If investing in the stock market is your goal, then mutual funds may just be the best way to kick things off. Mutual fund investments essentially pool the funds from multiple investors and invest them in a basket of different stocks. And since these funds invest in multiple stocks from different sectors and classes, they reduce risk by providing some much-needed diversification.
And another major advantage that you get to enjoy is the fact that you can invest in mutual funds through a Systematic Investment Plan (SIP). SIPs are a great way to dollar-cost average your investments. This means that you will be buying more units of the fund when the price is low and fewer units when the price is high. This can help you to reduce your overall investment risk. You can use a mutual fund calculator to see how your investment would have performed if you had invested through a SIP, and to compare it to other investment methods. An SIP allows you to invest a fixed sum of money each month at a given date instead of a lump sum investment. By investing regularly in mutual funds, you can successfully negate volatility, reduce risk, decrease the cost of ownership, and earn more stable returns in the long run.
Therefore, if you’re planning on investing in mutual funds in the near future, here are a few of the top mutual funds SIPs that you should definitely consider investing in.
For this list of SIPs in the best mutual funds, we’re going to take up 5 of the top-performing ones across multiple classes such as large cap, mid-cap, and index funds. So, let’s begin.
Among the top mutual funds SIPs of the year 2022 is the Axis Bluechip Fund (Growth). As the name itself signifies, this mutual fund invests primarily in Blue Chip companies such as Infosys Limited, Bajaj Finance Limited, and ICICI Bank Limited, being a few of them. This mutual fund, over the last 3 to 5 years has managed to generate stable returns of around 19.6 to 19.7%.
Another one of the best mutual fund investments that you can consider making is in the ICICI Prudential Bluechip Fund (Growth). Again, the mutual fund concentrates in investing in Blue Chip companies that provide stable returns and good capital appreciation ability. The returns generated by this fund over the last 3 years has been around 18.1%, with just the last one year generating as much as around 25.9%.
If you’re an aggressive and high-risk investor looking for an investment option that can provide you with stellar returns, then the mid-cap mutual fund segment may just be what you’re looking for. And the Nippon India Growth Fund is one such mutual fund that invests in the mid-cap segment. The fund has an excellent track record of over 27 years, with the last three years generating an average return of around 25.3%.
On the other. hand, if you’re a slightly more conservative investor looking for maximum diversification and stable returns, then investing in index funds may be the perfect option for you. The UTI Nifty Index Fund, especially, consists of the same basket of stocks that you can find under the Nifty 50 index. That’s not all. Despite being a passively managed fund, it has been able to outperform several actively managed funds with an average 3-year of around 24% and an average 5-year return of around 21.4%.
And there you have it - top mutual funds SIPs that you can consider investing in the year 2022. That said, here’s something that you should know. Since all of these mutual fund investments invest a major portion of their funds in the equity segment, the risk tends to be far higher than other investment options. So, that’s something that you should take into account before starting an SIP in the best mutual funds.
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