Top 10 Mutual Funds for SIP to Invest in 2021
If you are planning to invest in mutual funds through SIP (Systematic Investment Plan), you may want to consider the top-performing mutual funds in India. SIPs are a great way to invest in mutual funds as they allow you to invest small amounts regularly and build wealth over time. In this blog post, we will discuss the top 10 mutual funds for SIP to invest in 2021.
Axis Bluechip Fund – Large Cap Fund
Axis Bluechip Fund is a large-cap mutual fund that invests in blue-chip companies. It has consistently outperformed its benchmark and peers over the long term. The fund has a diversified portfolio of high-quality stocks and has generated good returns for investors.
Mirae Asset Emerging Bluechip Fund – Mid Cap Fund
Mirae Asset Emerging Bluechip Fund is a mid-cap mutual fund that invests in emerging companies with a potential for growth. The fund has a diversified portfolio of stocks and has delivered consistent returns over the long term.
SBI Small Cap Fund – Small Cap Fund
SBI Small Cap Fund is a small-cap mutual fund that invests in small-cap companies with a potential for growth. The fund has a diversified portfolio of stocks and has delivered excellent returns over the long term.
HDFC Balanced Advantage Fund – Hybrid Fund
HDFC Balanced Advantage Fund is a hybrid mutual fund that invests in a mix of equity and debt securities. The fund has a dynamic asset allocation strategy and has consistently delivered good returns over the long term.
ICICI Prudential Bluechip Fund – Large Cap Fund
ICICI Prudential Bluechip Fund is a large-cap mutual fund that invests in blue-chip companies. The fund has a diversified portfolio of high-quality stocks and has delivered consistent returns over the long term.
Kotak Standard Multicap Fund – Multi Cap Fund
Kotak Standard Multicap Fund is a multi-cap mutual fund that invests in a mix of large-cap, mid-cap, and small-cap stocks. The fund has a diversified portfolio of high-quality stocks and has delivered good returns over the long term.
Axis Long Term Equity Fund – ELSS Fund
Axis Long Term Equity Fund is an ELSS mutual fund that invests in a diversified portfolio of stocks to provide tax benefits and long-term wealth creation. The fund has consistently delivered good returns over the long term.
Franklin India Low Duration Fund – Debt Fund
Franklin India Low Duration Fund is a debt mutual fund that invests in a mix of high-quality debt securities with a low duration. The fund has consistently delivered good returns over the long term.
Nippon India Liquid Fund – Liquid Fund
Nippon India Liquid Fund is a liquid mutual fund that invests in high-quality money market instruments. The fund has consistently delivered good returns over the long term and is a great option for investors who are looking for low-risk investments.
Aditya Birla Sun Life Savings Fund – Ultra Short Duration Fund
Aditya Birla Sun Life Savings Fund is an ultra-short duration mutual fund that invests in a mix of high-quality debt securities with a short duration. The fund has consistently delivered good returns over the long term and is a great option for investors who are looking for low-risk investments.
Investing in mutual funds is a great way to build wealth over the long term, but it’s important to remember that mutual funds are subject to market risks. Therefore, it is important to understand the risks associated with mutual fund investments and to diversify your portfolio across different asset classes to minimize risks.
It is also important to keep in mind that past performance is not a guarantee of future performance, and the returns of mutual funds can be influenced by a variety of factors such as market volatility, economic conditions, and changes in government policies.
Before investing in any mutual fund, it is important to do your own research, understand your investment goals, and consult with a financial advisor if needed. Also, it is recommended to start with a small investment amount and gradually increase your investment as you gain confidence and experience in the market.
When investing in mutual funds, it’s important to understand the different types of funds available and how they suit your investment goals and risk appetite. For example, large-cap funds invest in blue-chip companies that have a proven track record and are known for their stability, while mid-cap and small-cap funds invest in emerging companies with a potential for growth but are also associated with higher risks.
Similarly, debt funds invest in fixed-income securities such as bonds and government securities, while equity funds invest in stocks and shares. Hybrid funds, on the other hand, invest in a mix of equity and debt securities to provide a balanced portfolio.
Another important factor to consider when investing in mutual funds is the expense ratio, which is the annual fee charged by the mutual fund company for managing your investments. Lower expense ratios translate to higher returns for investors, so it’s important to compare expense ratios of different mutual funds before making investment decisions.
In addition, it’s important to monitor the performance of your mutual fund investments regularly and to rebalance your portfolio periodically to ensure that it remains aligned with your investment goals and risk appetite.
Conclusion
In conclusion, investing in mutual funds through SIP is a great way to build long-term wealth, but it requires careful research, planning, and monitoring. It’s important to understand the risks associated with mutual fund investments, choose the right mutual funds that suit your investment goals and risk appetite, and monitor your portfolio regularly to ensure that it remains on track.
Read more useful content:
- How to invest in mutual funds
- Best Technology Mutual Funds
- All about mutual funds-types & importance
- The Power of SIP Investment in Mutual Funds
