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SIP Investments in ELSS Mutual Fund, Balanced Funds, Large-Cap Funds

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SIP Investment: For First Time Investors

Updated on June 12, 2024 , 5793 views

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!

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Best Mutual Funds for SIP 2024

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-

1. Large-Cap Mutual Funds

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.

FundNAVNet Assets (Cr)Min SIP Investment3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2023 (%)
JM Core 11 Fund Growth ₹19.5724
↑ 0.17
₹98 500 13.420.147.922.916.732.9
Nippon India Large Cap Fund Growth ₹84.7667
↑ 0.56
₹26,138 100 11.218.740.524.119.132.1
ICICI Prudential Bluechip Fund Growth ₹101.97
↑ 0.36
₹54,904 100 817.339.620.718.827.4
Indiabulls Blue Chip Fund Growth ₹42.04
↑ 0.27
₹120 500 10.617.836.216.814.122.3
Aditya Birla Sun Life Frontline Equity Fund Growth ₹491.08
↑ 2.60
₹27,192 100 10.315.73317.216.823.1
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 14 Jun 24

2. Mid-Cap Mutual Funds

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.

FundNAVNet Assets (Cr)Min SIP Investment3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2023 (%)
L&T Midcap Fund Growth ₹368.624
↑ 5.78
₹10,342 500 21.527.964.224.623.240
Sundaram Mid Cap Fund Growth ₹1,266.25
↑ 12.30
₹10,732 100 18.322.458.726.422.340.4
Kotak Emerging Equity Scheme Growth ₹125.443
↑ 1.63
₹42,699 1,000 2527.351.925.326.531.5
Taurus Discovery (Midcap) Fund Growth ₹124.83
↑ 1.09
₹126 1,000 1718.346.722.224.238.4
Motilal Oswal Midcap 30 Fund  Growth ₹91.4582
↑ 1.12
₹9,819 500 20.628.560.936.629.741.7
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 14 Jun 24

3. ELSS or Tax Saving Mutual Funds

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.

FundNAVNet Assets (Cr)Min SIP Investment3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2023 (%)
Tata India Tax Savings Fund Growth ₹41.6488
↑ 0.28
₹4,197 500
IDFC Tax Advantage (ELSS) Fund Growth ₹148.003
↑ 0.66
₹6,432 500 9.115.834.820.121.228.3
DSP BlackRock Tax Saver Fund Growth ₹128.827
↑ 0.94
₹14,860 500
L&T Tax Advantage Fund Growth ₹126.89
↑ 1.40
₹3,889 500 21.426.546.820.218.628.4
Aditya Birla Sun Life Tax Relief '96 Growth ₹56.95
↑ 0.37
₹15,384 500 13.718.23612.212.918.9
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 14 Jun 24

4. Small-Cap Mutual Funds

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.

FundNAVNet Assets (Cr)Min SIP Investment3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2023 (%)
L&T Emerging Businesses Fund Growth ₹83.399
↑ 0.62
₹14,619 500 25.421.755.431.628.546.1
Aditya Birla Sun Life Small Cap Fund Growth ₹85.2573
↑ 0.86
₹4,762 1,000 22.718.846.32020.439.4
SBI Small Cap Fund Growth ₹174.816
↑ 1.49
₹27,760 500 21.622.443.724.627.725.3
Franklin India Smaller Companies Fund Growth ₹176.9
↑ 1.30
₹12,587 500 24.423.16132.22752.1
Nippon India Small Cap Fund Growth ₹167.998
↑ 1.45
₹50,423 100 23.823.858.433.433.548.9
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 14 Jun 24

5. Multi-Cap Mutual Funds

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.

FundNAVNet Assets (Cr)Min SIP Investment3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2023 (%)
Motilal Oswal Multicap 35 Fund Growth ₹54.2542
↑ 0.41
₹10,013 500 16.624.754.717.815.431
Kotak Standard Multicap Fund Growth ₹80.413
↑ 0.63
₹47,466 500 15.120.839.618.517.324.2
Mirae Asset India Equity Fund  Growth ₹103.625
↑ 0.45
₹38,060 1,000 8.711.225.113.614.818.4
JM Multicap Fund Growth ₹100.632
↑ 1.29
₹2,107 500 20.831.564.430.426.140
Principal Multi Cap Growth Fund Growth ₹358.885
↑ 1.51
₹2,498 100 15.116.542.921.420.431.1
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 14 Jun 24

6. Balanced Funds or Hybrid Funds

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.

FundNAVNet Assets (Cr)Min SIP Investment3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2023 (%)
Aditya Birla Sun Life Equity Hybrid 95 Fund Growth ₹1,434.55
↑ 9.22
₹7,478 100 1115.229.313.513.721.3
Principal Hybrid Equity Fund Growth ₹150.551
↑ 0.77
₹4,579 100 7.913.427.714.414.616.8
Edelweiss Arbitrage Fund Growth ₹18.0871
↑ 0.01
₹10,243 500 2.24.485.85.47.1
HDFC Balanced Advantage Fund Growth ₹488.627
↑ 2.12
₹83,549 300 9.416.241.523.219.131.3
ICICI Prudential Equity and Debt Fund Growth ₹354.83
↑ 0.91
₹34,733 100 7.416.638.423.521.228.2
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 14 Jun 24

Benefits of SIP Investment


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!

All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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