The amount of SIP investment is one of the various criteria that can influence your selection of the mutual fund scheme. Other factors like the rating of the scheme, the expense ratio, the risk involved, and the asset portfolio are also to be considered.
While picking up five mutual fund schemes that have a SIP contribution of less than Rs 500, we have gone across scheme categories to ensure a diversification of the selected basket.
UTI Flexi Cap Fund –
It is a multi-cap equity scheme with an asset size of nearly Rs 22,600 crores. Its major investments are in the financial, healthcare, and technology sectors and have an expense ratio of 1.09%. It has delivered a return of 69.1% in one year.
SBI Focused Equity Fund –
It is a focused equity fund, which means that it holds a relatively fewer number of stocks. With an asset size of Rs 19,429 crores, the key sectoral investments are in financial, FMCG and healthcare. With an expense ratio of 0.71%, it has posted a 68.55% return in one year.
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Axis Bluechip Fund –
A large-cap equity fund, Axis Bluechip holds assets of over Rs Rs 32,200 crores. Financial, technology, and services are the key sectoral investments, with the likes of Bajaj Finance, Infosys, HDFC Bank, ICICI Bank, and TCS. The expense ratio is an impressive 0.46%. It follows the Nifty 50 total return as a benchmark. In the last one-year period, its return was 51.92%.
Franklin India Feeder Franklin US Opportunities Fund –
As the name suggests, Franklin US Opportunities is an international equity fund scheme. It can be a part of your portfolio if you are looking for international equity exposure. With a fund size of Rs 3,919 crores, the mutual fund‘s return was 25.95%. Its investment is entirely in the financial sector. It has an expense ratio of 0.52%.
PGIM India Flexi Cap –
With a limited asset size of Rs 2,031 crores, the PGIM India Flexi cap posted over 77% return in the past year. Financial, technology, and healthcare are the key areas of investment, with Nifty 5000 TRI as the benchmark index. The expense ratio is a very attractive 0.22%, and the exit load is a lowly 0.5%.
Conclusion
When it comes to selecting mutual funds, various factors come into play. Choosing the high return schemes without any diversification can be risky. Besides, the expense ratio and exit load are also important as it lowers your return. With Tata Capital Moneyfy App, you will find information on all mutual fund schemes. The Moneyfy app makes it easy for you to compare and select your SIP portfolio. While selecting SIP below Rs 500, Moneyfy app is there to help you make an informed decision.
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