SIP: Do you want to invest your savings in the right place and want to increase the money for a long time, then SIP can be a great option for you. Through SIP (Systematic Investment Plan) , you can invest a small amount in the market every month and get good returns in the long run.
What is SIP
SIP is a scheme in which you invest a fixed amount in mutual funds every month, quarter, or half-yearly. This is a great way through which you can gradually increase your money.
By investing in SIP, you get the benefit of rupee cost averaging, which means that you average out the fluctuations of the market.
What is a mutual fund
A mutual fund is an investment option in which the money of many investors is combined and invested in shares, bonds, or other securities.
This is a good option for those who do not want to invest directly in the stock market. By investing in mutual funds, you get a professional fund manager who manages your money.
Benefits of SIP
Discipline: Investing every month becomes a habit.
Magic of Rupees: Even a small amount can make a big investment.
Reduce risk: Investing in mutual funds reduces market risks.
Which mutual funds to invest in through SIP
There are many types of mutual funds, such as equity, debt, hybrid, etc. You should choose the fund based on your investment goal and risk appetite.
Equity funds: Invest in stocks, high returns are expected but the risk is also high.
Debt funds: Invest in debt securities, low risk, and stable returns are expected.
Hybrid funds: Invest in both equity and debt, medium risk and return.
Top 10 Performing Small Cap Mutual Funds
Quant Small Cap Fund
Bank of India Small Cap Fund
Nippon India Small Cap Fund
Edelweiss Small Cap Fund
Canara Robeco Small Cap Fund
Tata Small Cap Fund
Kotak Small Cap Fund
Invesco India Small Cap Fund
Axis Small Cap Fund
ICICI Prudential Small Cap Fund
What to do to start SIP
Choose a mutual fund: Choose a good mutual fund based on your investment goal.
Decide the SIP amount: Decide how much money you can invest every month.
Complete KYC: To start investing, the KYC (Know Your Customer) process has to be completed.
Fill out the SIP form: Fill the SIP form with your bank or mutual fund company.
Set up auto-payment: Start the auto-payment facility for SIP from your bank account.