How to Choose the Best SIP for Me to invest in 2022

Systematic Investment Plan is also popular as SIP. Investing in SIP is a disciplinary investment way. If you are looking for How to Choose the Best SIP for me to invest 2022 then you are in the right place.

Here in this article, I will discuss how you can choose the best SIP for yourself and make an investment in 2022. People get more advantages and other benefits while investing in SIP. Investors who want to get more diversification in their portfolio and security, are looking for SIP plans. But which one is the best SIP plan for you and how to choose the best SIP for me, is the big question. I will analyze this and then you will be able to understand it.

Understanding SIP

SIP or Systematic Investment Plan is one of the well-mannered way to invest. Investors who invest in MF or Mutual Funds are likely to take the SIP plans mostly. This is the best way I can say that you can invest with low risk and zero harassment. SIPs are controlled by mutual funds. It is one type of monthly installment investment way, where you can start with the minimum amount of INR 500. You can also deposit your investment on monthly basis or quarterly.

Investment in SIP is very easy. As you can invest through your bank and they will invest your money as per the requirement. The bank will automatically deduct the money from your account. You do not need to analyze the market condition or market dept.

The mutual fund companies offered SIP plans and you can choose the best SIP plan as per your choice.

Advantages

SIP plans have some advantages that make them different from other investing options.

• SIP plans are offered by mutual fund companies. It works as the mutual fund schemes do.
• Investing in SIP is very easy. You can give the instructions to your bank and they will deduct the money from your account on monthly basis.
• In SIP you do not need to spend time on the market movement or analyze it.
• You can start with an affordable amount of capital and invest on monthly or quarterly.
• With the low risk from stocks, it can give you higher returns.

Investment in SIP

Investing in SIP depends upon you. Now a days the investment process is easy through the online process. Just open an account or contact your bank and start investing. The hardest part is choosing the best SIP plan. Though SIP investment does not need to analyze but before investing just analyze the plans and mutual fund scheme and their return margin history.

Before choosing the Best SIP plan you should keep some points in your mind. Let’s talk about this below.

You can also look at How mutual funds companies earn profit?

How to Choose the Best SIP for Me

Before investing in SIP you first choose the best SIP plan for you. People are often afraid to invest in stocks so their preferred option is mutual fund SIP. After the investment, it does not require too much work in the markets. But it is important to choose the best SIP plan to invest in. People often can’t find the best SIP for themself. Each investor looking for different returns and take different types of SIP.

So let’s find out how to choose the best SIP for me. To invest in SIP, it is much harder to find out the best SIP plan. It is curtailed to investing in the right SIP.

1. Risk Capacity

Risk is the most important while investing in mutual fund SIP. Because all investors do not take much risk. Few investors take many risks but few don’t. It is important how much risk you are willing to take. Because the more you take the risk the more you will get the reward. The higher risk you take on stock market the more you get return. Then you can take the Flexi large cap SIP. This SIP you can run aggressively and the higher risk and the maximum return you will get.

If you like to take less risk then you can consider with the large cap equity SIP. In this plan the risk probability reduces also the return margins too. Also you can consider to invest in the hybrid funds.

2. Return

People invest only for a good return. So the main target of an investor is to get a maximum margin of return. Before investing check the past performance of the mutual fund. Though past performance can’t reflect its future potential but also you can get an idea that how the mutual fund or the SIP equity works. One more thing is that mutual funds SIP will give you more return if you invest for the long term. The more long-term you invest the return potential will automatically increase.

If you take an example the ICICI Prudential Mutual Fund. If you see it’s past 10 years performance that is incredible. It has given more than 120% returns for long term investors. Now the cons side is that it has the higher risky potential. As ICICI Prudential Mutual Fund is a hybrid mutual fund.

3. Market Cap

While investing we first look at the stock whether it is large or mid or small cap or not. It defines the substantial movement and safe from other small cap stocks. Market capitalization is calculated of the stock’s company not the funds. The bigger market cap makes the fund more reliable and safe. So if are looking for low risk and low profit margin you can choose the large cap equity.

Thus you can find the best SIP plan for yourself to invest in. Before any investment just check the details and the past performance of the funds.

Best SIPs in 2022 to Invest

I have filtered some SIPs for you that you can invest in. You can invest in SIP mutual funds through your bank or any online discount brokers. It does not require to open a demat account to invest like stocks. Anyway, this is up to you how you choose the best SIP plan, I am considering the best performed SIP in 2022.

1. Large Cap SIPs

• KOTAK Bluer Chip Fund
• Edelweiss Large Cap Fund
• IDFC Large Cap Fund
• ICIC Prudential Blue Chip Fund
• SBI Blue Chip Fund
• Aditya Birla Sun Life Frontline Equity Fund
• HDFC Index Fund

2. MID Cap SIPs

• HDFC Mid Cap Fund
• Motilal Oswal Mid Cap Fund
• Kotak Emerging Equity Fund
• Nippon India Growth Fund
• UTI Mid Cap Fund

3. Small Cap SIPs

• Nippon India Small Cap Fund
• DSP Small Cap Fund
• Bank of India Small Cap Fund
• Edelweiss Small Cap Fund
• SBI Small Cap Fund
• Union Small Cap Fund
• Axis Small Cap Fund

4. Hybrid SIPs

• ICICI Prudential Equity and Dept Fund
• Quant Multi Asset Fund
• Kotak Hybrid Fund
• Edelweiss Balanced Advantage Fund

5. Tax Savings SIPs

• Kotak Tax Saver Fund
• DSP Tax Saver Fund
• TATA India Saver Fund
• ICICI Long Term Equity Fund
• Motilal Oswal Long Term Equity Fund

Why SIP

People choose SIP to invest for many reasons. There are benefits to SIPs.

1. Time Efficient

SIP is one of the time-efficient investment option. Here you no need to watch the market conditions. The funds will automatically work for your money.

2. Low Risk Probability

SIP has a low-risk probability rather than in equity. For this low risk benefits many MF investors choose SIP.

3. Hassel Free Investment

Investing in SIP is like bread and butter. You can easily invest through your bank and they will automatically debit the money from your account and will give you the returns with a good profit. Also, you can go through an online process which is much more easier.

4. Low Amount Of Investment

The best part of SIP is you can start a SIP with a very low amount of capital. Initially, you can start with INR 500 RS and at any time you can increase the investment amount. So any small investors can easily start investing.

5. Part Investment

In another investment segment, you have to invest a huge capital at a time. But in the best SIP plans, you can invest on a monthly basis or quarterly basis.

Final Words

All the investment options are risky. Although mutual fund SIP is considered as a low-risk investment option. Here investors do not have to worry about the market situation. Any part time investors can easily access this investing option. It provides the investors more relaxation rather than investing in stocks. Also, it is easy to invest. But you can’t invest without researching the best SIP plans. The best way you can find the best SIP is through self analyzing. If you search for ‘Best SIP Plans in 2022’ you will find many advices. But I will suggest that before investing do the research by your self.

Wish you a safe and profitable investment. THANK YOU for reading this article.

If you have any query you may contact us at: [email protected]

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