Systematic Investment Plan (SIP) is an investment strategy where an investor invests a fixed amount of money at regular intervals in a mutual fund.
SIPs are an excellent way to invest in mutual funds as they help inculcate the habit of disciplined investing, which is essential for long-term wealth creation. Mutual funds, on the other hand, are an excellent investment option for those looking to invest in equity, debt, or hybrid securities.
SIP Mutual Funds – List Of Best SIP Mutual Funds In 2023
With the economy showing signs of recovery and the stock market on an upward trend, it’s a good time to invest in mutual funds through SIP. However, with so many mutual funds available in the market, it can be challenging to decide which ones to invest in. In this article, we will discuss the best SIP mutual funds to invest in 2023.
Mirae Asset Large Cap Fund
The Mirae Asset Large Cap Fund is an excellent SIP mutual fund for those looking to invest in large-cap stocks. The fund has consistently outperformed its benchmark index, Nifty 50, over the last few years. The fund’s investment strategy is to invest in high-quality, undervalued large-cap stocks with the potential for long-term growth. The fund has a 5-star rating from Morningstar and has given a return of 22.3% in the last year.
Axis Bluechip Fund
The Axis Bluechip Fund is another excellent SIP mutual fund for those looking to invest in large-cap stocks. The fund invests in high-quality, blue-chip stocks with a proven track record of performance. The fund has consistently outperformed its benchmark index, Nifty 50, over the last few years. The fund has a 5-star rating from Morningstar and has given a return of 21.6% in the last year.
SBI Small Cap Fund
The SBI Small Cap Fund is an excellent SIP mutual fund for those looking to invest in small-cap stocks. The fund invests in high-quality, undervalued small-cap stocks with the potential for long-term growth. The fund has consistently outperformed its benchmark index, Nifty Small Cap 250, over the last few years. The fund has a 5-star rating from Morningstar and has given a return of 34.5% in the last year.
HDFC Hybrid Equity Fund
The HDFC Hybrid Equity Fund is an excellent SIP mutual fund for those looking to invest in a mix of equity and debt securities. The fund invests in a mix of high-quality equity and debt securities with the potential for long-term growth. The fund has consistently outperformed its benchmark index, CRISIL Hybrid 35+65 – Aggressive Index, over the last few years. The fund has a 5-star rating from Morningstar and has given a return of 19.8% in the last year.
Nippon India Small Cap Fund
The Nippon India Small Cap Fund is an excellent SIP mutual fund for those looking to invest in small-cap stocks. The fund invests in high-quality, undervalued small-cap stocks with the potential for long-term growth. The fund has consistently outperformed its benchmark index, Nifty Small Cap 250, over the last few years. The fund has a 5-star rating from Morningstar and has given a return of 31.7% in the last year.
ICICI Prudential Bluechip Fund
The ICICI Prudential Bluechip Fund is an excellent SIP mutual fund for those looking to invest in large-cap stocks. The fund invests in high-quality, blue-chip stocks with a proven track record of performance. The fund has consistently outperformed its benchmark index, Nifty 50, over the last few years. The fund has a 5-star rating from Morningstar and has given a return of 20.9% in the last year.
Aditya Birla Sun Life Tax Relief 96 Fund
The Aditya Birla Sun Life Tax Relief 96 Fund is an excellent SIP mutual fund for those looking to invest in tax-saving instruments. The fund invests in a mix of high-quality equity and debt securities, providing tax benefits under Section 80C of the Income Tax Act, 1961. The fund has consistently outperformed its benchmark index, S&P BSE 200 TRI, over the last few years. The fund has a 5-star rating from Morningstar and has given a return of 18.2% in the last year.
Kotak Standard Multicap Fund
The Kotak Standard Multicap Fund is an excellent SIP mutual fund for those looking to invest in a mix of large-cap, mid-cap, and small-cap stocks. The fund invests in high-quality stocks across market capitalization segments, providing a well-diversified portfolio with the potential for long-term growth. The fund has consistently outperformed its benchmark index, Nifty 500, over the last few years. The fund has a 5-star rating from Morningstar and has given a return of 23.4% in the last year.
Franklin India Ultra Short Bond Fund
The Franklin India Ultra Short Bond Fund is an excellent SIP mutual fund for those looking to invest in debt securities. The fund invests in a mix of high-quality debt securities with a maturity period of up to 1 year, providing a relatively low-risk investment option with the potential for stable returns. The fund has consistently outperformed its benchmark index, CRISIL Liquid Fund Index, over the last few years. The fund has a 5-star rating from Morningstar and has given a return of 6.9% in the last year.
L&T Midcap Fund
The L&T Midcap Fund is an excellent SIP mutual fund for those looking to invest in mid-cap stocks. The fund invests in high-quality, undervalued mid-cap stocks with the potential for long-term growth. The fund has consistently outperformed its benchmark index, Nifty Midcap 100, over the last few years. The fund has a 5-star rating from Morningstar and has given a return of 29.1% in the previous year.
Advantages of SIP Mutual Funds
SIP mutual funds have become increasingly popular among investors in recent years. This is because they offer several advantages over other investment options. Some of the key advantages of SIP mutual funds are:
Disciplined Investing
One of the main advantages of SIP mutual funds is that they promote disciplined investing. Investors commit to investing a fixed amount of money every month or quarter, which helps them develop a regular investing habit. This helps them to invest in a disciplined manner, which is crucial for long-term wealth creation.
Low Investment Amount
SIP mutual funds allow investors to start with a small investment amount. This means that even investors with limited funds can start investing in mutual funds. This makes mutual funds a more accessible investment option for a wider range of investors.
Rupee Cost Averaging
SIP mutual funds follow the principle of rupee cost averaging. This means that investors buy more units of a mutual fund when the market is down and fewer units when the market is up. Over time, this helps to lower the average cost per unit of the mutual fund. This reduces the impact of market volatility on the investment, making it a more stable investment option.
Diversification
Mutual funds invest in a diversified portfolio of assets, which reduces the overall risk of the investment. This diversification is important because it spreads the risk across multiple investments, reducing the impact of any one investment’s performance on the overall portfolio.
Professional Management
Mutual funds are managed by experienced fund managers who have the expertise to manage investments in a range of market conditions. They have the resources and the research capabilities to identify potential investment opportunities and make informed investment decisions on behalf of investors.
Transparency
Mutual funds are required to disclose their portfolio holdings and performance on a regular basis. This helps investors to track the performance of their investment and make informed decisions about their portfolio.
Flexibility
SIP mutual funds offer investors the flexibility to change their investment amount or frequency at their convenience. They can also switch between different mutual funds as per their investment goals and risk appetite.
Conclusion
Investing through SIPs in mutual funds is an excellent way to create wealth over the long term. However, it’s important to choose the right mutual funds based on your investment goals, risk appetite, and investment horizon. The above-mentioned SIP mutual funds have a proven track record of performance, providing a well-diversified portfolio with the potential for long-term growth. As with all investments, it’s important to consult with a financial advisor before making any investment decisions.