Best Mutual Funds for SIP | Image Resource: freepik.com
Anyone who wants to help their money grow efficiently without putting too much of money at risk at once knows about SIP or Systematic Investment Plans.
However, if you are someone who has heard the word SIP thrown around here and there but never understood what it means, then you are at the right place. SIP is a plan with the help of which you can invest a fixed amount of money in a mutual fund after fixed intervals for a fixed or variable duration.
SIP Work Just Like A Piggy Bank For Better long-term Savings
You must have saved money in a piggy bank at some point in your life during childhood. Just as you could save up big by depositing loose change in your piggy bank. Similarly, you can earn a lot of money through SIPs.
With a SIP, you can deposit a certain amount of money, which might start from just Rs. 500 and can go up to any amount during a fixed interval. This interval can vary from a week to a month or even a quarter. This money, which is deposited builds up over time.
Unlike a piggy bank, with a SIP, it allows you to be able to invest your money in profitable businesses, and then share a part of the earning.
Additionally, with every periodic investment, the amount of money which is reinvested increases, which means that the returns that you get on your investment increases, as well.
As the investor, it is up to you to decide whether you want to receive the interest that you gain on your investment directly at the end of the SIPs tenure as a lump sum amount, or whether you want to receive the small amount after the fixed interval.
While the inner workings of SIPs are a little more complex and challenging to understand, this is a general overview of the process. With this basic understanding of SIPs, you will be able to invest your money in a better way in any of the top mutual funds for SIP.
Where Should You Invest for the best mutual funds for SIP?
Learning about SIPs does not mean that you automatically know the best mutual funds for SIP. Where you invest has a lot of bearing on how much you will earn from your investment.
To ensure that you invest your money wisely, you should look at some of the top mutual funds where investing in a SIP will help you earn large profitable sums. Whether you wish to invest in Kotak Mutual Fund or Axis Bluechip, ensure to know everything about SIP funds before you make an investment.
Here is the list of the mutual funds which are rated as the best in the market currently:
Kotak Mutual Fund:
This is an excellent SIP for those who are looking to get consistent returns on their investment. Established in 1985, this company has been working hard to establish a name for itself in the industry, and it is not difficult to see that their hard work has paid off.
Kotak Mutual Funds caters to a wide range of customers with varying risk appetites. No matter how big or little your investment is, you will find a theme for yourself. Before you make any investment in Kotak Mutual Funds, you need to have your financial goals in mind. Whether you are investing the money to attain a short term goal such as buying a car, or for a long term goal such as planning your retirement, you will be able to find a suitable scheme, with this company, you can invest mainly in large-cap companies, but at the same time you may opt to invest in small-cap and mid-cap companies. There is even an option to invest in multi-cap companies so that you can diversify your portfolio. Hence, you should head this way if you want to make a smart investment.
Axis Long Term Equity Fund
This mutual fund portfolio comprised of high-quality equity derivates and equity stocks. It focuses on achieving consistent returns on investment for their customers in the long-term through their portfolio. If you are looking for consistent returns on your mutual funds, then you should go ahead with this plan. It has been performing steadily well although it was launched only a decade ago, it has been able to climb the ranks in the mutual fund market effortlessly.
HDFC Small CAP Fund
Over the last year, this mutual fund has performed quite well. It has been able to curb losses and take them to an all-time low, which certainly makes it a worthwhile investment. Although up until last year, its performance had not been noteworthy, and it still needs some time to grow, there is no doubt that it will soon be able to climb the ranks to reach higher in no time.
Thus, mutual fund mainly invests its assets in small-cap and mid-cap companies. It leaves a bare minimum of its assets for investment in large-cap companies. If that sounds appealing to you, then you should ahead with this plan to make your investment.
DSP Equity Opportunities Fund
Historically, this mutual fund has always maintained a diverse portfolio when it comes to investment. They want to provide appreciation in the capital investment of their consumers, as well as generate income while ensuring a dividend distribution. It has consistently invested in some of the top-rated equities along with equity-linked investment in order to achieve their objectives. Hence, with this mutual fund, you are sure to achieve a consistent return on your investment as well as attain the benefits of a diversified portfolio.
Mirae Asset Emerging Bluechip Fund
With a consistently good performance, this mutual fund will be a wise option for you to invest your money. It has improved its performance in the past year and is sure to do well in the future, as well. Most of its assets have been invested in large-cap companies, followed by mid-cap companies, only a small portion of its investments have been reserved for small-cap companies. Thus, it has a well-diversified portfolio which can work to your advantage.
These are some of the best mutual funds for SIP that one can consider investing. You can consider the one that can help you make the right selection for the investment and help you make the financial investment.
