Table of Contents
SIP or a Systematic Investment plan is an investment mode that allows you to invest your money in a fixed duration of time. Generally, a SIP investment starts the process of wealth creation over a regular interval of time that can be monthly, quarterly and annually. The investment through a SIP or Systematic Investment Plan is invested in stock markets, thus generates good returns when invested for a long duration. A SIP investment is considered to be one of the Best ways to invest money as the money invested is distributed over a certain duration. Unlike lump sum investment, SIP investment does not take place all at once, therefore, it is convenient for investors. With a simple SIP investment, one can start Investing small sums of money from a young age. We have a list of some of the Top SIP investments for you. Have a look!
Talk to our investment specialist
To make a SIP investment it's important to understand the Best SIP Plans based on your risk appetite. There is a huge category of Equity Mutual Funds in which you can invest through a SIP. These include Large Cap, mid cap funds, Small cap funds, Multi Cap Funds. One can also invest in Balanced Funds via a SIP. But, for the first time investors, the best investment options for SIP might be-
Investing in Large cap funds via a SIP or Systematic Investment Plan is beneficial. Usually, Large-cap Funds invest in firms that have a possibility of showing steady growth and earning high profits year after year. These funds are generally stable and offer stable returns when invested over a long period of time.
Fund NAV Net Assets (Cr) Min SIP Investment 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2023 (%) JM Core 11 Fund Growth ₹20.438
↑ 0.10 ₹196 500 -3.5 7.3 32 21.8 16.9 32.9 Nippon India Large Cap Fund Growth ₹87.1792
↑ 0.48 ₹34,105 100 -2.4 7.4 30 21.4 19.8 32.1 ICICI Prudential Bluechip Fund Growth ₹105.92
↑ 0.96 ₹63,670 100 -3.2 7.6 28.5 18.3 19.2 27.4 Aditya Birla Sun Life Frontline Equity Fund Growth ₹509.05
↑ 4.41 ₹29,395 100 -3.6 8.8 26.6 15.1 17 23.1 Indiabulls Blue Chip Fund Growth ₹42.24
↑ 0.28 ₹126 500 -3.4 4.1 26.5 14.2 13.6 22.3 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 29 Nov 24
Mid-cap funds invest in most emerging companies. To attain good returns one should invest for a longer duration in these funds. Longer than large-cap funds. Therefore, SIP benefits the most. Investing via a SIP tends to lower the risk and maintains the stability of returns.
Fund NAV Net Assets (Cr) Min SIP Investment 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2023 (%) L&T Midcap Fund Growth ₹391.305
↑ 0.83 ₹11,768 500 0.1 13.3 42.3 24.8 24.2 40 Sundaram Mid Cap Fund Growth ₹1,360.55
↑ 8.28 ₹12,350 100 -0.9 13 40.3 25.4 24.3 40.4 Kotak Emerging Equity Scheme Growth ₹132.703
↑ 1.21 ₹50,627 1,000 -0.1 12.9 39.6 23.8 27 31.5 Taurus Discovery (Midcap) Fund Growth ₹121.69
↑ 0.01 ₹129 1,000 -7 1.7 21 19.7 22.9 38.4 Motilal Oswal Midcap 30 Fund Growth ₹108.424
↑ 1.61 ₹20,056 500 6.5 28.5 62.2 36 32.6 41.7 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 29 Nov 24
ELSS or Equity Linked Savings Scheme is equity diversified Mutual Fund that invests the major part of the fund corpus, generally more than 80%, in equity instruments and provides Market linked returns. Under Section 80C of the income tax Act, ELSS funds act as a tax saving Mutual Funds and allow tax deductions upto INR 1,50,000 for the taxable Income. So, all those you have just started earning a Taxable Income can now invest in ELSS funds to save tax and earn good returns as well.
Fund NAV Net Assets (Cr) Min SIP Investment 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2023 (%) Tata India Tax Savings Fund Growth ₹44.2581
↑ 0.37 ₹4,680 500 -2 12 29.3 17.8 18.2 24 IDFC Tax Advantage (ELSS) Fund Growth ₹149.369
↑ 0.99 ₹6,900 500 -4.9 5.4 21.8 17.2 22 28.3 L&T Tax Advantage Fund Growth ₹134.626
↑ 0.71 ₹4,253 500 -0.2 13 41.5 20.2 19.6 28.4 DSP BlackRock Tax Saver Fund Growth ₹136.887
↑ 1.05 ₹16,841 500 -2.8 11.4 36.6 20.4 21.6 30 Aditya Birla Sun Life Tax Relief '96 Growth ₹58.04
↑ 0.47 ₹15,895 500 -4.2 7.1 26.3 11.7 12.4 18.9 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 29 Nov 24
Small-cap funds come after large and mid cap funds. These funds invest in startups or small-sized companies, therefore these funds take time to grow and generate returns. The performance of the fund depends on the growth of the companies. Thus, investors are advised to take a SIP route and stay invested for a long-term, ideally for more than 7 years.
Fund NAV Net Assets (Cr) Min SIP Investment 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2023 (%) L&T Emerging Businesses Fund Growth ₹88.2847
↑ 0.78 ₹17,306 500 1 14.4 33.8 27.6 31.1 46.1 SBI Small Cap Fund Growth ₹178.561
↑ 0.90 ₹33,107 500 -2.1 10 29.3 20.7 27.2 25.3 Aditya Birla Sun Life Small Cap Fund Growth ₹88.8573
↑ 0.30 ₹5,181 1,000 -0.1 12.9 28.1 18.9 23.8 39.4 Nippon India Small Cap Fund Growth ₹176.051
↑ 1.09 ₹61,027 100 -1.4 12.1 35.4 29.8 35.6 48.9 Franklin India Smaller Companies Fund Growth ₹179.847
↑ 1.12 ₹13,944 500 -2.4 9.7 31.1 26.8 29.4 52.1 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 29 Nov 24
These funds invest across large, mid and small caps, thus the name-multi-cap. Multi-cap funds are a good option for diversifying a Portfolio. As, these funds invest across market capitalization, it balances risks and returns very well. Taking a SIP route can benefit by generating stable returns in the long-run.
Fund NAV Net Assets (Cr) Min SIP Investment 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2023 (%) Motilal Oswal Multicap 35 Fund Growth ₹62.2163
↑ 0.92 ₹12,024 500 5.3 21.9 50.7 22.7 18.4 31 Kotak Standard Multicap Fund Growth ₹80.855
↑ 0.56 ₹50,582 500 -2.2 5.2 28.9 16.8 16.8 24.2 Mirae Asset India Equity Fund Growth ₹108.889
↑ 0.68 ₹39,337 1,000 -2.8 9.5 22.1 12.3 15.1 18.4 JM Multicap Fund Growth ₹103.465
↑ 0.93 ₹4,722 500 -3.9 8.7 43 27.3 24.5 40 IDFC Focused Equity Fund Growth ₹87.935
↑ 0.57 ₹1,746 100 3.6 22.3 39.6 18.6 18.3 31.3 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 29 Nov 24
Another Mutual fund that is suitable for first-time SIP investment is Balanced Fund. Balanced Mutual Funds invest more than 65% of their assets in equity instruments and the remaining assets in debt instruments. These funds are less risky than Equity Funds while providing equity comparable returns. This makes balanced funds one of the ideal investment options for beginners.
Fund NAV Net Assets (Cr) Min SIP Investment 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2023 (%) Principal Hybrid Equity Fund Growth ₹158.116
↑ 1.11 ₹5,358 100 -1.5 8.8 23.5 12.8 15.5 16.8 Aditya Birla Sun Life Equity Hybrid 95 Fund Growth ₹1,480.34
↑ 11.68 ₹7,688 100 -1.7 7.7 23.3 11.9 14.1 21.3 Edelweiss Arbitrage Fund Growth ₹18.6203
↑ 0.00 ₹12,537 500 1.7 3.6 7.6 6.2 5.4 7.1 L&T Hybrid Equity Fund Growth ₹55.1772
↑ 0.02 ₹5,849 500 -0.4 8.6 28.6 14.6 15.4 24.3 DSP BlackRock Equity and Bond Fund Growth ₹344.846
↑ 2.31 ₹10,327 500 0.2 12.4 26.1 14 16.3 25.3 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 29 Nov 24
Generally, a SIP investment is considered to be an ideal way, when investing in Mutual Funds for the first time. Investing, for beginners, is usually very complicated and chaotic. They are often found facing challenges to channelize their savings into investments. Consider the above-mentioned best mutual funds for SIP to make your first SIP investment. Don’t miss an opportunity to save big by fearing to take the first step. Your first salary credited, make a wise SIP investment now!