Best SIP Mutual Funds to Invest in 2020

One of the best ways to invest in mutual funds is through SIPs i.e. Systematic Investment Plans. Instead of putting a large chunk of your money into an investment in the form of a lump sum payment – you get to invest regularly in smaller amounts. A SIP gives you the best means to maximize returns while investing in multiple mutual funds. A SIP is a fixed monthly investment amount that you can choose as per your comfort. Given below is a list of the best SIP mutual funds in India for 2020:

Top Performing Best SIP Mutual Funds in India

Type of SIP Mutual FundName of SIP Mutual Fund

Liquid Funds
Nippon India Liquid Fund
SBI Liquid Fund
HDFC Liquid Fund

Debt Funds
IDFC Banking & PSU Debt Fund
Axis Strategic Bond Fund

Conservative Funds
Motilal Oswal Focused 25 Fund
Mirae Asset Large Cap Fund

Moderate Funds
Axis Focused 25 Fund
Invesco India Growth Opportunities Fund
Mirae Asset Focused Fund
Aditya Birla Sun Life Equity Fund
Franklin India Focused Equity Fund
Invesco India Contra Fund
Kotak Equity Opportunities Fund
SBI Magnum Multicap Fund

Aggressive Funds
Franklin India Prima Fund
Kotak Emerging Equity Fund
IDFC Sterling Value Fund
Motilal Oswal Midcap 30 Fund
ICICI Prudential Smallcap Fund
Kotak Small Cap Fund

Made in China
Edelweiss Greater China Equity Off-shore Fund
Americano FundsFranklin India Feeder – Franklin U.S. Opportunities Fund

Exotic Europe
Invesco Pan European Equity Fund

Cherry Blossom
Nippon India Japan Equity Fund

Tax Saving Funds
Mirae Asset Tax Saver Fund
Kotak Tax Saver Fund

Benefits of SIP

A SIP is a regular investment scheme that lets you invest as little as Rs.500 in mutual funds each month. Here are some key benefits of investing through the SIP route:

  • SIPs  can be for the short term or for the long term 

  • You can start a SIP with as little as Rs.500 per month

  • SIPs offer you the flexibility of increasing or decreasing your investment amount

  • They offer easy liquidity compared to investments that offer similar returns

  • SIPs allow you to choose the duration of your investment

  • You can diversify your portfolio through multiple SIPs

  • SIPs are safer than investing directly in stocks

  • You do not need to be involved in the stock market on a daily basis to invest in SIPs

  • Benefit from compound interest and rupee cost averaging

  • SIPs can be automated using apps like Cube Wealth so they are easy investments

Who Should Invest in SIP?

Everyone! Even if you have other investments, there are no good reasons to not invest in mutual funds using SIPs. The above-listed benefits will make it clear that having SIPs is a great way to invest and will work even for seasoned investors. Essentially, anyone who is looking to create long term wealth and is not chasing a get rich quick scheme should invest using SIPs. If you look at SIP returns over the past decade you will realize that no matter how severe a dip the market sees, mutual fund investments have almost always been safe and when it comes to those who invest even through the lows, mutual fund investments via the SIP route reap rich returns and dividends. However, one must ensure they consult a wealth coach and only invest in mutual funds after clearly understanding their risk appetite, financial goals and needs.

How to Evaluate Best SIP Mutual Funds?

To identify the best SIP Mutual Funds, you must take multiple things into account. 

  • See the historical returns of the fund

  • Compare the funds returns with other funds in the same category

  • Learn about the fund manager and their track record

  • Understand which sectors/companies the mutual fund invests in

  • See what the goal of the fund is as declared by the asset management firm

Contact a Cube Wealth Coach for reliable and honest investment advice.

Try our SIP Returns Calculator to see how much money you can make by investing in Mutual Funds

SIP Investment Mistakes To Avoid

  • Don’t try to time the market

  • Don’t miss a single SIP payment Be consistent

  • Don’t invest for quick returns

  • Don’t invest without talking to a Cube Wealth Coach

  • Don’t invest in too many funds- pick a few that work and stick to them

  • Don’t leave SIPs payments to memory – automate your investments

How to Invest in SIPs?

Broadly speaking, there are two simple ways of buying mutual funds in India – one where you invest a big amount in one go (Lump Sum Investment) & the other where you invest small yet substantial amounts at regular intervals (SIP). Let’s look at both of these a little more closely:

1. Lumpsum Investments

This is when you invest a large sum of money to buy mutual funds in one single transaction. This way you buy a big chunk of a mutual fund scheme that you believe will perform well in the long run. A lump sum investment works well when the market is down or when you’re investing for the long term and have a good risk appetite. People generally do this when they receive a large sum of money from retirement or sale of a house etc. However, most people can not afford to risk a large sum of money. Which is why they use Systematic Investment Plans (SIPs)

2. Systematic Investment Plan (SIP)

In this method of mutual fund investment you can give your bank a standing instruction to automatically debit a fixed amount of money from your account every month, quarter or year. This fixed amount of money is invested in a mutual fund scheme of your choice. This is a more disciplined and hands-off approach to investing in mutual funds. You can use the Cube Wealth App to safely invest in Mutual Funds via the SIP route.

We genuinely believe that the best way to invest in mutual funds is by using the Cube Wealth App. It is safe, easy to use and gives you access to investment advice from some of India’s & the world’s best wealth advisors. All this from one simple app on your phone! Here are the steps you need to follow:

  1. Download the Cube Wealth App

  2. Select risk level: low, medium or high

  3. Select the time frame as long

  4. Enter the amount you want to invest

  5. Browse recommended funds

  6. Tap On Invest

Want a person to help you through this?  EMAIL A CUBE WEALTH ADVISOR FOR FREE ADVICE

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