How to Make the Best Use of Your Salary This Month?

The equation of reaching your monetary goals is simple, where:

Income - Saving = Expenses

We all are aware of this one at least, but are we following it correctly? Right from the November’s salary, we want you to understand one great tip, i.e., it’s important to spend most of your time and energy in earning more and more, but it’s more important to learn the art of spending well with the help of prudent investing and judicious saving techniques.

So, without any further ado, let’s find out how it can be done!

Mutual Fund Has All Your Answers

Talking of investment techniques, stowing money in mutual funds can be a great start. It helps you to start with a small amount through SIP investment. Thus, it won’t even feel like an additional burden. Along with this, investment in mutual funds offers several other benefits as well. It provides the right avenue for investing in a variety of market-linked instruments, which deliver superior returns time and again as compared to other traditional investment options.

Furthermore, when you invest through SIP (Systematic Investment Plan), you get to develop a habit of regular investment for a secure future.

Why Invest in Now?

Despite all the market fluctuations, change in tax rates, and rapid correction, there is a massive increase in the number of mutual fund investments every month. Reason being that investors are now becoming wiser and with the knowledge of mutual funds spreading like wildfire, they are opting for this best investment avenue available in time with a goal to seek long-term capital appreciation.

Besides, with SIP, there is no need to time the market. One can enter anytime in these market linked instrument as per one’s requirements. As now, the correction is going on, almost all the funds are available at discounted NAV. Therefore, if you decide to invest in now, you can accumulate more units at less price, and gain the benefit in the years ahead.

Where to Invest to Gain Maximum Returns?

Based on different risk profiles, we have divided our recommendations into three segments.

1. The first one is for aggressive investors where the investment tenure of at least 10 years is required.
2. The second one is for conservative investors where risk-averse investors with an investment horizon of around five years can invest.
3. Lastly, there are moderately risky funds where investors can invest in for a tenure of 5 years or more.

Let’s find out more about the recommendation!

Aggressive Investors (tenure 10 years and more)

DSP Mid Cap Fund

With an aim to build capital in the long-term, DSP Mid Cap Fund invests predominately in equity and related instruments of mid-cap companies. It is a consistent performer of the mid-cap category with two of the most experienced fund managers of the industry, Mr. Vinit Sambre and Ms. Reshma Jain. It follows a growth style of investing, and the selection is majorly focused on high-value growth stocks. This strategy helps the scheme in showing a stable performance in even during high volatility, in comparison to benchmark and category.

SBI Small Cap Fund

SBI Small Cap Fund is a popular small cap scheme that has been in the market for around 9 years. In all these years, it has shown a consistent growth which was a bit slow for the first 4 years, but after that, a great hike was seen in its performance. SBI Small Cap Fund has an allocation in all the major equity sectors. The investment in these sectors is very much different from the benchmark and this is yet another reason that in the current downfall it has managed to cap losses in a much better way.

Conservative Investors (around 5 years)

ICICI Prudential Equity & Debt Fund

ICICI Prudential Equity & Debt Fund is an aggressive hybrid category fund which has impressed everyone with its exceptional performance in the past two years leading it to win a rating of 4 stars from 3 stars. With an investment of around 65 percent in equities, it has collected an enormous asset under management of Rs 26,729 crore as of October 31, 2018. Traditionally, it was a mid-cap oriented mutual fund, but in the last one year, the allocation in large caps has increased considerably. Here are the other details.

ICICI Prudential Bluechip Fund

Indeed it is one of the best choices when it comes to investing in a large-cap fund. It has beaten both its benchmark and category eight out of nine times since the time of its birth. This is the reason it has earned the rating of five stars for much of the last six years. In the past year, several peers from the category slipped the benchmark returns, even then ICICI Prudential Bluechip Fund stayed ahead of the benchmark index by one percentage point depicting its solid management and investment style. Let’s find out more about its necessary details.

Moderately Aggressive Investors (at least 5 years)

Aditya Birla Sun Life Frontline Equity Fund

ABSL Frontline Equity Fund seeks long-term growth through a portfolio with 100% allocation in equity. It has outperformed its benchmark and peers for 13 straight years, from 2004 until 2016, slipping up marginally in 2017. This track record has earned it a four- or five-star rating consistently for over 10 years, a rare achievement in any category. The fund follows the ‘growth at a reasonable price' approach to pick stocks from diversified sectors and this will remain unchanged. Consistency in the performance has led the scheme to accumulate the asset size nudging Rs 20,000 crore.

Mirae Asset India Equity Fund

Being a multi-cap fund, Mirae Asset India Equity Fund has set its aim clear to maximize long-term capital by finding investment opportunities resulting from economic growth of the country and its structural shifts through investing in equity and equity-related securities. It has accumulated a corpus of Rs 9,033 crore as on Oct 31, 2018. It came into existence on April 04, 2008, and was successful in delivering 15.87% returns since then.

What Can a Note of Rs 2000 Do for You?

Let’s go through the table below to find out the answer!

Depending upon your risk profile and choice of scheme, the expected returns from the schemes mentioned above can help you earn returns anywhere between 7% to 18% (approximately) in around 5 years of investment period. Let’s say you invest Rs 2000 from your salary, then five years from now, you will be able to make Rs 1,95,316 with a CAGR of 18% when the investment amount is Rs 1,20,000.

Last But Not Least

We assure the step of investing today will help you to make the most of the market situations and earn huge returns. To get recommendations on the best mutual fund schemes based on your personal needs, which are hand-picked after analyzing different aspects including current market conditions, portfolio allocation, risk measures, etc., connect with the experts at MySIPonline.

You can even post your queries related to regular plans of mutual funds and seek experts’ suggestions easily by mentioning them in the form provided below:

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