What are the Other Best SIP Plans in ULIP Funds for an NRI?
We have learned the top SIP investment plans in India in 2024 from the above-mentioned table. Now, let us see the key features in detail of some other best SIP plans for an NRI to invest in ULIP funds:
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Tata AIA Life – Whole Life Mid Cap Equity Fund
Tata AIA Life – Whole Life Mid Cap Equity Fund is a ULIP fund that invests in a portfolio of mid-cap stocks. This is the best SIP in India for NRIs who want to grow their money over the long term of 5-7 years.
Features of Tata AIA Life – Whole Life Mid Cap Equity Fund for NRI:
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Date of Inception: 08 January 2007
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Fund Management Company: by Tata Asset Management Company
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Assets Under Management (AUM): Rs. 96.78 billion
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Investment Objective: The fund aims to generate long-term capital appreciation by investing primarily in mid-cap equity and mid-cap equity-linked securities.
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Benchmark: Nifty Midcap 100 Index
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Assets Allocation: 96.43% are equity assets, and 3.57% are money market and debt instruments
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Large-Cap Equity Shares Cap: 20%
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Expense Ratio: 2.35%
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Exit Load: NIL (if you redeem your fund value after 1 year of SIP investment)
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Ideal For: Investors with long-term investment horizon with a medium to high-risk appetite.
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Tax Benefits: Investments and returns from Tata AIA Life – Whole Life Mid Cap Equity Fund are available for tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, 1961.
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Aditya Birla Sun Life – Individual Pure Equity Fund
Aditya Birla Sun Life Individual Pure Equity Fund is the best SIP plan in India for NRIs offered by Aditya Birla Sun Life Mutual Fund. It is an open-ended equity-based ULIP fund.
Features of Aditya Birla Sun Life – Individual Pure Equity Fund for NRI:
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Date of Inception: 09 March 2012
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Assets Under Management (AUM): Rs. 15.6 billion
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Objective: To provide long-term capital growth by investing 99.22% of funds in a diversified portfolio of pure equity shares.
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Prohibits Investment: The fund will not invest in businesses that engage in gambling, alcohol, tobacco, animal products, entertainment, hotels, or financial services.
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Risk Profile: Medium to the high-risk profile
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Ideal For: The ABSLI Individual Pure Equity Fund is suitable for investors who are looking for growth potential with moderate risk.
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Annual Management Fee: This best SIP plan fund charges an annual management fee of 1.95%
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Tax Benefits: You can avail of tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, 1961, for your investment and returns in this ULIP fund.
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Bajaj Allianz Life Pure Stock Fund
Bajaj Allianz Life Pure Stock Fund is an open-ended equity fund managed by Bajaj Allianz Life Insurance Company Limited. The fund aims to generate long-term capital appreciation by investing in a portfolio of equity stocks.
Features of Bajaj Allianz Life Pure Stock Fund for NRI:
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Date of Inception: 21 July 2006
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Launched By: Bajaj Allianz Life Insurance Company Limited
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Assets Under Management (AUM): Rs. 50.3 billion
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Objective: The fund aims to provide long-term capital growth by investing 92.89% of funds in a diversified portfolio of equity shares.
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Asset Allocation: 94.60% in equities and 5.54% in Government T-Bills
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Risk Profile: High-risk profile
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Ideal For: Suitable for investors who are looking for high growth potential.
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Prohibits Investing In: The Individual Pure Equity Fund will not invest in companies that deal in gambling, contests, liquor, entertainment (films, TV, etc.), hotels, banks, and financial institutions.
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Tax Benefits: You can avail of tax benefits under Section 80C of the Income Tax Act, 1961, for your investments in Bajaj Allianz Pure Stock Fund.
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Tata AIA Life- Whole Life Aggressive Growth Fund
Whole Life Aggressive Growth Fund is a ULIP fund offered by Tata AIA Life. It is one of the best SIP plans that combine life insurance benefits with an aggressive growth fund.
Features of Tata AIA Life- Whole Life Aggressive Growth Fund for NRI:
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Date of Inception: 08 January 2007
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Assets Under Management (AUM): Rs. 6.3 billion
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Fund Category: India Insurance Aggressive Allocation
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Investment Strategy: The fund invests in a diversified portfolio of equity and equity-related instruments, with a focus on large-cap and mid-cap stocks.
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Benchmark: Nifty-50 Index (65%)
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Asset Allocation: 67% are equity assets, and 28.24% are government securities
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Risk Profile: High-risk profile
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Tax Benefits: Tata AIA Life- Whole Life Aggressive Growth Fund allows you to avail of deduction under Section 80C for your investments and tax benefits on maturity returns under Section 10(10D) of the Income Tax Act, 1961.
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Future Generali India Life- Future Apex Fund
The Future Apex Fund is a unit-linked insurance plan (ULIP) that offers a combination of life insurance and investment.
The Future Apex Fund is among the best ULIP Plan funds offered by Future Generali India Life Insurance which currently has Rs. 7.53 billion assets under management.
Features of Future Generali India Life- Future Apex Fund for NRI:
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Date of Inception: 23 December 2009
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Assets Under Management (AUM): Rs. 7.53 billion
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Launched By: Future Generali Asset Management Company
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Investment Objective: The fund invests primarily in equities to target growth in the capital value of assets with a high-risk profile. It may also invest in government securities, corporate bonds, and money market instruments to a certain extent.
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Asset Allocation: 98.61% in equities and 1.39% in cash and money market instruments
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Risk Profile: High risk and high return
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Investment Strategy: The primary investments of this best SIP plan are in large-cap, and a small portion is in mid-cap stocks.
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Tax Benefits: You can avail of tax exemptions under Section 80C and Section 10(10D) of the Income Tax Act, 1961.
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HDFC Life Discovery Fund
HDFC Life Discovery Fund is a ULIP that invests in a mix of equities and debt instruments. It is a good option for NRIs who are looking for a balanced fund that can provide long-term growth with capital protection.
Features of HDFC Life Discovery Fund for NRI:
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Date of Inception: 03 September 2018
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Assets Under Management (AUM): Rs. 22.9 billion
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Launched By: HDFC Asset Management
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Objective: The fund invests predominantly in mid-cap stocks to deliver long-term growth of capital. It may also invest in a small percentage of other stocks and fixed-income instruments.
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Asset Allocation: 93.76% in equities and 6.24% in debt securities
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Debt Allocation: Mix of public deposits and Money Market Instruments (MMI) that have a maturity period of 0-1 year.
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Investment Strategy: The Discovery Fund has primary investments in mid-cap companies.
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Risk Profile: HDFC Life Discovery Fund involves lower risk than equity funds and the potential for higher returns than debt funds.
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Tax Benefits: This best SIP plan fund offers tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, 1961.
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Max Life High Growth Fund
The High Growth Fund is the best SIP Plan in India offered by Max Life Fund House, which invests primarily in mid-cap equities, and offers the potential for high returns. This open-ended ULIP fund provides you with a combination of life insurance and investment that gives you an opportunity to build wealth along with financial security.
Features of Max Life High Growth Fund for NRI:
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Date of Inception: 26 February 2008
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Assets Under Management (AUM): Rs. 29.7 billion
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Launched By: Max Life Insurance
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Investment Objective: The fund invests in a variety of companies, from large-cap to small-cap, but with a focus on mid-cap companies. The fund's investment objective is to generate high returns over the long term by investing in companies with high growth potential. At least 70% of the fund's corpus is invested in equities.
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Asset Allocation: 96.53% in equities and 3.47% in debt instruments
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Benchmark: NIFTY Mid Cap 100 Index
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Risk Profile: High Risk
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Tax Benefits: The fund provides tax benefits u/ Section 80C and Section 10(10D) of the Income Tax Act, 1961.
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ICICI Prudential Maximiser Fund V
ICICI Prudential Maximiser Fund V is a Unit Linked Insurance Plan (ULIP fund) that aims to provide growth in capital value by investing primarily in equities. The fund has a multi-cap approach, which means that it can invest in a variety of market capitalisations, from large-cap to small-cap. The fund's investment objective is to generate high returns over the long term.
Features of ICICI Prudential Maximiser Fund V for NRI:
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Date of Inception: 29 August 2011
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Assets Under Management (AUM): Rs. 517 billion
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Launched By: ICICI Prudential Life Insurance
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Investment Objective: The fund aims to achieve long-term capital appreciation by investing primarily in equity and equity-related instruments of large and mid-cap stocks.
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Benchmark: S&P BSE 100
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Asset Allocation: 97% in equities and 3% in cash and money market instruments
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Risk Profile: High-Risk
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Expense Ratio: 1.50%
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Tax Benefits: The plan offers tax benefits under Section 10 (10D) and Section 80C of the Income Tax Act, 1961.
What are Some Other Best SIP Mutual Funds in India in 2024 for an NRI?
As we have learnt about the top mutual fund-based best SIP plans in India in the table mentioned above, let us learn some other SIP investment plans for mutual fund schemes in this section.
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Quant Tax Plan- Direct-Growth Fund
Quant Tax Plan Direct-Growth is an Equity Linked Savings Scheme (ELSS) mutual fund launched by Quant Mutual Fund.
Features of Quant Tax Plan- Direct-Growth Fund for NRI:
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Date of Inception: 07 January 2013
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Assets Under Management: Rs. 61.78 billion
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Fund House: Quant Mutual Fund
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Investment Objective: This SIP investment fund invests in a diversified portfolio of large-cap, mid-cap, and small-cap stocks.
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Asset Allocation: 93.7% of assets in domestic securities, and 6.3% are in debt securities
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Share of Assets: 59.16% of equity assets are in large cap, 9.27% are in mid-cap, and 9.28% are in small cap
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Risk Profile: High Risk
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Expense Ratio: 0.57% (category average for ELSS funds is 0.97%)
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Suitable For: Quant Tax Plan Direct-Growth is a good option for investors who are looking for a high-risk, high-return investment that can help them save tax.
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Tax Benefits: This ELSS fund has a lock-in period of 3 years. You can claim tax benefits under Section 80C and Section 10(10D) of the IT Act, 1961, after investing in this best SIP plan.
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Taxation: If you redeem your SIP plan units within one year of investment, you will be liable to pay STCG tax at the rate of 15%. While if you redeem your units after one year of investment, you will be liable to pay LTCG tax at the rate of 10% (if the amount of LTCG exceeds Rs. 1 lakh in a financial year).
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Quant Active Fund Direct-Growth
Quant Active Fund Direct-Growth is a multi-cap mutual fund scheme offered by Quant Mutual Fund.
Features of Quant Active Fund Direct-Growth for NRI:
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Date of Inception: 07 January 2013
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Assets Under Management (AUM): Rs. 47.87 billion
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Asset Allocation: 94.15% in domestic equities and 3.51% in government securities
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Share of Assets: 38.66% of the domestic equities are in large-cap stocks, 13.61% in mid-cap stocks, and 18.75% are in small-cap stocks
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Expense Ratio: 0.58% (Category average for multi-cap funds is 1.25%)
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Investment Strategy: To use quantitative techniques to identify stocks that are undervalued or overvalued
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Suitable for: This best SIP plan fund is suitable for investors who are looking for long-term capital appreciation and who are comfortable with high risk.
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Taxation: If you redeem your SIP fund units within 1 year, you pay 15% STCG tax, and if you redeem after 1 year and your gains exceed Rs. 1 lakhs per year, then you have to pay 10% LTCG tax.
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PGIM India Midcap Opportunities Fund
PGIM India Midcap Opportunities Fund is an open-ended equity mutual fund scheme that invests in mid-cap stocks with high growth potential.
Features of PGIM India Midcap Opportunities Fund for NRI:
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Date of Inception: 02 December 2013
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Assets Under Management (AUM): Rs. 89.65 billion
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Asset Allocation: 95.1% in domestic equities and 4.9% in debt instruments
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Share of Assets: 6.44% of the domestic equities are in large-cap stocks, 30.58% in mid-cap and 31.9% are in small-cap stocks
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Expense Ratio: 1.73% (category average is 1.99% for mid-cap funds)
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Investment Strategy: This best SIP plan fund aims to generate long-term capital appreciation by investing in a diversified portfolio of mid-cap stocks. This fund also invests in a small number of large-cap stocks that are seen as growth opportunities.
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Suitable for: If you are looking for the best SIP plan fund with a good track record and a moderate risk profile, then PGIM India Midcap Opportunities Fund is a good option for you.
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Taxation: You have to pay 15% STCG tax if you redeem your SIP fund units within 1 year, and if you redeem after 1 year and your gains exceed Rs. 1 lakhs per year, then you must pay 10% LTCG tax.
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Parag Parikh Flexi Cap Fund
Parag Parikh Flexi Cap Fund is a diversified equity fund-based best SIP plan offered by Parag Parikh Mutual Fund House. This SIP investment fund aims to generate long-term capital appreciation by investing in a diversified portfolio of equity stocks. The fund can invest in large-cap, mid-cap, and small-cap stocks, as well as in foreign stocks.
Features of Parag Parikh Flexi Cap Fund for NRI:
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Date of Inception: 09 October 2012
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Assets Under Management (AUM): Rs. 37.69 billion
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Asset Allocation: 84.5% in equities, 12.9% in debt, and 2.6% in cash/ money market instruments
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Share of Assets: 67.65% of the equity assets are allocated in domestic equities and 56.27% in large-cap, 3.42% in mid-cap, and 6.34% in small-cap equity stocks
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Expense Ratio: 0.71% (category average for flexi-cap funds is 2.03%)
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Investment Strategy: The investment team of this best SIP plan uses a bottom-up approach to identify companies with strong fundamentals and good growth prospects.
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Taxation: You have to pay 15% STCG tax if you redeem your SIP fund units within 1 year, and if you redeem after 1 year and your gains exceed Rs. 1 lakhs per year, then you must pay 10% LTCG tax.
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ICICI Prudential Gilt Fund Direct-Growth Plan
ICICI Prudential Gilt Fund Direct is a mutual fund scheme offered by ICICI Prudential Asset Management Company. This fund falls under the category of "Gilt Funds," which primarily invests in government securities and treasury bills issued by the central and state governments.
Features of ICICI Pru Gilt Fund Direct-Growth Plan for NRI:
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Date of Inception: 01 January 2013
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Assets Under Management (AUM): Rs. 35.85 billion
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Asset Allocation: 93.7% in debt securities and 6.3% in cash instruments
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Share of Assets: 93.7% of the debt instruments are in government securities
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Expense Ratio: 0.56%
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Risk Profile: Low Risk
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Investment Strategy: To generate steady and consistent returns from a basket of government securities across various maturities.
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Suitable for: The ICICI Pru Gilt Fund Direct fund is suitable for investors who are looking for a safe and steady investment with the potential for moderate growth.
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Taxation: If you redeem your SIP fund units within 1 year, you pay 15% STCG tax, and if you redeem after 1 year and your gains exceed Rs. 1 lakhs per year, then you have to pay 10% LTCG tax.
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Edelweiss Equity Savings Fund Direct-Growth Plan
The Edelweiss Equity Savings Fund Direct-Growth Plan is a hybrid mutual fund scheme launched on. The fund invests in equity and equity-related instruments, arbitrage opportunities and investments in debt and money market instruments.
Features of Edelweiss Equity Savings Fund Direct-Growth Plan for NRI:
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Date of Inception: 13 October 2014
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Assets Under Management (AUM): Rs. 2.74 billion
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Asset Allocation: 65.1% in equities, 21.7% in debt instruments, and 13.2% in Cash/ Money Market Instruments
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Share of Assets: 50.63% of equities are invested in large-cap, 8.42% in mid-cap, and 3.4% in small-cap equities
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Expense Ratio: 0.64% (category average for hybrid mutual funds is 0.78%)
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Risk Profile: High Risk
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Investment Strategy: The scheme seeks to provide capital appreciation and income distribution to investors by investing in a diversified portfolio of equity and equity-related instruments, arbitrage opportunities, and debt and money market instruments.
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Suitable for: The fund is a proven best SIP plan for investors who are looking for a growth-oriented investment with the potential for moderate income.
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Taxation: If you sell your fund units after 1 year and your total long-term capital gains (LTCG) for the year exceeds Rs. 1 lakh, you have to pay an LTCG tax of 10%. If you sell your mutual fund units before 1 year, you have to pay short-term capital gains (STCG) tax of 15%.
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SBI Magnum Medium Duration Fund
SBI Magnum Medium Duration Fund is a debt mutual fund managed by SBI Mutual Fund. This best SIP plan has consistently shown a good track record of generating attractive returns.
Features of SBI Magnum Medium Duration Fund for NRI:
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Date of Inception: 12 November 2003
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Assets Under Management (AUM): Rs. 71.36 billion
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Asset Allocation: 95.7% in debt assets and 4.3% in cash instruments
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Share of Assets: 24.84% of assets are in government securities and 68.1% in low-risk securities
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Expense Ratio: 1.23%
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Risk Profile: High Risk
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Investment Strategy: The scheme seeks to provide attractive returns to investors with a moderate degree of liquidity by investing in debt and money market instruments with a Macaulay duration of 3-4 years.
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Suitable for: This fund is ideal for investors who want to earn safe returns by parking their money for 3 -4 years of period.
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Taxation: If you sell your mutual funds after 3 years, you will have to pay a long-term capital gains (LTCG) tax. The LTCG tax rate is lower the 10% of the profit or 20% of the profit adjusted after indexation benefits. Also, if you sell your mutual funds within 3 years, you are charged STCG tax as per your income tax slab rates.
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ICICI Prudential Short-Term Fund Direct-Growth Plan
ICICI Pru Short-Term Fund Direct-Growth Plan is a debt mutual fund managed by ICICI Prudential Mutual Fund. The fund seeks to generate income by investing in a portfolio of short-term debt securities with a maturity of up to 3 years.
Features of ICICI Prudential Short-Term Fund Direct-Growth Plan for NRI:
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Date of Inception: 01 January 2013
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Assets Under Management (AUM): Rs 179.68 billion
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Asset Allocation: 100% in debt instruments
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Expense Ratio: 0.40%
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Risk Profile: High Risk
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Investment Strategy: The scheme aims to generate income by investing in debt and money market instruments while balancing yield, safety, and liquidity.
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Suitable for: ICICI Prudential Short-Term Fund is suitable for investors with a 1-3 year investment horizon who want to generate regular income and have moderate risk.
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Taxation: If you sell your mutual funds after 3 years, you will have to pay a long-term capital gains (LTCG) tax. The LTCG tax rate is lower the 10% of the profit or 20% of the profit adjusted after indexation benefits. Also, if you sell your mutual funds within 3 years, you are charged STCG tax as per your income tax slab rates.
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Quant Absolute Fund-Direct Growth Plan
Quant Absolute Fund-Direct Growth Plan is a hybrid fund managed by Quant Mutual Fund. The fund seeks to generate long-term capital appreciation and current income by investing in a mix of equity stocks and debt securities.
Features of Quant Absolute Fund-Direct Growth Plan for NRI:
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Date of Inception: 07 January 2013
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Assets Under Management (AUM): Rs 12.49 billion
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Asset Allocation: 76.35% in equities, 23.5% in debt instruments and 0.5% in cash instruments.
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Expense Ratio: 0.56% (category average for hybrid mutual funds is 0.92%)
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Risk Profile: High Risk
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Investment Strategy: The scheme aims to generate long-term capital growth and current income by investing in a mix of debt and equity securities. The fund uses a quantitative investment approach to identify and invest in stocks that are expected to outperform the market.
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Taxation: Short-term capital gains (STCG) are taxed at 15% if you redeem your investments within 1 year. Long-term capital gains (LTCG) are taxed at 10% if you redeem your investments after 1 year and your LTCG exceeds Rs. 1 lakh in a financial year.
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Kotak Debt Hybrid Fund Direct-Growth Plan
The Kotak Debt Hybrid Fund Direct-Growth Plan is a hybrid mutual fund that invests in a mix of debt and equity securities. The fund aims to generate regular returns with the potential for capital appreciation.
Features of Kotak Debt Hybrid Fund Direct-Growth Plan for NRI:
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Date of Inception: 30 January 2013
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Assets Under Management (AUM): 18.91 billion
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Asset Allocation: 65.9% in debt instruments, 25% in equities, and 9% in cash instruments
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Expense Ratio: 0.45% (category average for hybrid mutual funds is 0.83%)
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Risk Profile: Moderately High Risk
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Investment Strategy: The fund aims to generate attractive returns by investing in a mix of debt and equity securities. The fund will generate regular income from debt securities, while the equity exposure will enhance returns.
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Taxation: The returns are taxed as per your income tax slab rates under the IT Act, 1961.
Why Should an NRI Invest in the Best SIP Plan in India in 2024?
There are many reasons why an NRI should invest in the best SIP in India in 2024; Some of them are as follows:
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Cost-effectiveness
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SIPs allow you to invest small amounts of money regularly in the chosen best ULIP fund or mutual fund scheme.
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This makes them a good option for NRIs with limited means.
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For example, you can start a SIP with as little as Rs. 500 or even Rs. 100 in some cases.
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A best SIP plan in India has a lower expense ratio, which allows you to keep more of your investment earnings.
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Rupee Cost Average Benefits
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The best SIP in India allows you to invest a fixed amount of money monthly into a ULIP fund or mutual fund.
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This way, you buy more units when the market is down and fewer units when the market is up.
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Over time, the average price of your units will be lower than the market price,
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This will help you to average out your cost of investment and reduce your risk, which can help you to improve your returns.
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Invest in Multiple Best SIP Plans
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You can run multiple SIPs with both ULIPs and mutual funds.
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This is a good option if you want to invest in different asset classes or have different financial goals.
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For example, you could choose one best SIP in India for retirement and another SIP investment for your child's education.
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This way, you can tailor your investments to your specific needs and goals.
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Flexibility
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SIPs allow you to tailor your investments to your specific needs and goals:
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You can choose the amount you want to invest, starting from as low as Rs. 500 or even Rs. 100 in some cases.
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You can choose how often you want to invest, such as monthly, quarterly, or annually.
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You can choose the asset class you want to invest in, such as equity, debt, or a combination of both.
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You can change or switch your investment fund as needed.
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You can pause or stop your SIP plan anytime.
What are the Important Points to Remember for an NRI before Investing in the Best SIP in India in 2024?
Before investing in the best SIP (Systematic Investment Plan) in India in 2024, NRIs (Non-Resident Indians) should keep the following important points in mind:
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Start Investing Early: The earlier you start investing, the more time your SIP investment has to grow.
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Understand Your Financial Needs: Try to understand your short-term and long-term financial goals. Once you know your goals, you can choose the right SIPs for you.
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Invest in Different SIPs for Different Goals: This will help you to diversify your risk and improve your chances of achieving your goals.
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Make Investments as Per Your Risk Appetite: How much risk are you comfortable with? There are different types of SIPs with different risk profiles. Choose the ones that are right for you.
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NRE or NRO Account: Choose between an NRE (Non-Resident External) or NRO (Non-Resident Ordinary) account to invest in mutual funds. NRE accounts are more suitable for repatriable investments, while NRO accounts are used for non-repatriable investments.
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Learn the Tax Implications: Understand the tax implications on investments and returns as an NRI. Tax rates and rules for NRIs may differ from those applicable to Indian residents.
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FEMA Regulations: Familiarise yourself with the Foreign Exchange Management Act (FEMA) regulations concerning NRI investments in India.
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Keep Evaluating Your Portfolio's Performance Regularly: This will help you to make sure that your investments are on track and that you are not taking on too much risk.
