Systematic Investment plans for new Investors in 2021 - Motilal Oswal
Systematic Investment plans for new Investors in 2021 - Motilal Oswal

Systematic Investment plans for new Investors in 2021

Systematic Investment Plans (SIPs) are convenient for new investors because they help inculcate the habit of disciplined savings. If you’re just getting started with creating your investment portfolio in 2021, you are no doubt looking for the best investment plan for your specific needs.

Fortunately, SIPs are investment plans that suit everybody. With an SIP, you only have to invest small amounts periodically. So, it’s a great option if you do not have any lump sum amount to start investing right away. 

So, what are the Systematic Investment Plans (SIPs) available for new investors in 2021? Let’s see what your options are.

SIPs in equity funds

Equity funds are among the best investment options for investors who are open to taking risks. They offer market-linked returns because investors’ funds are invested in the equity market. Even within this category, you have different types of equity funds, as explained below. You can set up a Systematic Investment Plan for any of these types of equity funds.

  • Large cap funds: These equity funds invest in the stocks of large cap companies, most of which may not have great growth potential, but offer stabler returns. 
  • Mid cap funds: Mid cap funds have more growth potential than large cap funds, but their returns may be more modest. 
  • Small cap funds: These funds invest in the equity of small cap companies. Since their share prices are often volatile, they may have the potential to offer high returns.

SIPs in debt funds

Debt funds are simply mutual funds that invest in debt instruments available in the financial market. Some common examples of debt instruments include government securities, bonds, debentures, and other fixed income instruments. The advantage of debt funds is that they come with much lower risk, making them ideal for conservative investors.

If this sounds like you, then you can set up an investment plan wherein you invest systematically in the debt funds of your choice. Make sure you perform adequate research and invest in the funds that are right for you.

SIPs in gold funds

There are also mutual funds that invest directly or indirectly in gold. The price movements in the yellow metal provide excellent opportunities for investors who are looking to make good returns on their investment. And gold mutual funds help investors do this without having to purchase the commodity and go through the hassle of physical storage. 

You can make use of a Systematic Investment Plan to invest in gold via gold mutual funds. By investing small amounts periodically, you can even get the advantage of rupee cost averaging.

Conclusion

So, there are many different SIPs for new investors. You can buy SIP online and start your investment with as much as just Rs. 500. And the earlier you invest, the more time your money has to grow.

Related Blogs: 5 reasons for the sharp growth in SIPs in India | Tax implications on a Mutual Fund and SIPs | SIP and the power of compounding | If you're investing in SIP, make Mutual Funds SIP calculator your best friend

Ready to invest with us?

Share your Mobile Number with us and get started

  • +91|
scrollToTop