So you've decided to invest in SIP mutual funds but you want to know which mutual funds to invest in. The confusion is understandable considering there are over 1000+ mutual fund schemes in India.
Cube Wealth has put an end to this confusion by partnering with Wealth First. Wealth First curates a comprehensive list of the best SIP mutual funds on the Cube Wealth app.
In fact, you can start a SIP on Cube Wealth for as low as ₹1000 but starting with at least ₹10,000 per month would be ideal if your aim is to build a substantial corpus.
In this blog, we'll discuss a few of the best SIP mutual funds currently being recommended by Wealth First on Cube Wealth.
What SIP Mutual Funds Should You Invest In?
First off, you should understand your risk level and have a clear idea of your investment goals before starting a SIP. The easiest way to find out both would be to take the detailed risk analysis quiz on Cube Wealth.
It's a set of straightforward yet crucial questions that will help you recognize where you should invest your hard-earned money. You'll get access to handpicked mutual funds once you take the quiz.
Now, these can be your possible SIP mutual funds options on Cube Wealth:
1. Liquid funds
2. Conservative funds
3. Moderate funds
4. Aggressive funds
5. International funds
6. ELSS funds
Cube's unique perfect portfolio builder based on the bucket philosophy will help you diversify your SIP mutual fund investments across these categories of mutual funds based on your risk level and goals.
A 5-year investment timeline falls under the medium term. Potential options for this would include liquid, debt, equity, international, and ELSS funds.
Anything beyond 10+ years is generally treated as the long term. SIP mutual fund options for this would include debt funds, equity funds, international funds, and ELSS funds.
Best Debt Funds For 10 Year SIP Investment
1. ICICI Prudential Corporate Bond Fund
2. Axis Money Market Fund
3. HDFC Money Market Fund
Best Equity Funds For 10 Year SIP Investment
1. Mirae Asset Large Cap Fund
2. Canara Robeco Emerging Equities Fund
3. Kotak Small Cap Fund
Best International Funds For 10 Year SIP Investment
Sustaining a SIP for 15 years has the potential to create a large corpus for you. Potential SIP mutual fund options for this include debt funds, equity funds, and international funds.
Best Debt Funds For 15 Year SIP Investment
1. IDFC Banking & PSU Debt Fund
2. Axis Banking and PSU Debt Fund
3. HDFC Money Market Fund
Best Equity Funds For 15 Year SIP Investment
1. Motilal Oswal Focused 25 Fund (Conservative)
2. SBI Flexicap Fund (Moderate)
3. Axis Small Cap Fund (Aggressive)
Best International Funds For 15 Year SIP Investment
1. Edelweiss Greater China Equity Off-shore Fund
2. Franklin India Feeder - Franklin U.S. Opportunities Fund
Note: While we update our blogs regularly, download the Cube Wealth app for the latest mutual fund recommendations from Wealth First.
Should You Invest In A SIP Mutual Fund?
Timing the market is perhaps one of the most difficult things to do as an investor. A SIP helps you negate this by letting you invest across market cycles.
This leads to a popular phenomenon called rupee cost averaging which may be the biggest advantage a SIP has over one-time lump sum investments.
Rupee cost averaging helps you average out the fluctuations of the market. It can be easily understood with this hypothetical example:
Investor Tom (SIP)
Investor Jerry (Lump sum)
NAV
Invested
Units
NAV
Invested
Units
20
₹10,000
500
20
₹40,000
1500
10
₹10,000
1000
X
X
X
20
₹10,000
500
X
X
X
25
₹10,000
400
X
X
X
Total
₹40,000
2400
Total
₹40,000
2000
As you can see, investor Tom owned more units towards the end of his SIP than Jerry who invested the same amount in one go. Other benefits of a SIP include:
Affordable: You don't have to burn a hole in your pocket to create wealth with a SIP
Convenient: You can start a SIP using Cube Wealth in minutes with the QuickSIP feature*
Flexible: SIPs on Cube Wealth are flexible because of the unique SuperSIP feature**
Thus, Cube Wealth is the best way to invest in a SIP with convenient yet powerful features like QuickSIP, SuperSIP, and curated mutual fund recommendations that work for you.
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!