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Tax Saving + Investment + Term Insurance = SIP Plus

Tax Saving Investment and Insurance
Tax Saving Investment and Insurance

Mutual funds SIP is best tool for long term wealth creation.  It is systematic investment option by investing monthly in equity market. Moreover Tax saving(ELSS) mutual funds offers investment and tax saving in income tax act 80C.  ELSS mutual funds provide both the advantage of investment and tax saving. Along with these, ICICI offers no cost term insurance for certain schemes of ICICI mutual funds. In this blog, let us discuss on mutual funds with term insurance.

The insurance cover is an add-on option feature offered by ICICI prudential insurance company. The insurance cover applicable for applicants aged above 18 and not more than 51 years. The term insurance coverage would be 100 times of your monthly SIP on investment of 3 years. In case your monthly SIP is 10000 rupees would give you insurance coverage of 10 lakhs(100 * 10,000 rupees).

100 * Monthly SIP coverage in SIP plus.
Mutual funds with Insurance:

Certain mutual funds in ICICI mutual funds provide the insurance option. Here is the list of mutual funds in different category to choose based on financial goals.

Large Cap : ICICI Prudential Bluechip Growth Direct Fund

This fund invests in equity and equity related securities of large cap companies. It holds equities in Airtel, Infosys, ICICI , ITC and many more. The expense ratio of the fund is 1.23%. You can start with monthly 500 rupees in SIP. Your investment for more than 5 years, you can start investing in Bluechip funds. This fund provides insurance coverage of 100 * monthly SIP.

Tax Saving : ICICI Prudential Long Term Equity Growth Direct Fund

This is tax saving mutual funds. It holds equities in HDFC, Infosys, ICICI , ITC and many more. The expense ratio of the fund is 1.37%. You can start with monthly 500 rupees in SIP. Your investment for more than 5 years and looking for tax saving, you can start investing in ELSS funds. This fund provides insurance coverage of 100 * monthly SIP.

Multicap: ICICI Prudential Multicap Growth Direct Fund

This invests in across large cap; mid cap and small cap stocks of various industries. It holds equities in HDFC, Infosys, Hindalco , Cipla and many more. The expense ratio of the fund is 0.92%. You can start with monthly 500 rupees in SIP. Your investment for more than 7 years, you can start investing in multicap funds. This fund provides insurance coverage of 100 * monthly SIP.

Midcap : ICICI Prudential Midcap Growth Direct fund :

This invests actively investing in diversified mid cap stocks of various industries. It holds equities in Tata power, Muthoot finance, HUL , Voltas limited and many more. The expense ratio of the fund is 1.58%. You can start with monthly 500 rupees in SIP. Your investment for more than 7 years, you can start investing in midcap mutual funds. This fund provides insurance coverage of 100 * monthly SIP.

SmallCap : ICICI Prudential Smallcap Growth Direct Fund

This invests actively investing in diversified small cap stocks of various industries. It holds equities in Bluestar, Minda industries, Persistent Systems Ltd, Motilal Oswal Financial Services Ltd and many more. The expense ratio of the fund is 0.69%. Expense ratio of the fund is very less compare with its peers. You can start with monthly 500 rupees in SIP. Your investment for more than 10 years, you can start investing in small cap mutual funds. This fund provides insurance coverage of 100 * monthly SIP.

Sectoral : ICICI Prudential Pharma Healthcare & Diagnostics Growth Direct Fund

This invests actively investing in equity and equity related securities of pharma; healthcare; hospitals; diagnostics; wellness and allied companies. It holds equities in Cipla, Sun Pharma, Biocon, Torrent Pharma and many more.  The expense ratio of the fund is 0.8%. Expense ratio of the fund is very less compare with its peers in sectoral mutual funds. You can start with monthly 500 rupees in SIP. Your investment for more than 10 years, you can start investing in sectoral mutual funds. This fund provides insurance coverage of 100 * monthly SIP.

Hybrid : ICICI Prudential Regular Saving Growth Direct fund

This invests actively investing in debt and money market instruments. It invests in corporate bonds and Nifty 50 index. This fund diversify investment in bond market as well as equity market. The expense ratio of the fund is 1.39%. You can start with monthly 500 rupees in SIP. Your investment for 3-5 years, you can start investing in Hybrid mutual funds. This fund minimize the short term risk by investing in bonds. This fund provides insurance coverage of 100 * monthly SIP.

You have multiple mutual funds in different category to select based on your financial goals. Get extra advantage by investing in SIP plus in ICICI mutual funds. Happy Investing:)

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