Read Us 24×7
    What's Hot
    Key Takeaways From The Second Republican Debate of 2023

    Key Takeaways From The Second Republican Debate of 2023

    September 28, 2023
    Winners And Losers From The Blockbuster Damian Lillard Trade

    Winners And Losers From The Blockbuster Damian Lillard Trade

    September 28, 2023
    How Old Is Carrie Underwood

    How Old Is Carrie Underwood? She’s Like a Fine Wine!

    September 28, 2023
    Facebook Twitter Instagram Pinterest LinkedIn
    Trending
    • Key Takeaways From The Second Republican Debate of 2023
    • Winners And Losers From The Blockbuster Damian Lillard Trade
    • How Old Is Carrie Underwood? She’s Like a Fine Wine!
    • Is Travis Kelce Married? The Truth About His Relationship Status!
    • How Many Grammys Does Taylor Swift Have? (Revealed)
    • Google’s 25th Birthday: A Nostalgic Journey Celebrating 25 Years of the Search Engine Giant with a Special Doodle
    • Sacred Bombshell Guide Empowerment Spirituality Love Wellness
    • Food That Makes People Sick Will Often…
    Facebook Twitter Instagram Pinterest LinkedIn
    Read Us 24×7
    • Home
    • Technology
      How Old Is Carrie Underwood

      How Old Is Carrie Underwood? She’s Like a Fine Wine!

      September 28, 2023
      In Any Collaboration Data Ownership Is Typically Determined By

      In Any Collaboration Data Ownership Is Typically Determined By?

      September 27, 2023
      Sony Announces Olivia Rodrigo Edition Of Its Linkbuds S Earbuds

      Sony Announces Olivia Rodrigo Edition Of Its Linkbuds S Earbuds

      September 26, 2023
      Sony Is Refusing To Pay Up After Cyberattack

      Sony Is Refusing To Pay Up After Cyberattack -Hackers Say

      September 26, 2023
      Why Does My Chromebook Keep Disconnecting From Wi-Fi

      Why Does My Chromebook Keep Disconnecting From Wi-Fi? (5 Quick Fix)

      September 23, 2023
    • Business
      How to Get Cash From a Credit Card Number

      How to Get Cash From a Credit Card Number in 2023?

      September 22, 2023
      Shipping from the UK to the US

      Shipping from the UK to the US: How Long Does it Take? [Updated 2023]

      September 20, 2023
      What Goes Into Asphalt Driveway Paving Costs

      What Goes Into Asphalt Driveway Paving Costs – and How to Evaluate Your Estimates

      September 17, 2023
      FICO Credit Score

      FICO Credit Score: What Is a Good Score Range?

      September 15, 2023
      Norstrat Consulting Services

      Norstrat – Everything You Need To Know in 2023

      September 14, 2023
    • Entertainment
      Is Travis Kelce Married

      Is Travis Kelce Married? The Truth About His Relationship Status!

      September 28, 2023
      How Many Grammys Does Taylor Swift Have

      How Many Grammys Does Taylor Swift Have? (Revealed)

      September 28, 2023
      Alexandra Grant Shares Rare Insight Into Relationship with Keanu Reeves

      Alexandra Grant Shares Rare Insight Into Relationship with Keanu Reeves

      September 27, 2023
      Taylor Swift Cheers Alongside Travis Kelce's Mom At Chiefs Game

      Taylor Swift Cheers Alongside Travis Kelce’s Mom At Chiefs Game

      September 25, 2023
      among us character

      Among Us character – Red, Black, White, and who they are [Complete Details]

      September 25, 2023
    • Lifestyle
    • Travel
    • Tech Q&A
    Read Us 24×7
    Home » Top 10 Mutual Funds for SIP to Invest in 2023
    Business Featured

    Top 10 Mutual Funds for SIP to Invest in 2023

    Sayan DuttaBy Sayan DuttaJanuary 4, 20235 Mins Read
    Share Facebook Twitter Pinterest LinkedIn Reddit Email WhatsApp
    Mutual Funds for SIP to Invest
    Share
    Facebook Twitter LinkedIn Pinterest Email Reddit WhatsApp

    It is becoming very common to invest in mutual funds with a systematic investment program or SIP. Read on to learn why this is such a great way to invest in mutual fund funds.

    A systematic Investment Plan, or SIP, is a way to invest money in mutual funds. Another way to invest is a lump sum or one-time payment.

    The Best SIP Funds list is comprised of mutual fund schemes that have provided better SIP returns than other Funds within the same category. These Funds are able to stick to their investment strategy in times of difficulty and don’t fear temporary corrections in stock prices. This allows them to generate higher long-term returns for their SIP investors.

    Looking for the Best SIP plans? How to choose them? These are some of the common questions that occur in the mind of investors when thinking of Investing in Mutual Funds through a SIP. So let’s start this from the beginning.

    What are Mutual Funds?

    Mutual funds are one of the most common investment options these days. But Mutual funds can be intimidating or confusing to many people. We will simplify it for your convenience. A Mutual Fund is basically the sum of money that has been pooled by many people (or investors). This fund is then managed by a professional fund manager. According to Statista, an increasingly important role is being played by mutual funds in financial markets, with the number of open-end funds worldwide increased by nearly 40% from 2011 to 2019.

    It’s a trust that collects money from investors who have a common investment goal. It then invests the money into equities and bonds, money market instruments, and/or other securities. Each unit represents a percentage of the fund’s holdings.

    After deducting certain expenses and calculating the scheme’s Net Asset Value or NAV, the income/gains from this collective investment are divided proportionally among the investors.

    net asset value
    Image: Principal Mutual Fund

    What is SIP?

    A Systematic Investment Plan, or SIP, is a hassle-free way to invest money in a fixed sum in mutual funds. Another way to invest is a lump sum or one-time payment.

    SIP allows you to invest a set amount each month in mutual funds of your choice. You set it up so that money is automatically deducted from your bank account. Use the SIP calculator to determine how much monthly SIP you will need to invest in order to reach a specific goal.

    You can purchase units at a specific date each month to help you implement a savings plan. You can set aside a predetermined amount to invest at certain intervals (quarterly, monthly, or weekly). This plan has the greatest advantage of instilling the habit of saving so that the user can begin to build a solid fund for the future.

    SIP investing is one of the best ways to invest in Mutual Funds. SIP mutual funds allow you to invest as little as INR 100. This makes SIP easy to invest in.

    Why Invest in a Systematic Investment Plan (SIP)?

    There are many benefits to a systematic investment plan. The minimum investment amount of INR 500 is what attracted most people’s attention. It also encouraged many young people to start their mutual fund investment journey. A SIP allows investors to plan their major financial goals, such as a child’s education, marital expenses, and purchase of a home/car. You can start investing according to your goals (short-term/mid-term and long-term) and see an increase in wealth over time.

    Advantages of SIP:

    • Rupee cost averaging
    • You can invest a small sum
    • Flexibility
    • You can run multiple SIPs at a time
    • You Can Stop the SIP Anytime
    • You Can Skip SIP Payment
    • You Do Not Need to Worry About Timing the Market

    SIPs have major advantages like rupee cost averaging or Power of Compounding. Rupee cost average allows an individual to calculate the total cost of an asset purchase. A SIP is a method of purchasing units over a long time period. These units are usually spread over equal monthly intervals. The investment is spread over time so that the price points are different. This gives the investor the advantage of averaging costs, hence the term rupee-cost averaging.

    In the situation of compound interest, in contrast to a single interest, where you simply earn interest in the principal, here the interest amount is added to the principal and interest on the new principal computed (old principal plus gains). This process is always ongoing. The mutual funds in the SIP are complemented by installments, which increases the amount invested initially.

    How to Invest in a Systematic Investment Plan?

    1. Open a Lifetime Investment Account.
    2. Complete your Registration Process and KYC.
    3. Upload Documents (PAN, Aadhaar, etc).
    4. And, Now You are Ready to Invest!

    Best Performing Mutual Funds for SIP

    Fund NameMin. SIPType of Fund1 Year Returns3 years Return5 years Return
    ICICI Prudential Technology Fund₹100Equity Sectoral108.10%37.40%32.70%
    TATA Digital India Fund₹150Equity Sectoral109.10%34.40%32.70%
    Parag Parikh Flexi Cap Fund₹1000Equity Flexi Cap54.20%24.50%22.00%
    SBI Small Cap Fund₹500Equity Small Cap67.40%21.10%23.00%
    Axis Midcap Fund₹500Equity Mid Cap64.40%23.30%22.00%
    Axis Bluechip Fund₹500Equity Large Cap51.30%19.40%19.00%
    Kotak Bluechip Fund₹100Equity Large Cap55.30%17.70%16.00%
    Mirae Asset Large Cap Fund₹1000Equity Large Cap50.90%16.90%17.40%
    Mirae Asset Hybrid Equity Fund₹1000Hybrid42.60%16.80%16.30%
    Nippon India large Cap Fund₹100Equity Large Cap54.90%12.70%14.70%

    Things You Need To Know Before Starting a Systematic Investment Plan

    1. Is SIP Safe or Not?

      SIP is a safe way to invest in mutual funds. If you invest a lump sum in a mutual fund, depending on the market condition, you could end up paying a very high price for a mutual fund. This can be avoided by investing in mutual funds only when the market is not overvalued. This requires knowledge of the markets. Timing the market is a term.

      SIP investing is easy and you don’t have to worry about timing. SIP allows you to invest a small amount each month. The price may be high in certain months while it will be low in others. The long-term price you pay for mutual funds will fluctuate between high and low. If you invest via SIP, you won’t pay a high price or an overvalued mutual. This is known as rupee cost averaging.

    2. Are SIP Returns Taxable?

      It all depends on which mutual fund you choose and when you withdraw the investment.

      Returns starting at equity mutual funds, If they are withdrawn within a year of their investment, there is no tax on them. If you withdraw your gains before one year then you will be subject to a 15% tax on gains.

      In the case of Debt mutual funds, if you redeem within 3 years of your investment, you will be subject to 20% tax with indexation benefits. If Withdrawn before 3 years then the tax will be based on your income tax slab.
      SIP tax is calculated for each individual SIP investment. This means that each SIP installment will be subject to tax.

    3. Can I Stop SIP Anytime?

      Yes. Unlike fixed deposits (FD), and recurring deposits(RD), a SIP can be stopped at any time. You have two options after you stop paying for a SIP plan: either withdraw your money from the mutual funds or keep the money invested in them.

    4. Can I Save TAX With SIP?

      SIPs are one of the best tax-saving options that can provide high returns on investments. You can get a deduction of up to Rs. 1.5 million from your taxable income under Section 80(C), The Income Tax Act 1961 for investing in ELSS through SIPs.

    5. Can I Start SIP Online?

      Yes, you can easily start a SIP online. Just choose your broker, like Grow, Upstock, and Zerodha then register on them, upload necessary documents (PAN, address proof, and bank statement) then choose a mutual fund you want to start a SIP in.

    6. Does SIP Have a Lock-in period?

      You won’t need to lock in your SIP if you invest in open-ended mutual funds. It all depends on which mutual fund you choose to invest in. Some mutual funds have a lock-in period. ELSS mutual funds have a lock-in period of three years. Lock-in periods are also available for many other mutual funds. Close-ended mutual funds are those that have lock-in periods.

    7. Does SIP Have an Exit Load?

      The mutual fund will determine the exit load for a SIP. The mutual fund may specify an exit charge for a specific period. If so, the SIP will also have an exit fee. Equity funds usually have an exit load of 1% for redemptions made one year after investment. If redemptions are made after one year, there is no exit load. The value of the redemption determines the exit load.

    8. Is SIP better than RD?

      SIPs can offer much higher returns than RD. Your mutual fund will determine the return you receive on your SIP. There are two types of mutual funds: equity mutual funds and debt mutual funds. Mutual funds are not like RD in that the rate of return can be adjusted.

      Debt funds are often more profitable than RD, and they are also considered low-risk. You should consider setting up a SIP in equity mutual funds with higher risk if you are willing to take on more risk.

    9. Which SIP to Invest in?

      The type of SIP you choose depends on your investment goals. You can look at small and mid-cap mutual funds if you’re willing to take some risks. You can also check out large-cap mutual funds if you are willing to take moderate risks. If you are looking for very low risk, debt mutual funds may be a good option.

      SIPs are a great way to start investing in mutual funds, not only for novice investors but for more experienced investors as well. Before you invest, make sure to do your research. To plan your SIPs, you can use the SIP calculator.

    Have fun investing!

    mutual funds SIP
    Share. Facebook Twitter Pinterest LinkedIn Email Reddit WhatsApp
    Previous ArticleHow To Fix Sims 4 The dynamic library “rld.dll” failed to initialize (E1103)
    Next Article Cold Email in 9 Easy Steps + Examples
    Sayan Dutta
    • Website
    • Facebook
    • Twitter
    • Pinterest
    • Instagram
    • LinkedIn

    I am glad you came over here. So, you want to know a little bit about me. I am a passionate digital marketer, blogger, and engineer. I have knowledge & experience in search engine optimization, digital analytics, google algorithms, and many other things.

    Related Posts

    How to Get Cash From a Credit Card Number
    Business

    How to Get Cash From a Credit Card Number in 2023?

    September 22, 2023
    Shipping from the UK to the US
    Business

    Shipping from the UK to the US: How Long Does it Take? [Updated 2023]

    September 20, 2023
    iOS 17 Contact Poster Not Working On iPhone
    Featured

    6 Ways to Fix iOS 17 Contact Poster Not Working On iPhone (2023)

    September 19, 2023

    Table of Contents

    • What are Mutual Funds?
    • What is SIP?
    • Why Invest in a Systematic Investment Plan (SIP)?
    • How to Invest in a Systematic Investment Plan?
    • Best Performing Mutual Funds for SIP
    • Things You Need To Know Before Starting a Systematic Investment Plan
      • Is SIP Safe or Not?
      • Are SIP Returns Taxable?
      • Can I Stop SIP Anytime?
      • Can I Save TAX With SIP?
      • Can I Start SIP Online?
      • Does SIP Have a Lock-in period?
      • Does SIP Have an Exit Load?
      • Is SIP better than RD?
      • Which SIP to Invest in?

    Top Posts

    Key Takeaways From The Second Republican Debate of 2023

    Key Takeaways From The Second Republican Debate of 2023

    September 28, 2023
    Winners And Losers From The Blockbuster Damian Lillard Trade

    Winners And Losers From The Blockbuster Damian Lillard Trade

    September 28, 2023
    How Old Is Carrie Underwood

    How Old Is Carrie Underwood? She’s Like a Fine Wine!

    September 28, 2023
    Is Travis Kelce Married

    Is Travis Kelce Married? The Truth About His Relationship Status!

    September 28, 2023
    Popular in Social Media
    What Does “This Story Is Unavailable” Mean On Instagram

    What Does “This Story Is Unavailable” Mean On Instagram? (Explained)

    September 20, 2023
    How to Create an Instagram Business Account without Facebook

    How to Create an Instagram Business Account without Facebook?

    September 19, 2023
    how to find someone's email on linkedin

    How To Find Someone’s Email On LinkedIn? (In a Few Minutes 2023)

    September 14, 2023
    New in Health
    Home Care Agency

    What To Expect During Your First Visit To A Home Care Agency?

    September 11, 2023
    Natural Energy Boosters

    Natural Energy Boosters that Increase Your Productivity Levels!

    September 3, 2023
    Negin Behazin Vs Dignity Health

    Negin Behazin Vs Dignity Health: Everything You Should Know (2023)

    August 22, 2023

    google news

    google-play-badge

    Protected by Copyscape

    DMCA.com Protection Status

    Facebook Twitter Instagram Pinterest
    • Terms of Service
    • Privacy Policy
    • Contact Us
    • About
    • Sitemap
    • Write For Us
    • Submit Press Release
    Copyright © 2023 - Read Us 24x7

    Type above and press Enter to search. Press Esc to cancel.