What is a mutual fund?
A mutual fund is an investment fund where several investors pool their money to buy securities.
What is mutual fund SIP?
SIP (Systematic Investment Plan) is a way of investing in Mutual Funds. Instead of investing lumpsum money, you invest money gradually on a monthly basis.
What are the benefits of investing in Mutual Fund SIP?
#1 Investing discipline is maintained through SIP. And discipline is very important for success in investing.
#2 You don’t need time for the stock market. You also get the benefit of Rupee Cost Averaging in the ups and downs of the stock market.
When the stock market falls, you get more mutual fund units and when the stock market rises, you get a small number of units. In this way your buy price becomes average.
Let us understand with an example:
Suppose you have started a SIP of Rs.5,000 in an equity mutual fund.
Note, usually you can start mutual fund SIP from Rs.500 per month. Generally, there is no upper limit for investing by SIP.
You can see that the NAV of the Mutual Fund was between 85 to 150 in that year, but your average purchase price was around Rs.117. When the stock market fell, you could buy more units in the same penny (Rs. 5,000).
Here is a list of the best 10 mutual funds SIP to invest in 2022.
- Axis Bluechip Fund
- Canara Robeco Bluechip Equity Fund
- IDBI India TOP 100 Equity Fund
- Kotak Bluechip Fund
- BNP Paribas Large Cap Fund
- SBI Small Cap Fund
- Nippon India Small Cap Fund
- Kotak Small Cap Fund
- L&T Emerging Businesses Fund
- HDFC Small Cap Fund
Review of Mutual Funds Listed Above
#1. Axis Bluechip Fund
The fund is currently the leading performing fund in the large-cap equity fund category. It has given an 11.9% return per annum since its launch, which is in 2013 and is ranked No. 1 in the category in terms of returns.
#2. Canara Robeco Bluechip Equity Fund
It has a very good track record. As per Value Research, it is a 5-star fund which indicates that it is the best fund in its category. Canara Robeco Bluechip Equity Fund is falling under the large and mid-cap category which has been recently permitted by the Securities and Exchange Board of India.
#3. IDBI India TOP 100 Equity Fund
IDBI India Top 100 Equity Fund Direct-Growth is an equity mutual fund scheme of IDBI Mutual Fund. Its AUM is ₹540.08 Cr and the latest declared NAV is ₹43.100 as of 31st December 2021 at 11:46 AM.
The return performance of IDBI India Top 100 Equity Fund Direct-Growth Scheme in the last 1 year is 31.60%, in last 3 years it is 77.15% and since the launch of the scheme, it is 251.23%. In those. The SIP amount to invest in this scheme is ₹1000.
#4. Kotak Bluechip Fund
Kotak Emerging Equity Fund is a mid-cap fund and carries the same risks as mid-cap stocks. It has performed well over the years. If you have earlier invested in large-cap funds, then you can go for this fund. Also, you should have a long-term financial goal to be met with this fund, which may come in 10 to 15 years.
#5. BNP Paribas Large Cap Fund
BNP Paribas Large Cap Fund is an Equity – Large Cap Fund fund with a 1,129 (Cr) AUM. The scheme has outperformed its benchmark by two percentage points in the last seven and 10 years
After a sharp fall at the end of January, Belvedere Index, Sensex and Nifty 50 have bounced back, led by large-cap stocks. Large-cap is one such segment that now offers good opportunities for investors from a long-term perspective. Investors can buy units of BNP Paribas Large Cap, which is a pure large-cap fund that has given stable returns over a long period of time.
The scheme is benchmarked against Nifty 50 TRI and has outperformed it over the past seven and 10 years time.
#6. SBI Small Cap Fund
The fund takes cash and debt calls to stave off losses during falling and volatile markets.
Investors with a long-term perspective and a high-risk appetite can invest in SBI Small Cap Fund through the structured Investment Plan (SIP) route.
#7. Nippon India Small-Cap-Fund
Nippon India Small-Cap-Fund is rated 4/5 as compared to its peers based on 2-Year Returns. The return of Nippon India Small-Cap-G is 24% with category minimum, maximum return.
#8. Kotak Small Cap Fund
The fund has regularly performed better than similar funds. You can think of investing in this fund. Small Cap Fund: The fund has 93.78% investment in Indian stocks, out of which 1.81% is in large-cap stocks, 11.38% in mid-cap stocks, 69.7% in small-cap stocks.
#9. L&T Emerging Businesses Fund
The current net asset value of L&T Emerging Businesses Fund as on 24th December 2021 for its systematic plan growth option is Rs 44.9990. 2. Its past returns over the odds time period are: 70.67% (1yr), 20.48% (3yr), 19.26% (5yr) and 21.11% (since launch).
#10. HDFC Small Cap Fund
According to experts, HDFC Small Cap Fund (G) is a top-ranked fund. You can consider investing in HDFC Small Cap Fund (G) Fund if its investment intent and risk-o-meter matches your investment goals and risk preferences. HDFC Small Cap Fund (G) has a cost ratio of 1.78% for the regular plan.
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