SIPs (Systematic Investment Plans) are becoming increasingly popular among investors because they help to alleviate the anxiety associated with market volatility.
The Systematic Investment Plan (SIP) is a form of investment wherein the investor chooses a mutual fund based on their liking and invests a fixed amount of money in that mutual fund on a regular basis. 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 little sum of money to a large sum of money, depending on their preferences, needs, and financial goals. There are several investments in which investors can invest a small sum of Rs.500 - Rs.1000 each month to build a strong mutual fund portfolio.
One significant advantage of Mutual Funds is that they allow you to begin investing with very small amounts. So, if you are interested in making a Monthly 2000 Investment in Mutual Funds, look into the best funds from each mutual fund category listed below.
In this blog, we have listed the Best SIP to Invest In 2023 at just Rs. 2000 per month, which has delivered the best returns in the past 5 years.
Top Performing SIP Mutual Funds under Rs. 2000 per month
S.No. | Top SIP to Invest In 2023 under Rs 2000 |
Large Cap Funds | |
1. | Canara Robeco BlueChip Equity Fund Direct-Growth |
2. | Baroda BNP Paribas Large Cap Fund Direct Growth |
Mid-Cap Funds | |
3. | PGIM India Mid-Cap Opportunities Fund Direct-Growth |
4. | Quant Mid-Cap Fund Direct-Growth |
Small-Cap Funds | |
5. | BOI Small Cap Fund Direct-Growth |
6. | Axis Small Cap Fund Direct-Growth |
Multi-Cap Fund | |
7. | Mahindra Manulife Multi Cap Fund Direct Growth |
ELSS Fund | |
8. | Quant Tax Plan Direct Growth |
Sector Fund | |
9. | Quant Infrastructure Fund Direct-Growth |
Factors to Consider Before Investing in SIP Mutual Funds, 2000 per month
Identify Your Needs
You can invest in SIPs according to your needs, and you can start a SIP by investing a very small amount each month to invest in a mutual fund as well.
In contrast to making a lump sum investment, trying to make a smaller monthly investment eases the financial strain on your pocket.
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Maintain an Individual SIP for Every Respective Goal
Individuals may have several goals in mind, and having separate SIPs for each goal can help you better evaluate your investment.
Identify the correct investment strategy for a specific objective and consider investing in the correct section of mutual funds in accordance with your timeframe.
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Expand Your Investments Based on Your Personal Risk Tolerance
When investing in a specific asset class, your appetite for risk is the degree of risk you are willing to take.
Every investor has a unique risk appetite, and it is affected by a combination of factors, including discretionary income, the horizon of the capacity of investments, as well as other needs.
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Within A Few Years, Evaluate the Portfolio's Performance
Your SIP mutual fund portfolio should be reviewed on a regular basis. Once every three or four years, this will help you get rid of underperformers and enhance your portfolio's returns.
Overview of the Best SIP Funds to Invest with Rs 2000
1) Canara Robeco BlueChip Equity Fund Direct-Growth
Canara Robeco BlueChip Equity Fund Direct-Growth is an Equity Mutual Fund Scheme launched by Canara Robeco Mutual Fund.
The fund seeks to provide capital appreciation by predominantly investing in companies having a large market capitalization, Canara Robeco Large Cap Fund is named to reflect the investment strategy, which is mainly focused on a portfolio that would be concentrated on investing in any of the top 150 stocks ranked on the basis of market capitalization.
2) Baroda BNP Paribas Large Cap Fund Direct Growth
Baroda BNP Paribas Large Cap Fund Direct-Growth is an Equity Mutual Fund Scheme launched by BNP Paribas Mutual Fund.
The Scheme seeks to generate long-term capital growth from a diversified and actively managed portfolio of equity and equity-related securities by predominantly investing in large market capitalization companies.
3) PGIM India Mid-Cap Opportunities Fund Direct-Growth
PGIM India Mid-Cap Opportunities Fund Direct-Growth is an Equity Mutual Fund Scheme launched by PGIM India Mutual Fund.
The scheme seeks to achieve long-term capital appreciation by predominantly investing in equity & equity-related instruments of mid-cap companies.
4) Quant Mid-Cap Fund Direct-Growth
Quant Mid-Cap Fund Direct-Growth is an Equity Mutual Fund Scheme launched by Quant Mutual Fund.
The scheme aims at providing long-term capital appreciation and generating income with a diversified portfolio of Mid-Cap companies.
5) BOI Small Cap Fund Direct-Growth
BOI Small Cap Fund Direct-Growth is an Equity Mutual Fund Scheme launched by BOI Mutual Fund.
The scheme seeks to generate long-term capital appreciation by investing predominantly in equity and equity-related securities of small-cap companies.
6) Axis Small Cap Fund Direct-Growth
Axis Small Cap Fund Direct-Growth is an Equity Mutual Fund Scheme launched by Axis Mutual Fund. The scheme seeks to generate long-term capital appreciation from a diversified portfolio of predominantly equity & equity-related instruments of small-cap companies.
Axis Small Cap Fund is suited for investors willing to invest for a duration of 5 years or more to generate wealth for the long term.
7) Mahindra Manulife Multi Cap Fund Direct Growth
Mahindra Manulife Multi Cap Fund Direct Growth is an Equity Mutual Fund Scheme launched by Mahindra Mutual Fund.
The scheme seeks to provide medium to long-term capital appreciation through appropriate diversification and taking a low risk on business quality.
8) Quant Tax Plan Direct Growth
Quant Tax Plan Direct-Growth is an Equity Mutual Fund Scheme launched by Quant Mutual Fund.
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.
9) 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.
Conclusion
Don't just look for high returns on investment when investing in mutual funds. There are numerous factors to consider before selecting a fund that will meet your investment objectives.
The three things you should always remember before investing in SIP Mutual Funds are as follows:
- Higher Rates: Don't invest blindly in the fund with the best returns. Invest for the length of time you want to invest.
- Everyone's Financial Situation Is Unique: Evaluate the funds in which you invest, thus, you may not invest in a fund simply because it is popular.
- Review: Review your investment on a regular basis, but not too frequently. Once every few weeks is sufficient.
To ensure that the fund is in good hands, select a fund house with a fund manager who has extensive experience managing Small/Mid-Cap Funds and has been associated with these funds for a good number of years.
Happy Investing!
Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.
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Research Analyst - Bavadharini KS
Investing in SIPs (Systematic Investment Plans) is a strategic approach to navigate market volatility while steadily growing wealth. SIPs involve regular, fixed investments in mutual funds rather than a one-time lump sum, a method proven to mitigate the risks associated with market fluctuations.
Each component of the article delves into key aspects of SIP investments:
SIP Fundamentals:
- Definition: SIPs allow regular investments in mutual funds based on an investor's choice.
- Investment Method: Regular fixed investments over time rather than a lump sum.
- Investment Range: Investors can contribute small amounts, typically ranging from Rs. 500 to Rs. 2000, based on their financial goals and preferences.
Mutual Fund Categories and Top Performing SIPs:
- Large Cap Funds: Canara Robeco BlueChip Equity Fund, Baroda BNP Paribas Large Cap Fund.
- Mid-Cap Funds: PGIM India Mid-Cap Opportunities Fund, Quant Mid-Cap Fund.
- Small-Cap Funds: BOI Small Cap Fund, Axis Small Cap Fund.
- Multi-Cap Fund: Mahindra Manulife Multi Cap Fund.
- ELSS Fund: Quant Tax Plan.
- Sector Fund: Quant Infrastructure Fund.
Factors to Consider:
- Investment Needs: Tailoring SIPs based on individual financial goals.
- Goal-Oriented Investments: Allocating separate SIPs for different objectives.
- Risk Tolerance: Aligning investments with personal risk tolerance.
- Portfolio Evaluation: Regularly reviewing the SIP portfolio every few years to optimize returns.
Detailed Fund Analysis:
- Specific Fund Characteristics: Each listed fund's investment strategy, objectives, and focus on capital appreciation or income generation.
Investment Advice:
- Consideration Beyond Returns: Factors beyond high returns, such as investment duration, unique financial situations, and periodic, not overly frequent, portfolio reviews.
- Choosing Fund Managers: Suggesting fund managers with extensive experience managing small to mid-cap funds for investor reassurance.
Disclaimer:
- Educational Purpose: The blog serves educational purposes and doesn't recommend specific securities/investments.
- Research Analyst: The article is attributed to a research analyst for accountability.
Concluding Remarks:
- Investor Advice: Three fundamental reminders: investing based on duration, individualized financial assessment, and periodic portfolio reviews.
- Fund Manager Importance: Emphasis on selecting a fund house with experienced managers for better management.
The article effectively encapsulates the essence of SIP investments, offering insights into various mutual fund categories, considerations for investors, and prudent advice for optimal wealth creation through SIPs.
