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Best Mutual Funds for SIP to invest in 202029 May 2020

Are you searching for the best investment plan for your hard-earned money? Not sure where to invest it? If these questions keep on popping in your head then don`t worry, we have everything covered for you! We will tell you the best way you can invest your funds and get the best returns.

An SIP or Systematic Investment Plan is one of the smartest and easiest ways to invest your money in the form of Mutual Funds. It is a way that lets the investor purchase units on a particular date of choice every month that helps you implement a systematic saving plan.

The amount that you need to invest depends entirely upon you, and you can also choose the intervals at which you want to spend the money beforehand. The funds can be invested accordingly, like weekly, monthly, or quarterly, etc.

This method is efficient, and it also incorporates the habit of saving money in the investor. Here, we will be talking about the best mutual funds for you to invest in. Thus, slowly and steadily, you can build a respectable fund for any emergencies in the future.

 

Best Performing SIP Mutual Funds

There are numerous mutual funds for SIPs available in the market, and it becomes challenging for the investor to choose the best one for himself. 

Based on various categories, we have come up with a list of best mutual funds for SIP in large-cap, small-cap, multi-cap, and equity-linked saving schemes. Some of these are:

Large-Cap Schemes

These schemes are for the firms that have a market capitalization of over Rs. 20,000 crore. These are best for the investors who want to accommodate wealth without exposure to a volatile market. Some of these schemes are:

  • Aditya Birla SL India GenNext Fund (G)

  • ICICI Pru Dynamic Plan (G)

  • Reliance Growth Fund (G)

  • SBI BlueChip Fund – Reg (G)

  • Tata Equity P/E Fund (G)

These are some of the top performing mutual funds in India which you can invest the money in as SIPs.

 

Mid-Cap Schemes

Mid-Cap schemes are where the investment is made in companies that have a market capitalization ranging from Rs. 500 crore to Rs. 10,000 crore. These schemes are for the people that have a high-risk appetite and want to grow their investments fast. Some of these schemes are:

  • Aditya Birla SL Small & Midcap Fund (G)

  • Edelweiss Mid and Small Cap Fund – Reg (G)

  • Franklin India Smaller Cos Fund (G)

  • L&T Midcap Fund – Reg (G)

  • Canara Rob Emerg Equities Fund – Reg (G)

If you are looking to invest in midcap schemes, then these are undoubtedly the best mutual funds for SIP.

 

Multi-Cap Schemes

These are the particular schemes made for investments in stocks of small, mid, and large companies. These are best for the investors that have a low-risk appetite. Some of these schemes are:

  • Aditya Birla SL Advantage Fund (D)

  • Aditya Birla SL Equities Fund (G)

  • HDFC Capital Builder Fund (G)

  • Kotak Opportunities Fund (G)

  • Reliance Top 200 Fund (G)

  • SBI Magnum Multicap Fund – Reg (G)

  • Sundaram Rural India Fund (G)

Multi-cap schemes are one of the best mutual funds and can ensure high returns if you play your cards well.

 

Equity-Linked Savings Schemes

One of the most exciting schemes that provides the investor with an equity centric mutual fund that can be useful for saving tax and building wealth. Some of the best schemes under this are:

  • Aditya Birla SL Tax Plan (D)

  • Invesco India Tax Plan (G)

  • Reliance Tax Saver (ELSS) Fund (G)

  • Tata India Tax Savings Fund – Reg (DP)

  • L&T Tax Advt Fund – Reg (G)

  • DSPBR Tax Saver Fund – Reg (G)

 

Why investment in an SIP is the right choice?

There are several benefits that you get to have when you invest in SIPs. Besides being a disciplined way of saving money, there are other reasons as well that make it an attractive investment option. Some of these reasons are:

  • SIPs can be very helpful in averaging the cost return ratio. This will help the investor in a volatile equity market purchase more units, thereby gaining more profit.

  • Because of the compound interest, even a small amount of investment can result in high returns over long periods.

  • The investments that you make through SIPs can be as low as Rs. 500, and thus, they are not at all heavy on your pocket.

  • The deduction of the amount is made automatically from your bank account, and thus, you don`t have to worry about missing out any time.

  • You can withdraw the money anytime you want.

  • SIPs eliminate the issue of timing of the market. Even if there are highs and lows, a long term plan will give you returns that will be best for you.

 

How to get the maximum returns from SIP?

Here are some of the methods that you need to employ to get the best returns from your SIP:

  • Understand the objective of your investment and have a precise aim at your desired goal.

  • Calculate the amount of savings that you need to have to achieve your desired goal.

  • According to your income and spending, decide the amount that you can easily invest every month to get the best returns. Make sure that the amount is feasible for you to spend.

  • You need to comb the market and look out for those SIPs that have performed the best in the last few years. Once that is done, you can choose the SIP that suits you the best.

  • You need to complete the required KYC documentation process along with the submission of cheques and other suitable forms. Then, you are good to go and start investing.

  • To get good returns, make sure you choose a long term plan.

  • To optimize your return even more, it is advisable to invest in multiple SIPs that will diversify your investments.

 

Conclusion

SIPs are one of the best ways of investment if you want to get high returns on a long term basis. We hope that this discussion has helped provide you with all the information related to the best mutual funds for SIPs!