Consider putting your money into a mutual fund basket based on your risk tolerance and investment size. Many investors are continually striving to build a mutual fund portfolio to help them achieve their long-term objectives.
Most investors, however, do not come across such portfolios. It might be time-consuming to put together several schemes based on the risk profile. Regular assessments and corrective actions are also too time-intensive for many investors.
If you invest Rs 10,000 every month in the top SIPs, you may quickly build a corpus of Rs 3.5 crore over the course of 30 years, presuming conservative returns of 12% CAGR. If you increase your SIP amount to Rs 15,000, your corpus will be worth Rs 5.29 crore after 30 years, assuming the same 12 percent compounded return. This is why it’s so important to start small with the greatest SIPs.
Why should you invest in the top 10 mutual funds?
- SIPs allow for a more disciplined approach to mutual fund investing.
- Systematic investment aids in funding future dreams and important goals such as retirement, a child’s education, and the purchase of a home, car, or other assets.
- SIPs enable young investors to take advantage of compounding by allowing them to invest in small amounts over time.
- Systematic Investment Plans help to reduce the risk of stock market swings.
How to invest in SIPs?
Investing money is an art form that, when done well, can yield incredible results. Now that you’ve learned about the best SIP plans, it’s time to learn how to invest in them. The steps to invest in SIP are outlined below.
Examine your financial objectives
Select a SIP investment that meets your financial objectives. For example, if your aim is short-term (for example, if you want to buy a car within the next two years), Debt Mutual Funds are a good choice. If your goal is long-term (such as retirement planning), equity mutual funds are the way to go.
Decide on an investment timetable
This will ensure that you invest the appropriate quantity of money for the appropriate period.
Determine how much you want to invest each month
Since SIP is a monthly investment, you choose the amount you can invest every month without fail. You can also use a sip calculator or a SIP return calculator to determine the appropriate amount for your aim.
Decide on the best SIP plan for you
Consult a financial counsellor or choose from various Best SIP Plans offered by multiple online investing platforms to make an informed investment decision.
Best Mutual funds to invest in 2022
- Nippon India Liquid Fund
- SBI Liquid Fund
- HDFC Liquid Fund
- IDFC Banking & PSU Debt Fund
- HDFC Money Market Fund
- Motilal Oswal Focused 25 Fund
- Mirae Asset Large Cap Fund
- Axis Focused 25 Fund
- Invesco India Growth Opportunities Fund
- Mirae Asset Focused Fund
The phrase “the early bird catches the worm” holds true for SIPs since you can reap significant benefits by getting started early. An important feature of a SIP is that it is simple to administer; your money would be automatically deducted from your bank account every month and invested in a mutual fund scheme.
There is no need to time the market when you use a SIP for your investing requirements. There’s also a methodical approach to investing. Furthermore, you can benefit from two effective investment strategies: compounding and rupee cost averaging.