Best SIP Plans 2021

The Systematic Investment Plan (SIP) is a popular method of investing in mutual funds. In this process, an investor is free to choose a mutual fund scheme and invest an amount of his choice in instalments.

The significant difference of this method from the lump-sum investment methods is that investors can make investments in instalments over a long period. Lump-sum investments require investors to invest a considerable amount of money at the very beginning of any scheme.

SIP plans are available for different periods. If you want to invest in a SIP for an extended period, try to find the best SIP plan for 10 years or more in India.

However, when it comes to choosing the best SIP plans, it can be tricky at times. Here is all you need to know about finding the best SIP plans and everything you need to know regarding the same in the current scenario.

What is SIP?

SIP or systematic investment plan refers to an investment method that an investor can take up. By following this method, the significant benefit that any investor enjoys is that they can make investments over a long period in small amounts.

Finding the best SIP plans can be difficult for some of the first time investors out there. However, proper research and a perfect methodology can help you find the appropriate plan that suits your needs.

Best SIP Plans Available in India 2021

Mutual funds and SIP plans keep changing from one year to the other. The best SIP plan 2020 and 2021 are the ones that you should consider if you are going to invest shortly.

If you are wondering about the Best SIP mutual funds available in India; take a look at the chart below to learn about some of the leading funds you can pick from for your investments:

Top 10 Mutual Funds for SIP to Invest in 2021 for 1 Year

If you are looking for the best SIP plans for 1 year, the leading funds that you can take into consideration are the Axis Bluechip Fund, Axis Focused 25 Fund, DSP Equity Fund, HDFC Balance Advantage Fund, Kotak Standard Multi-cap Fund, Nippon India Large Cap Fund, to name a few. 

The top 10 mutual funds for SIP to invest in 2021 are mentioned below:

Investing in SIP mutual funds can be the best option for some people looking to invest for an extended period instead of going for lump-sum investments. Those from the low income group, and those from the urban area, prefer an investment method that allows them to invest in instalments. SIP plans become that perfect option to invest without feeling the financial strain of bulk investments and people can easily continue such investments for more extended periods. 

For those searching for the best SIP plan to invest in 2021, you do not have to be stressed about spending a considerable amount of money in one go. The primary benefit of investing in SIP mutual funds is that you have the liberty to take your time and invest for as long as you want during the tenure period.

Why Should You Invest in SIP Plans?

Here are some hard-to-miss benefits of investing in SIP plans in 2021. Take a look: 

• The major benefit that you enjoy is the small investment amount that you have to pay during the entire duration of the SIP. Most mutual fund schemes allow you to start investing with as little as Rs.500 per month. This is a sustainable method for every citizen in the country who wants to invest in a long-term, safe, and profitable fund in today's world.
• Once you manage to find some of the best SIP plans in India and start investing in one of them, you gain the liberty to adjust the SIP amount the way you want.
• Once you start investing in any SIP scheme, there is no compulsion to make the SIP investment every month for a fixed lock-in period. You can choose and stop for a few months and then start making the investments again at your convenience.
• If you have just started investing, any SIP investment will help you become a disciplined investor, which will prove beneficial in time.
• SIP schemes also tend to reduce the average cost at which you buy mutual fund units. This is one of the most significant benefits you gain by investing in some of the best mutual funds for SIP.

How to Invest in Best SIP Plans?

The first and foremost step for you would be to compare and analyse the current written rates that you can gain from the SIP funds in India in 2021.

1. You need to determine for how long you are willing to invest in any SIP plan. If you are looking to invest for a long period, consider finding the best SIP plan for 5 years or more which will be beneficial for you in the long run.
2. Once you manage to find some of the best SIP schemes in India, focus on achieving a specific SIP goal that you need to accomplish in the future. The goal of setting SIP is to make sure that your portfolio manages to get and analyse the risk profile along with a good diversification across asset classes.
3. Make sure you go through the current return rates in India along with their past experiments and experiences over the years to determine what scheme suits you the best.
4. If you intend to invest in SIP funds shortly, and if you are a first-time investor, always go for reputed fund houses such as HDFC, Reliance, SBI, Birla Sun Life, and the like.
5. The SIP you choose should be in conjunction with your bank. If you face any problem during the procedure, contact the relationship manager of your bank as soon as you can.

How to Choose Best SIP Plans in 2021?

Choosing the top SIP plans to invest in in 2021 can be difficult especially if you are a first-time investor.

However, the major point you should keep in mind before investing in any mutual fund in India is to go through the current return rates of all your contemporary SIP mutual funds. Compare and analyse the return rates and see for yourself which plan goes the Best for the amount of period you are willing to invest for.

There are several SIP plans for short-term periods. Similarly, there are a plethora of SIP plans available for long-term periods ranging from five years to 10 years as well. Choose the plan that suits your requirements and then invest in it once you are ready.

Types of SIP Mutual Funds for SIP

If you are looking forward to finding the best fund for SIP for your future investments, it is very important to note several types of SIP mutual funds available in India in 2021 before investing in any of them.

Below are the major types of SIP schemes  available in India:

1. Top-up SIP

These kinds of systematic investing investment plans allow you to increase your investment amount in a periodic manner which gives you the flexibility to invest a higher amount of money when you tend to have a higher income.

2. Flexible SIP Plans

Flexible SIP plans I love you to be flexible with the amount of money you want to invest in a SIP mutual fund. You are free to alter the amount (decrease or increase) based on your current financial situation without any fear of being charged penalties for the same.

3. Perpetual SIP

Perpetual SIP plans allow you to invest for as long as you want. It lends you the freedom to choose the period you are willing to invest for, be it one year, three years, five years or more. You do not have to choose a particular period before starting to invest in a SIP mutual fund.

These are the major types of SIP plans available in India. Make sure you go through the rules thoroughly before you choose the plan to invest in. You can take the help of a SIP calculator that you can find online to analyse the return rate that is being offered to you by a particular SIP plan before investing in it.

Benefits of SIP Plans in India

The major benefits that you can enjoy if you decide to invest in SIP plants in India are mentioned below.

1. If you are a first-time investor and have no experience in the field of investments, going for SIP plans can be the best option for you in the current situation. It is the most flexible investment plan that is offered by mutual funds in our country. You have the flexibility to decrease or increase the rate even after starting to invest.
2. Most first-time investors tend to be confused about their future investments, therefore, finding the best SIP plans becomes even more difficult for them. In order to avoid any risk factor, go for renowned mutual fund houses in India like Reliance, SBI, ICICI, and the like.
3. Investing in SIP schemes makes you a disciplined investor which helps you in the long run. If you lack superficial financial knowledge of the market, investing in SIP schemes can be the best option for you in the current scenario. The fact that you do not have to make lump-sum investments makes it easier for younger people to invest in it.
4. If you start having higher income after investing for a few months, you have the flexibility to increase the amount you invest. This flexibility can help you shift your SIP plans from time to time and see what is suiting your requirements the best.
5. Once you start investing in any SIP mutual fund, it makes sure that you constantly strive to make your investments grow. In that way, your financial growth becomes rapid in a short time.
6. You can start investing at as low as Rs.500 per month if you want to. You can increase the amount whenever you want and for as long as you want.

FAQs

✅ Where do I find a SIP calculator to calculate the return rates?

Ans: There are several SAP calculators available online. These are more than enough for you to determine the return rates being offered by the SIP mutual funds in our country.

✅ What are some of the top SIP mutual funds to invest in in India?

Ans: Some of the leading SIP mutual funds are Axis Mutual Fund, Kotak Mutual Fund, Reliance Mutual Fund, HDFC Mutual Fund, the State Bank of India mutual fund, ICICI Prudential Mutual Fund, and Aditya Birla Sunlife mutual fund.

✅ Is it better to invest in SIP schemes instead of making Lamsam investments?

Ans: If you are new to the investments field, and are looking for investing for a long period, investing in SIP schemes will be the best option for you.

✅ How do I start investing in a SIP mutual fund scheme?

Ans: Choose the right scheme for you, fill up the application form, submit a cheque of monthly SIP amount, provide the necessary details along with your KYC form, and you can start investing.