Co-founder and COO, Groww
How is SBI Bluechip fund for the long term?
—Vijay Patel, Kharghar
SBI Bluechip Fund is a large-cap fund which has consistently outperformed its benchmark since its inception and is one of the most popular large-cap funds in the market today. This fund has been rated as a 4-star on Moneycontrol, 5-star on Valueresearch and 4-star on Groww. It has given an average return of 18.4% per annum for last 5 years.
Ideal for - if you are looking to invest for 3-5 years, this is a good fund. The risk is lower compared to other equity funds and growth is moderate.
Few other good large-cap funds are -
Mirae Asset India Opportunities Fund
Reliance Top200 Fund
How much do I need to invest and where to get 1 cr in 10 years?
—Krishna Lathia, Asangaon
Getting 1 crore in 10 years is a realistic goal. For a time horizon of 10 years, you can go for high growth equity funds in mid cap and small cap category. You can expect an average return of 15-20% per year from this category of mutual fund. If you use a good SIP calculator, you can see that you will need to put around 35,000 per month to get 1 crore in 10 years, with an average return of 17.5%.
Here are a few good mid cap and small cap funds -
Mirae Asset Emerging Bluechip
Reliance Small Cap Fund
Can an NRI from Singapore invest in mutual funds in India?
—Kishore Kapadia, Colaba
Yes, almost all mutual fund companies allow investment from Non-US/Canada NRIs. You need to do NRI KYC for investing. The bank account required for investing is NRE or NRO. The tax applicable on the returns earned from the mutual funds is also same for NRI and Indian residents. The only difference is that in case of NRI, the tax, if applicable, will be deducted at the source.
How can I start investing in Mutual funds?
—Rajesh Mansukhani, Lower Parel
To start investing you need to complete KYC and create an account with a distributor or the Mutual Fund company. Once your KYC is submitted you have two ways of investing - Online and Offline.
Online - this is the most convenient way of investing. If you are using net banking, you can visit any online mutual funds platforms such as Fundsindia, Groww, Mycams etc. and purchase in any mutual fund.
Offline - you can visit the respective mutual fund company (AMC) office and fill the form to purchase the specific mutual fund. You need to make the payment through a cheque or DD.