Systematic Investment Plans or SIPs have become synonymous with mutual funds. These days many investors say they are investing in SIPs when they want to say they are investing in mutual funds through the SIP route. A SIP allows you to invest a certain sum regularly in mutual funds, typically equity mutual funds. Most investors make their SIP investments in the beginning of the month, as soon as they get their salary. This imparts financial discipline as it allows them to invest without fail. This also takes away the urge to time the market- most investors get influenced by ups and downs in the market and they often end up basing their decisions based on the market mood. For example, many investors don’t invest when the markets are down. Some stops investing when the market is near a historical high. This is exactly what a SIP tries to avoid- that is something most mutual fund managers never forget to repeat that investing a small sum regularly over a long period is the only proven method to create wealth.
The market may have been volatile and moved sideways over the last one year, but the SIP route made money for investors. Here are five equity mutual fund schemes that offered an impressive return to investors in the last one year. The topper offered 20% in the last one year. Another scheme managed to offer 18% in the same period. The other three schemes managed to offer more than 14% in trying market conditions (Data Source: ACE MF)
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