Investing Through SIPs

Which fund will be best for 'sip'?
Various funds (equity and debt) offer investments via SIP. You can select some well rated equity or debt funds which have done well over years. Some good equity picks can be HDFC Top 200, Birla Frontline Equity, or SBI Magnum Multiplier Plus. For Debt choose from ABN Amro Flexi Debt, Kotak Flexi Debt or ICICI Pru Long Term.

I want to invest Rs 1 lakh for three years. Which mutual funds I should go for, so that I get good return after 3 years (near to double)? Please advise.
Deepak
Mutual funds have associated market risks and do not offer guaranteed returns. Though you should expect 15-20% per annum, you can opt for well rated mid cap funds if you wish to be aggressive. Some good picks can be Reliance Growth, Sundaram Select Midcap, or Birla Mid Cap.

I am investing Rs.60000 monthly as a sip. How long should I continue to invest to get Rs 1 crore.
Vivek Manchanda, Lucknow
Assuming an annual return of 20 per cent from equity diversified funds, it would take 7 years for you to achieve your target of Rs 1 crore.

Please suggest me the best funds which can give me 40-50 per cent return after 5 -6 years?
It is tough to predict future returns, but you should select few five or four star rated equity diversified mutual funds for investment. Some good picks can be Reliance Vision, HDFC Top 200, Birla Front Line Equity or Sundaram Select Focus. These funds have been consistent performers in the past.

Investment in Franklin Asian Equity Fund through sip five thousand per month can I continue.
N P Patil
The fund was launched in December 2007 and its too early to evaluate its performance. If you are investing via SIP you should invest in better open ended rated fund which have a good performance history.

I have invested in a ULIP - Birla Sunlife named Gold Plus II. Is this the right decision?
Arun Shrivastav
ULIPs are not smart investments because of the high charges. These charges eat up your return in the long run. Now that you have invested, it is compulsory to remain invested for 3 years. Check the fund value post 3 years and take a decision.

I wish to invest Rs 2000 each in 10 equity schemes through SIP. Please suggest schemes.
A sip of Rs 20,000 should not be divided into 10 different funds. So many funds would lead to over diversification and would make portfolio management tough. Pick a maximum of 4-5 funds. Some good options can be Kotak 30, HDFC Equity, Sundaram Select Focus or SBI Magnum Multiplier Plus.

Why return of ELSS is lower then diversified equity mutual fund? Suggest some good aggresive & moderte diversified funds.
Jiten
ELSS Funds are just like any other equity diversified fund with a three year lock-in. The past 1 year return of both categories is around 25%. Some good moderate risk picks can be Magnum Tax Gain, Franklin India Tax Shield or Birla Sunlife Tax Relief 96. ICICI Pru Tax Saver, Sahara Tax Gain, and Principal Tax savings are aggressive funds.

I want to invest Rs 3000 p.m for next 20 year in mutual funds. Please tell which fund will be the best.
SIP is the best technique for investing in equity funds as it helps you average the cost of purchase. Choose from well rated top performers like HDFC Equity, Sundaram Select Focus, Birla Frontline Equity or Kotak 30.

What is the future of Uti India Life Style Fund?
Bikas
UTI India Life style is a relatively new equity diversified fund. The fund however has fallen less than the category average in the recent crash. Remain invested for some time before evaluating its performance.