4 Best Mutual Fund SIPs to Invest in India in 2021


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1. JM Low Duration Fund Direct Plan Growth:

1. JM Low Duration Fund Direct Plan Growth:

The fund receives a 5-star rating from Value Research and has an AUM size of Rs. 128.47 crores. The annualized return for the last 1 year is 25.09%. The expense ratio of the fund is 0.42 percent. The low-maturity fund of the house of JM Financial has low to moderate risk according to the risk-o-meter.


The fund’s corpus consists of 90% debt, of which more than 58% in G-securities. The benchmark for the fund is the CRISIL 10 year GILT Index. SIP in the fund can be started for just Rs. 500 while for a lump sum, the minimum investment is Rs. 5000.

2. Direct Growth HDFC Credit Risk Debt Fund:

2. Direct Growth HDFC Credit Risk Debt Fund:

This credit risk fund of the HDFC MF AMC has a 4-star rating from CRISIL. AUM of the fund are to the tune of Rs. 7367 crore. The fund assumes an expense ratio of 1.1 percent. Furthermore, the fund carries a moderate risk.

This MF option is particularly suitable for investors who can invest for a longer term, but prefer less risky assets compared to equity funds. The fund has nearly 90% debt investments. Against its benchmark CRISIL 10-year Gilt Index, which returned 3,915 last year, this HDFC credit risk fund delivered a return of 12.87%. The fund’s peers include Baroda Credit Risk Fund – Plan B (Direct) – Growth, Axis Credit Risk Fund – Direct Plan – Growth etc.

3. ICICI Prudential Medium Term Bond Fund Direct Plan Growth:

3. ICICI Prudential Medium Term Bond Fund Direct Plan Growth:

This Medium Duration fund from ICICI Prudential has a CRISIL 3-star rating. AUM under the fund total up to a whopping Rs. 6542.22 crore. The fund’s expense ratio is 0.74 percent. The fund has 95% investments in debt, of which 19 percent in G-securities. Relative to its benchmark, the fund offers a 1-year return of 11.01%.

Investors with a 1-3 year investment horizon and looking for alternatives to bank deposits can park their money in this MF. Risk-o-meter suggests that the fund carries medium risk. SIP in the fund can be started for Rs. 1000 while for lump sum investments a minimum of Rs. 5000 needed.

4. Direct growth of the SBI credit risk fund

4. Direct growth of the SBI credit risk fund

This credit risk fund of SBI MF House has a fund size of Rs. 3496.77 crore. The fund’s expense ratio is 0.91 percent, while according to the risk-o-meter it is moderately risky. Compared to the fund benchmark CRISIL 10-Year GILT Index, the scheme’s 1-year return was 9.65%.

The fund is primarily invested in debt, ie over 92% percent. SIP in the fund can be started for as low as Rs. 500 while for a lump sum, the minimum requirement is Rs. 500

Taxation of Debt Funds:

Taxation of Debt Funds:

Debt funds if held for less than 3 years attract short-term capital gains according to the investor’s income tax. In the event that the Debt Fund Units are redeemed after a 3-year term, a 20 percent long-term income tax will apply after indexation. Sale or redemption of debt mutual funds is not subject to a securities transaction tax.

Disclaimer:

The article is for informational purposes only and is not a request to buy or sell any securities mentioned in the article. Greynium Information Technologies Pvt Ltd, its subsidiaries, employees and the author assume no liability for losses and/or damages arising out of the information contained in this article.

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