Requesting suggestions for investing in Mutual Fund SIP

If you ask my suggestion, I would recommend L&T mutual fund which is safe and performing. I sold my house in 2017 and invested part of the proceeds in this mutual fund and for the past four years I am getting regular income every month and the NAV value also increased. I do not have any idea about the other mutual funds of other companies and their performance but the said company in which I have invested is doing good and even during the pandemic they paid me the interest every month without fail and that proves the company is very professional in dealing with the mutual funds.

Many people invest in Mutual Funds and it is one of the good options for investing money especially for long time investment objectives. Before we go in the details about this one thing which is paramount to understand is that Mutual Funds earn by investing in the equity and/or bond and fixed instruments markets depending upon the type of scheme. They take out their expenses from that as limited by the laws with regards to MF schemes and pass on the rest to the investor and in that process the investor's money also grows. But there is a catch in this. What happens when the equity or other instruments market do not perform good and remain sluggish for a long time? This is a bad situation and Mutual Funds will not be able to give a return and in such conditions the investor wold be losing and there were instances in the past when investors were not able to get back even the original amount that they had invested. But let us not fear such an eventuality because the fact of the matter is that whenever business environment flourishes the equity market goes up and MF schemes also deliver nice returns. So keeping a positive mind set one can definitely go for investment in this avenue.

It is advisable to buy MF units either directly from the Mutual Fund site or by opening a Demat account in a bank and doing the buying and selling transactions through it. Bank will charge a fee for the Demat account. There are some apps and financial companies through whom one can do this but they are all in the nature of MF agents only and until one knows them as reliable and authentic, it is risky to do so. Many private internet financial sites provide free Demat account also but I am not sure as how reliable they are.

When we buy MF units then it can be at one go or through the SIP scheme in which every month a predetermined amount will be taken out from our bank account and sent to the MF company and depending upon the price of that MF scheme units on that day, the number of MF units will be added to our MF account. SIP is a very popular mode and for that generally we instruct our bank for autopay the amount on that day every month. Generally banks will not charge for this online transaction but if there is insufficient amount in our bank account then bank will charge a overdraft fee. So one should be cautious in giving the SIP amount while going for the MF scheme to avoid such lapses.

Generally equity schemes will be giving high returns as they are having high risk also. Debt schemes like bonds etc will have low risk but the return will also be small. So, depending upon ones risk perception one has to select the MF scheme. There are balanced funds also where about 60% is invested in equity and about 40% in debt instruments by the MF house. Many investors prefer balanced fund schemes.

Please remember that past performance of a fund is no guarantee for the good future performance but we generally go for such funds based on the historical data. From that angle some of the good schemes are - Axis Bluechip Fund, Mirae Asset Large Cap Fund, HDFC Equity Fund, HDFC Balanced Fund, Parag Parikh Long Term Equity Fund, Kotak Standard Multicap Fund, Axis Midcap Fund, DSP Midcap Fund, Axis Small Cap Fund, SBI Small Cap Fund etc.

These Mutual funds are the best option and they are the best instruments to park our money.
It is better if you go to the site of the mutual fund and apply from there. There is another option that is a DEMAT account in any bank and through that also you can invest. If you have any well known financial expert you can take his help and decide on the funds which are good and giving good returns.
The following are the best MF for investing as of now. Go through their websites and study the information well and then decide on the fund you want to invest.
Here is the list of top 10 schemes:
Axis Bluechip Fund
Mirae Asset Large Cap Fund
Parag Parikh Long Term Equity Fund
Kotak Standard Multicap Fund
Axis Midcap Fund
DSP Midcap Fund
Axis Small Cap Fund
SBI Small Cap Fund
SBI Equity Hybrid Fund
Mirae Asset Hybrid Equity Fund

Any investor can start investing at any time and with any amount. Many times people invest in a large amount but mutual funds give you the facility that you can start taking risks even with a small amount. Later you can increase your investment on your own after making some profit or seeing your amount safe. Investors can invest in different stocks or instruments like gold etc. This convenience attracts the investor and hence also people prefer to invest more in Mutual Funds. Earlier, the investor always had to open a Demat account first, only after that the process of investment proceeded, but now you can invest without opening a Demat account. You must be KYC compliant to start investing in any mutual fund. For this, you complete the KYC formalities in a simple KYC form. By filling this form, a copy of some necessary documents is attached with it. Some mutual funds provide the facility of e-KYC on the website or on the platform of the distributor. Before investing, keep in mind the precautions like, before choosing a fund house, its performance should be well understood. Its complete history, track record and etc. can help you in choosing the scheme, so keep the right information about it. The biggest advantage of investing in mutual funds is the variety available in it, that is, you get new plans and options every day, which are made with the intention of getting you maximum profit. You can always get information about the fluctuations in your investment from anywhere, for this you will not even need any intermediary. You can start this investment with a small amount and it will not mess up your balance.

Choosing mutual fund for maximising your appreciation of your capital is the best idea if you could select best portfolios operating in the market. You may take valuable inputs from some reputed financial consultant having wide experience in this area. A careful selection of fund can appreciate your investment as much as 300 percent within three years. That is why a careful selection of funds makes sense to make money through the mutual funds. You can have valuable inputs from the financial consultant regarding the best portfolios which could fetch handsome returns within a short period such as Larsen and Toubro, Kotak Mahindra, SBI, Canara Bank Mutual funds etc. Normally the mutual funds are of three types namely- Balanced Fund, Debt Fund and equity funds. You can have different portfolios in your basket so as to be benefited with their operations.
The following points would be helpful to you -
1) Start a SIP account for the payment to be made regularly monthly with your minimum investments. This could be even as low as Rs 500/ - per month or any convenient monthly instalment as decided by you.
2) You should update your knowledge regarding the financial health of the fund, its last performance for the last five years, its declaration of dividends and other payouts given to the investors yearly.
3) In case of making payments through the SIP, ensure that there should not be default of payments due to insufficient fund. Such defaults for three times in succession would lead to payments of extra charges by your bank account.
4) You should not be perturbed by your capital erosion for a short time since such a fluctuation is normal due to market conditions involving several variables.
5) Instead of choosing a single basket, this needs to diversified into several portfolios so as to minimise losses if any due to choosing of a single investment.
Groww App has been introduced recently providing you safety features in case of your transactions through this App. Go through this App and select one fund which you want to have this time. This App would provide you details regarding its past performance, present performance of a particular fund for which you are interested. Fill up the relevant details indicating your one time payment or you want to choose SIP. Click the payment option as decided by you. Such payments are safe and secured.
The following are considered to be the best mutual funds currently and if you want to include the same in your basket, you may get handsome returns within a couple of years.
1) ICICI Prudential Blue Chip Fund
2) L&T Tax Advantage Fund
3) SBI Nifty Index Fund
4) Axis Liquid Fund
5) Aditya Birla Sunlife Small and Midcap Fund
6) Tata Equity PE Fund
7) Kotak Corporate Bond Fund
8) Canara Robeco Gilt PGS
9) ICICI Prudential Regular Saving
10) Motilal Oswal Multicap 35 Fund.