SIP should be small but it should be , you are listening absolutely right, I am talking about SIP means Systematic Investment Plan.
There is an old saying that the ocean is filled with drops, you must have heard it too.
It also means that you know that if you understand its concept, then this saying can make you very rich. Therefore, understanding this concept, first of all I will tell you how to do SIP, how rich it can make you, how can you start, start with 100 rs.
This SIP can also bring a Mercedes car to your home. I will show you the proof, Mercedes car is guaranteed to stay in your home And which are the mutual funds where one should invest and why should be done, till date such a detailed article of mutual fund.
Take out time and listen carefully, everything will be clear, then watch the video till the end and you can note each and every point. SIP stands for Systematic Investment Plan, when you invest in a systematic way, it is called SIP.
What is a mutual fund?
Mutual fund is the easiest way to do SIP, every month the fund is deducted from your account and the mutual fund unit is bought.
Now let’s understand what a mutual fund is, it is an investment product where a mutual fund company collects funds from the public and simultaneously invests all the funds in the market.
And gives you NAV in unit form of that fund, now NAV means Net asset value, the amount of funds that a company invests by collecting from the public, its total investment value is called Net Asset Value.
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From this, the company deducts its liability and expenses and after that the net value that remains is called investment value is called NAV.
SIP with live calculation:
Now to understand the importance of SIP with live calculation, I will use basic data or see how much big return you can get from investment.
First let’s start with 100 rupees. Because people don’t give value to 100 rupees but it is a very valuable thing.
Suppose 100 rupees Monthly SIP in which you are investing 100 rupees every month, let’s say 20 years because I have maximum reader also of 20-25 years
And we are taking the very lowest return of 10%, because you should feel that everything is happening at the lowest level, whereas 15% return is easily available.
Guess how much will be the monthly investment of 100 rupees in the coming 20 years, tell in the comment you should have an idea.
The investment in 20 years will be 1,20,000 and the return will be 2,62,848, so 1,20,000 + 2,62,848 so total is 3,82,848.
You became a millionaire with 100 rupees and this is the magic of SIP, I hope you must have understood that SIP can make you rich.
Now if you have understood the magic of SIP , then tell me in the comment what your target is, Lakhpati or Crorepati, tell me in the comment.
I’ll wait to see who’s got it. Today’s article is special because at the time of stock analysis I tell you which stock to buy or why it is good and why it is bad.
Similarly, I will tell the analysis of mutual funds that when I am telling mutual funds, it is good or bad.
Means on what basis you being your own boss will be able to say that this mutual fund is good and this is bad
And one such bonus, you are taking a Mercedes car, but with it a bonus that no one tells, so everything you’re going to get
Now coming to your next question that how to invest in mutual funds, first it is important to understand what are the types of mutual funds, then you will be able to take the right investment decisions.
2 Types: Equity Mutual Fund and Debt Mutual Fund.
These are of 2 types Equity Mutual Fund and Debt Mutual Fund, Equity Mutual Fund invests in the stock of the company. And debt mutual fund invest in debt bonds, These are the 2 ways of mutual funds
Now by combining these 2 methods both your return and risk have been divided into different categories and it is available in that category.
Like an index fund, it consists of such companies which are in the index , like in our India Nifty fifty, index mutual funds will buy those who are inside it.
Then there is the large cap, in this the mutual fund company buys the large cap stock of the big company.
Similarly mid cap and small cap where the company invests in medium and small size company.
Multi Cap fund
When these 3 caps are merged, a Multi Cap fund is formed, in which the mutual fund company invests in companies of all sizes.
Theme based fund
Then there is theme based fund, when a mutual fund invests in a specific sector or industry it is called a Theme based fund.
All these things come in equity mutual funds, now come on debt
Gilt Debt Mutual Fund
When a mutual fund company invests in government debt bonds, it is called a Gilt Debt Mutual Fund.
Corporate bond debt fund
When a mutual fund company invests in corporate debt bonds it is called a corporate bond debt mutual fund.
So all these categories that have been created have their own way of investing in them. This is the reason why you have to pay a fee for this service and training, but your brother has Promised to teach you everything for free.
What is SIP?
And returns come only from a correct knowledge, now we have come to know what is SIP and how rich it can make you, what are the types of mutual funds
Now is the time to answer the 2 most important questions: whether to invest and where to invest.
There are many ways to invest in mutual funds. If you contact the mutual fund company directly, then there are many online apps like PhonePe, Google Pay, Paytm, Angle One, Kotak securities, Zerodha Kite.
These are all online apps which give you a mutual fund facility. You can avail the facility of mutual funds from any broker you deal with, all you have to do is provide your own and your nominee’s PAN and bank details.
Due to which SIP amount is deducted every month on a fixed date and money is deposited in the same account on withdrawal.
I am not going to recommend any app to you, just all of them are available, so I told you, so do research before using any app.
In today’s era of technology, it is not difficult to invest in mutual funds, you can do it on your own.
Now coming to an important question that you are waiting for,
Top 5 Mutual Funds for 2023
I will tell mutual funds of each category, why these mutual funds are good and why we can invest, it is a matter to know
1. Nippon India Mutual Fund in Large Cap.
I have Nippon India Mutual Fund in large cap, it is leading mutual fund company of india there Average AUM is 2,79,431 crore.
AUM means asset under management. It tells how much of the fund the company is managing. Nippon is a company of Japan, active since 1995.
It is an old company and it has many products. 1 in the ETF, because they have an ETF of every theme.
We will not see the ETF now, we are telling the specialty of the company, now let’s talk about the specialty of Nippon India Large Cap Fund
It is good for those investors whose investment period is 3-5 years
I have always been saying that one should expect returns from any SIP or mutual fund in at least 5 years.
The benchmark of this mutual fund is S&P BSE 100 index. The performance of Nippon India Large Cap Fund can be judged by the performance of this index.
If the return of the mutual fund is better than the benchmark, then it means that the mutual fund is good, so S&P BSE 100 index return in the last 1 year is 6.64% and they have 11.8%.
So 5.2% higher than its benchmark, they have 56 stocks in their portfolio in which 73.26% big companies share, 10.26% mid cap companies and 1.41% small cap companies.
If we see the top 5 where they have invested money then they are HDFC, L&T, Reliance, SBI and ICICI, So if there are big companies, then put them in a large cap fund.
Portfolio turnover ratio is 65% , and other mutual fund average portfolio turnover ratio in this category is 143.81% .
Portfolio turnover ratio tells us how many times a mutual fund buys and sells the shares of the portfolio in a year.
And the less it is, the better it is because the more work you buy and sell, the less the expense will come and you will get good returns.
Standard deviation for this fund is 22.26, category average of this category is 19.36 ,which means it is more volatile than the rest of its fund.
Now you must be feeling that volatile means risk but wait here is another concept which is important to understand, sharpe Ratio.
It tells us how much risk has been taken to generate the return, it shows how much return has been made due to the risk.
As I said, Nippon Large Cap is more volatile than its category fund, so the returns will be higher.
Hence its Sharpe Ratio is .51 and belongs to this category. 42, Means it is more volatile, so instead it is giving more returns
And AUM for this fund is 12,534 crore if you see past returns so 59% in the last 5 years which is good.
Past returns are good. With this it got a 5 star rating from CRISIL, MF company’s product, history, performance, ratio analysis on every point. Nippon Large Cap looks like a good fund.
2. Quant Active Fund / Quant Mutual Fund.
Now let’s come to multi cap because we have explained all the points of mutual fund analysis with large cap, so now I will directly name the performance ratio of MF.
Quant Active Fund is on top of the list of multi caps, quant group started in 2007, started working during the Global Financial Crisis of 2008 .
The mutual fund has a total of 11,155 crore AUM, Quant Active Fund is good for those investors who want to take more risk as compared to Large Cap.
Its benchmark index is Nifty 50, return of Nifty 50 in the last one year has been 3.88% , and they have given 9.96% .
6.08% return higher than its benchmark , they have a total of 60 stocks in their portfolio, 49.44% of large cap and 9.01% of mid cap and 24.84% of small cap.
You must be seeing that the size wise allocation of the company has changed, there were more large companies in the large cap and more small companies in it.
This is the reason why it is more risky than large caps. Here’s a look at their top 5 holdings : ITC, Ambuja cement, Adani port, SBI and patanjali.
If see there portfolio turnover ratio so it is 125% other funds average of this category is 114.81% , Means the company is changing its stock quite often
Because Quant Mutual Fund is able to give good returns according to its category and hence this turnover ratio can be ignored.
Standard Deviation is 22.32% and average standard deviation of this category is 19.59 , to justify its sharpe ratio is 1.08 .
And category fund sharpe ratio is 0.62, Means the mutual fund company which is doing the turnover and taking the risk, it is generating good returns on it.
Quant active fund AUM is 3,221 crore and if you see past return so 114% return in 5 years, past performance is very good, with this it got 5 star rating of CRISIL.
Mutual fund history, past performance and ratio analysis, this mutual fund is looking good on every point
Now coming to the debt fund, in which I always say that the portfolio should be diversified means do not put all the money in one asset.
3. Magnum Gilt Funds (Government Bonds).
As people are now looking at equity funds, there are also good debt funds in the same way, the risk is less in this because they mostly invest in government bonds.
And the chances of the government defaulting are very small, almost non-existent.
I have Magnum Gilt Funds in my list, SBI does not need introduction and SBI’s only subsidiary company is SBI AMC which provides mutual fund products.
Everyone should keep a debt fund along with an equity fund in their portfolio which is risk free. Gilt funds are those funds which invest in government bonds,
So there is no need to do all magnum gilt fund analysis because they invest in bonds.
Their benchmark is CRISIL 10 year gilt index, if the return of the benchmark index in the last 1 year was -0.02%, and the return of SBI Magnum gilt fund is 4.31% .
Its returns are better than the funds in this category, with a 1 year return of 4.31%, and their competitors 2.15% ,so past performance is good.
With this it has 5 star rating of CRISIL, That’s why SBI Magnum Gilt Funds are in the list of good funds
4. DSP Natural Resources and New Energy Fund.
Now let’s talk about theme based mutual funds, these are the funds that invest in a specific sector or industry.
Among theme based mutual funds my list is DSP Natural Resources and New Energy Fund, a 25 year old mutual fund company.
Started business in 1860 as a stock broker, company working as asset management company since 1997, there total AUM is 1,11,341 crore.
The purpose of selecting this Natural Resources New Energy Fund is the future potential of this sector .
It is not hidden from anywhere that the way all companies are focusing on natural energy, be it electronic vehicles or technology.
Energy is needed for everything to run and Sadi Power Company is planning to produce energy from natural resources.
This is the reason why I felt that it can give growth in the coming time, if you want to know how power company works then you can see the analysis of Tata Power, which is very detailed
Renewable energy sector is going to grow, this is not the reason to select this mutual fund.
As I said that we have analyzed the performance of mutual funds, we will do the same, CRISIL has given it a 4 star rating.
This fund is good for those who believe in the growth of renewable energy. Its benchmark index is Nifty 50, 1 year return of Nifty 50 is 3.88%, return of this fund is 5.72% and benchmark is more than 1.84% .
There are 19 stocks in which 41.02% are large cap and 18.08% mid cap or 1.06% small cap or 15.71% are other MF investments in the same theme.
See top holdings such as Jindal steel, TATA steel, Hindalco, Reliance and coal india.
Now here if you believe in any other theme then you can invest money in that other theme.
Its portfolio turnover ratio is 34% and category average ratio is 144.14% this means the fund rarely buys and sells its holdings, which is a good thing.
If you see their performance, 22% return in 3 years, 31% return in 2 years, so performance is good according to 2-3 years.
But remember that the sector will be a very specific investment sector, so the risk becomes more, if it does not work then the money gets trapped.
5. Motilal Oswal NASDAQ 100 ETF
Now coming to the 5th fund, but this time it is not a mutual fund but an ETF, which means Exchange Traded Fund.
It is like a mutual fund but an ETF is listed on the stock exchange, in which we can easily buy and sell like a normal share.
The ETF I am talking about is the Motilal Oswal NASDAQ 100 ETF, it is a traditional broking firm with this they run AMC ( Mutual fund segment)
They have 100 companies in nasdaq, Nasdaq is an US index in which big companies of US like Facebook, google, Amazon are.
We all know that the US market is near its Low, so I think that in such a time a little bit should be invested in the form of SIP.
Along with this, you must have got the answer to your most important question that those 5 funds where you can invest in 2023 and make good returns
But wait, I mentioned bonus points, haven’t you forgotten?
Whenever you go to invest in any mutual fund, you will see two types of funds, one is growth fund and the other is dividend fund.
These two are same fund but the method of investment is different, like if you select growth fund then mutual fund company will make profit whenever
Like selling shares in the portfolio or dividend or any corporate action, then the mutual fund company adds that profit again to the same fund.
This makes your fund grow faster, but this does not happen in dividend funds, in which the mutual fund company returns all the profits to you in the form of dividends.
Due to which the magic of compounding is not added to your investment.
And when the fund comes back in the form of dividend, then there is a high chance that it will be spent, because we are humans.
So whenever you invest, try to invest only in growth funds so that you can get the benefit of compounding and your money grows faster
Now it’s time for another bonus to bring Mercedes to your home, now let’s know how Mercedes will come to your home
You just have to do a monthly SIP of Rs 13,812 for 20 years, saying 10% you get 15%. You will get a corpus of 1 crore from which you can bring Mercedes to your home.
Which fund did you like, please tell me in the comment so that I can know that you are learning. It is beneficial, my hard work is being successful.
I have tried my best to explain to you in simple language, no one gives such detailed analysis on mutual funds.