Which Mutual Fund is Best for Sip
A systematic investment plan, or SIP, is a method of investing in mutual funds. A SIP is a method of investing in which a set sum is withdrawn from your bank account each month and deposited in the fund of your choice. SIPs can be weekly, monthly, or quarterly, with only a few funds allowing quarterly SIPs.
SIPs help you establish investment discipline while also easing the stress of large investments. SIP is best for persons who want to invest a small amount of money every month from their disposable income.
Benefits of SIP
- Suitable for Investors with Limited Capital
- Diversification Option
- Compounding’s Power
- The Average Cost of a Rupee
- Investing that is Systematic and Diligent
- Flexible
- Saving on Taxes
1. Suitable for Investors with Limited Capital
We’ve seen how the number of retail investors in the market has increased in 2021. The majority of these first-time investors are people with little savings who understand the benefits of long-term investing. The best SIP to invest in for 2022 allows these low-capital investors to earn higher long-term returns with their limited monthly savings. With as little as Rs 100, an investor can begin a SIP.
2. Diversification Option
Almost all mutual fund schemes allow you to start a systematic investment plan (SIP). You can select a number of the top SIP funds and divide your investment amount among them according to your investing strategy. Even during downtrends or periods of significant market volatility, you can limit market risks and achieve consistent returns. By investing in equities funds, debt funds, and hybrid funds, you can diversify your SIP investment portfolio.
3. Compounding’s Power
SIP investments are intended to be held for a long time. The length of time you invest matters more than the amount you invest. Your regular contributions to a SIP compound over time, result in significantly bigger returns. As a result, even if you have limited money, it is recommended that you begin investing in mutual funds through a systematic investment plan (SIP) as soon as feasible.
4. The Average Cost of a Rupee
It’s nearly hard to time the market; even gurus on television can’t predict what will happen next. And it’s challenging for individuals like us, who work regular 9-to-5 jobs and don’t have the time or expertise to stay up with the market. For us, SIP is the finest solution. When you invest in a SIP, you invest on the same date every month, regardless of whether the market is at its greatest or lowest point, and when you look at the cost of acquiring units at the end of the term, you’ll notice that it’s neither the lowest nor the highest, but rather “Average.”
5. Investing that is Systematic and Diligent
We’ve known the value of discipline in our lives since we were children. Our investment is brought in by SIP. Because of our hectic schedules, we may miss a couple of our SIP installments if we were to invest manually. However, with advance banking, you only need to fill out the mandate form once, and your money will be deducted from your account automatically. SIP does not necessitate any manual labor.
6. Flexible
SIPs allow you to invest in an amount that is convenient for you; you can also choose the date of investment and the fund category in which you wish to invest.
Savings on Taxes
Fund of mutual funds SIPs is one of the finest solutions for individuals wishing to save on taxes while also building wealth for the future. You can invest in ELSS (Equity Linked Savings Schemes) and deduct up to Rs 1,50,000 from your taxable income under section 80 C of the Income Tax Act.
How much money would you earn if you invest Rs. 1000 monthly in a SIP?
| At the End of the Year | 10% | 15% | 20% |
|---|---|---|---|
| 5 | Rs.77,436 | Rs.88,575 | Rs.1,01,759 |
| 10 | Rs.2,06,547 | Rs.2,78,657 | Rs.3,82,373 |
| 15 | Rs.4,17,909 | Rs.6,76,863 | Rs.15,15,955 |
| 25 | Rs.13,37,799 | Rs.32,84,704 | Rs.86,27,393 |
The above table is for illustrative purposes only; mutual funds do not guarantee their returns.
The Best Mutual Funds for SIPs (Large and Mid-Cap)
| Scheme Name | AUM(Cr.) | Ratio | 1 Year | 3 Year | 5 Year | Since Inception |
|---|---|---|---|---|---|---|
| Mirae Asset Emerging Bluechip-Reg(G) | 5350.59 | 2.09 | 5.10 | 16.65 | 32.00 | 22.00 |
| Principal Emerging Bluechip Fund(G) | 1810.69 | 2.40 | 9.21 | 15.50 | 29.24 | 27.85 |
| Canara Rob Emerg Equities Fund-Reg(G) | 3509.52 | 1.98 | 9.06 | 15.19 | 32.86 | 18.36 |
| Sundaram Large and Mid Cap Fund(G) | 382.39 | 2.88 | 12.60 | 13.43 | 21.28 | 11.31 |
| DSPBR Equity Opportunities Fund-Reg(G) | 5399.76 | 2.14 | 5.24 | 12.69 | 20.48 | 18.44 |
| IDFC Core Equity Fund-Reg(G) | 2762.99 | 2.13 | 7.05 | 12.61 | 16.76 | 12.44 |
| Aditya Birla SL Equity Advantage Fund(G) | 5947.73 | 2.33 | 3.88 | 12.45 | 24.06 | 18.68 |
| Invesco India Growth Opp Fund(G) | 671.99 | 2.49 | 13.65 | 12.21 | 20.34 | 11.79 |
| ICICI Pru Large & Mid Cap Fund(G) | 3049.97 | 2.09 | 2.84 | 10.65 | 16.75 | 18.78 |
| SBI Large & Midcap Fund-Reg(G) | 2223.88 | 2.27 | 6.93 | 9.70 | 20.77 | 14.51 |
The Best Mutual Funds for SIPs (Large Cap)
| Scheme Name | AUM(Cr.) | Ratio | 1 Year | 3 Years | 5 Years | Since Inception |
|---|---|---|---|---|---|---|
| Axis Bluechip Fund(G) | 2233.50 | 2.41 | 21.81 | 13.13 | 17.84 | 13.03 |
| ICICI Pru Bluechip Fund(G) | 17496.16 | 2.12 | 9.90 | 11.74 | 18.04 | 14.94 |
| Invesco India Largecap Fund(G) | 141.21 | 2.71 | 12.63 | 10.87 | 17.55 | 12.70 |
| IDFC Large Cap Fund-Reg(G) | 347.19 | 2.66 | 10.58 | 10.73 | 13.88 | 10.32 |
| Canara Rob Bluechip Equity Fund-Reg(G) | 121.58 | 2.51 | 13.36 | 10.62 | 15.67 | 11.93 |
| Aditya Birla SL Frontline Equity Fund(G) | 20203.49 | 2.19 | 6.13 | 10.53 | 18.34 | 21.56 |
| Reliance Large Cap Fund(G) | 10126.14 | 1.97 | 8.36 | 10.50 | 20.72 | 11.55 |
| HDFC Top 100 Fund(G) | 14376.00 | 2.05 | 4.70 | 10.49 | 17.65 | 20.20 |
| SBI BlueChip Fund-Reg(G) | 19064.05 | 2.44 | 7.23 | 10.41 | 19.46 | 11.49 |
| DHFL Pramerica Large Cap Fund(G) | 399.86 | 3.08 | 7.02 | 9.25 | 16.35 | 19.94 |
Which Mutual Fund is Best for SIP? (Multi-Cap)
The following is a list of some of the best multi-cap funds.
| Scheme Name | AUM(Cr.) | Ratio | 1 Year | 3 Years | 5 Years | Since Inception |
|---|---|---|---|---|---|---|
| Motilal Oswal Multicap 35 Fund-Reg(G) | 13015.79 | 2.05 | 8.03 | 14.47 | 26.64 | |
| Parag Parikh Long Term Equity Fund-Reg(G) | 1106.85 | 2.00 | 17.94 | 13.90 | 20.34 | 19.34 |
| Principal Multi Cap Growth Fund(G) | 661.13 | 2.42 | 6.89 | 13.88 | 22.24 | 16.16 |
| Mirae Asset India Equity Fund-Reg(G) | 7945.03 | 2.15 | 9.52 | 13.47 | 22.37 | 16.56 |
| Aditya Birla SL Equity Fund(G) | 9351.19 | 2.30 | 4.43 | 13.12 | 23.44 | 23.89 |
| SBI Magnum Multicap Fund-Reg(G) | 5413.33 | 2.43 | 9.02 | 12.75 | 22.56 | 12.97 |
| UTI Equity Fund-Reg(G) | 7986.23 | 2.06 | 17.61 | 12.00 | 18.87 | 15.80 |
| ICICI Pru Multicap Fund(G) | 2753.20 | 2.15 | 10.34 | 11.86 | 20.34 | 15.13 |
| DSPBR Equity Fund-Reg(G) | 2503.11 | 2.25 | 8.14 | 10.75 | 19.67 | 12.90 |
| Invesco India Multicap Fund(G) | 524.48 | 2.72 | 8.58 | 10.63 | 25.37 | 16.64 |
Which Mutual Fund is the Best for SIP (Mid Cap) Investments
The following is a list of the finest midcap funds.
| Scheme Name | AUM(Cr.) | Ratio | 1 Year | 3 Years | 5 Years | Since Inception |
|---|---|---|---|---|---|---|
| HDFC Mid-Cap Opportunities Fund(G) | 19990.13 | 2.26 | 5.72 | 14.19 | 27.70 | 16.98 |
| DSPBR Midcap Fund-Reg(G) | 5266.31 | 2.16 | 4.90 | 13.24 | 27.87 | 15.74 |
| Franklin India Prima Fund(G) | 6335.84 | 2.11 | 5.79 | 12.36 | 25.91 | 20.35 |
| Sundaram Mid Cap Fund(G) | 6039.25 | 2.11 | 1.89 | 11.64 | 26.68 | 27.50 |
| Invesco India Midcap Fund(G) | 178.82 | 2.73 | 10.65 | 11.17 | 26.21 | 15.07 |
| Aditya Birla SL Midcap Fund(G) | 2222.19 | 2.36 | 0.91 | 10.70 | 24.63 | 24.13 |
| ICICI Pru Midcap Fund(G) | 1460.51 | 2.45 | 5.14 | 9.80 | 28.14 | 17.97 |
| Axis Midcap Fund(G) | 1396.19 | 2.50 | 17.50 | 9.56 | 24.82 | 18.65 |
| Reliance Growth Fund(G) | 6549.62 | 2.15 | 2.57 | 9.37 | 21.46 | 22.68 |
| UTI Mid Cap Fund-Reg(G) | 3883.99 | 2.06 | 5.11 | 9.13 | 27.55 | 15.86 |
Which Mutual Fund is Best for Sip
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Which SIP is the best for a one-year period?
Investors with a three-year investing horizon should only execute a SIP in Debt Funds. Ultra Short Duration Funds may be a suitable substitute for a one-year systematic investment plan.
Can I take a sip at any time?
Yes, you can pause your SIP at any moment and withdraw the invested funds in full or in part. The only exception is tax-advantaged funds such as ELSS, which have a three-year lock-in period from the date of investment. You can withdraw your investment in ELSS after three years from the date of investment.
What are the benefits of SIP?
Benefits of SIP
Suitable for Investors with Limited Capital
Diversification Option
Compounding’s Power
The Average Cost of a Rupee
Investing that is Systematic and Diligent
Flexible
Saving on Taxes.
Which mutual funds are the best long-term investments?
Long-term investors should invest in equity-oriented mutual funds.
