How You Can Earn More With SIP In Top Mutual Funds Post LTCG

Although we have various expectations from Budget 2018-19 for common man; finance minister have suggested the Long Term Capital Gain or LTCG starting from the next financial year. There are various tax changes happened after Budget has been declared by Finance Minister. We can feel that LTCG has become a devil for the mutual fund and stock market investors. With the introduction of this tax Investors are confused that they should continue investing in or stop investing and stay away from the market.

We've come up with some tips and recommendation of best mutual funds to start a SIP with and you'll earn in spite of the proposed LTCG. 
  1. You can stay Invested for long term in Aggressive Top performing Mutual Funds like SBI Small Cap Mid Cap Fund or stock like HDFC where you need not to churn your portfolio for the long term and you can avoid LTCG.
  2. Make a plan for LTCG every year. Make sure that profit from equity market is distributed every year and it is not exceeding 1 Lakh per annum.
  3. Make a strategy not to sell your equity and mutual fund investment unless you are in need of money.
  4. Remodify your financial goals considering LTCG in mind. This means you have to consider extra margin of LTCG if you plan to invest in the stock market for your financial goal.
You have to make a tax-efficient investment plan with minimum portfolio churning. Along with that, you have to be extra cautious in selecting a mutual fund or stock. Consistency and performance should be included while you are selecting a mutual fund and stock for the investment. With this preamble of LTCG.

Earn More With SIP In Top Mutual Funds Post LTCG

We'll see how we've shortlisted the best mutual funds by analyzing the past performance of the fund scheme. 
  1. Check for Consistent Performance – The first factor is consistent performance. All schemes are selected based on past performance history of 5 years.
  2. Type of Funds / Benchmarking of Funds – Only large cap, small cap, and multi-cap funds are taken into consideration as these funds are likely to give superior returns to the investors.
  3. Scheme and Asset Size – Scheme type and asset size is another important factor while selecting funds. All funds selected here are higher in asset size 500 Cr or above.
  4. Outperformance with Benchmark Index – Another factor of consideration was a fund which outperformed benchmark index consistently.

As per SEBI's new rule now mutual funds has to adopt TRI for calculating the returns on mutual funds. This will gives more clearer picture on finding performance of the mutual fund. We've used simple rule here to identify fund
  • If fund performance is greater than benchmark fund performance is good
  • If fund performance is less than benchmark fund performance is bad
Lets see the Top Mutual Funds for Investment in 2018. 

Best Large Cap Mutual Funds in 2018 for SIP

1. Templeton India Growth Fund

Templeton India Growth Fund's past performance is very good hence can be considered for investment. We can see that this fund is able to beat benchmark return consistently, and has doubled money of its investors in just last three years.

2. Tata Equity P/E Fund

From past few years Tata Equity P/E has delivered very good returns and hence can be considered as  very good fund for SIP investment. This fund is rated at level 5 by CRISIL. Compared with fund returns Vs. benchmark returns this fund has done extremely well whereas S&P BSE Sensex benchmark return of last 3 years was 7.21%, and this fund has generated 16.4% returns.

Best Mid Cap Mutual Funds in 2018 for SIP

1. Mirae Asset Emerging Bluechip Fund

Mirae Asset Emerging Bluechip Fund is the first fund for investment in Mid Cap segment. This fund is rated at level 4 by CRISIL. If we checked the returns of this fund in last five years, this fund has given 30% return to the investors

2. L&T Mid Cap Regular Fund

L&T Mid Cap Regular Fund is ideal fund for the investment in Mid Cap segment. This mutual fund has beaten its benchmark index since past 9 years and hence suitable for SIP investment. CRISIL and value research has give rating of this fund as 4.

Best Multi Cap Mutual Funds in 2018 for SIP

SBI Magnum Multi Cap Fund

SBI Magnum Multi-Cap Fund is first multi-cap fund for investment in 2018. Value research rating of this fund is 5. If we compare fund returns with benchmark returns this fund has done extremely well. It has delivered more than 15% returns to its investors whereas the SP BSE Sensex benchmark return of last 3 years was 7.21%.

Aditya Birla Sun Life Pure Value Fund

Aditya Birla Sun Life Pure Value Fund is another multi-cap fund with very good performance and delivering good returns to its investors, CRISIL rating of this fund is 4.

Our Take

Once can not guarantee the performance of the mutual fund in upcoming years but we can definitely predict the tentative performance based on the historical performance. For better returns you must track and review your portfolio time to time. You must update your portfolio with cherrypicked mutual funds which will fetch you good returns.

Would you like to stay invested in mutual funds after implication  of LTCG ?

Do share your views in the comment section.


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