Best Performing SIP Mutual Fund to Invest in?
Systematic investment plans (SIPs) are a wise strategy to build wealth. A SIP allows you to invest regularly in a mutual fund. It’s common to make an initial commitment while engaging in investing.
But, a SIP investment allows you to invest tiny amounts on an as-needed basis. This characteristic is helpful for beginner or inexperienced investors.
There are many categories of MFs, but you should select an MF based on how much risk you can take. You can evaluate your risk based on your goal. Here is a list of top-performing MFs.
What is the best-performing SIP mutual fund to invest in?
Low-risk SIP mutual funds
- HDFC Credit Debt Risk Fund – Direct-Growth Plan
HDFC Credit Debt Risk Fund was launched on Mar 06, 2014. The minimum SIP investment in this mutual fund is Rs. 300. The mutual fund type is debt (credit risk). The fund has provided 3-year returns of 7.07% and 5-year returns of 6.92%. You can get an average return per annum of 8.97%.
- Quant Infrastructure Fund
Quant Infrastructure Fund was launched on Jan 01, 2013. The minimum SIP investment in this mutual fund is Rs. 1000. The SIP mutual fund type is equity social infrastructure. The fund has provided 3-year returns of 40.7% and 5-year returns of 22.2%. You can get an average return per annum of 17.25%.
- ICICI Prudential Regular Savings – Direct Growth
ICICI Prudential Regular Savings Fund was launched on Jan 01, 2013. The minimum SIP investment in this mutual fund is Rs. 100. This is a conservative hybrid fund. The fund has provided 3-year returns of 9.74% and 5-year returns of 8.98%. You can get an average return per annum of 10.63%.
Moderate-risk SIP mutual funds
- Mirae Asset Large-Cap Fund
Mirae Asset Large-Cap Mutual Fund was launched on Jan 01, 2013. The minimum SIP investment in this fund is Rs. 1000. This is an equity large-cap fund. The fund has provided 3-year returns of 16.28% and 5-year returns of 12.66%. You can get an average return per annum of 17%.
- Quant Absolute Fund – Direct-Growth
Quant Absolute Fund was launched on – Jan 01, 2013. The minimum SIP investment in this fund is Rs. 1000. This is an aggressive hybrid fund. The fund has provided 3-year returns of 31.58% and 5-year returns of 21.29%. The average return per annum of Quant Absolute Fund is 18.18%.
- Baroda BNP Paribas Conservative Hybrid Fund
Baroda BNP Paribas Conservative Hybrid Fund was launched on Jan 01, 2013. The minimum SIP investment in this fund is Rs. 500. This is a conservative hybrid fund. The fund has provided 3-year returns of 7.8% and 5-year returns of 7.63%. The average return per annum of this fund is 9.44%.
- Robeco Bluechip Fund – Direct-Growth Plan
Robeco Bluechip Fund was launched on Jan 01, 2013. The minimum SIP investment in this fund is Rs. 1000. This is an equity large-cap fund. The fund has provided 3-year returns of 18.65% and 5-year returns of 15.5%. The average return per annum is 14.88%.
High-risk SIP mutual funds
- BOI AXA Small Cap Fund Direct-Growth
BOI AXA Small Cap Fund was launched on Nov 28, 2018. The minimum SIP investment in this fund is Rs. 1000. This is an equity small-cap fund. The fund has provided 3-year returns of 40.83%. The average return per annum is 31.33%.
- Axis Bluechip Fund
Axis Bluechip Fund was launched on Jan 01, 2013. The minimum SIP investment in this fund is Rs. 100. This is an equity large-cap fund. The fund has provided 3-year returns of 13.53% and 5-year returns of 14.02%. The average return per annum is 15.26%.
- Mirae Asset Tax Saver Fund
Mirae Asset Tax Saver Fund was launched on Nov 20, 2015. The minimum SIP investment in this fund is Rs. 500. This is an ELSS fund. The fund has provided 3-year returns of 20.99% and 5-year returns of 15.62%. The average return per annum is 19.92%.
- Kotak Bluechip Fund
Kotak Bluechip Fund was launched on Jan 01, 2013. The minimum SIP investment in this fund is Rs. 1000. This is an equity large-cap fund. The fund has provided 3-year returns of 17.45% and 5-year returns of 13.31%. The average return per annum is 14.67%.
- Quant Tax Plan Direct-Growth
Quant Tax Plan Direct-Growth was launched on Jan 01, 2013. The minimum SIP investment in this fund is Rs. 500. This is an ELSS fund. The fund has provided 3-year returns of 40.66% and 5-year returns of 23.69%. The average return per annum is 21.74%.
How do SIP mutual funds work?
Understanding a mutual fund SIP plan is not difficult. A single SIP investment can be as little as Rs. 100 and made at any frequency over a period. Weekly, monthly, or quarterly contributions are also acceptable. Gains from a SIP compound over time, increasing the total amount earned.
In its simplest form, the SIP plan functions like a savings account. Regular deposits of small amounts eventually add up to a sizable sum. SIPs help people develop a habit of saving money regularly.
Why invest in SIP mutual funds?
They help with money management.
In a mutual fund plan, regular investments are a part of implementing a SIP. For those who can only afford to put away a little bit each month, SIPs are a godsend.
They are easy to use and practical.
You need to choose only the frequency and total amount of SIP. On the due date, the bank will automatically deduct the specified amount. You can easily monitor each SIP in a mutual fund. Stopping a SIP is easy and can be done anytime.
They help with financial planning.
Although saving is not a walk in the park. If you plan, you will find it much easier to save and invest. Investing regularly is a smart way to save money. Thus, investors need to make saving and investing a habit.
Conclusion
SIP mutual funds are a common choice among individuals seeking to invest their own money. Investors in India can choose from thousands of different mutual fund schemes. However, picking the top mutual funds is a difficult task.
Your investment objectives, level of comfort with risk, and time horizon will determine which of the top mutual funds is right for you. Want to learn more about investing, mutual funds, and personal finance? Visit our blog!