Mutual funds are preferred by many in India for wealth creation, tax savings, and other reasons. Besides a short period during the pandemic when SIP collections fell by 4% in India, the mutual fund market has grown. The current Compound Annual Growth Rate (CAGR) of the Indian mutual fund market is around 21.50%. With the introduction of affordable Systematic Investment Plans (SIPS), more people have started investing in mutual funds. If you are new to investing, you must know the best mutual fund for SIP in 2024. Let us discuss more about mutual funds and the best SIP options.
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Understanding Mutual Funds And SIPs
Before discussing the best SIP options in 2023, it is essential to understand the basics. Mutual funds do not perform like individual securities like stocks, bonds, and currencies. They are investment vehicles that collect money from investors and build diverse portfolios. A mutual fund scheme will invest in a diversified portfolio consisting of different securities. You can find stocks, bonds, money market instruments, foreign securities, securitised debt, derivatives, cash equivalents, and other assets in mutual fund portfolios. When you purchase mutual fund units, the money is invested into a basket of securities. Banks, Asset Management Companies, and other firms can help you find the best mutual fund schemes.
Investors don’t have to find the best bank for Demat account to invest in mutual funds. Securities within a mutual fund portfolio are held by the AMC or bank. However, investors must apply for Demat accounts for many other reasons, like portfolio monitoring and dematerialised securities. Some investors might find the prices of mutual fund units high. Such investors can try SIP options to invest in the best mutual fund schemes. A SIP allows you to invest a fixed amount in a mutual fund at regular intervals. Many banks offer affordable SIP investments starting from INR 500 per month. SIP options allow investors to leverage the power of cost averaging.
Best Mutual Fund SIPs To Invest In 2023
Investors must keep a watch on the best mutual fund schemes with SIP options to make informed decisions. An investment platform can help you stay updated with the best mutual funds for SIP. Here are the best equity mutual funds in 2023 with SIP starting at INR 1000 per month:
| 1 | Quant Small Cap Fund | 8,075 crores | +42.80% |
| 2 | Axis Small Cap Fund | 15,847 crores | +29.57% |
| S/N | Fund Name | AUM (Assets Under Management) | Current Return Per Annum |
| 3 | Nippon India Small Cap Fund | 36,540 crores | +35.88% |
| 4 | ICICI Prudential Smallcap Fund | 6,989 crores | +31.64% |
| 5 | Quant Flexi Cap Fund | 1,909 crores | +30.61% |
| 6 | Motilal Oswal Midcap Fund | 5,735 crores | +30.07% |
| 7 | SBI Small Cap Fund | 20,912 crores | +28.43% |
Here are some of the best Debt mutual funds in India with SIP starting from around INR 1,000 per month:
| S/N | Fund Name | AUM (Assets Under Management) | Current Return Per Annum |
| 1 | Nippon India Nivesh Lakshya Fund | 6,348 crores | +6.64% |
| 2 | DSP Government Securities Fund | 595 crores | +6.92% |
| 3 | Axis Gilt Fund | 216 crores | +6.40% |
| 4 | HSBC Corporate Bond Fund | 6,769 crores | +6.43% |
| 5 | ICICI Prudential Credit Risk Fund | 7,598 crores | +7.65% |
| 6 | SBI Dynamic Bond Fund | 3,016 crores | +6.90% |
| 7 | Kotak Gilt Investment Fund | 2,473 crores | +6.98% |
Now that we have discussed equity and debt mutual funds, here are some of the best hybrid mutual funds with SIP starting from around INR 1,000 per month:
| S/N | Fund Name | AUM (Assets Under Management) | Current Return Per Annum |
| 1 | Quant Multi Asset Fund | 978 crores | +26.18% |
| 2 | Axis Multi Asset Allocation Fund | 1,365 crores | +13.02% |
| 3 | Axis Equity Hybrid Fund | 1,692 crores | +12.86% |
| 4 | Quant Absolute Fund | 1,355 crores | +24.78% |
| 5 | HDFC Balance Advantage Fund | 61,599 crores | +21.63% |
| 6 | Kotak Equity Hybrid Fund | 4,171 crores | +19.02% |
| 7 | Baroda BNP Paribas Aggressive Hybrid Fund | 839 crores | +17.26% |
Note: Check the current performance of mutual funds on an investment platform before making a decision.
In A Nutshell
The best mutual funds for SIP can help earn long-term returns. The returns earned are re-invested into the mutual fund scheme, thus paving the way for wealth creation. You can find equity, sectoral, debt, hybrid, and other mutual fund schemes in India for investment. Choose a mutual fund scheme and invest via SIP now!
