For young investors who have just started their investment journey, DSP mutual funds offer an attractive lineup of equity and hybrid schemes to help them meet their long-term goals. Selecting the most suitable DSP mutual fund scheme early on and investing regularly via SIPs can be a game-changer.
Young investors can now create substantial wealth thanks to the power of compounding. Let us have a look at the three best DSP mutual fund schemes for young investors:
1. DSP Flexi Cap Fund
With a stellar long-term track record across market cycles, the DSP Flexi Cap is one of India’s top-performing flexi cap funds. It makes investments across market caps and sectors with limited restrictions, allowing investors to capture growth opportunities. Using a SIP calculator, you can learn how, starting with an SIP of just ₹3,000-5,000 early on in life, you could create a sizable retirement corpus with the DSP Flexi Cap Fund.
2. DSP Natural Resources and New Energy Fund
India has joined hands with world powers for a sustainable future. It has ambitious renewable energy installation targets over this decade to support economic growth sustainably. The DSP mutual fund’s natural resources and new energy fund present an exciting growth potential for young investors willing to tolerate higher risk.
As a sectoral fund focused on energy, materials, and chemicals, the DSP Natural Resources and New Energy fund allows young investors to participate in this promising sector.
3. DSP Equity & Bond Fund
This aggressive hybrid scheme offered by DSP mutual fund invests predominantly in equities while allocating a relatively minor portion to fixed-income or bond assets. Such balanced allocation helps contain downside risks compared to pure equity-based funds during market corrections. DSP Equity & Bond fund has delivered healthy long-term returns with relatively lower volatility, making it suitable for young investors.
Critical Benefits for Young Investors
Here are some of the significant benefits the DSP mutual fund schemes offer to young retail investors in India:
1. Growth Potential
Mutual fund schemes target sectors and segments poised for strong growth in the coming decade. Capturing this growth potential through early SIP investments can help you create substantial wealth over the long term.
2. Diversification
In addition to the sectoral bets, these funds hold diversified assets that help mitigate overall portfolio risk. This offers risk management through diversification, which is crucial for young investors.
3. SIP Route
All three funds covered above allow you to start SIPs at amounts as low as ₹500 per month. This makes regular investments viable for young investors.
4. Long-term Focus
The funds have long-term track records, making them ideal for young investors with longer time horizons.
4. Low Cost
DSP mutual fund schemes have relatively low expense ratios compared to their peers. Lower costs result in better returns.
Conclusion
In conclusion, the DSP mutual fund offers young Indian investors access to some of the best actively managed schemes for building long-term wealth that aligns well with India’s economic growth drivers. Starting early with SIPs after calculating target corpus and asset allocation is critical to harnessing the power of compounding over the 20-30-year horizon.
