Most investors tend to start with a SIP of around ₹5000 to ₹10,000. But it is possible for investors to invest in SIP mutual funds for as low as ₹1000 and create long term wealth. To do this, it is crucial to select the best SIP mutual funds.
Can A Small SIP Of ₹1000 Make A Big Difference?
Yes! If you’re consistent with your ₹1000 SIP every month for 20 years then it has the power to compound and accumulate into a large corpus. This consistency can transform your future financial health.
Here’s an example of the power of a monthly ₹1000 SIP invested in a mutual fund with 8% returns for 20 years:
Best SIP Mutual Funds For 20 Years
You can start a ₹1000 SIP in the mutual funds mentioned in the following list
Best SIP Liquid Funds In India
- Nippon India Liquid Fund
- Invesco India Liquid Fund
- ICICI Prudential Liquid Fund
- IDFC Arbitrage Fund
- Kotak Liquid Fund
Best SIP Debt Funds In India
- IDFC Ultra Short Term Fund
Best SIP Equity Funds In India
- Motilal Oswal Focused 25 Fund
- Invesco India Growth Opportunities Fund
- Invesco India Contra Fund
- DSP Nifty Next 50 Index Fund
- SBI Flexicap Fund
Best SIP International Funds In India
- Invesco Pan European Equity Fund
- Motilal Oswal Nasdaq 100 Fund of Fund
- Motilal Oswal S&P 500 Index Fund
Best SIP ELSS Funds In India
- Mirae Asset Tax Saver Fund
- Kotak Tax Saver Fund
How To Invest In Best SIPs In India?
There are over 1000 SIP mutual funds available to Indian investors. Honestly speaking, it can get overwhelming to analyse each mutual fund to know which one best fits your goals.
These best SIP mutual funds are based on your goals and risk appetite. Wealth First’s track record of beating the market by ~50% over the past decade ensures that you get access to only the best mutual funds.
FAQs
Q. Which SIP is best for 20 years?
Ans. SIPs in equity, debt, international, and even liquid funds may be a suitable option for the long term. However, a lot can change over 20 years since what is the best today may not be the best tomorrow.
Q. Where should I invest ₹1000 SIP per month?
Ans. There are more than 1000 mutual fund scheme variations in India so it would be wise to understand your risk appetite and investment goals before starting a SIP.
Q. Which mutual fund is best for 5 years?
There are various types of mutual funds available in the Indian market ranging from liquid funds to international funds, all of which cater to different investment goals and risk profiles.
That said, equity funds are generally considered to be one of the best investments for 5+ years because they invest in stocks that are known to be volatile in the short term but lucrative in the long term.
Bear in mind that equity funds are divided into various categories like small cap, mid cap, large cap, ELSS, and international funds. Wealth First currently recommends these best equity funds for users who want to invest for 5 years or more:
- Motilal Oswal Focused 25 Fund
- Invesco India Growth Opportunities Fund
- DSP Nifty Next 50 Index Fund
- Invesco Pan European Equity Fund
- Motilal Oswal Nasdaq 100 Fund of Fund
- Motilal Oswal S&P 500 Index Fund
Q. What is the interest rate of SBI Mutual Funds?
The profits earned from mutual funds are known as “returns” while the term interest rate is generally reserved for the likes of fixed deposits. SBI mutual funds are renowned for their legacy and relatively consistent returns are:
- SBI Liquid Funds: 3-6%
- SBI Debt Funds: 4-6%
- SBI Equity Funds: 12-16%
Q. Which bank SIP is best?
There are several famous AMCs associated with banks in India like Axis, SBI, IDFC, HDFC, ICICI, Kotak, Canara, and more. Each of these AMCs is known to give investors access to solid mutual funds.
In fact, some of the top bank SIPs are currently being recommended. These best bank SIPs include:
- SBI Liquid Fund
- IDFC Banking & PSU Debt Fund
- HDFC Money Market Fund
- Axis Focused 25 Fund
- Kotak Equity Opportunities Fund
- Canara Robeco Emerging Equities Fund
- ICICI Prudential Smallcap Fund
Q. How can I save 50 lakhs in 5 years?
Starting a Systematic Investment Plan (SIP) in mutual funds is known to be one of the best ways to save money and earn lucrative returns. Before you start a SIP, however, you’ll need a solid financial plan.
The plan will factor in your income based on which you’ll have to set aside a chunk of money every month and be consistent throughout the SIP duration to achieve your 50 lakh goal in 5 years.
Here’s how the math would look like in some scenarios:
| SIP Amount/Month | Avg. Mutual Fund Returns | Total Amount After 5 Years |
| ₹68,000 | 8% | ₹5,030,276 |
| ₹65000 | 10% | ₹5,074,801 |
| ₹61,000 | 12% | ₹5,031,668 |
Q. Which SIP gives the highest return?
SIPs in equity funds are known to generate the highest returns amongst mutual funds. The logic behind this is simple – equity funds invest in stocks that have historically generated lucrative returns than bonds that debt funds invest in.
