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. This is given by our wealth advisors from Wealth First.
While we update our blogs regularly, we recommend you download the Cube Wealth App to see the latest and most accurate data.
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. You can invest in SIPs for as little as Rs.1000 each month using the Cube Wealth app. Here are some key benefits you get if you invest in mutual funds 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: The past performance of a fund over 5+ years can help you understand the rate of returns and the post-tax profits.
Compare the funds returns with other funds in the same category: A good fund will have better returns than its benchmark and other funds from the same category.
Learn about the fund manager and their track record: More insight into the strategy of a fund manager can be helpful. Look out for investment objective changes, frequent rebalancing, and other such instances.
Understand which sectors/companies the mutual fund invests in: Identify whether the fund is investing in booming sectors like financials and tech compared to pandemic affected sectors like retail and aviation. This could be crucial to invest in SIPs.
See what the goal of the fund is as declared by the asset management firm: The fund objective can help you determine whether you should invest in the mutual fund SIP.
Contact a Cube Wealth Coach for reliable and honest investment advice.
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:
These are Cube Wealth’s top picks for the best SIP funds of 2021. We update our lists regularly but recommend you connect with one of our experts through the Cube Wealth App before making any investment decisions.
Note: Always invest after analyzing your financial goals, investment horizon, and risk appetite.
1. How can you start Investing in SIP?
Ans. The Cube Wealth app is the easiest way to invest in SIPs. You can invest in SIPs for as low as ₹1000.
2. Which SIP is best for Investment?
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.
3. Is SIP safe to invest?
Ans. Safe is a relative term. However, investing in an SIP helps you think long term and worry less about short term market fluctuations.
4. Can you lose money in SIP?
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.
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!