Finding the Best SIP Plan to Invest
sharmamanya
Finding the Best SIP Plan to Invest
Here, we explain how Systematic Investment Plans (SIPs) can be a good approach for investing in market-linked assets. It emphasises the importance of choosing the right SIP plan to build a substantial corpus over time. Optimal returns, low expense ratios, and consistent performance characterise the best SIP plan to invest in 2024. The post offers a curated list of mutual fund schemes and critical details to help readers make informed decisions.
Best SIP Plans in India in 2024
Before delving into the specifics, let’s take a glance at some of the top-performing SIP plans in 2024:
Returns
| Fund Name | 5 Years | 10 Years | RSI |
| Active Fund QUANT | 27.62% | 23.96% | 21.08% |
| Large and Mid-Cap Fund QUANT | 23.27% | 22.69% | 19.64% |
| Flexi Cap Fund PARAG PARIKH | 23.90% | 20.22% | 20.15% |
| Large and Mid-Cap Fund EDELWEISS | 20.32% | 18.01% | 16.76% |
| Equity Opportunities Fund KOTAK | 20.22% | 18.98% | 17.44% |
| Large and Midcap Fund MIRAE ASSET | 21.11% | 24.56% | 23.01% |
| Flexi Cap Fund PGIM INDIA | 21.48% | – | 15.13% |
| Flexi Cap Fund DSP | 19.48% | 17.73% | 15.82% |
| Emerging Equities Fund CANARA ROBECO | 18.91% | 22.92% | 20.84% |
| Focused fund SUNDARAM | 18.22% | 16.55% | 15.16% |
Details of Mutual Fund Schemes for Best SIP Plans
Now, let’s explore the key details of some of the best SIP plans in Mutual Fund Schemes:
- Quant Active Fund – Direct
- Investment Type: Multi Cap (mix of large, mid & small companies)
- Fund House: Quant Mutual Fund
- Age: 10 years 11 months (launched in Jan 2013)
- Minimum Investment: Rs. 1000 SIP, Rs. 5000 lump sum
- Expense Ratio: 0.77% (slightly higher than average)
- NAV (Net Asset Value): Rs. 623.05 (as of 05 January 2024)
- AUM: Rs. 6,681 Crores (medium-sized fund)
- Benchmark: Nifty 500 Multicap 50:25:25 TRI
- Quant Large and Mid Cap Fund – Direct
- Type: Large & Mid Cap (focuses on larger and mid-sized companies)
- Fund House: Quant Mutual Fund
- Launched: January 2013 (10 years 11 months old)
- Minimum Investment: Rs. 1000 SIP, Rs. 5000 lump sum
- Expense Ratio: 0.75% (competitive within a category)
- AUM: Rs. 1,296 Crores (medium-sized fund)
- NAV (Net Asset Value): Rs. 101.15 (as of 05 January 2024)
- Benchmark: Nifty Large Midcap 250 TRI
- Parag Parikh Flexi Cap Fund – Direct
- NAV: Rs. 70.46 (as of 05 January 2024)
- 5-year return: 23.81%
- 10-year return: 20.16%
- AUM: Rs. 48,294 crores (as of 05 January 2024)
- Fund house: Parag Parikh Asset Management Pvt Ltd
- Expense Ratio: 0.62% (Direct)
- Minimum SIP amount: Rs. 1,000
- Fund manager: Raj Mehta, Rajeev Thakkar, and Rukun Tarachandani
- Edelweiss Large and Mid Cap Fund – Direct
- NAV (as of Jan 5, 2024): Rs. 80.09
- SIP Minimum: Rs. 500
- Expense Ratio: 0.47% (Direct)
- 5-Year Return: 20.32% (annualised)
- 10-Year Return: 18.19%
- AUM: Rs. 2,437 Cr
- Fund Manager: Trideep Bhattacharya
- Kotak Equity Opportunities Fund – Direct
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- Type: Multi-cap equity fund
- Fund House: Kotak Mahindra Asset Management Company Ltd
- Fund Manager: Arjun Khanna and Harsha Upadhyaya
- NAV: Rs. 304.45 (as of 05 January 2024)
- SIP Amount: Rs. 500 minimum
- Benchmark: NIFTY Large Midcap 250 TRI
- Expense Ratio: 0.53% (Direct)
- Performance:
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- 5 Year Returns: 20.25%
- 10 Year Returns: 19.15%
How to Choose the Best SIP Plan?
- Define Your Investment Goals
Clearly outline your financial goals, whether it’s wealth creation, buying a house, or planning for retirement. Different goals may require different SIP plans.
- Assess Risk Tolerance
Understand your risk appetite. Some SIP plans may be more volatile but offer higher returns, while others prioritise stability over potential growth.
- Research Fund Performance
Look beyond historical returns. Assess the consistency of a fund’s performance, its portfolio, and how well it aligns with your investment strategy.
- Analyse Expense Ratios
Lower expense ratios mean higher returns for investors. Compare expense ratios across SIP plans to ensure cost-effectiveness.
- Consider Fund House Reputation
Choose SIP plans from reputable fund houses with a track record of managing funds effectively and transparently.
- Check Fund Manager Expertise
Evaluate the experience and expertise of the fund manager. A skilled fund manager can significantly impact the performance of a SIP plan.
- Diversify Your Portfolio
Opt for SIP plans that provide diversification across sectors and market caps. This helps mitigate risks associated with concentration in specific stocks or industries.
Conclusion
Investing in SIP plans is a smart and organised way to build your wealth. It involves having a demat account, choosing the right mutual fund schemes that fit your financial goals and investing in them regularly. By staying updated and reviewing your investments from time to time, you can make necessary changes to ensure long-term success. And if you need help figuring out where to start or need personalised advice, you can always consult a financial advisor. So, go ahead and start investing smartly towards your financial future!
