The Systematic Investment Plan (SIP) is a form of investment wherein the investor chooses a mutual fund based on their liking and regularly invests a fixed amount of money in that mutual fund. Instead of investing a lump sum of money all at once, a Systematic Investment Plan uses the concept of bit-wise investments over time.
The Systematic Investment Plan is a brilliant way of investing that allows an investor to invest anywhere from a small sum of money to a large sum, depending on their preferences, needs, and financial goals.
Mutual funds primarily offer SIP, lump sum, or both options for investing. One of the most appealing features of mutual funds is the ability to invest in small amounts each month through a Systematic Investment Plan (SIP). In addition, SIPs in mutual funds provide diversification and rupee cost-averaging benefits.
In this blog, we have comprised a list of the Best Mutual Funds for SIP 2024:
Best SIP Mutual Funds India 2024
S.No. | Best SIP Mutual Funds India |
EQUITY FUND PLANS | |
1. | Quant Tax Plan Direct-Growth |
2. | Quant Infrastructure Fund Direct-Growth |
3. | BOI AXA Small Cap Fund Direct-Growth |
DEBT FUND PLANS | |
4. | Edelweiss Government Securities Fund Direct-Growth |
5. | HDFC Credit Debt Risk Debt Fund Direct-Growth |
6. | ICICI Prudential All Seasons Bond Fund Direct-Plan-Growth |
HYBRID FUND PLANS | |
7. | Quant Multi Asset Fund Direct-Growth |
8. | Quant Absolute Fund Direct-Growth |
9. | Baroda BPN Paribas Aggressive Hybrid Fund Direct-Growth |
Factors to Consider Before Investing in the Best Mutual Funds for SIP 2024
The factors you need to take into account while investing in Mutual Funds for SIP are-
1) Identify Your Needs
You can invest in SIPs according to your needs, and you can start a SIP by investing a minimal amount each month to invest in a mutual fund. In contrast to making a lump sum investment, trying to make a smaller monthly investment eases the financial strain on your pocket.
With the advent of the internet and easily accessible information, one can check top mutual funds to invest in 2024.
2) Maintain An Individual SIP for Every Respective Goal
Individuals may have several goals, and having separate SIPs for each plan can help you better evaluate your investment.
Identify the correct investment strategy for a specific objective and consider investing in the right section of mutual funds by your timeframe.
To get a better estimate of your returns on SIP, you can use a SIP Calculator. Based on your monthly investment, expected return rate, and period, you can get a close projection of your returns on mutual fund investments made via SIP.
3) Expand Your Investments Based on Your Personal Risk Tolerance
When investing in a specific asset class, your risk appetite is the degree of risk you are willing to take.
Every investor has a unique risk appetite, which is affected by a combination of factors, including discretionary income, the horizon of the capacity of investments, and other needs.
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4) Within A Few Years, Evaluate the Portfolio’s Performance
Your SIP mutual fund portfolio should be reviewed regularly. Once every three or four years, this will help you eliminate underperformers and enhance your portfolio’s returns.
Overview Of the Best SIP Plans of 2024
1) Quant Tax Plan Direct-Growth
Quant Tax Plan Direct-Growth is an Equity Mutual Fund Scheme launched by Quant Mutual Fund. It is considered the Best Mutual Fund for SIP India.
The scheme aims to generate capital appreciation by investing predominantly in equity shares with growth potential. The secondary objective is to give dividends and other income.
2) Quant Infrastructure Fund Direct-Growth
Quant Infrastructure Fund Direct-Growth is an Equity Mutual Fund Scheme launched by Quant Mutual Fund.
The fund aims to invest predominantly in equity and equity-related instruments of the companies in the infrastructure sector and is the Best SIP to Invest In 2024.
3) BOI AXA Small Cap Fund Direct-Growth
BOI AX Small Cap Fund Direct-Growth is an Equity Mutual Fund Scheme launched by BOI AXA Mutual Fund and is known as the Best SIP Plan.
The scheme seeks to generate long-term capital appreciation by investing predominantly in equity and equity-related securities of small-cap companies.
4) Edelweiss Government Securities Fund Direct-Growth
Edelweiss Government Securities Fund Direct-Growth is a Debt Mutual Fund Scheme launched by Edelweiss Mutual Fund.
The investment objective is to generate income by investing primarily in the money market and short-term debt instruments, and it is one of the Best SIP in Groww App.
5) HDFC Credit Debt Risk Debt Fund Direct-Growth
HDFC Credit Risk Debt Fund Direct-Growth is a Debt Mutual Fund Scheme launched by HDFC Mutual Fund.
The scheme seeks to generate income/capital appreciation by investing predominantly in AA and below-rated corporate debt.
6) ICICI Prudential All Seasons Bond Fund Direct-Plan-Growth
ICICI Prudential All Seasons Bond Fund Direct-Plan-Growth is a Debt Mutual Fund Scheme launched by ICICI Prudential Mutual Fund.
The scheme seeks to generate income through investments in various debt and money market instruments. In addition, the plan aims to maintain the optimum yield, safety, and liquidity balance.
7) Quant Multi Asset Fund Direct-Growth
Quant Multi Asset Fund Direct-Growth is a Hybrid Mutual Fund Scheme launched by Quant Mutual Fund.
The scheme aims to generate income and capital appreciation by investing in instruments across the three asset classes. Equity, Debt and Commodity.
8) Quant Absolute Fund Direct-Growth
Quant Absolute Fund Direct-Growth is a Hybrid Mutual Fund Scheme launched by Quant Mutual Fund.
The scheme seeks to provide long-term capital appreciation and current income with a mix of fixed-income securities and equity instruments.
9) Baroda BNP Paribas Aggressive Hybrid Fund Direct-Growth
Baroda BNP Paribas Aggressive Hybrid Fund Direct-Growth is a Hybrid Mutual Fund Scheme launched by BNP Paribas Mutual Fund.
The scheme seeks to generate income and capital appreciation by investing in a diversified portfolio of equity and equity-related instruments and fixed-income instruments.
Conclusion
This was the list of the Best Mutual Funds for SIP in 2024. A Systematic Investment Plan can be started at any time to ensure that risk is minimized by selecting the appropriate scheme plan for the investor based on their risk-return profile.
The investor must choose a scheme that will help them achieve their long-term goals and meet their financial objectives.
Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.
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Research Analyst - Himanshu Sinha
