Best SIP Plans to Invest in 2024
Systematic Investment Plans (SIPs) have gained prominence as a favored long-term investment avenue. As India’s mutual fund industry thrives, SIPs provide a disciplined and convenient approach, allowing investors to navigate market volatility while steadily building wealth.
In this article, we delve into the intricacies of the 10 best SIP plans for a 10-year horizon in 2023, guiding readers through considerations like investment goals, risk profiles, fund performance, and the crucial role of a long-term investment perspective in reaping compounded returns.
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List of Best SIP Plans to Invest in India
- Parag Parikh Flexi Cap Fund Direct-Growth
- Quant Large And Mid Cap Fund Direct-Growth
- Edelweiss Large & Mid Cap Direct Plan-Growth
- Quant Active Fund
- Axis Bluechip Fund Direct Plan-Growth
- Mirae Asset Emerging Bluechip Fund Direct-Growth
- Kotak Equity Opportunities Fund Direct-Growth
- DSP Flexi Cap Fund Direct Plan-Growth
- Motilal Oswal Focused Fund Direct-Growth
- ICICI Prudential Gilt Fund Direct-Growth Plan
Discover the best SIP plans to invest, where past success meets expert management, promising consistent returns for smart investors like you. Let’s make your money work smarter!
1. Parag Parikh Flexi Cap Fund Direct-Growth
Parag Parikh Flexi Cap Fund Direct-Growth, one of the best SIP plan to invest is a reputable offering from PPFAS Mutual Fund, boasts a decade-long track record since its launch on 13/05/2013. With ₹44,038 Crores AUM as of 30/09/2023, it stands as a medium-sized fund in its category. Notably, its expense ratio of 0.65% is lower than its peers.
Over the past year, it exhibited robust returns of 28.38%, while the average annual returns since inception are an impressive 19.97%. The fund, doubling investments every 4 years, emphasizes consistency.
Primarily invested in the Financial, Services, Technology, Automobile, and Consumer Staples sectors, its top holdings include Bajaj Holdings, ITC, HCL Technologies, Coal India, and Maruti Suzuki.
With no lock-in period and an exit load structure, this fund aligns with long-term investors’ objectives.
Returns since inception: 19.97% p.a.
Minimum investment: SIP ₹1000 & Lump Sum ₹1000
Lock-in period: No lock-in, providing liquidity.
Returns (p.a): 28.38% in 2022
Risk: Moderate, owing to a diversified portfolio.
Assets under management (AUM): ₹ 44,038 Cr
Current Value: NAV as of Dec 04, 2023 is ₹ 67.98
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2. Quant Large And Mid Cap Fund Direct-Growth
Quant Large and Mid Cap Fund Direct-Growth, part of Quant Mutual Fund, established itself over a decade after its launch on 01/01/2013. With ₹1,127 Crores AUM as of 30/09/2023, it stands as a medium-sized fund in its category, featuring a 0.75% expense ratio.
Showcasing a commendable 22.54% return in the past year and a 19.29% average annual return since inception, the fund doubles investments every 3 years.
Noteworthy for its consistent returns alignment and high loss control in market downturns, it predominantly invests in the Energy, Healthcare, Metals and Mining, Automobile, and Services sectors. Top holdings include Reliance Industries, NMDC, Aurobindo Pharma, JIO Financial Services, and the Reserve Bank of India.
Returns since inception: 19.29% p.a.
Minimum investment: SIP ₹1000 & Lumpsum ₹5000
Lock-in period: No lock-in
Returns (p.a): 22.54% return in 2022
Risk: Moderate to high, typical of large and mid-cap exposure.
Assets under management (AUM): ₹ 1,127 Cr
Current Value: NAV as of Dec 04, 2023 is ₹ 99.61
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3. Edelweiss Large & Mid Cap Direct Plan-Growth
Edelweiss Large & Mid Cap Direct Plan-Growth, part of Edelweiss Mutual Fund, has demonstrated resilience over its 10-year journey since its inception on 01/01/2013. With ₹2,221 Crores AUM as of 30/09/2023, it stands as a medium-sized fund featuring a cost-efficient 0.47% expense ratio.
Displaying a 21.39% return in the past year and a 16.57% average annual return since inception, the fund doubles investments every 4 years.
Notable for consistent returns and an above-average ability to control losses, it predominantly invests in the Financial, Capital Goods, Technology, Materials, and Automobile sectors. Top holdings include HDFC Bank, ICICI Bank, Larsen & Toubro, State Bank of India, and KPIT Technologies.
Returns since inception: 16.57% p.a.
Minimum investment: SIP ₹500 & Lumpsum ₹5000
Lock-in period: No lock-in
Returns (p.a): 21.39% in 2022
Risk: Moderate, owing to a diversified portfolio.
Assets under management (AUM): ₹2,221 Cr
Current Value: NAV as of Dec 04, 2023 is ₹ 76.86
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4. Quant Active Fund
You can say Quant Active Fund is a Multi Cap is one of the best SIP to invest now, mutual fund scheme from Quant Mutual Fund, has navigated a successful 11-year journey since its launch on 01/01/2013. Managing ₹6,060 AUM as of 30/09/2023, it is a medium-sized fund with an economical 0.77% expense ratio.
Featuring an 16.06% return in the past year and a robust 20.79% average annual return since inception, the fund doubles investments every 3 years.
With a consistent returns profile and an average ability to control losses, it predominantly invests in the Energy, Financial, Healthcare, Metals and mining. Top holdings include Reserve Bank of India, Reliance Industries, Jio Financial Services, Aurobindo Pharma, and State Bank of India.
Returns since inception: 20.79% p.a.
Minimum investment: SIP ₹500 & Lumpsum ₹5000
Lock-in period: 3 years
Returns (p.a): 16.06% in 2022
Risk: Moderate, blending tax savings with market exposure.
Assets under management (AUM): ₹6,060 Cr
Current Value: NAV as of Dec 05, 2023 is ₹ 580.83
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5. Axis Bluechip Fund Direct Plan-Growth
One of the most popular SIP plan, Axis Bluechip Fund Direct Plan-Growth, a prominent Large Cap offering from Axis Mutual Fund, has thrived over its 10-year history since its inception on 01/01/2013. With ₹30,734 Crores AUM as of 30/09/2023, it stands as a medium-sized fund with a competitive 0.63% expense ratio.
Despite a 9.94% return in the past year and a 14.81% average annual return since inception, the fund doubles investments every 4 years.
While exhibiting lower consistency in returns and a low ability to control losses, it predominantly invests in the Financial, Automobile, Services, Technology, and Construction sectors. Top holdings include HDFC Bank, ICICI Bank, Bajaj Finance, Avenue Supermarts, and Tata Consultancy Services.
Returns since inception: 14.81% p.a.
Minimum investment: SIP ₹100 & Lump sum ₹500
Lock-in period: No lock-in
Returns (p.a): 9.94% in 2022
Risk: Low to moderate, typical of blue-chip investments.
Assets under management (AUM): ₹30,734 Cr
Current Value: NAV as of Dec 04, 2023 is ₹ 55.54
6. Mirae Asset Emerging Bluechip Fund Direct-Growth
Mirae Asset Emerging Bluechip Fund Direct-Growth, a notable Large & MidCap offering from Mirae Asset Mutual Fund is one of the best SIP to invest in India, has thrived over its 10-year history since its launch on 01/01/2013. With ₹28,104 Crores AUM as of 30/09/2023, it is a medium-sized fund featuring a competitive 0.64% expense ratio.
Displaying a robust 20.37% return in the past year and an impressive 22.82% average annual return since inception, the fund doubles investments every 4 years.
With consistent returns alignment and a below-average ability to control losses, it predominantly invests in the Financial, Technology, Healthcare, Services, and Energy sectors. Top holdings include HDFC Bank, State Bank of India, ICICI Bank, Reliance Industries, and Axis Bank.
Returns since inception: 22.82% p.a.
Minimum investment: SIP ₹1000
Lock-in period: No lock-in
Returns (p.a): 20.37% in 2022
Risk: Moderate to high, typical of emerging blue-chip exposure.
Assets under management (AUM): ₹28,104 Cr
Current Value: NAV as of Dec 04, 2023 is ₹ 132.58
7. Kotak Equity Opportunities Fund Direct-Growth
Kotak Equity Opportunities Fund Direct-Growth, part of Kotak Mahindra Mutual Fund, has thrived over its 10-year journey since its inception on 01/01/2013. Managing ₹15,261 Crores AUM as of 30/09/2023, it is a medium-sized fund featuring an economical 0.53% expense ratio.
Displaying an impressive 22.66% return in the past year and a commendable 17.27% average annual return since inception, the fund doubles investments every 4 years.
With consistent returns alignment and average ability to control losses, it predominantly invests in the Financial, Automobile, Capital Goods, Chemicals, and Consumer Staples sectors. Top holdings include ICICI Bank, Maruti Suzuki India, State Bank of India, Axis Bank, and Larsen & Toubro.
Returns since inception: 17.27% p.a.
Minimum investment: SIP ₹500 & Lump sum ₹5000
Lock-in period: No lock-in
Returns (p.a): 22.66%
Risk: Moderate to high, aligning with equity opportunities.
Assets under management (AUM): ₹15,261 Cr
Current Value: NAV as of Dec 04, 2023 is ₹ 291.77
8. DSP Flexi Cap Fund Direct Plan-Growth
DSP Flexi Cap Fund Direct Plan-Growth, under DSP Mutual Fund, has navigated a successful decade since its launch on 01/01/2013. With ₹8,856 Crores AUM as of 30/09/2023, it is a medium-sized fund with a 0.74% expense ratio.
Displaying an impressive 23.74% return in the past year and a solid 15.63% average annual return since inception, the fund doubles investments every 4 years.
With consistent returns alignment and average ability to control losses, it predominantly invests in the Financial, Capital Goods, Automobile, Technology, and Healthcare sectors. Top holdings include Bajaj Finance, HDFC Bank, Apar Industries, ICICI Bank, and Samvardhana Motherson International.
Returns since inception: 15.63% p.a.
Minimum investment: SIP ₹500 & Lump Sum ₹1000
Lock-in period: No lock-in
Returns (p.a): 23.74% in 2022
Risk: Moderate, owing to a diversified cap allocation.
Assets under management (AUM): ₹8,856 Cr
Current Value: NAV as of Dec 04, 2023, is ₹ 88.9
9. Motilal Oswal Focused Fund Direct-Growth
Motilal Oswal Focused Fund Direct-Growth launched on 22/04/2013, manages ₹1,651 Crores AUM with an expense ratio of 0.96%.
Over the last year, it yielded 14.76%, boasting a 15.30% average annual return since inception. Despite higher expenses, the fund doubles investments every 4 years.
Predominantly invested in Finance, Services, Insurance, Tech, and Capital Goods, it maintains a diverse portfolio, though its ability to mitigate losses in a downturn is comparatively lower. The top 5 holdings include Star Health, Samvardhana Motherson, ABB India, BSE Ltd., and Avenue Supermarts.
Returns since inception: 15.30% p.a.
Minimum investment: SIP ₹500 & Lumpsum ₹500
Lock-in period: No lock-in
Returns (p.a): 14.76% in 2022
Risk: Moderate to high, reflecting a focused investment strategy.
Assets under management (AUM): ₹1,651 Cr
Current Value: NAV as of Dec 04, 2023 is ₹ 45.02
10. ICICI Prudential Gilt Fund Direct-Growth Plan
ICICI Prudential Gilt Fund Direct Growth plan launched on 01/01/2013, manages ₹4,379 Crores AUM with an expense ratio of 0.56%.
Over the past year, it returned 8.27%, boasting an 8.62% average annual return since inception. The fund, doubling investments every 9 years, demonstrates a consistent track record and a high ability to control losses in a declining market.
Notably, it maintains a very high credit profile, lending to excellent-quality borrowers, with top holdings in GOI, ICICI Securities Ltd., Hongkong & Shanghai Banking Corpn. Ltd., and Rajasthan State.
Returns since inception: 8.62% p.a.
Minimum investment: SIP ₹1000 & Lump sum ₹5000
Lock-in period: No lock-in
Returns (p.a): 8.27% in 2022
Risk: Low, aligning with gilt investments.
Assets under management (AUM): ₹4,379 Cr
Current Value: NAV as of Dec 04, 2023 is ₹ 96.29
How to Choose Best SIP Plan
Mutual funds have gained popularity because of their flexibility, convenience, and wide range of choices. But with many options, it becomes a challenge to choose a right SIP. Here’s how to choose best SIP plan for investment
Objective of your investmnet
Start by knowing why you want to invest in SIP. Are you aiming for short-term goals or long-term plans? How much risk are you comfortable with? If you prefer lower risk, consider a debt mutual fund through SIP. For higher returns, an equity mutual fund might suit aggressive investors.
Expenses
Check out the expenses you might face, like exit loads if you withdraw within a year. Also, keep an eye on annual charges such as the expense ratio—these affect your returns.
Portfolio Turnover
Keep track of the fund’s portfolio turnover, which shows how much the manager changes the investments yearly. Higher turnover means more costs (like taxes), which could lower your returns.
Diversification of the assets
There are three main types of mutual funds: stocks (equity), loans (debt), and a mix of both (hybrid). You can spread your money across these to lower risks.
Even in stock-based funds, you can invest in different sectors like big companies, medium ones, and smaller ones. This mix helps balance stability from big companies and growth from smaller ones.
Assets Under Managemnet
When choosing the right SIP, it’s good to invest in a fund with a solid system, not just depending on one star manager. But still, it’s smart to check the manager’s track record.
All investments, even the best Mutual Fund Schemes for SIP, have their own risks. But if you do your research using the tips mentioned above, you can manage risks and aim for better returns.”
Conclusion
Key takeaways from the above-curated list emphasize a focus on returns, minimum investment, and risk profiles. Wise investors should consider nuanced factors like expense ratios and manager track records.
Ultimately, a well-informed decision about best SIP investments demands a thorough understanding of these factors, promoting a disciplined approach to long-term wealth creation.
FAQ
1. What is the best SIP plan in India?
The Parag Parikh Flexi Cap Fund Direct-Growth stands out as a top choice, offering consistent returns, a moderate risk profile, and a diverse portfolio spanning the Financial, Services, Technology, Automobile, and Consumer Staples sectors.
However, determining the best SIP is subjective and depends on individual financial goals and risk tolerance. One must consider factors like returns, risk, and fund alignment for personalized choices.
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LenDenClub is India’s largest alternate investment platform which started operations in India in 2015. We have been helping investors diversify their investments beyond traditional investment instruments ever since.
