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[Updated on 20th June 2021]
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.
Let’s now dive into a list of current top recommendations of SIPs to invest in.
The top 25 best mutual fund SIPs are handpicked by our mutual fund advisor, Wealth First.
1. Nippon India Liquid Fund
2. SBI Liquid Fund
3. HDFC Liquid Fund
4. IDFC Banking & PSU Debt Fund
5. HDFC Money Market Fund
6. Motilal Oswal Focused 25 Fund
7. Mirae Asset Large Cap Fund
8. Axis Focused 25 Fund
9. Invesco India Growth Opportunities Fund
10. Mirae Asset Focused Fund
11. DSP Nifty Next 50 Index Fund
12. SBI Flexicap Fund
13. Invesco India Contra Fund
14. Kotak Equity Opportunities Fund
15. HDFC Flexicap Fund
16. Motilal Oswal Midcap 30 Fund
17. ICICI Prudential Smallcap Fund
18. Kotak Small Cap Fund
19. Edelweiss Greater China Equity Off-shore Fund
20. Franklin India Feeder – Franklin U.S. Opportunities Fund
21. Invesco Pan European Equity Fund
22. Nippon India Japan Equity Fund
23. PGIM India Global Equity Opportunities Fund
24. Mirae Asset Tax Saver Fund
25. Kotak Tax Saver Fund
Nippon India Liquid Fund is a relatively low risk debt fund that invests in high grade bonds (A1+) and other debt securities. It's been known to generate predictable returns because it takes as little as 3 months for its portfolio to mature.
The investment objective of SBI Liquid Fund is to leverage a wide range of high rated debt securities like bonds and money market instruments. The fund looks to generate solid returns with a portfolio maturity of 91 days.
HDFC liquid fund invests in debt and money market securities with thorough credit analysis. The fund's portfolio matures in 91 days or less. HDFC liquid fund has been active since October 2000.
IDFC Banking & PSU Debt Fund is an open-ended debt scheme that invests in high grade bonds (AAA, A1+) issued by banks and public sector undertakings. Debt funds from this category are known to generate solid returns that's generally better than bank FDs.
HDFC Money Market Fund invests in securities from the money market in order to generate predictable returns better than an average bank FD. The fund has been in hte market since 1999 and has generated 7.38% since inception.
Motilal Oswal Focused 25 Fund is an open ended equity scheme that invests in the shares of 25 companies with solid long term growth potential. 65% of its portfolio is invested in shares of companies that rank in the top 100 in India by market cap.
Mirae Asset Large Cap Fund holds stocks of companies that are categorized as "large-cap". These companies are generally known to be stable, industry leaders that have a consistent track record of delivering returns.
Axis Focused 25 Fund invests in a maximum of 25 stocks of companies from across market caps. The fund focuses on up to 25 companies that have a solid business model and balance sheet to weather short term volatility.
Invesco India Growth Opportunities Fund is an open-ended equity fund. It looks to generate long term wealth by investing in the shares of companies from the large-cap and mid-cap categories.
Mirae Asset Focused Fund is an open-ended equity scheme that invests in up to 30 stocks from the large-cap, mid-cap, and small-cap categories. The fund aims to generate wealth over 5+ years by leveraging the strength of different market caps.
DSP Nifty Next 50 Index Fund that invests in the shares of the 50 companies listed in the NIFTY Next 50 Index. Index funds try to mirror the underlying index in order to generate returns.
The fund manager of SBI Flexicap Fund has the freedom to invest in stocks from different market caps. SBI Flexicap Fund uses this freedom to generate long term returns.
Invesco India Contra Fund follows a contrarian approach to investing in shares. Contrarian here would mean buying companies that are mispriced but have a sound business model, balance sheet, and other key metrics.
Kotak Equity Opportunities Fund is an open-ended equity scheme that primarily invests in large-cap and mid-cap companies.
HDFC Flexi Cap Fund can invest in the shares of companies that fall under the small-cap, mid-cap, and large-cap categories.
Motilal Oswal Midcap 30 Fund is an open-ended equity scheme that invests in up to 30 of the best mid-cap companies to generate long term wealth.
ICICI Prudential Smallcap Fund focuses on wealth creation by investing in the best small-cap companies in India.
Kotak Small Cap Fund is an open-ended equity fund that invests in the shares of small-cap companies.
Edelweiss Greater China Equity Off-shore Fund is a "fund of funds scheme" that invests in the JPMorgan Funds - JF Greater China Equity Fund. It is an international fund that looks to generate long term wealth by investing in the Chinese market.
This is an international "feeder" fund that invests in the Franklin U.S. Opportunities Fund for wealth creation through US stocks.
This is an open-ended equity fund that primarily invests in the shares of large European companies.
Nippon India Japan Equity Fund is an international open-ended equity fund that invests in the Japanese stock market.
PGIM India Global Equity Opportunities Fund is an international fund of fund scheme that invests in the PGIM Jennison Global Equity Opportunities Fund.
Mirae Asset Tax Saver Fund is an open-ended, ELSS mutual fund that invests in shares of large-cap, mid-cap, and small-cap companies. It carries a mandatory lock-in period of 3 years.
Kotak Tax Saver Fund is an open-ended, ELSS mutual fund that invests in shares and carries and fixed lock-in tenure of 3 years.
A Systematic Investment Plan or SIP is a method of investing in mutual fund schemes. Investing in SIPs is a methodical and diligent approach preferred by several investors.
Here are some key benefits you get if you invest in mutual funds through the SIP route:
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.
To identify the best SIP Mutual Funds, you must take multiple things into account:
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:
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)
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.
You can also watch this episode of The Cube Wealth show where we explain Why You Should Automate Your SIP Investment?
Note: Always invest after analyzing your financial goals, investment horizon, and risk appetite.
Ans. The Cube Wealth app is the easiest way to invest in SIPs. You can invest in SIPs for as low as ₹1000.
Ans. You can invest in the best mutual funds via SIPs on the Cube Wealth app. These funds are hand-picked by our wealth advisor, Wealth First. Speak to a wealth coach to know which best SIP investment could work for you.
Ans. Safe is a relative term. However, investing in an SIP helps you think long term and worry less about short term market fluctuations.
Ans. Based on bad investing decisions, market fluctuations, or both, there is a risk involved in SIPs just like every other investment. Speak to a wealth coach to invest in the best SIPs.
Ans. Mutual fund SIPs are known to average out losses and produce favourable returns over the long term. So it is never too late to invest in a mutual fund SIP. Speak to a wealth coach or download the Cube Wealth app to know more.
Investing puts money to work. The only reason to save money is to invest it - Grant Cardone
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on stock picking, poring over excel sheets, financial news, analyzing market trends, tracking the Sensex, researching company fundamentals, comparing mutual funds, reading financial reports, trying to predict the future & losing your sanity!
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