A Systematic Investment Plan (SIP) is a process of investing in mutual funds. It is a substitute for the traditional lump-sum method of investing. Through the process of a systematic investment plan (SIP) the investors can invest a pre-determined amount in the mutual fund scheme at a specific interval of time.
How does SIP work?
When you invest through a SIP, you invest a fixed sum of money in a given period. This amount lets you purchase a certain number of fund units. If you continue to do this for a long time, you get to invest in the fund during the highs and lows. In other words, you don’t need to time the market to make your investments. Market timing can be a risky proposition as one can invest at the wrong time. SIP investments remove this factor of unpredictability.
Having decided on the investment tenure and frequency, you can choose to automate your investments. Give a standing instruction to your bank to transfer the amount directly from your bank account into the mutual fund SIP of your choice, on a fixed date every month (or quarter), etc.
Best SIP Plans for the Year 2022
Fund Name Monthly Investment 1 Year Returns 3 years Return 5 years Return Axis Bluechip Fund 5000 52.52% 20.79% 18.16% Axis Focused 25 Fund 5000 61.91% 20.94% 19.03% DSP Equity Fund 5000 31.90% 14.69% 14.36% Franklin India Focused Equity Fund 5000 80.39% 22.68% 15.78% HDFC Balance Advantage Fund 5000 55.65% 14.39% 13.47% ICICI Prudential Bluechip Fund 5000 59.24% 19.41% 15.69% Kotak Standard Multicap Fund 5000 48.94% 14.15% 12.51% Motilal Oswal Focused 25 Fund 5000 40.77% 20.01% 14.34% Nippon India large Cap Fund 5000 69.69% 15.55% 14.48% TATA India Consumer Fund 5000 49.09% 26.81% 19.06%