Selecting the Right SIP Plan for Your Investment Goals

When it comes to investing in mutual funds, a Systematic Investment Plan (SIP) is an excellent way to build wealth over the long term. SIPs allow you to invest a fixed amount regularly, ensuring the power of compounding and reducing the risk of investing a lump sum at the wrong time. As of now, SIP plans in MFs can start at just Rs 500 per month, making it accessible for a wide range of investors. To choose the right SIP plan, it's crucial to match it with your financial goals and time horizon.

Key SIP Plans for Different Investment Tenors

Here are some key SIP plans based on your investment tenure:

For a longer-term goal (15-20 years): You should consider small cap or mid-cap SIP plans. These funds are more volatile but have the potential for higher returns over the long term. For a medium-term goal (10-15 years): Multicap funds are a wise choice. They offer diversification across different market caps, reducing the risk and providing steady growth. For a medium-short term goal (5-10 years): Large cap plans or index funds are suitable. They provide stable growth and are less volatile compared to small and mid-cap funds. For a short-term goal (3-5 years): Hybrid funds are appropriate. They offer a balanced mix of equity and debt, balancing risk and returns. For a very short-term goal (less than 3 years): You should opt for liquid funds or ultra short-term debt funds. These options offer comparatively higher returns with some level of risk but are more liquid.

Best SIP Funds for New Investors

Based on market performance and consistent returns, some of the best SIP funds for new investors include:

HDFC Top 100 Fund Regular Growth DS Pareto Fund Ref Growth Franklin Prima Regular Growth

These funds have performed consistently over the past 18 annual return years, and the future return potential looks promising as well.

Benefits of SIP Investments

Apart from the financial benefits, SIP investments also impart financial discipline. Regular investments help in forming a habit of saving and investing, which is vital for long-term financial health.

Popular SIP Schemes

The mutual fund industry is witnessing a significant rise in SIP investments. AMFI data shows an increasing trend, with the SIP amount added in 2017-18 being 53% more than in FY17. In July, the industry added SIPs worth Rs 7554 crore, compared to Rs 4947 crore in the same month last year and Rs 3334 crore in July 2016. As of now, there are about 2.33 crore SIP accounts.

Popular Equity Schemes

Several equity schemes are popular among SIP investors, including:

Large Cap Funds Mid Cap Funds Multicap Funds Small Cap Funds Value Funds Equity Linked Saving Schemes (ELSS)

These schemes are in line with SEBI's guidelines on re-categorization of mutual funds. Various SIP schemes have shown strong returns over both five-year and ten-year periods.

While past performance is not a guarantee of future returns, it provides valuable insights into a fund's historical performance. For instance, if a SIP plan has consistently delivered strong returns over a decade, it's a good indicator of potential future performance. Nonetheless, always consider diversification and risk management in your investment strategy.

Contact for More Information

If you need more detailed information or assistance in selecting the right SIP plan, feel free to contact us. We also provide financial advice and assistance through our platform:

Mutual Funds Investing Financial Advisors India Email: harshdipgohil@