Top SIP Mutual Funds to Invest in India
Systematic Investment Plan (SIP) is a popular mode of investment that allows investors to invest small amounts of money at regular intervals. SIPs are an excellent way to achieve long-term financial goals as they offer the benefit of compounding. Mutual funds are a popular choice for investors looking to invest in the stock market without having to research individual stocks. Here are some of the top SIP mutual funds that investors can consider:
- Mirae Asset Large Cap Fund
Mirae Asset Large Cap Fund is a well-diversified equity fund that primarily invests in large-cap stocks. The fund has a proven track record of delivering consistent returns over the years. The fund has delivered an average annual return of 20.77% over the past five years, making it an excellent choice for long-term investors.
- Axis Bluechip Fund
Axis Bluechip Fund is another top-performing mutual fund that investors can consider for their SIP investments. The fund primarily invests in blue-chip companies, which are large, well-established companies with a proven track record of delivering consistent returns. The fund has delivered an average annual return of 19.61% over the past five years.
- HDFC Mid-Cap Opportunities Fund
HDFC Mid-Cap Opportunities Fund is an excellent choice for investors looking to invest in mid-cap stocks. The fund primarily invests in companies that have the potential for high growth in the future. The fund has delivered an average annual return of 19.47% over the past five years, making it an excellent choice for long-term investors.
- SBI Small Cap Fund
SBI Small Cap Fund is a top-performing mutual fund that invests in small-cap stocks. The fund has a proven track record of delivering consistent returns over the years. The fund has delivered an average annual return of 22.85% over the past five years, making it an excellent choice for investors with a high-risk appetite.
- ICICI Prudential Bluechip Fund
ICICI Prudential Bluechip Fund is a well-diversified equity fund that primarily invests in large-cap stocks. The fund has a proven track record of delivering consistent returns over the years. The fund has delivered an average annual return of 16.41% over the past five years, making it an excellent choice for long-term investors.
- Aditya Birla Sun Life Tax Relief 96 Fund
Aditya Birla Sun Life Tax Relief 96 Fund is a diversified equity fund that provides tax benefits under Section 80C of the Income Tax Act, 1961. The fund invests primarily in large-cap and mid-cap stocks with the potential for high growth. The fund has delivered an average annual return of 16.72% over the past five years, making it an excellent choice for investors looking to save taxes while earning returns.
- Kotak Standard Multicap Fund
Kotak Standard Multicap Fund is a well-diversified equity fund that invests across market capitalizations. The fund primarily invests in companies that have the potential for high growth in the future. The fund has delivered an average annual return of 17.81% over the past five years, making it an excellent choice for long-term investors.
- Nippon India Small Cap Fund
Nippon India Small Cap Fund is a high-risk, high-return mutual fund that primarily invests in small-cap stocks. The fund has a proven track record of delivering high returns over the years. The fund has delivered an average annual return of 23.44% over the past five years, making it an excellent choice for investors with a high-risk appetite.
- DSP Midcap Fund
DSP Midcap Fund is a well-diversified equity fund that primarily invests in mid-cap stocks. The fund invests in companies that have the potential for high growth in the future. The fund has delivered an average annual return of 18.57% over the past five years, making it an excellent choice for long-term investors.
- Franklin India Feeder Franklin US Opportunities Fund
Franklin India Feeder Franklin US Opportunities Fund is an excellent choice for investors looking to invest in international stocks. The fund primarily invests in companies listed on the US stock exchanges, providing exposure to the world’s largest economy. The fund has delivered an average annual return of 25.23% over the past five years, making it an excellent choice for investors looking to diversify their portfolio.
Conclusion
Investing in mutual funds through SIPs is a great way to build long-term wealth. Investors should select mutual funds based on their investment goals, risk appetite, and investment horizon. The above-listed funds have a proven track record of delivering consistent returns and can be considered for SIP investments. However, investors should always consult with a financial advisor before making any investment decisions. Remember, the key to successful investing is to stay disciplined and focused on your investment objectives.
Read more useful content:
- How to invest in mutual funds
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- The Power of SIP Investment in Mutual Funds
Frequently Asked Questions (FAQs)
- What is a mutual fund?
A mutual fund is a type of investment vehicle that pools money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities.
- How do mutual funds work?
Mutual funds work by collecting money from investors and pooling it together to buy a diversified portfolio of stocks, bonds, or other securities. The value of the mutual fund is determined by the performance of the underlying securities.
- What is SIP?
SIP stands for Systematic Investment Plan. It is a mode of investment in mutual funds where investors invest a fixed amount of money at regular intervals, usually monthly or quarterly.
- What is the minimum investment amount for mutual funds?
The minimum investment amount for mutual funds varies depending on the fund and the asset management company. However, most mutual funds have a minimum investment amount of Rs. 500.
- What are the different types of mutual funds?
There are several types of mutual funds, including equity funds, debt funds, hybrid funds, sector funds, index funds, and international funds.
- What is the difference between growth and dividend options in mutual funds?
In a growth option, the investor does not receive any dividends but instead, the money is reinvested in the fund. In a dividend option, the investor receives regular dividends, and the remaining amount is reinvested in the fund.
- What is the expense ratio of a mutual fund?
The expense ratio of a mutual fund is the total cost of managing the fund, including administrative expenses, management fees, and other expenses. It is expressed as a percentage of the total assets under management.
- What is NAV in mutual funds?
NAV stands for Net Asset Value. It is the value of the mutual fund’s assets minus its liabilities, divided by the number of units outstanding. The NAV of a mutual fund is used to calculate the price of one unit of the fund.
- Can I redeem my mutual fund investment before the maturity date?
Yes, investors can redeem their mutual fund investment before the maturity date. However, they may be subject to an exit load or penalty, depending on the mutual fund’s terms and conditions.
- Is it necessary to have a Demat account to invest in mutual funds?
No, it is not necessary to have a Demat account to invest in mutual funds. However, if the mutual fund is in the form of units, investors may need a Demat account to hold those units. Otherwise, a regular bank account can be used to invest in mutual funds.
