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SIP Start Kiya Kya ?

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SIP nahi kiya toh kya kiya !

According to me the financial literacy is very poor among the youth today. People aren’t fully aware of various financial instruments out there than can help them grow. So If you are working so hard to earn money, then why shouldn’t your money work hard for you ? So here are the three magical words I’m going to say – “Systematic Investment Plan” or SIP

SIP == Piggy Bank

I’m sure most of you have had a small piggy bank sometime. Putting those coins randomly, or getting cash when elders visited was fun. SIP is exactly like piggy bank I would say. Just like you put money in your piggy bank, here you put the money in a Mutual Fund rather. Mutual Fund is a financial tool where people pool in a large sum of money which is invested by a Fund Manager of an Asset Management Company (AMC) in various companies and government bonds. So all the mutual fund  have two modes of investing money here: Lump Sum or SIP. I’ll talk about the latter one here.

SIP nahi kiya toh kya kiya ?

SIP is the best way to invest in a mutual fund without burning a hole in your pocket. For a minimum sum of Rs 500, you can start investing. Yes ! you heard it, you don’t need a large money to invest. And with everything going online, getting a mutual fund online is a cake walk. Simply choose a AMC, select a scheme, provide SIP start and end date along with the amount and other bank details.
Once your SIP is set up, sit back and see your money work for you ! The SIP amount will be auto-debited on the selected date for the duration set from your registered bank account. Once the duration is over, you can “Sell” or “Redeem”and get your money back along with the benefits ! 

Why should I start a SIP ?

You should start SIP because:
  • Setting it up is very easy
  • It can be as low as Rs 500 a month.
  • It can help you save tax. Yes, under the section 80C of the Income Tax act, investments of up to Rs 1.5 Lakh per annum are exempted.
  • Mutual Funds aren’t only for long-term. You can stay invested for as low as a 6 months ! Want to buy a new smart phone next year ? Start an SIP to get it !
  • It’ll help you buy your dream house, plan your next vacation and everything you wished for. One of the best form of savings along with the required liquidity.
  • You don’t need to be a Financial Guru to start investing and that’s the beauty of Mutual Funds. Anyone and everyone can start investing.

Why Do You Want to Save & Invest For ?

1) Child Education & Marriage 
2) Save for Retirement
3) Save Tax & Grow Money
4) Emergency Fund
5) Any Other Goal

Investing a small amount every month can help you create a large corpus in the next 15 to 20 years to meet future expenses like higher education abroad or their marriages.
Let’s say you earn Rs 50,000 per month and you have a new born child. You will need some some money 16 years later when he/she is ready to go to college and then probably some more 20 to 25 years later for their wedding expenses.
If you invest just 5% of your income (Rs 2500) every month in SIPs, increasing it by 5% every year, with an annual return of 16% it can grow to:
  • Rs 51 lakhs in 18 years, or
  • Rs 1.75 crores in 25 years
Most folks have a couple of insurance policies in their children’s name and assume that it will be enough – Nothing can be farther from the truth and be prepared for a nasty shock a decade later if this is your plan. This is because insurance plans usually give returns in the range of ~6% per annum on an annualised basis which may grow to a significant lumpsum in absolute terms but not so in real terms.
Insurance companies also invest in the equity markets – the difference is that they keep a large chunk of the profits with themselves, all in the name of safety and security.
Don’t get fooled. Save smarter. Start a SIP.

Are you aware that by investing in ELSS funds under Section 80c of the IT Act, you can save Income Tax upto Rs 45,000 in taxes ?

Do you feel you are paying a lot of Income Tax and want to reduce it ?

The government of India allows all individuals in India to invest upto Rs 150,000 in ELSS funds every year which can be claimed as a deduction under section 80c to save Income Tax.
What this means is that if you are in the 30% tax bracket, you don’t have to pay 30% tax on the tax saving investment of Rs 1.5 lakh that you make – Which amounts to a saving of ~ Rs 45,000 ( 30% of Rs 1.5 lakhs )
However, if you are unable to save and invest Rs 1.5 lakhs from your income, you can save a lower amount and still save tax.
Compared to other Tax Saving options, elss funds have the following advantages:
  • Lowest lockin period of 3 years ( Compared to 5 years and above for other options )

  • Highest Returns ~ 15 to 20% in the last 3 years ( Other products like FDs and Insurance give 6 to 8% returns )

Note: If you have declared at the beginning of the year that you will make tax saving investments but haven’t done so yet, you maybe liable to pay extra taxes at the end of the year.
India doesn’t have a Social Security system unlike the developed world and the onus for saving for our retirement is on Individuals. While the govt. has mandated Provident Fund and also created schemes like National Pension Schemes, the contributions to these are minimal.
They are also classified as ‘Debt category’ investments and return around 8% per annum (which just about beats inflation)
You need to invest a monthly amount in a growth asset like equity to create a significant corpus for your retirement.
Ideally, you should be saving about 10% of your monthly income towards your retirement corpus so that you have a significant chunk 20 to 30 years later.
Let’s say you are 25 years old and earn Rs 30,000 per month. If you invest Rs 2500 every month in SIPs, increasing it by 10% every year as your salary increases,  your savings can be anywhere between the amounts below:
  • Rs 4.12 crores when you turn 60 – This is at a balanced return of 12% per annum
  • Rs 7.2 crores when you turn 60 – This is at a slightly better return of 15% per annum
Wow, that’s quite a bit of money !
That’s what most folks think and assume that they won’t need such large sums so don’t start saving for retirement. However, not only will inflation drive up costs in the future, you are expected to live longer on account of better medical facilities so you will need money for a longer period of time.
Don’t wait for tomorrow to start investing for your Retirement. Start Today. 
I’m Govt approved financial advisor with keen interest in markets. So yes, I can help you  with Mutual Funds. Your dream of owning that swanky car or that huge bungalow has become easy now, thanks to SIP. Start investing as early as possible to get the best gains in the long run. Before I conclude, I do need to put this up, “Mutual Fund Investments are subject to Market risks, read the scheme related documents carefully before investing”
To Start An sip just Call or WhatsApp at


Gratuity Benefit Amount & Tax Implications

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Gratuity Benefit Amount & Tax Implications

The general meaning of Gratuity is – ‘a favor or gift, usually in the form of money, given in return for service.’ In employment terms, Gratuity Benefit amount is similar to a bonus, meaning that it is a portion of your salary provided to you, by your employer, for the services rendered on the company’s behalf. Gratuity is a reward for your long and meritorious service.
Gratuity is a defined benefit plan and is one of your retirement benefits offered by your employer. You can generally find Gratuity eligibility details in your CTC (Cost to Company) or Company’s offer letter.
(Meaning of Defined Benefit Scheme is – A plan/scheme in which a certain amount or percentage of money is set aside each year by a company for the benefit
 of the employee. Gratuity is a defined benefit plan. )
Earlier, it was not compulsory for an employer to reward his employee at the time of his retirement or resignation. But in 1972 the Government passed the Payment of Gratuity Act and made it mandatory for all the employers with more than 10 employees to pay gratuity.
In this post, let us understand about –
what is gratuity? How to calculate the gratuity benefit due amount? What is the formula to calculate? Is gratuity amount taxable? What is the applicable tax exemption limit on gratuity benefits? How to calculate the gratuity amount online? What are the income tax implications?

FAQs (Frequently Asked Questions) on Gratuity Benefit Amount

FAQ 1 – Am I eligible to receive Employees Gratuity Benefit Amount?

After completing five years of continuous service with the same company, you are eligible to receive the gratuity benefit. Gratuity shall be payable to ‘you’ (employee) on the termination of your employment after rendering continuous service for not less than five years.

FAQ 2 – When is Gratuity Amount paid?

It is payable..
  • On Superannuation (or) Retirement.
  • On your Resignation (or) Termination.
  • On death or Disablement due to accident or disease.
  • On Retrenchment (or) Layoff.
  • VRS (Voluntary Retirement Scheme).
(You can check your ‘Full & Final Settlement’ papers to know if you have received the gratuity amount or not.)

FAQ 3 – Is five years continuous service rule applicable to all the above events?

The condition of five years of continuous service is not applicable if employee’s service is terminated due to death or disablement. Your nominee or legal heir can receive your gratuity amount (in the event of death of the employee).

FAQ 4 – Are Temporary staff or Contract workers eligible to receive Gratuity amount?

Temporary staff, contract workers etc., are all eligible (except ‘apprentice’) for the gratuity amount, as long as they are considered as employees of the organization.

FAQ 5 – Is 4 years 10 months (any period above 4.5 years of service) considered as 5 years?

This is one the most frequently asked question and there are various conflicting views available on this one.
In one of the court cases, Madras High Court has held that an employee who has completed 4 years and 240 working days in 5th year will be entitled for gratuity i.e. 4 years 10 months and 11 days.
This judgment may or may not be applicable to you (it depends on the place of your establishment). It is better to contact your HR (Human Resource) personnel to get more clarity regarding this point.

FAQ 6 – How is Gratuity Benefit Amount Calculated? (For the employees who are covered under Gratuity Act)

How to calculate my gratuity amount, is also one the Frequently asked questions. It is calculated based on simple formula as below;
(This formula is applicable to all the employees who are covered under the Payment of Gratuity Act, 1972.)
Gratuity = Last drawn salary * 15/26 * No. of completed years of service.
In the above gratuity calculation formula, the definition of ‘last drawn salary’ means, it comprises your Basic Salary + DA (Dearness Allowance if any).
How to treat number of months for the purpose of gratuity calculation after completion of 5 years?
Any service which is in excess of 6 months is considered as one year
(Six months and above means even 1 day extra after six months, you are eligible for 1 year gratuity. This is applicable only if you have completed 5 years of service)
 (Also note that service period calculation is not dependent on ‘5 days or 6 days’ in a week work rule.)
For example –
If you have put in 11 years and seven months in an organization, your service period will be taken to be 12 years. But if your service tenure is 11 years and five months, then for the purpose of this calculation your tenure will be taken to be 11 years only.

FAQ 7 – How is Gratuity Benefit Amount Calculated? (For the employees who are not covered under Gratuity Act)

For non-government employees (private company employees), who are not covered under the Gratuity Act, the formula for the calculation of gratuity amount is as below;

Gratuity = Average salary *  ½  * No. of years of service
In the above gratuity calculation formula,
the definition of ‘Average salary’
 means, it comprises, your Basic Salary + DA (Dearness Allowance) + commission (as a percentage of turnover achieved by you, if any). To compute ‘Average Salary,’ you have to consider the average of last 10 months salary (Basic + DA + Commission) preceding the month of  your retirement/resignation.
Kindly note that in this case, your service period will not be rounded off to the nearest full year. For instance, if you have a total service of 21 years and 10 months, only 21 years will be considered in the calculation.

FAQ 8 – What is the maximum amount that I can receive as Gratuity Benefit?

Yes, there is a ceiling of Rs 10 Lakh as the maximum gratuity amount that you can receive. As per the above calculations, if you are eligible to get more than Rs 10 Lakh as gratuity, your company is bound to pay only Rs 10 Lakh. (In case your company wants to pay more than 10 L then they can pay it as performance bonus or ex Gratia 🙂)
The ceiling of Rs. 10  lakh applies to the aggregate of gratuity received from one or more employers in the same or different years .

Latest update :
The 7th CPC (Central Pay Commission) increased Gratuity Ceiling limit from Rs 10 Lakh to Rs 20 Lakh w.e.f 01-Jan-2016.
Latest News (25-02-2017) :
The Central Govt has agreed to raise the ceiling limit of Gratuity amount for Private Sector (organized) employees also, from Rs 10 Lakh to Rs 20 Lakh. The Union Labor Ministry is expected to bring a formal amendment to the Payment of Gratuity Act to implement the change.

FAQ 9 – How to calculate my Gratuity Benefit amount online?

If you are not comfortable in calculating your gratuity due amount using the above formulas, there are lot of online gratuity calculators that are available. You may consider using the below ones;

FAQ 10 – Is Nomination facility available?

Yes, you can give your nomination by filling Form “F” at the time of joining your company (during new joinee formalities). Employee can nominate one or more members of his/her family to receive the gratuity amount in the event of the death of the employee.

FAQ 11 – My company is not paying gratuity due to financial Loss, can it refuse to pay?

Even if your company is not doing financially well, your company is bound to pay gratuity amount. They cannot cite their ‘financial losses’ as the reason for the refusal.
But, an employer can refuse to pay the gratuity amount, if the services of an employee have been terminated for his/her riotous or disorderly conduct or any other act of violence on his part, during his/her employment. Employers can also deduct the cost of damages (if any) from the gratuity amount.

FAQ 12 – Is my Gratuity Amount Taxable in India? Does Employees Gratuity Benefit has any tax exemption?

Gratuity is considered as your retirement benefit and is tax exempted subject to certain conditions of Income Tax Act. For the intent of taxation on gratuity, employees are divided into two categories:
  • Government Employees &
  • Private Sector Employees
Any gratuity amount received by an employee (Govt or Private employee) during his service is taxable. But when gratuity is received by the employee at the time of his retirement, death or superannuation then tax exemption rules for government employees differs from private employees.
In case of Government Employees the entire gratuity amount that he/she receives on retirement or on death is exempted from paying any Income tax.
In case of Private employees, they are divided as:
  • Private employees covered under the payment of Gratuity Act of 1972.
  • Private employees not covered under the payment of Gratuity Act of 1972.
In case, when
private employees covered under the payment of Gratuity Act of 1972
, any gratuity received is tax exempted to the extent of least of the following:
  1. Statutory limit of Rs 10 lakh. (Maximum limit / Govt notified amount)
  2. Last drawn salary * 15/26 * No. of completed years of service.(Refer FAQ 6 )
  3. Actual Gratuity received by you.
If the gratuity exceeds the limit mentioned above, then it becomes taxable.
Example: Let us understand the above tax exemption rule with an example. Mr Sundaram receives Rs 9 Lakh as gratuity benefit from his employer. As per the Gratuity Act calculation, he is eligible to receive, let’s say Rs 5.5 Lakh. The maximum notified limit is Rs 10 Lakh. Out of these, Rs 5.5 Lakh is the least one. So, the tax exemption is limited to the extent of Rs 5.5 Lakh only. Mr Sundaram has to pay income tax on Rs 3.5 Lakh (Actual gratuity received – Tax exempted gratuity amount.)
private employees not covered under the payment of Gratuity Act of 1972
, any gratuity received is tax exempted to the extent least of the following:
  1. Statutory limit of Rs.10 lakhs.
  2. Gratuity = Average salary x ½ x No. of years of service. (Refer FAQ 7)
  3. Actual gratuity received by you.
(Where the gratuity was received in any one or more earlier previous years also and any exemption was allowed for the same, then the exemption to be allowed during the year gets reduced to the extent of exemption already allowed, the overall limit being Rs. 10 Lakh.)

FAQ 13 – Gratuity received by Employee/nominee/legal heir : Taxable under what ‘head’ of income tax?

Gratuity received by you on your retirement (or) during your service period is taxable under the head “Salary.” It should be shown under the head of “Salaries” while computing your ITR. This is applicable for both Government as well as Private employees.
Whereas, gratuity received by the legal heir (or) nominee is not taxable if the gratuity becomes due/sanctioned after the death of the employee. If the gratuity amount becomes due and paid before the death of the employee then it is taxable under the head ‘Income from Other Sources.’ The nominee / legal heir has to show it in ITR (Income Tax Returns).
So, gratuity benefit amount is not fully exempted from income tax. Be extra cautious while calculating the tax exemption limit that is applicable on your gratuity amount. Do check if you have to pay taxes when you receive your gratuity. Kindly share your comments.

Best Mutual Fund Schemes to invest in 2017

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Best Mutual Fund Schemes to invest in 2017 Best Funds for SIP & Lump Sum Investment 

We have more than 11,000 Mutual Fund Schemes that are currently available in the market (Equity & Debt Schemes as on Sep, 2016). It is a highly challenging task for any advisor / investor to select best mutual fund schemes out of these thousands of schemes.

There is no doubt that Mutual Funds are one of the best investment options for long term wealth creation. However, if you pick wrong MF schemes that do not match your investment objective(s) and time-frame then it could spell disaster for you.
Investing in right mutual fund schemes which have been performing consistently well and monitoring your MF portfolio performance is a very important task.
Equity Mutual Funds are risk oriented products. You can consider investing in the below top performing mutual funds through SIPs (or lump sum) only if your time horizon is at least 5 or more years.

  • Large-cap fund category
    • Birla Sunlife Frontline Equity Fund
    • ICICI Pru Focused Blue-chip Equity Fund
    • UTI Equity Fund
  • Diversified or Multi-cap category
    • Franklin India Prima plus 
    • ICICI Prudential Value Discovery Fund
    • Mirae Asset India Opportunities Fund
  • Small & Mid-cap fund category
    • UTI Midcap 
    • HDFC Midcap
    • Franklin India Smaller Companies Fund 
  • Hybrid – Equity oriented category
    • HDFC Balanced 
    • TATA Balanced Fund
    • ICICI Prudential Balanced Fund – Regular Plan
  • ELSS / Tax saving category
  • Franklin India Tax shield 
  • Axis Long Term Equity Fund
  • Birla Sunlife Tax plan
Below are some of the top performing best mutual fund schemes (Equity oriented) that you can consider for investing in 2017 and beyond. In this review, I have listed mid-cap and small-cap funds as separate categories.
  • Large Cap Funds 2017 : I have retained Birla Frontline Equity & ICICI Prudential Focused Bluechip funds but replaced UTI Equity fund with SBI Blue chip fund. If you have invested in UTI Equity fund, you may hold on to the existing units and consider investing future SIPs/additional investments in other suggested Large cap funds.
  • Multi cap Equity Funds 2017 : I have replaced Mirae Asset Opportunities Fund with L&T Value Fund and retained the other two diversified equity funds. If you have invested in Mirae fund you may continue with your existing and future investments.
  • Mid-Cap Funds 2017 : I have retained both the Mid-cap funds that were listed in my last review (HDFC Mid-cap & UTI Mid-cap). I have added one more fund to the mid-cap fund category list ie Franklin India Prima Fund.
  • Small Cap Funds 2017 : Besides Franklin Smaller Companies fund, I have added DSP Micro-cap fund and SBI Small & Mid-cap fund to the current list of best small cap funds.
  • ELSS Tax saving funds 2017 : I am considering the same list of ELSS funds this year too.
  • Equity oriented Balanced Funds 2017 : I have added SBI balanced fund to the list.

Best Large Cap Equity Mutual Funds

  • There are around 150 large-cap equity funds. The average return from this category is around 12% for the last 5 years.
  • Birla Frontline Equity fund has been one of the best and most consistent performer among the large cap funds. The Assets under Management (AUM) of this fund are around Rs 13,800 cr. The fund generally invests around 80 to 90% of its corpus in Large cap stocks and the remaining 10 to 20% in mid-cap stocks. It has managed to contain declines very well during bear phases (in 2008 & 2011).
  • SBI Bluechip fund has been performing really well for the last few years. It has a ‘low’ risk grade and ‘high’ return grade.
  • ICICI Focused bluechip fund has been a consistent performer for the last 5 to 6 years. The fund usually allocates 90 per cent plus to large-cap stocks and 5-10 per cent to mid caps.
  • Franklin Bluechip fund, Birla top 100 fund & Quantum Long-term equity fund are the other large cap funds to watch out for.

Best Diversified / Multi-cap / Flexi-cap Equity Funds

  • Multi-cap funds are also referred to as flexi-cap or Diversified Equity funds. Currently there are around 260 equity diversified equity schemes.
  • Some mutual fund research portals list Franklin Prima plus fund under large-cap fund due to the fact that around 70% of its corpus is invested in Large cap stocks and the remaining balance in mid/small cap stocks. So, if you would like to pick a diversified equity fund with high large-cap exposure then Franklin Prima plus fund can be your choice.
  • Currently, the portfolio allocation of ICICI Pru Value Discovery fund is also similar to Franklin Prima plus fund. Otherwise, this fund generally invests around 30 to 40% of its corpus in mid-cap stocks. It typically follows contrarian style of investing.
  • L&T Value fund, relatively a new fund under multi-cap category, has been performing well in the last few years. This fund has a very good allocation across large, mid & small cap stocks (40:35:25). So, if you would like to make an aggressive investment in a diversified fund, LT Value fund can be your best bet.
  • Franklin India High Growth Companies fund & Birla Equity fund are the other multi-cap funds to watch out for.

Best Mid-cap Equity Fund Schemes

  • There are around 140 Small & Mid-cap equity fund schemes. The average returns from this category is around 25% over the last 5 year period.
  • HDFC Mid-cap fund currently invests around 56% of its corpus in mid-sized companies.  In 2008, 2011 and 2013, this mid-cap contained losses which are far lower than its benchmark (Nifty Free Float Midcap 100). If you are looking for a mid-cap fund which can withstand the choppy rides during bear phases then HDFC mid-cap fund can be your apt choice.
  • Franklin Prima Fund has invested around 68% of its corpus in Mid-cap stocks and around 5% in Small cap stocks. It is one of the oldest mid-cap funds. It has beaten its benchmark (Nifty 500) in the last six years by big margins.
  • UTI mid-cap is ranked consistently high for 5 year and 10 year period. Though the fund manager has been changed, its performance remained almost the same. The fund’s portfolio mix features a 55 to 60% mid-cap exposure and a 15 to 20% small-cap weight.
  • The other notable mid-cap funds are Mirae Asset Emerging blue-chip fund and Principal Emerging Bluechip fund.

Best Small cap Mutual Funds

  • Franklin Smaller Companies fund invests in stocks with a market cap below that of the 100th stock in the CNX 500 index. Last one-year returns haven’t been top of the charts, but the three and five year records more than make up for this. As the fund’s investment style is more conservative, it is a good choice for investors who wants to invest in small cap fund with a less bumpy ride. Currently, the fund has allocated 43% of its corpus to Small Cap stocks and 47% to mid-cap stocks.
  • DSP Micro cap fund has a very high allocation to small cap stocks which is currently around 65% of its corpus. The fund has been overweight on small cap stocks relative to its peers and underweight on both mid- and large-cap holdings. It follows buy & hold investment strategy. Hence, it has a very low Portfolio Turnover ratio which is at 13% (Turnover ratio is a measure of how a fund’s portfolio changes in a year.)
  • Around 76% of SBI Small & Mid-cap fund’s corpus has been invested in small cap stocks. It has ‘below average’ risk grade and ‘above average’ return grade. Kindly note that the fresh investments have been ‘ Suspended Temporarily’ by the fund.
  • Reliance Small cap fund is another good small-cap fund that is worth tracking, but its Standard deviation is very high.

Top performing Tax-saving Mutual Fund Schemes (ELSS)

  • There are more than 100 tax saving ELSS mutual fund schemes in the market. This category’s average returns are around 12% for the last 5 years.
  • Franklin Taxshield is an ELSS fund but you can consider this as a typical Large-cap fund, as around 80% of its corpus has been invested in large cap stocks. This fund generally doesn’t take cash calls and remains fully invested through market cycles. If you are a risk averse investor and wants to take tax benefit, this is a good bet.
  • Axis LTE fund can be treated as flexi-cap fund with tax benefits. Its risk grade is ‘low’ and return grade is ‘high’.
  • Birla Tax plan, Birla Tax relief 96 fund & DSP Tax Saver funds have also been consistently performing well.
My observations & general suggestions
For the last two years, I have been receiving thousands of comments/queries on mutual fund schemes. I get a chance to learn new things when answering these queries. Let me share my observations and suggestions with you all;
  • Identify your Goals : Majority of us identify the products first and then try to shortlist best investment avenues. An investor has to first identify his/her financial goals and then try to short-list best available options. This is applicable for mutual fund investments also.
  • Invest Goal-wise & not as per your age-wise: Even if you are a Senior citizen, you can invest in Equity funds if they are suitable to your investment objectives. Equity funds are for any type of investors.
  • Diversify across Fund categories & Fund houses : I often observe that investors invest in multiple funds of same Fund house. Suggest you to not only invest in funds offered by different fund houses but also try to pick funds from different fund categories. 
  • Ignore Short-term volatility : It is understandable that an investor (especially new investors) may panic if he/she sees negative returns on his MF portfolio. If you have invested in Equity oriented mutual funds for medium to long-term, kindly stick to your investment objectives. It is advisable to ignore short-term volatility (if any). But do track the performances of your funds & portfolio once in a year.
  • Consistency is the key parameter : A ‘good mutual fund scheme’ is the one that consistently manages to outperform its category returns and also it’s Benchmark’s. It is prudent to be with the consistent performers for long-term goals instead of churning your portfolio based on Star ratings or recent performances of the funds.
  • SIP & Additional investments : Is SIP a sure-fire way of creating long-term wealth? Systematic Investment Plan (SIP) inculcates financial discipline. However, it is not a fair comparison to equate SIPs with investing in a lump sum. Both have their own pros and cons. It is better to have SIPs in place and at the same time, you can make additional investments (lump sum) when you believe that markets are down.
  • Realistic Expectations : If you analyze the returns generated by the above list of funds for the last 10 years, the maximum is 16% and the minimum return is 10%. So, let’s have realistic expectations from equity funds. May be, a 12% rate of return sounds very good 
  • Regular & Direct plans : I do get lot of queries on what is the difference between ‘Regular plan’ and ‘Direct plan’. Kindly read this article for a detailed explanation on this topic : What are Direct Plans of Mutual Fund Schemes?.
Kindly note that the above list of best mutual fund schemes is not an exhaustive one. Mutual funds are not guaranteed, their values/returns change frequently and past performance may not be repeated.