● Flexibility: The investor can opt on how much to invest, stop investing if an immediate need arises, or increase investments with the rise of income.
● Compounding benefits: Periodic investments into mutual funds would make returns earning further returns that aid in the process of wealth creation over time for investors at the beginner’s level.
Bajaj Finserv Best SIP Options for New Investors in 2024
Bajaj Finserv has picked some of the best mutual funds to invest through SIP for first-time investors who come out in search of a good prospect but where there is minimal risk. Here are three of the best SIP options for new investors in 2024-
● Equity Large Cap Funds
Large Cap Funds invest in the top 100 companies by market capitalisation, which are stable. To a new entrant, these funds balance growth and stability, since large-cap companies are relatively less volatile than the mid-cap or small-cap stocks.
Sample Fund: Bajaj Finserv Large Cap Fund (representative)
Risk Level: Moderate
Investment Horizon: 5+ years
● Hybrid Aggressive Funds
Hybrid Aggressive Funds invest a combination of equities and debt instruments to offer both growth and income exposure. The same balance avails capital appreciation potential with the protection of a decline in the equity market through debt investment. Hybrid Aggressive Funds are quite apt and diversified for a newcomer with lower risk compared to pure equity funds.
Example Fund: Bajaj Finserv Balanced Advantage Fund (for illustration)
Risk Level: Moderate
Investment Horizon: 3-5 years
● ELSS (Equity-Linked Savings Scheme)
The ELSS funds primarily invest in equities and offer tax-saving benefits under Section 80C of the Income Tax Act. With a lock-in period of three years, ELSS funds also encourage long-term investment. For beginners, they make for an ideal entry into equity markets while further reducing taxable income, making them a double-benefit investment.