SIP is indeed one of the finest ways through which investments can be made in mutual funds with an aim to build up wealth progressively.
This way, you are able to achieve compound growth which averages out market fluctuations of assets, even when you invest small amounts daily.
Given below is a list of the best mutual funds for sip to invest in 2024 in the Indian market categorised under equity, hybrid, debt and solution oriented.
What is SIP?
SIP stands for Systematic Investment Plan which can be explained in simple terms as a method of investing in mutual funds where a person invests a fixed sum every month or a chosen time interval.
Checkout: What is SIP in Hindi?
Why You Should Choose SIP?
Disciplined Investing: Conventional investments do not only enable an investor to practice the art of investiture in a structured way but also frequently let him do so.
Power of Compounding: It was, therefore, possible to consider a small, regular investment that can compound over time.
Rupee Cost Averaging: Paying for the shares on a regular basis just helps in smoothening the cost which one pays for the shares, thus minimizing the effects of fluctuating prices.
Top SIP Mutual Funds to Invest in 2024
Based on the above data, the following are the top SIP Mutual funds to invest in the year 2024:
1. HDFC Mid-Cap Opportunities Fund
Category: Capital – Mid Capitalisation
Overview: It is SIP mutual funds that holds large positions in mid-cap stocks and therefore is more of a high risk fund and ideal for investors who are willing to have a lock-in period of 3-4 yrs.
1-Year Return: 49. 98%
2. Parag Parikh Flexi Cap Fund
Category: Equity – Flexi Cap is a ready reckoner for companies and investors because it provides a good understanding of a company’s performance based on different parameters that affect the equity capital.
Overview: This fund has allocation to large-cap, mid-cap, and small-cap stocks, which helps reduce the risk associated with investing in SIP mutual funds consisting primarily of stocks.
1-Year Return: 37. 02%
3. ICICI Prudential Bluechip Fund
ICICI Prudential Bluechip Fund is an open-end infra class of mutual fund scheme that invests in equity and equity related instruments that is divided into ICICI Prudential Bluechip Fund – Regular Plan, ICICI Prudential Bluechip Fund – Direct Plan.
Category: Large Capital Base: Large cap companies are the organizations whose capital requirements are large and are recognized in the form of equity shares.
Overview: This fund targets the big-cap equity space; therefore, it is suitable for those clients seeking slow and steady compounding of wealth over a long period.
1-Year Return: 30. 57%
4. The HDFC Flexi Cap Fund
Category: This share planning method is commonly known as the Equity Flexi Cap method of share planning for business resources.
Overview: This is one of the best mutual funds for SIP, which currently divides its medium to high risk investments into large, mid and small cap stocks, making it ideal for investors looking for appreciable returns over the next five years.
1-Year Return: 32. 64%
Checkout: What are The Best Investment Plan in India?
5. Nippon India Small Cap Fund
Category: Equity – Small Cap As the name suggests, Small Cap funds are those that invest in relatively small companies that are not as large as Mid Caps but are larger than Small Caps.
Overview: Earning high returns, this fund especially is suitable for those investors who are ready to take certain risks to obtain big gains.
1-Year Return: 54. 93%
6. HDFC Balanced Advantage Fund
Category: Hybrid
Overview: It is one of the best mutual funds for SIP to invest in 2024. This type of fund is an equity fund with elements of bond, which makes it possible to get a better risk/return ratio.
1-Year Return: 35. 04%
7. ICICI Prudential Equity & Debt Fund
Category: Hybrid
Overview: It has the advantage of some equity participation mixed with debt, thus providing more equitable risk and returns.
1-Year Return: 31. 08%
8. ICICI Prudential Corporate bond fund
Category: Debt
Overview: This type of fund is especially designed to invest in corporate bonds and thus provide rather stable income with relatively lower risk.
1-Year Return: 7. 88%
9. ICICI Prudential Short Term Fund
Category: ICICI Prudential short term fund is a debt fund of ICICI Prudential Mutual Fund Company that invests in debentures and other money market instruments with maturity of up to one year.
Overview: Perfect for the short term investment solutions, this fund invests mainly in those debt instruments and therefore would be a good substitute to the fixed deposit investment.
1-Year Return: 8. 15%
10. LIC MF Gold ETF FoF
Category: Commodities
Overview: This fund focuses on gold ETFs which are ideal for the hedging of inflation and banging of market volatilities.
1-Year Return: 8. 36%
Factors to Consider Before Investing in SIP
Investment Goals: Set your personal goals and select best mutual funds for SIP to invest accordingly.
Risk Appetite: Risk profile is another criteria consideration to make before investing in SIP mutual funds. The maxim that suggests that higher returns are likely to be associated with higher risk holds true.
Time Horizon: This involves understanding your time horizon of investing or how long you intend to invest in a given company or industry.
More, having long-term horizons proves effective in averting risks and keeping the anticipated returns in check.
Fund Performance: Look for the historical performance of the fund to determine whether it has been a good performer in the past.
It is important to note that mutual fund past performance does not predict the actual new returns of the fund though it gives the standard deviation.
Advantages of Investing in SIP
Flexibility: It is advisable to begin with some capital and as you earn more, you can gradually inject more capital into the business.
No Need to Time the Market: SIPs enable you to invest a fixed sum at a specified frequency, without any regard to market fluctuations.
Convenient: SIP investment is convenience as it involves minimal involvement and automatic linking of accounts.
Checkout: The Story of Mutual Funds growth in India.
Conclusion
Mutual funds, especially when invested through Systematic Investment Plans, are a wise investment to accumulate wealth in the long-term.
Below, there is a list of the ten best mutual funds for SIP, which is aimed to help investors fulfill their goals according to the type of their portfolio.
If you are able to select proper funds, the best way to achieve a balance would be to invest in a well-diversified portfolio that is best suited for your needs and wants.
Ensure you go through your investments now and then to check for any need for changes according to the plan.
If you still find it difficult to invest in mutual funds, Kartikey Traders will make it easier for you. Kartikey Traders is a firm that offers a wide range of investment and wealth management services for your different financial needs.
We will help you at every step of the process, from applying to choosing funds and documentation, we make every process easy for you.
You can easily start your investment journey by contact us.
Top 10 Best Mutual Funds for SIP to Invest in 2024