Top 5 SIP Mutual Fund in India to Invest in 2022

Top 5 SIP Mutual Fund in India to Invest in 2022

Top 5 SIP Mutual Fund in India to Invest - Nomad Entrepreneur

The market provides numerable SIP mutual fund in India for investors to stake their claim in, and it might become confusing when there are too many options. Therefore, it completely depends on the current position of the investors and what suits you. Before we read about the top 5 mutual funds to invest in, let us understand some terms associated with the mutual fund, starting with the mutual funds themselves.

What is Mutual Fund?

A mutual fund is, essentially, a shared pool of funds in which investors throw in their share of investment whereas traditionally, investors invest their assets in a lump-sum method. SIP mutual fund in India is a process by which you can participate in any mutual fund. 

What is a Systematic Investment Plan (SIP) ?

Like any other method of investment, the process of the SIP mutual fund in India allows its investors to participate in achieving their financial goals in life. Although the performance of the marker is unpredictable, investors have a higher chance at better managing their funds in a more simple and less cumbersome method by utilizing SIP.

What is Long-term capital appreciation?

Long-term capital appreciation means an increase in the value of the principal amount invested by the investors, the main goal is to bring about long-term growth. It also means that the investor doesn’t have to take active participation in selling their assets as it may occur in a passive manner over time.

In the context of stock valuation, capital appreciation is used when the investor is looking for long-term growth.

What are Large-cap funds?

Large-cap funds are found in companies that are well-established and are significant contributors to the market. Investing in large-cap stocks has a lot of benefits; their stock prices do not fluctuate drastically thereby offering a position of capital appreciation to their investors accumulating in many years.

Here are top 5 SIP mutual fund in India so that you will know which SIP is the best to invest in for 2021:

1. Axis Focused 25 Fund

This fund is specifically focused on open-ended equity, meaning that it will be a high-risk fund option but nevertheless, it offers even higher returns on those investments. It wants to generate long-term capital by relying on equity and equity-based investments.

Here is the fund detail for Axis Focused 25 fund:

Fund Name Monthly Investment Investment Tenure Expected Annual Return
Axis Focused 25 Fund Rs. 5000 5 years 14%

 

2. DSP Equity Fund

The main motive for this fund is to bring about long-term wealth and capital appreciation by relying on equity and related securities. It is an open-ended equity fund that dips its toes into debt and money market investments in order to maintain the cash flow.

Interested investors who are more willing to risk their capital are the best fit for this SIP mutual fund in India, which is among the best plans for 2021.

Here is the fund detail of DSP Equity Fund:

Fund Name Monthly Investment Investment Tenure Expected Annual Return
DSP Equity Fund Rs. 5000 5 years 14.36%

 

3. ICICI Prudential Bluechip Fund

The Bluechip Fund is another equity-based mutual fund available in the market focused on bringing long-term capital appreciation by relying on equity and equity-adjacent instruments. It presents an investment scheme largely based on large-cap stocks.

Here is the fund detail of ICICI Prudential Bluechip Fund:

Fund Name Monthly Investment Investment Tenure Expected Annual Return
ICICI Prudential Bluechip Fund Rs. 5000 5 years 10.81%

 

4. Axis Bluechip Fund

The Axis Bluechip Fund is a SIP mutual fund in India that is an equity-based fund promoting long-term capital appreciation. It is suitable for investors who are prone to taking big risks in their investments. This fund also encourages investment in large-cap companies including derivatives.

Here is the fund detail of Axis Bluechip Fund:

Fund Name Monthly Investment Investment Tenure Expected Annual Return
Axis Bluechip Fund Rs. 5000 5 years 12 %

 

5. HDFC Balance Advantage Fund

This fund is one of the best funds available to investors in the market, it is another open-ended fund based on equity and equity-related instruments. The risk involved in this mutual fund is moderate to high; the main motive is to bring long-term capital growth with promises of profit not guaranteed. However, the margin of profit is better than most.

Here is the fund detail of HDFC Balance Advantage Fund: 

Fund Name Monthly Investment Investment Tenure Expected Annual Return
HDFC Balance Advantage Fund Rs. 5000 5 years 16%

 

Which SIP is the best?

SIP is a very safe method when it comes to investing; the alternatives like lump sump investments involve high risk resulting in a big payout in case the market conditions are unsuitable. Therefore, all of the mentioned SIP mutual funds are equally less risky than other options. As you will not have to time the most favorable time to invest instead, in SIP, you make small investments per month which can range from high to low, this is called rupee cost averaging.

However, knowing which SIP is the best for you depends entirely on what your requirements are at that point of time. The aforementioned mutual funds are all large-cap mutual funds, which are considered to have a moderate to high-risk level in comparison to debt mutual funds having a very low-risk rate.

As you invest more and participate more in the market, it will be easier to distinguish and know better which SIP is the best for you. Choosing to invest through SIP is already a very good start in the context of mutual funds.

Recommended Read: Does Sovereign Gold Bond return better than Physical and Digital Gold? Find out here

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