Overview on SIP vs Mutual Fund

SIP or Systematic Investment Plan is an investment option in mutual funds. People often get confused as to where to invest SIP vs Mutual fund. Learn the benefits of investing in mutual funds. But it is important to know that SIP is a type of investment in mutual funds. Through this, you invest regularly over a course of time. It could be weekly, fortnightly, monthly, half-yearly, yearly & so on. It acts just like a recurring deposit in an account. Along with this, there could be some advantages & disadvantages of mutual funds that you should know about.

After learning about sip vs mutual fund, you should know more about investment plans. There is another type of investment apart from SIPs. This is lump sum investments (in which you deposit money for one time). There are some mutual fund tips from the experts that you must know about. Also, know what is the process of investing in mutual funds now. In case you want to invest in equity mutual funds, then SIP is probably the best way to invest as the market volatility won’t affect the investment and the cost of investment would average itself out. How to invest in SIP that’s best for you. But in the case of debt funds, lump-sum investments suits the requirement of both the investor and the company. What are debt funds and equity funds? Let’s understand them briefly.

Types of Mutual funds

Mutual funds, as the name suggests is investments done in various schemes and the types are

Benefits of investing in mutual funds via SIP

  • It is comparatively much easier to save money this way than any other way as small amounts are needed. It is much better than investing in one go and you will be creating wealth using small investments. Keep informed on what is the best SIP to invest in mutual funds? 
  • No doubt stock markets could be volatile. There are highs and lows in the market. But you’d be investing otherwise, thus averaging out the cost price of the investments. Must read on Stock vs mutual fund: which is better.
  • While putting aside money each month for the cause of generating wealth would instill discipline in you. Regardless, of the market ups and downs. What are the 10 topmost companies of mutual funds in India? 
  • There is no need for you to decide every month on how much to invest and which funds to consider investing in. Don’t forget to know the benefits of mutual funds. 

Before moving to know what are the top 5 mutual funds investments using SIP, we must know what are the different types of mutual funds in India.  

Top 5 mutual funds investments using SIP

SBI Bluechip funds (sip vs mutual fund)

Investment

SBI mutual funds have been operating for decades now. In spite of the name of the funds, the main objective is to invest in multi-cap funds. The investments are done in the top 100 market capitalization companies and up to 20% in mid-cap stocks.

Launch date

SBI Bluechip funds were launched on January 1, 2013.

Risk

The investment made is in the moderately high-risk category.

Return

These funds have assured returns of 18.03% since its launch.

Returns per annum

DurationReturns (%)
1 year15.01
3 years10.64
5 years20.68
Performance record
AUMRs. 17,867 crore
Minimum SIPRs. 500
Performance W.r.t its benchmarkThese funds have outperformed its benchmark in BSE S&P 100 since its launch
Age of the fund5 years old
Expense ratio1.35%

Mirae Asset emerging bluechip fund (sip vs mutual fund)

Investment

The investment through this scheme is done in equity and equity-related securities of large-cap & mid-cap companies at the time of investment. From time to time, the fund manager considers investing in equity & equity-related instruments of other companies to achieve optimal portfolio construction.

Launch date

These funds were launched on July 9, 2010.

Returns

Mirae Asset bluechip fund gives a return of 23.04% since its launch.

Risk

The risk associated with these funds moderately risk fund.

Return per annum

DurationReturns (%)
1 year16.45
3 years19.82
5 years32.34

Performance record

AUMRs. 5,364 crore
Minimum SIPRs. 1,000
Performance w.r.t. its benchmarkThese funds have outperformed its benchmark in Nifty Free Float Midcap 100 since its launch
Age of the fund5 years old
Expense ratio1.73%

HDFC Small-cap fund (sip vs mutual fund)

Investment

HDFC mutual funds have been one of the top-performing mutual funds. Understand what are the best performing mutual funds to invest in 2019. The main objective of the scheme is to provide long-term capital appreciation by investing in small-cap and mid-cap companies but not in large-cap mutual funds. How to invest in HDFC mutual funds?  

Launch date

HDFC Small cap fund was launched on April 3, 2008.

Risk

Funds are invested in high-risk commodities

Return since inception

Since its inception, the return given by the funds is 23.99%

Returns per annum

DurationReturns (%)
1 year35.28
3 years24.84
5 years26.79

Performance record

AUMRs. 2,152 crore
Minimum SIPRs. 500
Performance w.r.t. its benchmarkThese funds have outperformed its benchmark in Nifty Smallcap 100TRI since its launch
Age of the fund5 years old
Expense ratio0.93%

Motilal Oswal Most focussed Multicap 35 fund (sip vs mutual fund)

Investment 

The main aim of this scheme is to achieve long term capital appreciation. This is done by investing in a maximum of 35 days equity & equity related instruments across sectors and market capitalization levels. Must read on what is Equity Linked saving schemes. Along with this, learn what are the best performing short-term funds in 2019. But, there is no guarantee that the main motive of the investment would be achieved.

Launch date

The funds were launched on April 28, 2014.

Risk

The risk associated with these investments is moderately high.

Returns since inception

The funds have provided returns of 29.80% since its launch.

Returns per annum

DurationReturns (%)
1 year-0.10
3 years14.17
5 years19.81

Performance record

AUMRs.11,411 crore
Minimum SIPRs.1000
Performance w.r.t. its benchmarkThese funds have outperformed its benchmark in Nifty Smallcap 100TRI since its launch
Age of the fund4 years old
Expense ratio1.49%

Also read the complete list of mutual funds in India.

TATA retirement savings fund (sip vs mutual fund)

Investment 

Plans Equity (%)Debt (%)Other (%)
Progressive85-1000-150-10
Moderate65-8515-350-10
Conservative0-3070-1000-10

Launch date

These funds were launched on November 01, 2011.

Risk

The investments are made in moderately-high risk.

Return since inception

20.25% returns are promised by these funds since inception.

Returns per annum

DurationReturns (%)
1 year15.27
3 years15.64
5 years22.50
Performance record
AUMRs. 574 crore
Minimum SIPRs. 500
Performance w.r.t. its benchmarkThese funds have outperformed its benchmark CRISIL Hybrid 25+75 Aggressive index since its launch.
Age of the fund5 years old
Expense ratio1.52%

We, at WealthBucket, believe in over-delivering our clients to serve them. Consider our expert services if you wish to invest in equity mutual funds, debt mutual funds, large-cap mutual funds, small-cap funds or multi-cap funds. There are more services to explore. For this, you can either call us at +91 8750005655 or mail us at contact@wealthbucket.in

Related articles

Tax planning: Types & Objectives in mutual funds

What are Arbitage funds | Things to consider while investing

Alternative investment funds in India

LIKE & FOLLOW US ON: