Factors that help you decide what is the best fund to invest in SIP?

SIP is one of the popular ways of making an investment in today’s scenario. It is safe and has a low cost with high results. But one thing you must remember that mutual fund that is the best today may not be the same after a few decades. Also, we ignore one very important fact that the performance  of funds vary when it comes to SIP.  Hence, no one can give a hundred per cent accurate advice on which mutual fund scheme will top in next decade but with years of experience, one can decide the process that can help you shortlist the best mutual fund scheme for future. 

Here are few deciding factors that will help you chose the best fund to invest in SIP:

• When you plan to invest in SIP you must analyze risk-return parameters, different schemes and quality of the fund manager. 
• You should also analyze the history of the returns of various funds over the period of time and consider buying the funds  that have outraced the market and their peers then select the fund that matches your risk appetite and can also meet your investment goal. 
• Evaluate how the fund has performed in different market cycles especially analyze when the market was low what was the performance of the fund? 
• Always analyze and compare the fund with its benchmark index and its peers this will give a better idea of the fund's reliability. 
• You should not invest under any scheme by only reviewing the high returns you should select the scheme that can manage the downfall of the market well and stand by your side in bad and good times both.
• Review the portfolio of the scheme you are planning to invest in and make sure that fund doesn’t pit all its investment in one stock. 
• The fund manager is one of the important deciding factors when buying any mutual fund scheme. You should consider the fund managers that are process driven and not the star fund manager.  
• Always keep a long-term goal from 5 to 7 years when investing in the SIP for better results
• Deal with the market tactfully. Investing all your funds in one scheme can turn out dangerous. Thus, it is advisable that you diversify your investments into various schemes that have the capability to deliver good results. 

Take into consideration these simple methods and chose the best fund to invest in the SIP.