Top 5 Mutual Funds SIP to Invest in 2024 | Invest 5K & Get 75Lakh

Introduction

Investing may sometimes appear like a challenging endeavor, particularly for those who are unfamiliar with Systematic Investment Plans (SIPs) and mutual funds. This article will help you choose the finest plans for 2024 and provide you with information about SIPs. Long-term financial planning, such as retirement, requires a thorough grasp of SIPs, and this article will act as a complete guide for both novice and seasoned investors.

 

Know the SIP Model to Invest in Best Mutual Funds For 2024

SIP is a flexible investing method that enables people to make monthly or quarterly fixed-amount investments in mutual funds. There are several advantages to this methodical approach. It first creates the habit of saving money. Second, it enables investors to take advantage of a phenomenon called Rupee Cost Averaging, which enables them to purchase more units at low prices and fewer units at high ones. Over time, this strategy may improve profits. 

 

Best Mutual Fund for SIP in 2024

Looking for the best SIP mutual funds in 2024? Check out the best-performing SIP mutual funds to buy in 2024. Find the best SIP Mutual funds in India based on returns, latest navigation, ratings, performance, etc.

Fund Name	Category	Returns after 5 Years
HDFC Large & Mid Cap Fund (G)	Large & Mid Cap	22.7%
DSP ELSS tax Saver Fund (G)	Tax Saving	21.0%
Mirae Asset ELSS Tax Saver Fund (G)	Tax Saving	20.2%
Canara Robeco Bluechip Equity Fund (G)	Large Cap	18.1%
DSP India TIGER Fund (G)	Sectoral Special Situations	26.9%
ICICI Prudential Equity & Debt Fund (G)	Aggressive Hybrid	21.4%
Motilal Oswal Midcap Fund (G)	Mid Cap	27.3%
Union ELSS Tax Saver Fund (G)	Tax Saving	20.1%
HDFC Hybrid Debt Fund	Conservative Hybrid	10.9%
Sundaram Equity Savings Fund	Equity Savings	12.0%
Quant Small Cap Fund (G)	Small Cap	38.3%
Quant Multi Asset Fund (G)	Multi Asset Allocation	27.3%

 

 

How do SIP Works

Mutual fund SIP plan are easy to understand when you understand it properly. SIP allows investors to start investing from as low as Rs. 500 to an unlimited amount at fixed intervals. The intervals of investment can be every month, quarterly, or weekly. SIPs returns on investments increase with time and provide better returns. SIP plan works in the same way as a piggy bank, where a child keeps putting small amounts in the piggy bank. Over time, he or she accumulates a large sum of money. This money is usually used to buy his or her favorite toy, book, or game. SIPs, on the other hand, instill investment discipline in investors and encourage them to save for their financial goals. The main difference between a SIP plan and a piggy bank is that the amount deposited in the SIP plan stays idle. SIP investments are invested in specific asset classes through the mutual fund. For instance, an investor can invest in multi cap fund, mid cap fund, direct plan, periodic and direct growth plan, duration fund, and balanced fund.
Through SIPs, an investor can also make lump sum investments. A Systematic Transfer Plan (STP) is used to accomplish this. Here, an investor has the option to put a large sum in a short-term or liquid fund and designate how often the money can be moved to an equity fund. 

SIPs can be redeemed either all at once or on a regular basis. The Systematic Withdrawal Plan (SWP), which is another name for the periodic withdrawal, allows investors to choose for regular payouts that are deposited into their bank accounts.

  

 

Top 5 Best Mutual Fund SIP to Invest in 2024

The following are the top SIP plans offered by mutual fund schemes:

•    Quant Active Fund-Direct -An open-ended equity fund called Quant Active Fund seeks to produce long-term capital growth. Investments in equity securities are made through this SIP plan, primarily in the material and chemical industries. 

•    Quant Large & Mid Cap Fund-Direct- On December 12, 2006, Quant Mutual Fund introduced the Quant Large and Mid Cap Fund, a multi-cap mutual fund scheme. The main goals of this top SIP plan are to provide long-term growth prospects and to seek capital appreciation by investing in a mix of large-cap and mid-cap companies.

•    Edelweiss Large and Mid-Cap Fund-Direct- An open-ended equity fund that makes investments in large-cap and mid-cap stocks is called the Edelweiss Large and Mid Cap Fund. This SIP plan's emphasis is on high-quality companies, and while its potential for strong growth adds attractiveness, liquidity management offers some stability.

•    Kotak Equity Opportunities Fund-Direct- Kotak Mahindra Mutual Fund offers an open-ended mutual fund called the Kotak Equity Opportunities Fund. With the potential for strong gains, this is the finest SIP plan that combines exposure to large and mid-cap stocks. However, before making an investment, carefully evaluate its greater risk profile and potential for volatility.

•    Mirae Asset Large and Mid Cap Fund-Direct- A well-liked SIP plan for investors looking to diversify into both large and mid-cap equities and achieve a balance between stability and growth potential is the Mirae Asset Large and Midcap Fund.

 

Factors to be consider before investing in the best mutual funds for SIP 2024

Prior to making a SIP investment, it is important to think about the following:

•    Investment objectives

Your financial objectives will determine the best kind of SIP for you. Debt funds, for example, might be more appropriate for short-term objectives whereas equity funds might be better for long-term growth.

•    Tolerance for risk:

The fund decision is influenced by your comfort level with risk. While lesser risk (debt funds) offer more stability, higher risk (equity funds) may yield better returns.

•    Horizon in time: 

Your investment's duration is very important. Greater risk can be tolerated over longer investment horizons because there is more time to recover from market downturns.

•    Performance of funds:

Analyzing a fund's historical performance might reveal information about its management and strategy, even though it is not a guarantee of future performance.

 

Advantages for Investing in best SIP Plans in 2024

Putting money into mutual fund SIPs has advantages of its own.

•Step-up in SIP- It is required of investors to raise their annual contributions in proportion to their income growth. It can be time-consuming to reapply for a SIP each year in order to increase the investment. 
Therefore Step-up SIP has been implemented. Investors have the option to select a percentage or an annual amount step-up at the time of SIP application. Selecting a step-up option can help you beat inflation, increase returns, and attain your financial objective more quickly.

•No market timing- SIPs can be initiated in both bull and bear markets. Timing the market before entering it with a SIP investment plan is not necessary. Market volatility has little effect on the investment. This is as a result of the investment being dispersed over multiple years. Higher returns are achieved by helping to average out the cost of the investment per unit.

•Fosters financial responsibility- As its name implies, SIP is extremely methodical. Once an investor starts a SIP, he or she doesn’t have to worry about anything. SIPs are mechanized. The bank account gets debited every month. Hence this inculcates financial discipline in an investor.

•Average investment cost- Investors can make cross-market cycle investments with SIPs. They receive a greater number of units in a declining market and less units during market peaks. When the investment is averaged out, the cost per unit decreases overall.

•Compounding power- Longer investment horizons allow for the power of compounding to help investors make more money.

•Improved budgeting- You can better organize their costs when you invest in SIP, which is one of its main advantages. They can spend the remaining funds guilt-free when they set up their SIPs at the beginning of each 

•Invest a small sum of money- With SIP investing, investors can make monthly investments as little as INR 500.

 

 

Why Invest through SIP?

The instillation of regular savings habits at tiny, regular intervals is one of the most common reasons people are drawn to SIP investing.

•Small-scale investment- Regular investments into SIPs can be made with as little as Rs. 500 or even Rs. 100. There are no restrictions on the amount of investment under the selected SIP plan, making it simple and affordable for most people.

• Average cost in rupees- Rupee cost averaging enables you to buy more units of the finest SIP plan during periods of low price and fewer units during periods of market expansion, as the stock market is known for its volatility. Investing in SIPs is advantageous for those who buy more units at a reduced cost as opposed to fewer units at a premium.

•Ability to execute many SIPs- Instead of placing all of your money on one or two funds, a SIP plan lets you invest in a range of assets. Investors looking for strong long-term growth can benefit greatly from choosing the right SIP plan and investments.

•Adaptability- You may choose when to start and stop your SIP with the best SIP options. SIP provides a high degree of flexibility at a low investment level.

 

How to Invest in Best SIP Plan 2024?

• Fill out the form: Fill out the Form by Clicking Here with all your important Info.
• Understand Your Needs:  Our Team will Contact you in sometime after you fill out the form & Understand your needs at the same time we will guide you to the best possible ways to invest your money

 

How to Invest 5000 to Get 75 Lakhs Return

In order to Invest 5000 to get 75 Lakhs Return you need to invest 5000 in a SIP monthly for 20 yrs assuming you get 15% of interest yearly your total investment will be 63,79,775 and the interest gain will be 75,79,785 so the total amount on your side after 20 yrs will be 75,79,775 & that's how you get 75 Lakhs by investing just 5000 on Monthly in SIP.

 

Wrapping up

The finest investment plans for accumulating a sizable corpus through gradual, long-term investments are provided by SIPs. Anybody, anywhere, can purchase and invest in these programs. SIP investment plans offer the advantages of rupee cost-averaging, diversified risk portfolios, and disciplined investing. Make wise decisions by selecting the top SIP plans covered in this post.