Best SIP Mutual Funds: Benefits, List of Top Investment Plans & How To invest
  • Personal
  • Business
  • Corporate
  • Private Banking
  • Privy League
  • NRI Services
  • Investors
  • Personal
  • Business
  • Corporate
  • Private Banking
  • Privy League
  • NRI Services
  • Investors

The SIP entails selecting a mutual fund that aligns with your financial goals and consistently investing a fixed sum of money into it. Unlike the conventional lump-sum investment approach, SIP adopts a bit-wise, gradual investment philosophy. This method empowers investors with flexibility, allowing them to commit varying sums of money according to their preferences, requirements, and financial objectives.

This systematic approach minimises risk and offers a means to harness the potential of the financial markets, even for those starting with modest amounts. Despite these advantages, choosing which SIP mutual funds are the best is a bit tricky. Well, this is where this post will help you. It explores some of India's best SIP mutual funds and how to invest in them.

Benefits of Investing in the Best SIP Mutual Funds

Investing in the best SIP (Systematic Investment Plan) mutual funds offers several benefits. Some are:

1. Convenience

With a SIP, you can invest small amounts of cash at regular intervals, making it more straightforward to save and contribute. For instance, assuming that you put ₹5,000 monthly in an SIP with an expected return of 12%, you can collect ₹ 10 lakhs for more than 10 years.

2. Reduced Risk

The best SIP plans assist with reducing the risk of investing in the stock market by averaging the expense of your investments over the long tenure. This implies that you purchase more units when the market is down and fewer units when the market is up, which decreases the overall risk of your investment.

3. Financial Planning

SIPs help you plan your finances better by allowing you to invest small amounts of money at regular intervals. This makes saving for long-term goals like retirement or your child’s education easier.

4. Financial Discipline

The best SIP plans help you develop financial discipline by making it easy to save and invest regularly. By managing a proper sum consistently, you can foster a propensity for saving and contributing to investing while achieving your financial goals.

Read Also : एनएवी क्या है?

Best SIP Mutual Fund Plans to Invest in India

Some of the best mutual funds for SIP are as follows:

Fund Name AUM Value Minimum Investment Returns (5-year CAGR)
Parag Parikh Flexi Cap Fund ₹40,760 Crs ₹1,000 Crs +22.39%
Kotak Equity Opportunities Fund ₹15,013 Crs ₹500 Crs +20.7%
Mirae Asset Emerging Bluechip Fund ₹28,439 Crs ₹1,000 Crs +20.33%
Edelweiss Focused Equity Fund ₹2,197 Crs ₹2,197 Crs +19.88%
Canara Robeco Emerging Equities Fund ₹18,063 Crs ₹1,000 Crs +18.31%

How to Invest in the Best SIP Mutual Fund?

Investing in the best mutual funds for SIP is straightforward and can assist you with accomplishing your monetary objectives. The means are as follows:

Step 1: Identify the Right Mutual Fund

Visit the Asset Management Company's (AMC) website and choose a mutual fund plan that matches your financial goals and risk tolerance.

Step 2: Prepare essential documents in advance

Maintain a digital copy of your photos, address proof, PAN card, and other bank details.

Step 3: Complete e-KYC

Complete your e-KYC using any AMC, RTA, or CAMS KRA websites, online trading app, or mobile app.

Step 4: Register on AMC's Website

Create an account on the website of your preferred AMC.

Step 5: Select A Mutual Fund Scheme

Select the appropriate mutual fund scheme and determine the SIP amount as well as the scheme plan (regular, direct, growth, or dividend distribution). To determine how much you wish to invest, utilise the fund house's SIP calculator.

Step 6: Select Investment Frequency and Mode of Payment

Choose the frequency of your investment (weekly, monthly, quarterly, or yearly) and the start date. Then choose a payment method: auto-debit via one-time mandate (OTM), online banking, or NEFT/RTGS. After you provide all of these data, AMC will send you an email and SMS confirming your investment.

Read Also:
How to Invest in SIP

List of the Best SIP Mutual Funds for 2023

In 2023, there are several top-performing SIP mutual funds. These are the best SIP plans in India are as follows:

Category Fund Name 5-Year Returns
Large Cap Kotak Equity Opportunities Fund 16.71%
Canara Robeco Bluechip Equity Fund 16.68%
Nippon India Large Cap Fund 16.27%
Mid Cap ICICI Prudential Focused Equity Fund 15.60%
Nippon India Growth Fund 22.95%
Kotak Emerging Equity Fund 21.73%
Flexi Cap Parag Parikh Flexi Cap Fund 22.39%
HDFC Flexi Cap Fund 17.66%
Kotak Flexi Cap Fund 14.83%
Tax Saving DSP Tax Saver Fund 18.06%
Kotak Tax Saver 17.69%
Mirae Asset Tax Saver Fund 18.34%

Factors to Consider Before Investing in the Best Mutual Funds for SIP

1. Investment Goals and Time Horizon: Determine your financial objectives, whether it's long-term wealth creation, retirement planning, or a short-term goal. The investment horizon should align with these goals. Equity mutual funds are typically suited for long-term goals, while debt funds are more suitable for short-term needs.

2. Risk Tolerance: Assess your risk tolerance. If you're comfortable with market fluctuations and are willing to accept higher risks for potentially higher returns, you may opt for equity funds. If you have a lower risk appetite, debt or hybrid funds could be more appropriate.

3. Fund Selection: Research and choose mutual funds that align with your goals and risk profile. Look for consistent fund performance, experienced fund managers, and low expense ratios. Diversifying across asset classes can help manage risk.

4. Costs and Expenses: Consider the total expense ratio (TER) of the mutual fund. Lower expenses can significantly impact your returns over the long term. Look for funds with competitive TERs and no hidden charges.

Read Also:
What is TER?


SIP mutual funds in India offer a diverse range of opportunities for investors. Choosing the best-performing funds based on your financial goals and risk tolerance can pave the way for a secure future. So, start your investment journey with top mutual funds for SIP today.

Latest Comments

Leave a Comment

200 Characters

Read Next

Canara Robeco Mutual Fund - Latest MF Schemes, NAV, Performance & Returns


Here’s a case for investing in International Funds

Portfolio diversification has been a prudent investment strategy.


7 rules to keep in mind while investing for your children

Every parent wants to build a secure future for their child. With the help of a good finance professional and strong financial discipline, it is easy…

Load More


Disclaimer: This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein. Tax laws are subject to amendment from time to time. The above information is for general understanding and reference. This is not legal advice or tax advice, and users are advised to consult their tax advisors before making any decision or taking any action. Mutual Fund investments are subject to market risks, read all scheme related documents carefully.