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  • What is a SIP
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Explore the Best SIPS For Highest Growth and to Maximise Long-Term Wealth with Mutual Fund Investments

Best SIPs for the highest returns: Invest smartly with top-performing mutual fund schemes

Explore 1,000+ mutual funds. Start with just Rs. 100

Article 16

Mutual funds are a popular investment choice for both new and experienced investors. They offer the flexibility to invest in equity, debt, or hybrid funds based on your financial goals and risk appetite. Investing through a Systematic Investment Plan (SIP) also helps you invest regularly while reducing the impact of market fluctuations over time. However, with thousands of mutual fund schemes available, selecting the best SIP can be difficult. To make your decision easier, this article highlights some of the best mutual fund SIPs in India based on their 3-year annualised returns. It also shares useful insights to help you choose a suitable investment option.

What is an SIP

A Systematic Investment Plan, commonly known as SIP, is a method of investing in mutual funds where you commit to investing a fixed amount of money regularly (usually monthly or quarterly). This amount is debited from your savings or current bank account and invested in your chosen mutual fund scheme. The mutual fund allocates a certain number of units to you based on the purchase price, also known as the Net Asset Value (NAV), on the date of investment.
 

Thus, investing through SIP is a way to make use of the power of compounding, rupee cost averaging, and disciplined investments, making it an improved instrument toward attainment of long-term financial goals.

Key takeaways

  • SIPs allow a flexible and disciplined way of investing in mutual fund schemes and hence long-term financial goals are achievable.
  • Rupee cost averaging ensures one benefits from market volatility in the form of more units at lower prices than by reducing the overall cost of an investment.
  • Compounding benefits make SIPs a great tool for wealth creation, especially when the investment is made over a long period.

Build your wealth with SIP

Why invest through SIP?

These are the reasons why SIP is a popular investment choice:

  • Convenience and flexibility: You can invest with as little as Rs. 100 per month, and you can decide how frequently you want to invest - weekly, monthly, quarterly, or yearly.
  • Rupee cost averaging: You end up purchasing more units when prices are low and fewer units when prices are high. It is what averages the cost of your investment over time and reduces the impact of volatility by the market.
  • Compounding advantage: Investment for the long term allows one to benefit from compounding so that the returns produce additional returns over time.
  • Disciplined approach: SIPs encourage disciplined investing as they require regular contributions, thus helping you build wealth over a long period.
     

Also read: What Is Compound Annual Growth Rate (CAGR)

Best SIPs for highest growth

Mutual Fund

3-Year Returns

5-Year Returns

Bandhan Small Cap Fund Direct- Growth

32.24%

27.33%

Invesco India Mid Cap Fund Direct- Growth

29.03%

25.28%

Edelweiss Mid Cap Fund Direct- Growth

27.98%

26.17%

Motilal Oswal Mid Cap Fund Direct- Growth

26.88%

28.54%

HDFC Mid Cap Fund Direct- Growth

26.55%

25.68%

Nippon India Growth Mid Cap Fund Direct- Growth

26.54%

25.28%

Motilal Oswal Large and Mid Cap Fund Direct- Growth

26.44%

23.95%

Kotak Multicap Fund Direct- Growth

25.54%

-

Bandhan Large & Mid Cap Fund Direct- Growth

25.34%

23.02%


Also read:
 What Is Systematic Withdrawal Plan (SWP)

Types of Mutual Funds

# Mutual Funds image

# Mutual Funds

New Fund Offer image

New Fund Offer

Debt Mutual Funds image

Debt Mutual Funds

Equity Mutual Funds image

Equity Mutual Funds

Hybrid Mutual Funds image

Hybrid Mutual Funds

Multi-cap Mutual Funds image

Multi-cap Mutual Funds

Thematic Mutual Funds image

Thematic Mutual Funds

Large-cap Mutual Funds image

Large-cap Mutual Funds

Mid-cap Mutual Funds image

Mid-cap Mutual Funds

Small-cap Mutual Funds image

Small-cap Mutual Funds

Liquid Mutual Funds image

Liquid Mutual Funds

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Aggressive Hybrid Mutual Funds

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Conclusion

Investment via SIPs is the best way to grow your wealth, assuming that you are looking for growth over a long period of time. The funds mentioned above have shown remarkable performance and are some of the best SIPs . You have to be disciplined, and allow your investments to grow in value over time with maximum returns. Before investing, take into account your risk appetite, investment horizon, and most importantly your financial objectives.
 

The Bajaj Broking website provides not only over 4,000 mutual fund options, but also has a mutual fund calculator that you may use to compare mutual funds returns, and choose the best option available.

Frequently asked questions

How long should I invest in SIPs to get the maximum possible returns?

It is generally a good idea to invest in SIPs at least for 5-10 years or more. The longer you stay invested, the more you can benefit from the power of compounding and rupee cost averaging with a higher growth potential.

Can I increase the SIP amount over a period of time?

Yes, you can increase your SIP amount anytime you want. Step-up SIP or Top-up SIP is also often available with most mutual fund houses for increasing SIP amounts quite easily.

Are SIPs for all investors?

SIPs are applicable for any investor, whether first-time or experienced, because of its advantage of flexibility, regularity, and the many possibilities of earning high returns.

What are best SIPs for long term growth?

The best SIPs for long-term growth are usually equity mutual funds, as they have the potential to deliver higher returns over time. Large-cap, flexi-cap, multi-cap and index funds are popular choices for long-term investors. The right SIP depends on your financial goals, risk appetite and investment horizon. Investing regularly and staying invested for many years can help you benefit from the power of compounding and market growth.

Which SIP plan offers highest returns?

No SIP plan can guarantee the highest returns. Your returns depend on the mutual fund you choose, how long you stay invested, and market performance. Equity mutual funds have the potential to deliver higher returns over the long term, but they also carry higher risk. Instead of looking for the highest-return SIP, choose a fund that matches your financial goals, investment horizon, and risk tolerance.

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Investment Calculators

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Disclaimer

Bajaj Finance Limited (“BFL”) is an NBFC offering loans, deposits and third-party wealth management products.

The information contained in this article is for general informational purposes only and does not constitute any financial advice. The content herein has been prepared by BFL on the basis of publicly available information, internal sources and other third-party sources believed to be reliable. However, BFL cannot guarantee the accuracy of such information, assure its completeness, or warrant such information will not be changed.

This information should not be relied upon as the sole basis for any investment decisions. Hence, User is advised to independently exercise diligence by verifying complete information, including by consulting independent financial experts, if any, and the investor shall be the sole owner of the decision taken, if any, about suitability of the same.

Disclaimer

Bajaj Finance Limited ("BFL") is registered with the Association of Mutual Funds in India ("AMFI") as a distributor of third party Mutual Funds (shortly referred as 'Mutual Funds) with ARN No. 90319

BFL does NOT:

(i) provide investment advisory services in any manner or form.

(ii) carry customized/personalized suitability assessment.

(iii) carry independent research or analysis, including on any Mutual Fund schemes or other investments; and provide any guarantee of return on investment.

In addition to displaying the Mutual fund products of Asset Management Companies, some general information is sourced from third parties, is also displayed on As-is basis, which should NOT be construed as any solicitation or attempt to effect transactions in securities or the rendering any investment advice. Mutual Funds are subject to market risks, including loss of principal amount and Investor should read all Scheme/Offer related documents carefully. The NAV of units issued under the Schemes of mutual funds can go up or down depending on the factors and forces affecting capital markets and may also be affected by changes in the general level of interest rates. The NAV of the units issued under the scheme may be affected, inter-alia by changes in the interest rates, trading volumes, settlement periods, transfer procedures and performance of individual securities forming part of the Mutual Fund. The NAV will inter-alia be exposed to Price/Interest Rate Risk and Credit Risk. Past performance of any scheme of the Mutual fund do not indicate the future performance of the Schemes of the Mutual Fund. BFL shall not be responsible or liable for any loss or shortfall incurred by the investors. There may be other/better alternatives to the investment avenues displayed by BFL. Hence, the final investment decision shall at all times exclusively remain with the investor alone and BFL shall not be liable or responsible for any consequences thereof.

Investment by a person residing outside the territorial jurisdiction of India is not acceptable nor permitted.

Disclaimer on Risk-O-Meter:

Investors are advised before investing to evaluate a scheme not only on the basis of the Product labeling (including the Riskometer) but also on other quantitative and qualitative factors such as performance, portfolio, fund managers, asset manager, etc, and shall also consult their Professional advisors, if they are unsure about the suitability of the scheme before investing.


Disclosure
: Bajaj Finance Limited (BFL) is a distributor of Mutual Funds with ARN - 90319 and distributes mutual funds of Bajaj Finserv Asset Management Limited (BFSAMC). BFL receives commission towards distribution of mutual fund products. BFSAMC is a group company of BFL, carrying business on arm’s length basis without any conflict of interest and in accordance with the prevailing law / regulation.

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