Investment is the key to financial success, and systematic investment plans (SIPs) are the simplest way to start your journey towards financial freedom. SIPs enable you to invest regularly, regardless of market fluctuations, and create wealth over the long term. One such top-performing mutual fund in the Indian market is the Bajaj Flexi Cap Fund.
The Bajaj Flexi Cap Fund is an open-ended equity scheme that invests across market capitalization and sectors. This fund enables investors to capitalize on the market’s growth potential while mitigating risks through the portfolio diversification strategy.
One of the most significant advantages of investing in Bajaj Flexi Cap Fund through SIPs is that they allow you to average out your investment costs by investing a fixed amount at regular intervals. By investing at fixed intervals, you buy more mutual fund units when the price is low and fewer units when the price is high. This strategy of investing at regular intervals helps minimize the impact of market volatility and allows you to accumulate wealth continually.
Another reason why Bajaj Flexi Cap Fund is a good choice for investors is its robust performance history. As of August 2021, the fund’s YTD returns are 30.77%, while its 5-year returns are 18.93%. This data suggests that the Bajaj Flexi Cap Fund has consistently delivered good returns to its investors over the years.
Present calculations
Suppose an investor starts investing Rs. 5,000 every month in the Bajaj Flexi Cap Fund from January 2016. In that case, their total investment after five years would be Rs. 3,00,000 and with an average return of 18.93%, their total corpus would be Rs. 6,67,389.
However, it is important to note that mutual funds carry a certain degree of risk. The returns on mutual funds are subject to market fluctuations and the fund manager’s performance. Past performance does not guarantee future returns; hence, investors must gauge all the pros and cons of investing in the Indian financial market before investing.
In conclusion, investing in the Bajaj Flexi Cap Fund through SIPs is a smart and simple path to financial success. The fund’s diversified portfolio and robust performance history make it a good choice for investors who want to hedge against market risks and accumulate wealth over the long term. However, before investing, investors must thoroughly assess the risks involved and speak to their financial advisors to make informed investment decisions.
