Top 10 Best Mutual Funds to Invest Now

Just saving diligently does not necessarily help in wealth creation. It is equally important to invest. Mutual funds offer broader diversification and value-for-money as they help to build on them over time.

Investing in SIPs for long-term gains help accumulate a lump sum amount for the future. With a long time horizon, one can get a higher number of units for the same investment amount when the markets go down.

What is SIP

Investing money systematically into mutual funds via the Systematic Investment Plan (SIP) route over the long term can help an investor multiply his or her savings manifold.

Mutual funds allow an investor to diversify their investments as they invest in a basket of stocks and debt, across industries, themes and sectors.

The SIP route allows investors to make small ticket investments and, over time, keep averaging upwards or downwards depending on the direction the broader market is taking. In fact, if one does not have lump sum capital to invest but still wants to beat inflation and partake in growth of the stock market, the SIP route may be the way to go.

Also, no investment is really ever risk free. So, if one wants to hedge risk, investing in the stock market via the mutual fund route through SIPs, is the best way forward for most small investors.

Moreover, SIPs bring a disciplined approach to investing as investors can put their money to work systematically, without being too worried about day to day market movements.

While mutual funds are a tried and tested route that retail investors can take to access the stock markets, it would help an investor if they were to spread their investments across multiple mutual funds in a rational manner.

How do SIPs work?

The first thing that an investor should ensure before investing via the SIP route is that he or she needs to be KYC compliant. For that the person needs to submit requisite documents like bank account details and ID proofs. Following this, they can freely invest via online portals of asset management companies or other online aggregator platforms.

Once the money is debited from their account, investors are allotted units based on the net asset value of that day.

Best SIP Plan

How to invest in Best SIP Plans?
To invest in the best mutual funds for SIP 2024, here is a step-wise guide:

Step 1: To start a SIP, register with a broker or financial advisor or simply sign up with a mutual fund house directly.

Step 2: SIP can be started online. For the online process the investor must create a new account or log in an existing account.

Step 3: After selecting an investment platform, such as 5paisa, an investor can choose from a wide range of investment plans. After narrowing down on the fund, one must click on Invest Now.

Step 4: Select the amount of contribution and time horizon of the SIP tenure. Also, select a date for the SIP.

Step 5: The last step is to submit the form after providing all the necessary information related to the bank account.

Performance Overview of top 10 best mutual funds to invest now

SBI MF Top Rated Funds

SBI Infrastructure Fund Direct-Growth
Min. Investment – ₹500
3Y Returns – 31.91%

SBI Long Term Equity Fund Direct Plan-Growth
Min. Investment ₹500
3Y Returns 27.16%

SBI Small Cap Fund Direct-Growth
Min. Investment ₹500
3Y Returns 24.09%

SBI Magnum Mid Cap Direct Plan-Growth
Min. Investment ₹500
3Y Returns 23.47%

SBI Large & Midcap Fund Direct Plan-Growth
Min. Investment ₹500
3Y Returns 21.93%

SBI Flexicap Fund Direct-Growth
Min. Investment ₹500
3Y Returns – 15.68%

SBI Multi Asset Allocation Fund Direct-Growth
Min. Investment – ₹500
3Y Returns – 15.56 %

SBI Magnum Equity ESG Fund Direct Plan-Growth
Min. Investment- ₹500
3Y Returns- 15.18 %

SBI Focused Equity Fund Direct Plan-Growth
Min. Investment- ₹500
3Y Returns- 15.14%

SBI Bluechip Direct Plan-Growth
Min. Investment- 500
3Y Returns-14.81 %

Conclusion

Having said that, choosing a mutual fund is a personal decision. You need to make sure that you have thoroughly researched the reputation of the fund house, its historic returns, and the risk involved.