Best SIPs To Invest in 2024

Many investors find SIP a prudent way to grow wealth in the long run. SIP, or the systematic investment plan, is one of the easiest and hassle-free ways to invest in mutual funds. Individuals can invest in any mutual fund at fixed intervals through SIP. It can be weekly, monthly, or quarterly. Many types of investments require lump-sum investments at the beginning. But with SIP, you can invest small sums gradually over a period of time. SIP is your best choice if you are a small or first-time investor. Over the years, SIP has gained significant acceptance. 

We will discuss the best mutual funds for SIP in this article. 

What Is an SIP? 

SIP allows investors to invest a fixed amount at regular intervals towards mutual funds. It is designed for small and beginner investors who don’t want to invest in a lump sum. In a SIP scheme, the investor can select to pay a fixed amount monthly, quarterly or weekly. Depending on their financial goals, one can choose from large-cap, mid-cap, small-cap, multi-cap, and equity-linked schemes. You can find the best SIP to invest in each category based on your requirements.   

Large-Cap Schemes 

In these schemes, the mutual fund invests in large-cap companies having ranked between 1 to 100 on the basis of market capitalisation. Investors who want to avoid market volatility exposure and earn moderate income can invest in these schemes. 

Some of the best mutual funds for SIP in this category are:

Mid-Cap Schemes

The fund manager invests in mid-cap companies having ranked between 101 to 250 on the basis of market capitalisation. Mid-cap mutual funds invest in the corpus into mid-size companies on their growth path to create more and faster capital appreciation. These schemes are usually targeted at investors with moderate to high-risk appetites. 

Small-Cap Schemes

Investors who want to increase the value of their investment and are ready to take higher risks can invest in small-cap mutual funds. These schemes focus on investing in small-cap companies ranking from 251 to last on the basis of market capitalisation. 

Equity-linked Savings Plans 

Equity-linked savings plans allow investors the benefit of tax savings and building wealth for the future. Investors can save tax under section 80c of the Income Tax Act. 

Benefits of SIP

SIP offers several benefits, including the advantages of compounding returns. Compounding happens when the returns you generate get re-invested in the scheme. Over time, it results in a snowball effect, and you generate higher returns from your investment. Besides, SIP also offers benefits like:

• Rupee cost averaging 
• Convenience 
• Small initial investment 
• Easy automation of SIP deduction through standard instruction 
• It helps build savings and investment discipline   

Note: The above-mentioned schemes have been selected on the basis of 5Y-CAGR as of January 05, 2024.

Conclusion

Historically, equity investment has generated the highest returns on investment. But it is not for every type of investor. Those who want to invest in stocks but can invest small amounts and don’t want exposure to market volatility can invest through SIP plans. However, calculating SIP returns manually can be complex work. Now, easily calculate the return with the Angel One SIP Calculator. Once you are ready to start investing, find the best SIP plan to invest with Angel One. If you are a novice investor, you can open a demat account with Angel One today online.

Disclaimer: This blog is exclusively for educational purposes. The securities quoted are exemplary and are not recommendatory.