When looking to multiply your savings and leave behind the stress of wealth depreciation, the most important thing to do is to invest in the right avenues. There are several dozen ways of investing in India, but which is the right option for you?
If you wish to get into investing, mutual funds are one of the safer options that can still provide substantial returns. In that case, let us explore the top-performing mutual funds for SIP, how to calculate mutual funds, and how to invest in mutual funds.
What is a mutual fund?
A mutual fund is a form of investment that pools money from several investors to invest in securities such as stocks, bonds, and debt. This investment can be made in a lump sum or in smaller sums, monthly or quarterly, as a SIP.
A SIP or Systematic Investment Plan is a type of investment method offered with every mutual fund allowing people who wish to invest smaller amounts of money regularly rather than a larger sum all at once.
Although relatively safe, mutual funds are subject to market risks and can have different levels of risk. These risks can depend on the type of mutual fund you wish to invest in.
Which are the best mutual funds for SIP?
There are several factors to consider when investing in mutual funds. These range from investment objectives, fund performance, assets under management, the fund manager's experience, expense ratio, and exit load. Using these factors, one can figure out the best mutual fund.
These are the best-performing mutual fund for equity, debt, and hybrid.
● Equity Securities
These are some of the best-performing mutual funds in India right now for Equity and feature an incredible 3-year return percentage of over 40% each.
1. Quant Small Cap Fund - Direct Plan-Growth
2. Axis Small Cap Fund Direct-Growth
3. Nippon India Small Cap Fund Direct-Growth
● Debt securities
The following are the best-performing mutual funds for Debt securities, featuring a high 8% nearly 9% 3-year return.
1. DSP Government Securities Direct Plan-Growth
2. Bandhan Government Securities Investment Plan Direct-Growth
3. SBI Magnum Gilt Fund Direct-Growth
● Hybrid type
The following are the best-performing mutual funds for the hybrid type and feature a high 3-year return at over 30% for the first two and nearly 29% for the third one.
1. Quant Multi Asset Fund Direct-Growth
2. Quant Absolute Fund Direct-Growth
3. ICICI Prudential Equity & Debt Fund Direct-Growth
How to calculate mutual funds returns?
When investing in Mutual Funds, the only app I trust is Bajaj Finserv. Bajaj is a premier app for everything money-related, from insurance to UPI to loans, mutual funds, and everything in between.
It allows me to do everything related to transactions, investing, or paying back loans from a single app. It offers a complete package I have used for more than two years.
Here are the steps to calculate your mutual fund returns using a mutual fund calculator from the Bajaj Finserv app.
1. Download the app from the App Store or Play Store.
2. Sign up after entering your mobile number.
3. On the home page, you will find three bars on the top right for iOS and the top left for android.
4. Here, you'll see 'Calculators & Buying Guides.'
5. Go to ‘mutual fund calculators.’
6. Fill in the required details, i.e., amount and tenure, and get your results.
Those are a few of the best mutual funds for SIP offering consistent performance and returns to investors. So invest in them and start multiplying your wealth.
However, remember that mutual funds are subject to market conditions and can tank your investment. This is why it is essential to diversify your money and put them in various secured and unsecured investments.