Mutual fund investments have been significantly increased, thanks to SIPs. A Systematic Investment Plan, or SIP is one of the best systematic investment plans, allowing people to begin investing with small amounts. Over time, these investments help in long-term savings, allowing investors to accumulate considerable wealth. Moreover, SIPs encourage disciplined investing. In this blog, you will find out the best systematic investment plan to invest in 2024 and how to choose an SIP.
Top SIP to Invest in 2024
SIPs are the top investment option right now because they are easily affordable and accessible. So, here are the five SIPs that you can consider to invest in 2024:
HDFC Mid-Cap Opportunities Fund
HDFC Mid-Cap Opportunities Fund is a mid-cap fund that invests 93.21% in Indian equities. This fund is focused mainly on mid-cap stocks (52.58%) while also having smaller allocations made to large-cap and small-cap stocks. Thus, this fund is appropriate for individuals who are comfortable with high levels of risk regarding their investments.
Parag Parikh Flexi Cap Fund
The Parag Parikh Flexi Cap Fund is one flexible cap fund that allocates about 70.63% of its resources or portfolio assets into domestic equities most of which is an allocation composed of 48.07% large caps, 5.8% mid-caps, and 7.03% small caps. In addition, it also has investments worth only 0.31% in debts, mostly in government bonds which represent 0.01%. Low-risk securities make up 0.3% of the portfolio.
ICICI PruBluechip Fund
The five-year horizon investors with moderate to high-risk tolerance are suited for ICICI PruBluechip. It invests 91.39% in equities, 81.37% in large caps, and mid-caps take up 4.85% while the rest goes into small caps. More importantly, government securities constitute 0.47% of the investment into debt.
HDFC Flexi Cap Fund
HDFC Flexi Cap is a flexible cap fund with 88.67% invested in domestic equities. It includes 62.54% in large caps, 6.2% in mid-caps, and the remaining 3.65% in small caps. This high-risk fund may be suitable for investors who want to earn high returns over five years.
Nippon India Small Cap Fund
The Nippon India Small Cap Fund is one of the leading small-cap funds in the Indian mutual fund industry. About 96.42% of its investment is in equity shares, comprising 55.41% small-cap stocks, 9.86% mid-cap stocks, and 5.83% large-cap investments. The high risk associated with this fund stems from its asset allocation strategy. However, it presents an opportunity for an extremely high return on investment.
How to Select the Right SIP?
SIPs allow you to invest in a disciplined manner. However, they also possess some risk as they are mutual funds. So, here are some points that you should consider while choosing the appropriate SIP and making informed decisions.
Identify Your Goal
Before you begin investing in SIPs, it’s important to decide on a long-term or short-term basis. This way, the allocation of funds is properly done and there is discipline in your investments. Thus, ensuring stable returns.
Invest in Diversified Funds
Depending on your goal and investment horizon, you can choose from three subcategories: equity funds, debt funds, or liquid funds. Liquid funds are recommended for short-term terms. Whereas, long-term investments highlight equity funds which are advised for seven years or more.
Choose a Suitable Plan Type
The expense ratios of direct schemes are lower since they do not include distribution and trial fees, yielding greater returns. However, regular plans need you to invest through an advisor or broker and this leads to lower returns because of additional charges.
Research Fund Performance
Before you invest in them, examine how different funds have performed over time. This will allow you to compare the various options available and select one that matches your aspirations.
Consult a Financial Advisor
If you lack expertise in selecting an SIP, seeking advice from a financial advisor may be helpful. They may guide you toward finding the ideal SIP that aligns with your aspirations and also recommend methods for investing over an extended duration.
Conclusion
SIPs or Systematic Investment Plans are one of the preferred methods to invest in mutual funds. They have a low investment requirement starting at Rs.500. They encourage investing regularly. This helps people save for their future plans. However, finding a trustworthy investment portal can be difficult. For example, you need to consider checking out different platforms to identify a dependable SIP app which is known for its credibility and has great customer service. Always opt for a reliable app that allows you to explore various mutual funds and choose the best one that suits your needs.