Best SIP Plans in SBI

What are SIP plans?

SIP plans are systematic Investment Plans that allow a potential investor to invest their earned money into SIP mutual funds so that a large sum of return can be accrued over a long period of time as these plans work best when money is invested into them on a long – term basis.

Once the investor starts investing into the SIP mutual funds, the amount of the investment money can be automatically debited from the bank account of the investor which they had registered with and invested into the SIP mutual fund. The investor can get it automatically debited by registering their bank with it. The debited money is invested into a mutual fund scheme for SIP that the investor has chosen.

There is no risk of the lapse of the SIP plan if you forget to make the payments as you can give your bank an instruction to auto – debit the money for investing from your account during every interval that the investments have to be made.

SBI – State Bank of India

SBI (State Bank of India) Life Insurance is one of the top insurance companies in India. It is second, after LIC, in terms of the hold on the market with a good 5.1 % market share in 2015 – 2016. It also has a really impressive claim settlement ratio which means that they have settled a large portion of the claims made by their policy holders. The claim settlement ratio is a good 96.69 %.

Best SIP plans offered by SBI

  • SBI Magnum Equity Fund

The SBI Magnum Equity Fund is one of the best SIP plans offered by the State Bank of India. It is one of the most affordable plans as the minimum amount of investment for the plan is INR 500. Investing into this plan slowly with a small amount of money going in on every interval and for a long time will help the investor grow a large amount for the corpus over a period of time.

Number of years or term of mutual fund Percentage of the return received
1 year return 6.75 %
3 years return 15 % (approximately)
5 years return 15.30 %

 

  • SBI Blue Chip Fund

The SBI Blue Chip Fund is one of the best SIP plans offered by the State Bank of India. It has been providing the investors with consistent returns. In 5 years, you might be subject to a return of at least 18.51 % which is pretty high for a mutual fund return. It is advised to keep investing into the SBI Blue Chip fund for at least a term of 4 years if you want to receive returns which are significantly higher than the invested amount. The SBI Blue Chip Fund is a low investment mutual fund as the minimum SIP amount you can invest is INR 500. Let us have a look at the returns year – wise:

Number of years or tenure of mutual fund Percentage of the return received
Returns after 1 year 30.21 %
Returns after 5 years 18.51 %

 

  • Contra Fund by SBI

The state bank of India offers another SIP mutual fund plan which is great to invest into; it is called the SBI Contra Fund. In the previous year, the SBI contra fund has managed to give a return of a whopping 22 % to the investors who invested in it creating rather a benchmark to the return percentage. The money that the investors put in are invested into a diversified portfolio so that the risks are reduced and the returns are increases and more. This SIP mutual fund can be invested into with a really low sum of amount that can be paid on every interval month, the price is a really low and affordable INR 500. To start this plan though, you need to put in an amount of INR 5000 so that the SBI contra fund sip mutual fund can be kick – started.

  • Short Term Debt Fund by SBI

The state bank of India offers another great SIP which is the Short Term Debt Fund. The short term debt funds invest the money from the investors into only debts in order to appreciate the capital and give good returns to the investors. They invest their funds mostly into government securities. In the previous year, the SBI short term debt fund had a return of 8.65 %. This SIP mutual fund can be invested into with a really low sum of amount that can be paid on every interval month, the price is a really low and affordable INR 1000. To start this plan though, you need to put in an amount of INR 5000 so that the SBI Short Term Debt fund sip mutual fund can be kick – started.

  • SBI Magnum Mid – Cap Fund

SSBI offers one of the best SIP mutual fund plans, one of which is the SBI Magnum Mid – Cap Fund SIP mutual fund which investors can invest into. This is probably the best sip plans in terms of 5 year returns as it has been able to generate a whopping percentage of more than 25 percentage returns during a 5 year long term plan, as you can see below.

Number of years or tenure of mutual fund Percentage of the return received
Returns after 5 years 26.29 %

 

You can see that the returns are high, but with high returns come high risks. These mid – cap sip funds are pretty risky to invest into as they are volatile. So, it is advisable that you invest into the SBI Magnum Mid – Cap Fund SIP mutual fund after you asses your risk levels and appetite.

Invest your money into the best SBI SIP plans and get really high returns!

Author: Chakraborty

Dr Chakrabarty is faculty member of Delhi University, a QS ranked university in India. She holds a patent and multiple publications in her name. Her area of research is in smart technologies, integrated devices and communications. She also has a penchant for blogging and is an editor of Business Fundas.