Best SIP To Invest In 2024 India

Best SIP To Invest In 2024

Are you ready to take charge of your financial future in 2024? Investing in SIPs (Systematic Investment Plans) could be your ticket to building long-term wealth. You can pave the way for a financially secure tomorrow with the right investment choices. In this comprehensive guide, we’ll explore the best SIPs to invest in 2024, helping you make informed decisions to maximize your returns.

Best SIP To Invest In 2024 India

Understanding SIPs

Before diving into the specifics, let’s grasp the concept of SIPs. A Systematic Investment Plan is a disciplined approach to investing in mutual funds. Instead of lump-sum investments, SIPs allow investors to contribute fixed amounts at regular intervals, typically monthly. This strategy offers several advantages, including rupee cost averaging and the power of compounding.

Learn more details: What is SIP? What are its Benefits and Features?

What are the Best Mutual Funds for SIP?

When considering the best mutual funds for SIP (Systematic Investment Plan), it’s essential to look for funds that offer a balance of stability, and growth potential, and align with your investment objectives. While individual preferences and financial goals vary, here are some mutual funds commonly recommended for SIP investments:

  • Large Cap Funds: These funds invest in established companies with a track record of stable performance. They offer relatively lower risk compared to mid and small-cap funds. Examples include HDFC Top 100 Fund, ICICI Prudential Bluechip Fund, and SBI Bluechip Fund.
  • Mid-Cap Funds: Mid-cap funds invest in companies with medium market capitalization, offering higher growth potential than large-cap funds but with increased risk. Examples include Kotak Emerging Equity Scheme, Franklin India Prima Fund, and DSP Midcap Fund.
  • Small Cap Funds: Small-cap funds invest in companies with small market capitalization, often considered riskier but with the potential for significant growth. Examples include HDFC Small Cap Fund, Axis Small Cap Fund, and SBI Small Cap Fund.
  • Balanced Funds: Also known as hybrid funds, these invest in a mix of equities and debt instruments, offering a balance between growth and stability. Examples include HDFC Hybrid Equity Fund, ICICI Prudential Equity & Debt Fund, and Aditya Birla Sun Life Equity Hybrid ’95 Fund.
  • Index Funds: Index funds replicate the performance of a specific market index, offering low-cost exposure to a broad market. Examples include HDFC Index Fund – Sensex Plan, ICICI Prudential Nifty Index Fund, and UTI Nifty Index Fund.
  • Debt Funds: Debt funds invest in fixed-income securities such as bonds and government securities, offering stability and regular income. Examples include HDFC Short Term Debt Fund, ICICI Prudential Short Term Fund, and SBI Magnum Ultra Short Duration Fund.
  • Sector Funds: These funds focus on specific sectors or industries, offering investors exposure to niche areas of the market. Examples include ICICI Prudential Technology Fund, SBI Banking & Financial Services Fund, and Franklin India Feeder – Franklin U.S. Opportunities Fund.

How do SIPs work?

SIPs (Systematic Investment Plans) work by allowing investors to invest fixed amounts in mutual funds at predetermined intervals, typically monthly. These contributions are used to purchase units of the chosen fund, regardless of market conditions. Over time, SIPs harness the power of compounding and rupee cost averaging, enabling investors to accumulate wealth gradually. By spreading investments over time, SIPs help mitigate the impact of market volatility and allow investors to benefit from long-term growth potential.

Why Invest through SIP?

  • Market Stability: In the current economic landscape, characterized by volatility and uncertainty, SIPs offer stability. By spreading your investments over time, you mitigate the risk of timing the market incorrectly. Regardless of market fluctuations, SIPs enable you to stay invested and reap the benefits of long-term growth potential.
  •  Potential for Higher Returns: Historically, SIPs have delivered attractive returns over extended periods. Even modest contributions can grow substantially over time by harnessing the power of compounding. with prudent fund selection and a long-term investment horizon, investors can capitalize on growth opportunities across various sectors.

Benefits of Investing in Best SIP Plans

Investing in the best SIP (Systematic Investment Plan) plans offers numerous benefits. 

  • Firstly, SIPs promote disciplined investing, encouraging regular contributions regardless of market fluctuations.T
  • They harness the power of compounding, allowing investments to grow exponentially over time.
  • SIPs also offer flexibility, enabling investors to start with small amounts and increase contributions gradually.
  • Additionally, SIPs mitigate the risk of market timing by averaging out purchase costs.
  • They provide access to a diversified portfolio managed by professional fund managers, reducing individual stock risks. 
  • Investing in the best SIP plans fosters wealth creation, financial discipline, and long-term financial security.

Factors to Consider Before Investing in the Best Mutual Funds for SIP 2024 

Before investing in the best mutual funds for SIP (Systematic Investment Plan), several factors merit consideration:

  • Investment Objective: Clarify your financial goals, whether it’s wealth accumulation, retirement planning, or education funding.
  • Risk Tolerance: Assess your comfort level with market volatility and choose funds aligned with your risk appetite.
  • Investment Horizon: Determine your time horizon for investing, whether short-term, medium-term, or long-term.
  • Fund Performance: Evaluate historical returns, consistency, and the fund manager’s track record to gauge potential performance.
  • Expense Ratio: Consider the fund’s expenses, as lower costs can significantly impact overall returns.
  • Asset Allocation: Ensure the fund’s investment strategy aligns with your diversification preferences and risk profile.
  • Exit Load and Lock-in Period: Understand any applicable fees or restrictions associated with redeeming units.
  • Fund House Reputation: Research the credibility and reputation of the mutual fund house managing the fund.
  • Tax Implications: Consider the tax treatment of gains and dividends from the mutual fund investment.
  • Market Conditions: Stay informed about economic trends, market outlook, and geopolitical factors influencing investment decisions.

How to Choose the Best Mutual Fund to SIP?

To choose the best mutual fund for SIP, define your financial goals, assess risk tolerance, and understand different fund categories. Evaluate fund performance, considering consistency and returns over time. Check expense ratios and fund size for cost-effectiveness and stability. Research the reputation of the fund house and review scheme documents for transparency. Ultimately, select a fund with a well-diversified portfolio, managed by experienced professionals, aligned with your investment objectives.

Why should you invest in an SIP?

Investing in a SIP instills discipline and promotes consistent saving habits, emphasizing the philosophy of regular, incremental contributions. This approach facilitates wealth accumulation over time, fostering a long-term investment mindset. Additionally, SIPs offer various other advantages beyond promoting financial discipline.

How to Invest in Best SIP Plans? 

Investing in the best SIP plans involves several steps:

  • Goal Identification: Determine your financial objectives and investment goals.
  • Risk Assessment: Evaluate your risk tolerance to choose SIPs aligned with your comfort level.
  • Research: Conduct thorough research on various SIP plans offered by different mutual fund houses.
  • Select Funds: Choose SIPs that match your investment objectives, risk profile, and time horizon.
  • Open Account: Open a mutual fund account with a registered fund house or through a reliable online platform such as Zerodha, Angle One, groww, etc.
  • Set SIP Amount: Decide on the amount you want to invest regularly through SIPs.
  • Choose Frequency: Select the frequency of SIP investments, such as monthly, quarterly, or annually.
  • Initiate SIP: Start your SIP investments by setting up automatic transfers from your bank account to the chosen mutual fund(s).
  • Monitor and Review: Regularly monitor your SIP investments and review their performance to ensure they remain in line with your goals.

Tax on SIP Investment

All profits from mutual fund investments are taxed as capital gains, with specific classifications based on fund type and holding duration. Equity fund gains held over 12 months are considered Long Term Capital Gains, while those held for less than 12 months are deemed Short-Term Capital Gains. For debt funds, LTCG taxation applies to units held for over 36 months, although recent changes eliminated LTCG tax benefits for many debt fund categories.

Performance Top 5 Best Mutual Funds To Invest Now:

The best-performing SIP mutual funds in India may vary based on market conditions and individual preferences. However, some funds that have historically demonstrated strong performance include:

  • HDFC Top 100 Fund: Known for investing in top-performing large-cap stocks, providing stability and growth potential.
  • Axis Bluechip Fund: Focuses on high-quality blue-chip stocks, offering consistent returns and lower volatility.
  • Mirae Asset Emerging Bluechip Fund: Invests in promising mid-cap and small-cap companies, aiming for long-term growth.
  • SBI Small Cap Fund: Targets high-growth potential small-cap stocks, suitable for investors with a higher risk appetite.
  • ICICI Prudential Equity & Debt Fund: Offers a balanced approach by investing in both equities and debt instruments, providing diversification and stability.

Top 10 Best Mutual Funds SIP to Invest In India

Here’s the list of top 10 best mutual funds to invest in 2024: 

Nippon India Large Cap Fund Direct-Growth

Nippon India Large Cap Fund Direct-Growth is a mutual fund scheme that primarily invests in top-performing large-cap stocks across various sectors of the Indian economy. This fund aims to deliver long-term capital appreciation by capitalizing on the growth potential of established companies with a strong market presence. With a direct-growth option, investors can benefit from lower expense ratios and potentially higher returns compared to regular plans. 

Managed by experienced fund managers, Nippon India Large Cap Fund focuses on quality stocks with robust fundamentals, making it suitable for investors seeking stability and growth opportunities in the Indian equity market.

ICICI Prudential Bluechip Fund

ICICI Prudential Bluechip Fund is a renowned mutual fund scheme that predominantly invests in large-cap stocks of well-established companies across diverse sectors in India. The fund aims to deliver long-term capital growth by focusing on high-quality, fundamentally sound stocks with strong market positions. Managed by experienced professionals, ICICI Prudential Bluechip Fund employs a research-driven investment approach to identify promising opportunities while mitigating risks. With a track record of consistent performance, this fund is suitable for investors seeking stability and potential growth in the Indian equity market.

HDFC Top 100 Fund

HDFC Top 100 Fund is a reputable mutual fund scheme that primarily invests in the top 100 companies by market capitalization in India. With a focus on large-cap stocks across various sectors, the fund aims to generate long-term capital appreciation for investors. Managed by seasoned professionals, HDFC Top 100 Fund employs a research-intensive investment strategy to select fundamentally strong companies with growth potential. This fund is suitable for investors seeking stability and growth opportunities in the Indian equity market.

Quant Mid Cap Fund

Quant Mid Cap Fund is a mutual fund scheme that primarily invests in mid-cap stocks, focusing on companies with medium market capitalization in India. The fund aims to deliver capital appreciation over the long term by identifying promising mid-sized companies with growth potential. Managed by experienced professionals, Quant Mid Cap Fund employs quantitative analysis techniques to select stocks, offering investors exposure to the mid-cap segment of the Indian equity market.

Motilal Oswal Midcap Fund

Motilal Oswal Midcap Fund is a mutual fund scheme that predominantly invests in mid-cap stocks, focusing on companies with medium market capitalization in India. The fund aims to achieve long-term capital appreciation by identifying and investing in fundamentally strong mid-sized companies with growth potential. Managed by seasoned professionals, Motilal Oswal Midcap Fund follows a research-driven investment approach to select high-quality stocks, offering investors exposure to the dynamic mid-cap segment of the Indian equity market.

HDFC Mid-Cap Opportunities Fund

HDFC Mid-Cap Opportunities Fund is a mutual fund scheme that primarily invests in mid-cap stocks, targeting companies with medium market capitalization in India. The fund aims to deliver long-term capital appreciation by identifying promising mid-sized companies with strong growth prospects. Managed by experienced professionals, HDFC Mid-Cap Opportunities Fund employs a research-intensive investment strategy to select stocks with sound fundamentals and growth potential. This fund offers investors exposure to the mid-cap segment of the Indian equity market and is suitable for those seeking potential growth opportunities with higher risk tolerance.

Quant Active Fund

Quant Active Fund is a mutual fund scheme that employs an active investment strategy, focusing on generating alpha through dynamic portfolio management. The fund invests across various asset classes such as equities, debt, and derivatives, aiming to capitalize on market opportunities while managing risks effectively. Managed by experienced professionals, Quant Active Fund utilizes quantitative analysis and proprietary models to identify undervalued securities and optimize portfolio returns. This fund offers investors a diversified approach to wealth creation with a focus on active management.

ICICI Prudential Multicap Fund

ICICI Prudential Multicap Fund is a mutual fund scheme that invests across multiple market capitalizations, including large-cap, mid-cap, and small-cap stocks. The fund aims to achieve long-term capital appreciation by diversifying across sectors and market segments. Managed by experienced professionals, ICICI Prudential Multicap Fund offers investors exposure to a wide range of opportunities within the Indian equity market.

Mahindra Manulife Multi Cap Fund

Mahindra Manulife Multi Cap Fund is a mutual funds scheme that diversifies its investments across various market capitalizations, including large-cap, mid-cap, and small-cap stocks. The fund aims to deliver long-term capital appreciation by leveraging opportunities across different sectors and market segments. Managed by seasoned professionals, Mahindra Manulife Multi Cap Fund offers investors a comprehensive approach to wealth creation within the Indian equity market.

Quant Tax Plan

Quant Tax Plan is a mutual fund scheme that aims to generate tax-efficient returns for investors. It invests primarily in equities and follows a disciplined investment approach. Managed by experienced professionals, Quant Tax Plan offers investors a tax-saving investment option with potential long-term growth.

Bandhan Tax Advantage (ELSS) Fund

Bandhan Tax Advantage (ELSS) Fund is an Equity Linked Savings Scheme (ELSS) that offers tax benefits under Section 80C of the Income Tax Act. The fund primarily invests in equity and equity-related instruments with the goal of generating long-term capital appreciation. Managed by experienced professionals, Bandhan Tax Advantage Fund provides investors with an opportunity to save tax while potentially earning higher returns through investments in the Indian equity market, thus aiding in wealth creation and tax planning.

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FAQs

Which SIP is 100% safe?

No SIP is entirely risk-free. However, SIPs investing in debt funds or liquid funds are considered relatively safer compared to equity SIPs.

Is SIP better than FD?

SIP (Systematic Investment Plan) offers the potential for higher returns compared to FD (Fixed Deposit) but involves market risk, while FD provides guaranteed returns with no market risk.

Which amount of SIP is best?

The best amount for SIP depends on individual financial goals, risk tolerance, and investment capacity. It’s advisable to invest an amount that is comfortably sustainable over the long term.

How to earn 20,000 per month with investment?

To earn ₹20,000 per month from investments, consider options like dividend-paying stocks, rental income from real estate, or a diversified portfolio generating sufficient passive income through dividends, interest, or rentals.

Is SIP tax-free?

SIP (Systematic Investment Plan) investments are not tax-free; they are subject to capital gains tax based on the holding period.

Final Thought 

Investing in SIPs can be a prudent strategy to achieve your financial goals in 2024 and beyond. By the power of systematic investing and choosing the right funds, you can navigate market uncertainties and unlock the potential for long-term wealth creation. Remember to conduct thorough research, assess your risk tolerance, and consult with a financial advisor to make informed investment decisions. Start your SIP journey today and pave the way for a brighter financial future.

Disclaimer: Please note that the above list is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing.

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