Top Mutual Funds for SIP to Invest Online in 2024

Systematic Investment Plan (SIP) is a method that empowers individuals to select a mutual fund aligned with their preferences and consistently invest a fixed amount over time.

Unlike traditional lump-sum investments, SIP adopts a gradual, bit-wise approach, accommodating investments ranging from small to large sums, tailored to individual preferences, needs, and financial objectives.

Mutual funds extend the choice of SIP, lump sum, or a combination of both investment options. A key attraction lies in the ability to make monthly investments of varying sizes through the best SIP in the market, providing investors with diversification and rupee cost-averaging advantages. Let us begin by learning all about SIP Mutual funds to invest in online!

What are the Best SIP Mutual Funds to Invest in?

Mutual funds are investment tools that combine funds from multiple investors to invest in various securities, aiming for increased returns. A Systematic Investment Plan (SIP) facilitates investing a fixed amount regularly, be it weekly, monthly, or quarterly. Opting for the India best SIP plan for investment in mutual funds can enhance returns over the long term. Let us now look at a top 10 SIP investment mutual funds list. 

List of Top 10 Best Mutual Funds for SIP

Here is an educational list of the top ranked SIP mutual funds in India in 2024:

Fund Name	AUM (in Crs)	Expense Ratio
Quant Active Fund	₹ 6,681	0.77%
Quant Large And Mid Cap Fund	₹ 1,296	0.75%
Quant Focused Fund	₹ 481	0.76%
Parag Parikh Flexi Cap Fund	₹ 48,294	2.0%
Edelweiss Large & Mid Cap Fund	₹ 2,437	0.47%
Kotak Equity Opportunities Fund	₹ 16,503	0.53%
Mirae Asset Large & Midcap Fund	₹ 30,284	0.62%
PGIM India Flexi Cap Fund	₹ 5,892	0.39%
DSP Flexi Cap Fund	₹ 9,462	0.74%
Canara Robeco Emerging Equities Fund	₹ 18,845	0.59%

Note: The data on the list of the best SIP plans to invest in, is from 24th January, 2024.  However, for real-time updates on stock prices and market trends, visit the smallcase stocks collection today!

Disclaimer: Please note that the above list is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing.

Top 10 Mutual Funds for SIP to Invest in 2024: An Overview 

If you have been wondering which SIP is best for 1 year, this list of overviews will definitely help! It will also help investors decipher which mutual fund is best for SIP. Here is a brief overview of the top MF for SIP in India in 2024:

Quant Active Fund

Quant Active Fund SIP Direct-Growth, a Multi Cap mutual fund by Quant Mutual Fund, has a 10-year and 11-month track record since its launch on January 1, 2013. As of September 30, 2023, the fund manages ₹6,681 Crores in assets. It falls within the medium-sized category for funds of its type. The expense ratio stands at 0.77%, exceeding the average for Multi Cap funds. It is one of the best mutual fund scheme for SIP. 

Quant Large And Mid Cap Fund

Quant Mutual Fund presents the Quant Large and Mid Cap Fund Direct-Growth, a significant player in the Large & MidCap mutual fund landscape. Launched on January 1, 2013, the fund boasts a decade of operational experience. It is also one of the top rated mutual funds for SIP in india in 2024. 

As of September 30, 2023, the fund manages assets totaling ₹1,296 Crores. With a medium-sized profile in its category, the Quant Large and Mid Cap Fund Direct-Growth maintains an expense ratio of 0.75%, aligning with industry standards for Large & Midcap fund

Quant Focused Fund

Quant Focused Fund Direct-Growth, a mutual fund scheme by Quant Mutual Fund, has thrived for over a decade since its launch on January 1, 2013. As of September 30, 2023, its assets under management (AUM) stand at ₹481 Crores, marking it as a medium-sized fund in its category. Sporting an expense ratio of 0.76%, this aligns with the standard fees charged by other Focused funds. It is also one of the best SIP for long term investment mutual funds on our list!

Parag Parikh Flexi Cap Fund

Parag Parikh Flexi Cap Fund Direct-Growth, a Flexi Cap mutual fund by Ppfas Mutual Fund, was initiated on May 13, 2013, making it a 10-year, 7-month-old scheme. As of September 30, 2023, its assets under management (AUM) stand at ₹48,294 Crores, categorizing it as a medium-sized fund. Notably, its expense ratio is 0.62%, lower than the majority of comparable Flexi Cap funds. It is also one of the best performing SIP mutual funds on our list!

Edelweiss Large & Mid Cap Fund

Edelweiss Mutual Fund presents the Edelweiss Large & Mid Cap Direct Plan-Growth, a thriving Large & MidCap mutual fund with a 10-year and 11-month track record since its launch on January 1, 2013. As of September 30, 2023, the fund boasts assets under management (AUM) totaling ₹2,437 Crores, positioning itself as a medium-sized fund in its category. Notably, it maintains a competitive edge with an expense ratio of 0.47%, lower than the industry norm for similar Large & Midcap funds. It is also one of the best mutual funds to invest now for SIP on our list!

Kotak Equity Opportunities Fund

Kotak Mahindra Mutual Fund presents the Kotak Equity Opportunities Fund Direct-Growth, a Large & MidCap mutual fund scheme. Launched on January 1, 2013, this fund boasts a decade of existence. As of September 30, 2023, its assets under management stand at ₹16,503 Crores, categorizing it as a medium-sized fund. With an expense ratio of 0.53%, it outperforms many counterparts in the Large & Midcap category, offering cost-effective management. It is also one of the best performing mutual funds SIP on our list!

Mirae Asset Large & Midcap Fund

Launched on January 1, 2013, the Mirae Asset Large & Midcap Fund Direct-Growth, a medium-sized mutual fund, has been operating for over 10 years. As of September 30, 2023, it manages assets worth ₹30,284 Crores. With an expense ratio of 0.62%, this fund is notably more cost-effective than many other Large & Midcap funds. It is also one of the best SIP plans for long term on our list!

PGIM India Flexi Cap Fund

PGIM India Mutual Fund offers the PGIM India Flexi Cap Fund Direct-Growth, a Flexi Cap mutual fund launched on 11th February 2015 and active for 8 years and 10 months. As of 30th September 2023, the fund manages assets worth ₹5,892 Crores, positioning it as a medium-sized fund in its category. Notably, it maintains a competitive expense ratio of 0.39%, lower than many other Flexi Cap funds. It is also one of the best long term mutual funds for SIP on our list!

DSP Flexi Cap Fund

DSP Flexi Cap Fund Direct Plan-Growth, a Flexi Cap mutual fund by Dsp Mutual Fund, was initiated on January 1, 2013, and has a decade-plus history. As of September 30, 2023, its assets under management (AUM) total ₹9,462 Crores, establishing it as a medium-sized fund in its category. With an expense ratio of 0.74%, DSP Flexi Cap Fund Direct Plan-Growth aligns closely with the standard charges of comparable Flexi Cap funds. It is also one of the best SIP plans for 10 years on our list!

Canara Robeco Emerging Equities Fund

The Canara Robeco Emerging Equities Fund Direct-Growth, a Large & MidCap mutual fund by Canara Robeco Mutual Fund, has been operational for 10 years and 11 months since its launch on January 1, 2013. As of September 30, 2023, the fund manages assets worth ₹18,845 Crores, positioning it as a medium-sized fund in its category. With an expense ratio of 0.59%, it boasts a cost advantage compared to many other Large & Midcap funds. It is also one of the best SIP plans for 5 years on our list!

How do the Best SIP to Invest in Work?

Investing becomes straightforward and flexible through a Systematic Investment Plan (SIP). With a good SIP to invest in, a set sum is automatically deducted from your savings or current account monthly or quarterly. This amount is then invested in your selected mutual fund. The investment corresponds to a specific number of units in the chosen mutual fund, determined by the fund’s purchase price or Net Asset Value (NAV) on the date of the transaction.

How to Invest in the Best SIP to Invest in?

Here’s a guide on how to invest in top mutual funds for SIP in 2024:

• Step 1: Register with a broker, financial advisor, or directly with a mutual fund house.
• Step 2: Start your SIP online by creating a new account or logging into an existing one.
• Step 3: Choose an investment platform like 5paisa and select from various investment plans. Once decided, click on “Invest Now”.
• Step 4: Specify the contribution amount, SIP tenure, and choose a start date.
• Step 5: Submit the form with all required bank account details.

Features of the Best SIP to Invest in

When seeking the best mutual fund to invest in for Systematic Investment Plans (SIP), certain features distinguish top performers.

• Consistent Historical Performance: Look for funds with a track record of consistent returns over various market cycles. Historical performance offers insights into a fund’s resilience.
• Low Expense Ratio: A lower expense ratio indicates cost efficiency. Funds with minimal fees allow investors to retain a higher share of their returns.
• Risk-Adjusted Returns: Assess the fund’s risk-adjusted returns, considering volatility in comparison to performance. A favorable risk-reward balance is key for long-term success.
• Fund Manager Expertise: The proficiency of the fund manager is pivotal. An experienced and skilled manager can navigate market nuances, adapting strategies for optimal results.
• Diversified Portfolio: A well-diversified portfolio mitigates risk. Funds spreading investments across sectors and asset classes offer a balanced approach to wealth accumulation.
• Liquidity: Opt for funds with sufficient liquidity. This ensures ease of buying or selling units, especially during market fluctuations.
• Transparent Communication: A fund with transparent communication about its strategy, holdings, and future plans fosters investor trust. Regular updates and clear reporting contribute to informed decision-making.

Who Should Invest in the Best SIP to Invest in?

Determining suitability for the best mutual funds for Systematic Investment Plans (SIP) depends on individual financial objectives and risk tolerance. SIPs are well-suited for those seeking a disciplined and gradual best SIP investment plan approach, allowing investors to enter the market with smaller amounts regularly.

Investors with a long-term horizon benefit most from the best SIP plans in India, as the strategy helps mitigate the impact of market volatility through rupee cost averaging. This approach is especially advantageous for individuals with stable income streams, as it enables consistent contributions.

Those aiming for financial goals like education, homeownership, or retirement can leverage the power of compounding through the best SIP options. It’s crucial to align investment choices with one’s risk profile and financial aspirations, ensuring a strategic fit for long-term wealth creation. Understanding that SIPs require patience and commitment, potential investors should evaluate their financial circumstances and investment goals before incorporating these best SIP plans for 1 year or above into their portfolio.

Factors to Consider Before Investing in the Best SIP to Invest in

Investing in Mutual Funds through SIP requires careful consideration of key factors:

• Align with Your Needs: Tailor your SIP investments to meet your financial goals. By starting with a modest monthly amount, you can ease the financial burden compared to a lump sum investment. Utilize online resources to explore top mutual funds in 2024.
• Diversify SIPs for Specific Goals: Establish individual monthly SIP plans for each goal to gain a comprehensive view of your investments. Identify the right investment strategy for each objective, considering the best mutual funds investment plans aligned with your timeframe. Use a SIP Calculator to project potentially highest return mutual funds based on monthly investment, expected return rate, and the investment period.
• Match Investments with Risk Tolerance: Your risk appetite, determined by factors like discretionary income and investment horizon, plays a pivotal role. Tailor your investments in specific asset classes to align with your unique risk tolerance.
• Regularly Assess Portfolio Performance: Review your SIP mutual fund portfolio every three to four years. This routine evaluation helps eliminate underperforming assets and boosts overall portfolio returns. Regular scrutiny ensures alignment with evolving financial objectives.

Risks Involved While Investing in the Best SIP to Invest in

Here are a few risks to consider while investing in in the best mutual funds for SIP in 2024:

• Market Fluctuations: The performance of the different types of SIPs is inherently linked to market movements. While historical data may indicate resilience, it’s essential to acknowledge the unpredictability of financial markets. Changes in economic conditions, global events, and interest rate fluctuations can impact the returns of even the best SIPs.
• Liquidity Risk: Despite being designed for liquidity, unexpected circumstances can affect the redemption process of the best mutual funds SIP. While the best MF scheme for SIP typically provides a mechanism for easy exit, extreme market conditions or specific fund-related issues can impact the ease of liquidating investments.
• NAV Volatility: Net Asset Value (NAV) represents the per-unit market value of a mutual fund on a specific date. NAV fluctuations are inherent in mutual fund SIP investments and can affect overall returns. It’s crucial for investors to comprehend how market-related risks can influence the NAV of the SIPs they are considering.
• Fund-Specific Risks: Each good mutual fund for SIP comes with its unique set of risks. These may include concentration risks, such as overexposure to a particular sector, or risks associated with changes in fund management. Understanding these specific risks requires a thorough reading of the fund’s offer document.

Benefits of Investing in the Best SIP to Invest in

Investing in Mutual Fund Systematic Investment Plans (SIPs) offers several advantages, making it a strategic choice for investors. Here’s a breakdown of key benefits:

• SIP Step-Up: Instead of going through the hassle of applying for a new SIP each year to increase investments, investors can opt for the best SIPs to invest in as a step-up. This feature allows them to set a percentage or amount increase in their investment annually, contributing to faster goal achievement and effective inflation beating.
• Market Timing Irrelevant: The best SIP for 1 year or more eliminate the need to time the market, whether it’s bullish or bearish. The investment’s immunity to market volatility arises from spreading it across multiple years. This, in turn, averages out the investment cost per unit, leading to enhanced returns.
• Financial Discipline: True to its name, when you invest in SIP, it fosters financial discipline. Automated monthly debits from the bank account alleviate investor concerns, ensuring a systematic and worry-free investment approach.
• Averaging Cost of Investment: SIP in mutual funds facilitate investment across market cycles, providing fewer units during market highs and more units during downturns. This strategy effectively lowers the overall cost per unit through averaging.
• Power of Compounding: Embracing longer investment horizons through SIPs maximizes returns by harnessing the power of compounding.
• Minimal Initial Investment: Different type of SIPs empower investors to start SIP with as little as INR 500 per month, making it an accessible and inclusive investment option.

How to Choose the Best SIP to Invest in?

Choosing the right mutual fund for your flexible SIP investment plans amidst over 5,500 options in India can be challenging. To navigate this, consider the following key factors:

• Investment Objective: Determine your investment goal, whether short-term (e.g., buying a car) or long-term (e.g., children’s education or retirement). Align your investment with your risk tolerance.
• Fund House Knowledge: Thoroughly research the fund house responsible for managing your money. Evaluate the number of schemes they offer, their investment approach, and the availability of innovative products.
• Performance Analysis: Assess the fund’s historical returns over various periods and compare them with benchmark indices. Perform a web search for this information.
• Expense Ratios and Loads: Even small costs like expense ratios and loads can significantly impact long-term returns. Choose SIP schemes investment plans with lower or no load prices and minimal expense ratios. Find this information in scheme documents or fund fact sheets.
• Fund Manager’s Experience: Investigate the fund manager’s track record, especially during market downturns. A seasoned fund manager with expertise across investment categories is crucial for efficient portfolio management and higher returns.

What are the Returns on the Best SIP to Invest in & How are they Calculated?

Calculating returns on the best mutual fund for SIP returns involves a straightforward yet insightful methodology. The most common metric is the Compound Annual Growth Rate (CAGR), which accounts for the compounding effect over time. It considers the initial investment, subsequent inflows through the best SIP funds, and the final value of the investment.

To calculate CAGR, use the formula:

CAGR =(Ending balance/beginning balance)^1/n – 1

Another crucial indicator is the Total Return, factoring in capital gains, dividends, and interest. This comprehensive measure offers a holistic view of the fund’s performance.

Investors should also analyze the Rolling Returns, providing insights into a fund’s consistency across various holding periods. It aids in assessing performance under different market conditions.

Understanding these metrics equips investors with a transparent view of how returns on the best SIP to invest are derived, fostering informed decision-making in the dynamic landscape of mutual fund investments.

Taxability on the Best SIP to Invest in

Understanding the tax implications of investing in the best mutual funds for SIP is crucial for informed decision-making. Mutual funds in SIPs are subject to capital gains tax. Short-term capital gains (STCG) tax applies to profits made on investments held for less than one year. In contrast, long-term capital gains (LTCG) tax is applicable for investments held for more than one year.

Equity-oriented best mutual funds in India for SIP are subject to different tax rates than debt-oriented funds. As of now, equity funds attract a 15% LTCG tax on gains exceeding Rs 1 lakh, while debt mutual fund SIP plans are taxed at 20% with indexation benefit.

Investors should also be aware of the tax-saving implications of Equity-Linked Saving Schemes (ELSS), which offer tax deductions under Section 80C of the Income Tax Act. While SIPs provide a systematic approach to investing, understanding the tax landscape ensures a comprehensive evaluation of the overall returns on investment. Always consult with a tax advisor for personalized guidance tailored to your financial situation.

To Wrap it Up…

Choosing the right mutual fund for your SIP investment among over 5,500 available in India may seem daunting, but it’s crucial for financial success. Explore the SIP plans listed and use the smallcase SIP calculator to analyze returns. Don’t forget to assess factors like fund house reputation, historic returns, NAV, and risk before making a decision. Explore additional SIP plans on our website for a comprehensive view.

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