. Or, a mutual fund may require at least $3,000 to be invested.
Minimum SIP amount can be as low as Rs 100 so that maximum people can start investing in mutual funds.
While most mutual funds demand a minimum lump sum investment of Rs. 1000 to Rs. 10,000, investors can invest as low as Rs. 100 per month by starting an SIP in these funds.
You can invest as low as Rs 500 in a mutual fund through SIP, which may not be possible with most other investment options. There are several mutual funds available, and you may invest in funds whose investment objectives and risk levels are in sync with your risk profile.
- ICICI Prudential Equity & Debt Fund. ...
- Mirae Asset Tax Saver Fund. ...
- Canara Robeco Equity Tax Saver Fund. ...
- DSP Tax Saver Fund. ...
- Kotak Tax Saver Fund. ...
- Edelweiss Aggressive Hybrid Fund. ...
- Baroda BNP Paribas Aggressive Hybrid Fund. ...
- Canara Robeco Equity Hybrid Fund.
As one of the most convenient and hassle-free modes of investment, the investors can start making the investment through SIP with a minimum amount of Rs. 500.
Short-Term Mutual funds are open-ended funds having a maturity period ranging from 15 days to 91 days. The maturity period of these funds varies depending on the maturity period of the underlying instruments. These funds invest predominantly in high-quality assets that are of low risk.
You could consider SIP as a tool for investing in mutual funds. You must look at picking the right equity fund and investing through daily or monthly SIP (as per convenience) to maximise return over a period. However, you could opt for daily SIP if you earn daily wages.
SIP returns for various mutual funds may vary. On an average, for large cap equities, a return of 12-18% can be expected whereas from mid-cap equities, a return of 14-17% is expected. However, in case of a long-term debt-based mutual fund, one can expect a return of 6 – 9 % p.a.
Can I invest 100 RS in stock market?
The answer to this question is “Definitely, Yes”. You can invest Rs 100 in share market. There are many shares in India whose share price is trading below Rs 100. The minimum number of quantity of shares that you need to buy is one.
- Nippon India Small Cap. Consistency. ...
- IDFC Sterling Value Fund. Consistency. ...
- Nippon India Growth Fund. Consistency. ...
- ICICI Prudential Equity & Debt Fund. Consistency. ...
- Sundaram Multi Cap Fund. N.A. ...
- Sundaram Focused Fund. ...
- Consistency. ...
- UTI Mastershare Fund.
Fund Name | 3-year Return (%)* | |
---|---|---|
Mirae Asset Emerging Bluechip Fund Direct-Growth | 20.27% | Invest |
SBI Focused Equity Fund Direct Plan-Growth | 15.67% | Invest |
Quant Focused Fund Direct-Growth | 21.50% | Invest |
Axis Bluechip Fund Direct Plan-Growth | 12.65% | Invest |
...
Returns for UTI Bond Fund.
Fund Name | NAV | Minimum SIP |
---|---|---|
Mirae Asset Tax Saver Fund | Rs 29 | Rs 500 |
PGIM India Midcap Opp | RS 37.29 | Rs 1000 |
Mirae Asset Emerging Bluechip Fund | Rs 90 | Rs 1000 |
Parag Parikh Flexi Cap Fund | Rs 43.13 | Rs 1000 |
If you want to save the surplus amount let's say for six months then you can look for SIP plans in low duration funds and ultra-short duration funds. This way you can reach your short term goals like buying a gift, two-wheeler, vacations, etc.
...
Best SIP Plans For 1,000 Per Month.
Fund Name | Fund Type | Risk Profile |
---|---|---|
Nippon India Large Cap Fund | SIP Equity Fund | Very High Risk |
Fund Name | Monthly Investment | 1 Year Returns |
---|---|---|
Axis Bluechip Fund | 5000 | 52.52% |
Axis Focused 25 Fund | 5000 | 61.91% |
DSP Equity Fund | 5000 | 31.90% |
Franklin India Focused Equity Fund | 5000 | 80.39% |
Unit-linked insurance plans can also be considered as they provide insurance with a mutual fund like investment avenue. If, however, they want to invest in mutual funds, SIPs are the best way to go about it. They can choose affordable amounts to invest every month and steadily create good corpus.
The majority of mutual funds are liquid investments, which means they can be withdrawn at any time. Some funds, on the other hand, have a lock-in term. The Equity Linked Savings Scheme (ELSS), which has a 3-year maturity period, is one such scheme.
Can I get monthly income from mutual funds?
Yes, you can get monthly income from mutual funds. The best way for that is to opt for SWP or Systematic Withdrawal Plan in a mutual fund scheme. Through SWP, you can withdraw a fixed amount on a monthly or quarterly basis from the investment you have made in any mutual fund scheme.
The minimum tenure for investment in Mutual Funds is a day and the maximum tenure is 'perpetual'.
SIPs can be one of the best tax-saving instruments with high returns on your investments. You can claim a deduction of up to Rs. 1.5 lakh from your taxable income for investing in ELSS through SIPs under Section 80(C) of The Income Tax Act, 1961.
In order to calculate the end return you want, you can calculate how much to invest with the help of a SIP calculator. Like, if you need Rs 1 crore in the next 20 years, you need to invest INR. 10000 on a monthly basis in the scheme which will give you 12 % returns annually.
Parameters | SIP | Lump-sum Mutual Funds |
---|---|---|
Investment way | Regular | One time |
Flexibility | High | Low |
Cost | Less due to rupee cost averaging | High as the investment is done in a single transaction |
Volatility | Less impact | More impact |
- Stocks. Yes, you can invest in stocks and create a good portfolio even if you start with Rs 1000 every month. ...
- Mutual Funds. You can start investing in mutual funds with as low as Rs 500 per month. ...
- Public Provident Fund. ...
- Recurring Term Deposits. ...
- National Savings Certificate.
Banking Mutual Funds | 1 Year Return | 5 Years Return |
---|---|---|
SBI Banking & Financial Services Fund | 83.11% | 20.01% |
Tata Banking and Financial Services Fund | 71.13% | 19.5% |
Invesco India Financial Services Fund | 74.97% | 18.25% |
Sundaram Fin Services Opp Reg | 81.58% | 16.63% |
Fund Name | 1 Year Return | 5 years Returns |
---|---|---|
SBI Magnum Multi-cap Fund | 10.84% | 24.88% |
SBI Magnum Tax Gain Fund | 7.46% | 19.97% |
SBI Short Term Debt Fund | 4.17% | 8.28% |
SBI Small and Midcap Fund | 20.93% | 37.45% |
On Indian stock exchanges, the stocks can trade at any price between Rs 1 to 10,000 or above. If you wish, you can buy stocks even with share price of Rs 10 or lesser. Overall, you do not need a huge amount of money to start trading in India.
Sr. No | Company Name | CMP |
---|---|---|
1 | Vodafone Idea | 8.5 |
2 | SOUTH INDIAN BANK | ₹ 10.0 |
3 | SUZLON ENERGY | ₹ 5.90 |
4 | RattanIndia Power | 3.4 |
Which is the lowest price share?
S.No. | Name | B.V. Rs. |
---|---|---|
1. | Standard Inds. | 22.00 |
2. | Deepak Spinners | 273.99 |
3. | B & A | 359.45 |
4. | B N Rathi Sec. | 43.64 |
SIP is a very safe method to invest in mutual funds. If you invest in a mutual fund lump sum, depending on the market condition, you could end up paying a very high price for a mutual fund. To avoid this, you should invest in mutual funds when the markets are not overvalued.
A Systematic Investment Plan (SIP), more popularly known as SIP, is a facility offered by mutual funds to the investors to invest in a disciplined manner. SIP facility allows an investor to invest a fixed amount of money at pre-defined intervals in the selected mutual fund scheme.
Since lump sum means a single investment, the minimum amount that most mutual funds require is Rs. 5,000. However, after the initial lump sum investment,usually you can make subsequent investments in multiples of Rs. 1,000 in the same scheme.
Mutual funds are a safe investment if you understand them. Investors should not be worried about the short-term fluctuation in returns while investing in equity funds. You should choose the right mutual fund, which is in sync with your investment goals and invest with a long-term horizon.
Mutual fund | 5 Yr. Returns | 3 Yr. Returns |
---|---|---|
ICICI Prudential India Opportunities Fund Direct Plan Growth | -- | 20.08% |
Aditya Birla Sun Life CEF - Global Agri Plan - Growth-Direct Plan | 13.83% | 19.67% |
IDFC Government Securities Fund - Constant Maturity Regular - Growth | 9.56% | 11.2% |
- Aditya Birla Sun Life Digital India Fund. ...
- Franklin India Technology Fund. ...
- ICICI Prudential Technology Fund. ...
- PGIM India Global Agribusiness Offshore Fund. ...
- SBI Technology Opportunities Fund. ...
- TATA Digital India Fund.
- PGIM India Flexi Cap Fund. Consistency. ...
- SBI Focused Equity Fund. EQUITY Focused. ...
- Sundaram Focused Fund. EQUITY Focused. ...
- Invesco India Contra Fund. Consistency. ...
- UTI Flexi Cap Fund. Consistency. ...
- UTI Value Opportunities Fund. ...
- Consistency. ...
- SBI Flexicap Fund.
Scheme Name | 5-Year Monthly SIP | 10-Year Monthly SIP |
---|---|---|
ICICI Pru Top 100 Fund (G) | Rs.9,41,591 | 16.02% |
Quantum LT Equity Fund (G) – Direct Plan | Rs.9,15,695 | 16.86% |
Reliance Growth Fund (G) | Rs.10,75,057 | 18.05% |
SBI BlueChip Fund – Reg (G) | Rs.9,55,955 | 16.86% |
Large caps funds are also known as or coined as Blue chip funds. Blue chip mutual funds are a type of equity funds that primarily invest in equity and equity related securities of large cap companies that can be distinguished by adjectives such as large and well-established, renowned and prestigious.