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Best Mutual Funds for SIP in 2024

Best SIP Mutual Funds - Consider the best performing sip mutual funds to invest in 2024 with Scripbox.com. Find the list of best sip mutual funds in India on the basis of Returns, Latest Nav, Ratings, Performance etc.

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Best Mutual Fund for SIP to Invest in 2024

Fund NameCategory5Y Returns
DSP ELSS Tax Saver Fund (G)
DSP ELSS Tax Saver Fund (G)
Tax Saving19.5%
HDFC Large and Mid Cap Fund (G)
HDFC Large and Mid Cap Fund (G)
Large & Mid Cap21.2%
Mirae Asset ELSS Tax Saver Fund (G)
Mirae Asset ELSS Tax Saver Fund (G)
Tax Saving19.2%
ICICI Prudential Bluechip Fund (G)
ICICI Prudential Bluechip Fund (G)
Large Cap18.0%
ICICI Prudential Value Discovery Fund (G)
ICICI Prudential Value Discovery Fund (G)
Parag Parikh Flexi Cap fund (G)
Parag Parikh Flexi Cap fund (G)
Flexi Cap22.8%
HSBC Small Cap Fund Fund (G)
HSBC Small Cap Fund Fund (G)
Small Cap24.6%
DSP India T I G E R Fund (G)
DSP India T I G E R Fund (G)
Sectoral / Thematic - Special Situations25.8%
ICICI Prudential Equity & Debt Fund (G)
ICICI Prudential Equity & Debt Fund (G)
Aggressive Hybrid20.5%
HDFC Mid Cap Opportunities Fund (G)
HDFC Mid Cap Opportunities Fund (G)
Mid Cap23.7%
Templeton India Value Fund (G)
Templeton India Value Fund (G)
Nippon India ELSS Tax Saver Fund (G)
Nippon India ELSS Tax Saver Fund (G)
Tax Saving15.0%
Edelweiss Balanced Advantage Fund (G)
Edelweiss Balanced Advantage Fund (G)
Dynamic Asset Allocation Or Balanced Advantage14.4%
ICICI Prudential Dividend Yield Equity Fund (G)
ICICI Prudential Dividend Yield Equity Fund (G)
Dividend Yield22.0%
Motilal Oswal Midcap fund (G)
Motilal Oswal Midcap fund (G)
Mid Cap26.8%
Tata Balanced Advantage Fund (G)
Tata Balanced Advantage Fund (G)
Dynamic Asset Allocation Or Balanced Advantage12.8%
Motilal Oswal Large and Midcap Fund (G)
Motilal Oswal Large and Midcap Fund (G)
Large & Mid CapNA
Tata Small Cap Fund (G)
Tata Small Cap Fund (G)
Small Cap26.9%
ICICI Prudential Regular Savings Fund (G)
ICICI Prudential Regular Savings Fund (G)
Conservative Hybrid9.6%
ICICI Prudential Infrastructure Fund (G)
ICICI Prudential Infrastructure Fund (G)
Sectoral / Thematic - Infra27.4%

Note : *NA implies that Fund is relatively new. Not enough data available

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A systematic investment plan is a disciplined approach towards investment. It thrives to install a habit of savings accompanied with investment in retail investors. You can start a SIP in any mutual fund. You only need to find the best SIP mutual fund that suits your investment goals. While the suitability of any fund to the investor’s goals must be the primary factor, there are other factors as well. The factors such as risk, historical returns, future potential, NAV, AUM, tax, and exit load help you in determining the best SIP mutual fund.

What are Best SIP Investment Plans?

A systematic investment plan (SIP) is the most popular approach to investment among investors in m. SIPs allow investing a fixed amount periodically in a mutual fund scheme and eliminated the need to time the market.

Mutual fund investments have become comfortable. By investing in mutual funds, investors gets an added benefit of expert assistance of a fund manager. The fund manager is responsible for managing and operating the fund and its investments on various assets 

One of the most significant benefits of the SIP plans is that it ensures the investor gets into the habit of saving fixed amounts regularly. Investors need not worry about lump sum investments. They can invest small sip amounts regularly and earn SIP returns over the long term.

The frequency of a SIP can be chosen by the investor depending on investment objective; it can be quarterly, monthly, bi-weekly, and weekly. Depending on the financial goal, an investor can choose any best mutual funds to invest through SIP.

Investing small amounts regularly will help investors in long term wealth creation. An investor doesn’t have to worry about investing money every time, upon selecting a fund for SIP, the amount automatically gets debited from the bank account.

Best Monthly SIP Plans for Rs 5000 Per Month

Fund Name3 Years Return5 Years Return
HDFC Balanced Advantage Fund Regular Growth Plan27.40%16.50%
Parag Parikh Flexi Cap Regular Growth Plan22%20.60%
SBI Small Cap Fund Regular Growth Plan30.20%22.50%
TATA Digital India Fund Regular Growth Plan19.40%20.80%
Nippon India Small Cap Fund Regular Growth Plan41.60%26%
SBI Equity Hybrid Fund Regular Growth Plan15.90%13.10%
SBI Bluechip Fund Regular Growth Plan20%15%
Mirae Asset Emerging Bluechip Fund Regular Growth Plan21.5%18.80%
Kotak Emerging Equity Fund Regular Growth Plan28.90%21.60%
HDFC Midcap Opportunities Fund Regular Growth Plan32.50%20.80%

Explore Further

How do SIPs in Mutual Funds Work?

Mutual Fund SIP plan are simple when you understand them right. SIPs allow investors to start investing with as low as INR 500 to an amount with no upper limit at certain fixed intervals of time. The frequency of investment can be monthly, quarterly, and weekly. SIP returns on investments are compounded with time and earn higher returns.

To put it simply, SIP plan works in a way similar to that of a piggy bank. A child keeps depositing small amounts periodically, and over a period of time, they’ll end up having a large sum. 

This sum is usually spent by them to purchase their favorite toy or book or game. Similarly, SIPs inculcate investment discipline into investors and encourages them to save for a financial goal.

The significant difference between the two is that the amount in a piggy bank stays idle. At the same time, SIPs investments are invested in particular asset classes through a mutual fund. An investor can invest in different funds like multi cap funds, mid cap funds, direct plans, regular and direct growth plans, duration fund, a balanced fund

An investor with a lump sum investment amount can also invest through SIPs. This is through a Systematic Transfer Plan (STP). Here an investor can invest a lump sum amount in a liquid or a short term fund and select a frequency at which the amount can be transferred to an equity fund.

Redeeming SIPs can be done either in a lump sum or in a periodic manner. The periodic withdrawal is also known as the Systematic Withdrawal Plan (SWP), here the investor opts for regular pay-outs, which are credited to their bank account.

What are the Benefits of Investing in SIP of Mutual Funds?

Investing in SIPs of mutual funds comes with its own set of benefits.

1. SIP step-up

Investors are expected to increase their investment amount every year in tandem with their increase in their income. Applying for a new SIP every year to increase the investment can be tedious. 

Hence SIP step up has been introduced. Investors can choose a percentage, or an amount step up every year right when they are applying for a SIP. Choosing a step-up option can help in increasing the returns and reaching the financial goal faster and also help in beating inflation.

2. No timing of market

SIPs can be started in a bullish or a bearish market. There is no need to time the market before entering it with SIP investment plan. The investment is not affected by market volatility. This is because the investment is spread across several years. This helps in averaging out the investment cost per unit, leading to higher returns.

3. Inculcates financial discipline

SIP, as the name suggests, is very systematic. Once an investor starts a SIP, he or she doesn’t have to worry about anything. SIPs are automated. The bank account gets debited every month. Hence this inculcates financial discipline in an investor.

4. Averaging cost of investment

With SIPs, investors invest across market cycles. During market highs, they get fewer units, and during a falling market, they get a higher number of units. The overall cost per unit comes down as the investment is averaged out.

5. Power of compounding

Investing for longer investment horizons help in earning more through the power of compounding.

6. Invest with a minimal amount

SIP investing allows investors to invest even with an amount as low as INR 500 per month.

Here are some of the best SIP options

7. Better financial planning

One of the crucial benefits of investing in SIP is that you can plan their expenses better. Once they schedule their SIPs at the starting of the month, they can spend the rest of the money guilt-free.

Why Invest in Best SIP Plans?

Ms. Priya chooses to invest INR 5,000 through SIP for six months. While Mr. Pranav makes a lump sum investment of INR 30,000.
The above table shows that, over a period of six months, with the same total investment amount of INR 30,000, Priya has higher units when compared to Pranav.
The average cost per unit is lower for Priya as she was able to bag more units when the prices were lower during the 6-month horizon. Continuing the SIP method of investing for the long term might reduce the average cost price further.

Simple and Convenient

In a SIP, all an investor has to do is select the frequency of the SIP and amount. The bank auto-debits the amount based on the choice of frequency. All the mutual fund SIPs can be tracked easily. SIPs also eliminate the worry to time the market each time an investor wants to invest. SIPs can be stopped anytime without much hassle.

Reduced Risk

Investing regularly for the long term is a good hedging strategy to address market fluctuations. Timing the market and worrying whether the purchase price is the lowest can be avoided entirely with SIPs. In instances where the investor has a fear that the fund is giving below-average returns, they can exit anytime and can choose another fund to make investments.

Financial Planning

To save is no easy job, but it becomes comfortable with proper planning. Saving by investing regularly is the best habit, and every investor needs to inculcate it. Always attach a monetary value and time for the financial goals.

The SIP amount should be in line with the timelines. This planning can go a long way and will make it very easy to achieve goals. Dreams will no longer just dream with SIPs. You can use Scripbox’s SIP calculator and get an estimate of wealth gained and maturity value of the investments made

Financial Discipline

Most investors lack discipline. Without a SIP, regular investments in a mutual fund scheme will always be in the planning phase. SIPs are a blessing for investors who wish to invest small amounts regularly. Investing small amounts today can go a long way in the future.

Disciplined saving at an early age would help an investor retire sooner and peacefully without worrying about income and expenses. Cutting down on non-vital costs and investing would reap wonderful results.

How many types of SIP are there?

There are four types of SIPs, namely top-up SIP, flexible SIP, perpetual SIP, and trigger SIP.

  1. Top-up SIP: This allows investors to increase their investment periodically as the income increases. This is also called a step-up SIP.
  2. Perpetual SIP: If an investor doesn’t mention the end date in the SIP form, the SIP continues perpetually. One can always withdraw the investment whenever required. But it is always advised to set an end date for SIPs to maintain financial discipline and reach financial goals. 
  3. Flexible SIP: This allows the investor to increase or decrease the SIP amount and even allow to skip a SIP during a cash crunch. One can also increase the SIP amount during a bonus or additional income. 
  4. Trigger SIP: This type of SIP is ideal for investors with limited knowledge. It allows investors to set NAV, index level, start, and end date. But this type of SIP leads to speculation and is often discouraged.

Frequently Asked Questions

Is SIP in Mutual Funds a risky investment?

SIPs invest through different markets and hence manage the risk of investing in the wrong time of the market. But mutual funds are subject to market risk. Investment in mutual funds through SIPs in itself isn’t risky, but the fund that the investor chooses might be on a higher risk level than what they can handle. An investor can choose to invest in different funds like multi cap funds, mid cap funds, direct plans, regular and direct growth plans, duration fund, a balanced fund.

How much amount can one invest in ELSS tax saving mutual funds in the financial year?

There is no upper limit for investing in Equity Linked Savings Scheme. But which considering tax savings, an investment in ELSS tax saving mutual funds are allowed as a deduction up to Rs 1.5 lakh only

Can I withdraw money from SIP?

One can always withdraw money from their SIP investment plan. It’s called redeeming the investment. An exit load is charged if the redemption is done before one year from investing.

Can I withdraw the tax saving mutual funds?

Yes, withdrawal of tax saving mutual funds is allowed at the maturity of the funds. The units available for redemption can be redeemed. But a premature withdrawal of funds before 3 years of lock-in period is not allowed

Can I withdraw from an ELSS SIP before 3 years?

No, one cannot withdraw money from their Equity Linked Savings Scheme investment before three years.

Which mutual fund investment is tax-free in India?

Equity-linked mutual funds ELSS are the funds which are allowed as a deduction up to Rs 1.5 lakh on investment in mutual funds and the capital gains up to Rs 1 lakh are tax-free.