Quick Answer: Is SIP a good investment option?

Is it good idea to invest in SIP?

Systematic investment plans or SIPs shield you from many harms. Some of them are short term risks, short term volatility, emotional and impulsive reactions, overspending and so on. SIP plans are one of the safest and most convenient ways to invest in the equity markets of India through mutual funds.

Can I lose money in SIP?

SIPs have losses

But as the market keeps falling and you continue to invest your average cost fall. … SIPs work well in a falling market condition or volatile markets. With lump-sum investments timing the market becomes important but with SIPs or lump sum with STPs one doesn’t have to worry about the market timing.

Can I become rich by SIP?

If you invest just Rs 10,000 per month in an equity fund through SIP for 30 years, you can accumulate a corpus of Rs 3.53 crore. The power of compounding grows wealth and makes you rich. … Actual returns vary depending on the markets and the fund.

Which SIP is best for 5 years?

Best SIP Plans for 5 Years in Equity Funds

  • Axis Bluechip Fund Monthly SIP Plan. This is an open-ended equity scheme with a track record of outperformance. …
  • ICICI Prudential Blue chip Fund. …
  • SBI Blue chip Fund. …
  • Mirae Asset Large Cap Fund. …
  • SBI Multicap Fund.
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Is SIP better than FD?

The money is typically invested in an equity mutual fund scheme. If you are new to the world of mutual funds, an SIP is one of the best investment options for you.

SIP vs FD.

Parameters Fixed Deposit Systematic Investment Plan
Liquidity High Low/Medium
Risk factor Low High
Returns Guaranteed Can’t be guaranteed

Is SIP better than PPF?

Tax benefits can be availed both in PPF as well as ELSS category of mutual funds under section 80C. … However, historical data suggests that a 15-year mutual fund SIP in an average fund can give you 1.5 times returns than PPF which makes it very attractive in terms of returns and liquidity.

Which company is good for SIP?

The table below shows the best equity funds:

Mutual fund 5 Yr. Returns Rating
ICICI Prudential Technology Fund 32.82% NA
Aditya Birla Sun Life Digital India Fund – Growth-Direct Plan 32.7% NA
Tata Digital India Fund Regular Growth 32.55% NA
Aditya Birla Sun Life Digital India Fund Growth 31.43% NA

What is average rate of return in SIP?

The table below shows the best equity funds:

Mutual fund 5 Yr. Returns 3 Yr. Returns
ICICI Prudential Technology Fund – Direct Plan – Growth 33.95% 42.09%
TATA Digital India Fund DIRECT Plan Growth 34.48% 41.37%
ICICI Prudential Technology Fund 32.82% 40.9%
Aditya Birla Sun Life Digital India Fund – Growth-Direct Plan 32.7% 40.89%

Which is best SIP plan?

Top SIP Mutual Funds in India

SIP Plans Type 3 Year
HDFC Mid Cap Opportunities Fund Equity Fund 14.84%
HDFC Prudence Fund(G) Balanced Fund 9.02%
HDFC Small Cap Fund Equity Fund 21.52%
ICICI Prudential Balanced Advantage Fund Balanced Fund 9.16%
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Which is the best SIP to invest in 2021?

Top Performing SIP Mutual Funds to Invest in May 2021

Fund Name Category 3 Year Returns
Canara Robeco Equity Taxsaver fund Equity Linked Tax Savings Fund 15.20%
UTI Nifty Index Fund Index Equity Mutual Funds Growth 11.60%
HDFC Index Nifty 50 fund Index Equity Mutual Funds Growth 11.40%

Which is more profitable SIP or lumpsum?

If you are an investor with a small but regular amount of money available for investment, SIPs can be a more suitable investment option. For investors with a relatively high investment amount and risk tolerance, lump-sum investments may be more beneficial.