This article describes the advantages of investing mutual funds through SIP. Further, it discusses the points why it is beneficial to invest in such funds. You can decide on which plan you should invest to get the maximum returns.
Systematic Investment Plan or SIP provides the facility to invest a fixed sum periodically for a defined period i.e. 6 months or maybe more. Uncertainties associated with the market are manipulated with this scheme to resolve the long-term market fluctuation.
Advantages of investing in the best sip plan in mutual fund
There are a number of advantages of investing in mutual funds. Here is a list of a few of the main advantages for your consideration.
- At first, it covers the market uncertainties and resolves the market fluctuations. Therefore, you tend to get the long-term investment benefits by investing in the best sip plan in mutual fund.
- Secondly, it brings down the average acquisition cost. As allocating a fixed sum of amount on a monthly basis will enable the person to invest in more than one mutual fund, as the unit price will be lower.
- Thirdly, this arrangement channelize your funds, which otherwise would be lying idle in your bank account. This in turn is the future wealth creation investment. Further, this investment helps in stopping the depletion of the real value.
Here is a list of some of the top companies that operates in such funds in India.
- State Bank of India (SBI)
- Unit Trust of India (UTI)
- HDFC – Housing Development Finance Corporation
- Franklin Templeton
- BNP Paribas
Here is a list of some of the best sip plan in mutual fund to invest in for your consideration. These are among the top rated SIP plans in India. However, make sure you invest in the right plan.
1. Aditya Birla SL India Opportunities Fund
2. SBI Magnum MidCap Fund
3. UTI Mid Cap Fund
4. BNP Paribas Mid Cap Fund
5. Tata Mid Cap Growth Fund
6. Franklin India Smaller Cos Fund
7. Franklin India Prima Fund
8. ICICI Prudential Midcap Fund
9. Edelweiss Mid and Small Cap Fund
10. Sundaram Select Midcap
No matter how much you read about best sip plan in mutual fund. It is always a wise decision to make any investment only after consulting a certified fund manager or the expert in the field.
The author is a senior editor in a private company. He has a keen interest in writing on various topics. Here the author is discussing the advantages associated with the best sip plan in mutual fund.