List of SIP Opportunities For a Monthly Investment of Rs. 2,000
Starting a Systematic Investment Plan in a mutual fund is a good way to ensure long-term wealth creation. The regular and consistent investments you need to make as part of this investment method can inculcate financial discipline, which is one of the key factors for steady financial growth. In addition to this, you also get to enjoy other benefits such as rupee cost averaging, which lowers your overall cost of investment, and compounding, which boosts your returns over time.
That said, not all mutual funds perform similarly given the same market conditions. This is precisely why it is important to pick the right funds to invest in. In this article, we’re going to take a look at some of the SIPs to invest in 2024 with an investment as low as just Rs. 2,000 per month. But before that, let’s quickly look at some of the crucial factors that you need to consider before investing in any SIP plan.
Things to Consider Before Investing in a Mutual Fund SIP
As an investor, you need to be aware of the various factors that need to be considered before starting an SIP in a mutual fund. This will help you make a well-informed investment decision. Here’s a quick overview of some of the key factors.
Determine Your Goals
Your financial goals play a huge role in selecting the type of mutual fund you need to invest in. Therefore, it is crucial to determine and lay out your goals first. Once you’ve done that, you’ll find it easy to choose the fund to invest in.
For instance, if your goal is to secure your post-retirement life, you can consider investing in an equity-oriented fund. On the other hand, if your goal is to ensure a supplementary source of income, you may choose to invest in a high-quality debt fund or corporate bond fund.Start A Separate SIP For Each Goal
Once you’ve determined your financial goals, the next thing you need to focus on is starting a separate SIP for each goal you may have. Separate SIPs can help you track fund performance and manage your investments much better.
For instance, if your goals are to create a corpus for your child’s higher education and to have a secondary source of income, you can consider starting SIPs on both an equity fund and a debt fund separately.Choose Investments Based On Your Risk Profile
Your risk tolerance and profile are another major factor you need to consider when starting a Systematic Investment Plan in a mutual fund. Always consider investing in a fund that matches your risk profile.
For instance, if you have a high tolerance for risk, you can consider investing in equity-oriented funds. On the other hand, if you’re a more conservative investor, you may choose to invest in a debt fund. And finally, if you have moderate risk tolerance, you can consider investing in a hybrid fund with both equity and debt components.Performance Evaluation
Every mutual fund, even if you invest via a Systematic Investment Plan, requires periodic performance evaluation. This helps you determine whether the fund is performing as per your expectations or not. Furthermore, regular evaluation lets you take timely corrective measures if the performance doesn’t match your financial goals.
Top SIP plans for a Monthly Investment of Rs. 2,000
If you’re looking for some SIP plans for a Rs. 2,000 per month investment, here are some options you can consider investing in.
Quant Mid-Cap Fund Direct-Growth
Launched in 2013, the Quant Mid-Cap Fund is a mutual fund that primarily invests in mid-cap and large-cap companies. Asset class wise, the fund invests 91.94% in equity, 7.53% in debt and 0.53% in cash and others. Ideal for investors looking for returns outperforming the market, the fund is categorised as high risk. The expense ratio of the fund is just 0.76%, making it a good SIP to invest in 2024 in terms of cost.
Axis Small Cap Fund Direct-Growth
The Axis Small Cap Fund was launched in 2014 by Axis Asset Management Company Limited. The fund focuses on investing in high-quality small-cap companies, with over 88.09% in equity, and 11.96% exposure to debt. Aggressive investors with a high tolerance for risk can consider investing in the Axis Small Cap Fund. Although it is an actively managed fund, the expense ratio is just 0.54%.
Canara Robeco BlueChip Equity Fund Direct-Growth
A large-cap mutual fund that invests exclusively in blue-chip companies with strong fundamentals, the Canara Robeco BlueChip Equity Fund was launched in 2010. Around 95.57% of the fund’s total assets have been allocated towards equity stocks and about 4.47% is in debt instruments. Unlike the other two options listed above, the fund is moderately risky and is ideal for long-term investors. However, the expense ratio of the fund is 1.71%.
Quant Tax Plan Direct-Growth
The Quant Tax Plan fund is an Equity-Linked Savings Scheme (ELSS), which is a type of mutual fund with a mandatory 3-year lock-in period. Asset class wise, the fund invests 91.94% in equity, 7.53% in debt and 0.53% in cash and others. One of the primary advantages of the Quant Tax Plan fund is that SIP investments you make can be claimed as a deduction from your total income under section 80C of the Income Tax Act. The maximum amount that you can claim in a financial year is limited to Rs. 1.5 lakhs. If you're interested in saving tax, the Quant Tax Plan fund is one SIP you can consider to invest in 2024.
UTI Nifty 50 Index Fund Direct-Growth
Launched in 2013, the UTI Nifty 50 index fund is a mutual fund that seeks to replicate the performance of the Nifty 50 index. The stocks in its portfolio mirror those included in the broad-market index. Thanks to it being a passively managed fund, the expense ratio is quite low at just 0.21%. If you’re interested in a cost-effective mutual fund with returns close to what the broad market generates, the UTI Nifty 50 Index Fund is a popular SIP to invest in.
Conclusion
With this, you must now be aware of some of the SIP plans you can start investing in 2024. Whether your monthly investment amount is as low as just Rs. 2,000 or as high as Rs. 10,000, investing in these funds may get you closer to your financial goals. That said, mutual funds and the stock market in general can be very volatile and unpredictable. Therefore, it is advisable to thoroughly research the various risks involved before investing.
SIPs let you invest small amounts regularly, making it easier to stay consistent with your goals. With time, your money grows faster through compounding, helping you get the most out of your investments. Try our SIP Calculator to see how your money can grow and make smarter plans for your future.
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Can Mutual Fund Schemes Invest in Upcoming IPOs? - H1 Initial Public Offerings (IPOs) have become a buzzword among investors looking for high-growth opportunities. Whether it’s a unicorn startup going public or a reputed company entering the equity market, IPOs attract substantial interest. But what about mutual funds — can they participate in IPOs? And if yes, how does it impact you as an investor in a mutual fund? This article explores the role of mutual funds that invest in IPOs, the process behind such investments, and how you can benefit from this strategy. You’ll also gain insights into how fund managers evaluate IPO opportunities and which mutual funds are more likely to invest in them. Role of Mutual Funds in Equity Markets - H2 Mutual funds play a vital role in India’s equity markets. Managed by professional fund managers, these pooled investment vehicles collect money from multiple investors and allocate it across a portfolio of stocks, bonds, or other assets based on the fund's mandate. In the context of equity investing, mutual funds: Provide diversification to small investors Help in price discovery and market depth Act as long-term institutional investors Reduce risk through strategic asset allocation Given their market presence and influence, mutual funds also participate in IPOs, often subscribing to large portions of new issuances. But this activity is more nuanced than simply bidding for shares. Are Mutual Funds Allowed to Invest in IPOs? - H2 Yes, mutual funds in India are allowed to invest in IPOs — both in the primary market (where shares are first issued) and in the secondary market (where stocks are traded after listing). This means mutual funds can apply for shares during an IPO’s book-building process just like retail investors, high-net-worth individuals (HNIs), and institutional investors. SEBI regulations allow fund managers to allocate a portion of the fund’s assets to IPOs, provided the investment aligns with the scheme's objectives and risk profile. For instance: A large-cap fund may only invest in IPOs of companies expected to be included in large-cap indices A multi-cap or flexi-cap fund has more flexibility to take exposure across market capitalisations, including IPOs An ELSS fund (Equity-Linked Savings Scheme) can also participate in IPOs if it aligns with its tax-saving and equity investment objective So, the short answer is: Yes, mutual funds can and do invest in IPOs — but not all funds, and not always. Why and When Do Mutual Funds Invest in IPOs? - H2 Investing in IPOs offers mutual fund managers several strategic advantages, including: 1. Access to Early Growth Potential - H3 Many IPOs are of young, fast-growing companies. By investing early, mutual funds aim to capture the growth upside before the stock gains mainstream popularity. 2. Price Arbitrage Opportunities - H3 If a mutual fund believes that the IPO is underpriced relative to its intrinsic value, it may invest with the intent of benefiting from listing gains or long-term appreciation. 3. Portfolio Enhancement - H3 Some IPOs bring fresh sector exposure or innovation to the market. Fund managers may invest to diversify or rebalance the portfolio with new-age businesses, like fintech or EV startups. 4. Long-Term Bets - H3 Fund managers often look at IPOs with a long-term lens. The goal isn’t always listing gains but building a position in a company expected to perform well over years. 5. Demand and Liquidity Trends - H3 In bullish markets, IPOs tend to be oversubscribed and see strong listing premiums. Mutual funds may participate to ride the market momentum, especially when investor confidence is high. Factors Fund Managers Consider Before Investing in IPOs - H2 While IPOs are exciting, they are also risky and speculative, especially for companies with no prior listing record. Fund managers conduct rigorous due diligence before deciding to allocate your money to an IPO. Here are the key factors considered: 1. Company Fundamentals - H3 This includes examining the company’s: Revenue and earnings trends Debt levels and capital structure Profit margins and business scalability Competitive advantage and market share 2. Valuation Metrics - H3 Fund managers analyse: Price-to-Earnings (P/E) ratio Price-to-Book (P/B) ratio Enterprise Value to EBITDA (EV/EBITDA) These are compared with listed peers in the same sector. 3. Promoter and Management Track Record - H3 A critical evaluation is made on the credibility, governance standards, and historical performance of the promoters and top management. 4. Utilisation of IPO Proceeds - H3 Fund managers study how the company plans to use the funds—whether for debt repayment, expansion, or general corporate purposes. 5. Macroeconomic and Sector Trends - H3 Sectoral outlooks, regulatory policies, and broader market sentiments also influence IPO investment decisions. 6. Anchor Book Participation - H3 Strong interest from anchor investors (like global funds or sovereign wealth funds) signals confidence in the issue, making it more attractive for mutual fund participation. Best IPO Mutual Funds: What to Look For - H2 If you're keen on gaining exposure to IPOs through mutual funds, it's important to choose the right type of fund. While there’s no official category called “IPO mutual funds,” some schemes actively participate in upcoming IPOs. Here’s what you should look for when selecting such a fund: 1. Fund Category and Investment Mandate - H3 Start by checking the category of the fund. Flexi-cap, multi-cap, and mid-cap funds generally have more leeway to invest in IPOs. These funds are not restricted to a single market capitalisation and often aim to capture high-growth opportunities, making them ideal for IPO exposure. 2. Track Record of Participating in IPOs - H3 Review the fund’s portfolio history. Some mutual funds consistently allocate a portion of their assets to new listings. You can find this information in the fund’s monthly factsheet or portfolio disclosure. Look for funds that have a pattern of investing in IPOs over time—not just as a one-off move. 3. Fund Manager's Experience and Strategy - H3 A skilled fund manager makes a significant difference. The manager's ability to evaluate IPO valuations, industry potential, and company fundamentals is crucial. Look for funds managed by professionals with a proven track record in equity investing and a sound IPO selection approach. 4. Diversification and Risk Management - H3 An ideal fund won’t rely heavily on IPOs alone. Instead, it will use IPO investments as part of a broader equity strategy. Ensure that the fund holds a well-diversified portfolio alongside its IPO allocations to reduce volatility and balance risk. 5. Consistent Performance Over Market Cycles - H3 While past performance isn’t a guarantee of future returns, funds that have consistently performed well across different market cycles often reflect strong management and strategy. Look at long-term performance metrics like 3-year or 5-year returns instead of just recent gains. 6. Transparency and Reporting - H3 Good IPO-investing funds are transparent about their holdings. Choose funds that provide detailed disclosures about their portfolio, including new IPO allocations, so you can track how your money is being deployed. Also, read the scheme information document (SID) to understand the fund’s mandate and whether it allows active IPO participation. Should You Invest in a Mutual Fund That Invests in IPOs? - H2 Pros: Access to IPOs without applying individually Professional due diligence and analysis Built-in diversification Potential to capture high-growth opportunities Cons: IPO investments may not always succeed May increase portfolio volatility Returns can be affected by market timing and sentiment If you're a long-term investor, funds that occasionally invest in IPOs can be a good addition to your portfolio — but don’t chase IPO exposure alone. Always assess the fund holistically. Conclusion - H2 Yes, mutual fund schemes in India can and do invest in IPOs, but they do so strategically — not emotionally or impulsively. Fund managers assess multiple factors before deciding to put your money in newly-listed companies. 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FAQ
What separates a feeder fund from a typical mutual fund?
A feeder fund transfers its investments to a master fund, whereas a regular mutual fund invests directly in equities.
How do feeder funds manage risk?
Feeder funds diversify their investments over numerous master funds, which reduces risk and increases portfolio resilience.
Can feeder funds invest internationally?
Yes, feeder funds can participate in overseas markets via master funds, giving investors access to a wide range of investment options.
Are feeder funds good for new investors?
While feeder funds provide professional management, inexperienced investors should conduct extensive research and obtain expert advice before investing.
Can feeder funds guarantee a return?
Feeder funds, like all investments, are susceptible to market fluctuations and cannot guarantee returns. However, they have the ability to grow and generate income in the long run.
How can investors monitor the performance of their feeder fund investments?
Investors may track the performance of feeder funds by receiving regular updates from the fund manager, as well as periodic statements and reports.
What factors should investors think about before investing in a feeder fund?
Investors should consider investing goals, cost structures, and the feeder and master funds' track records.