Best Performing SIP Plans for 2024
In today’s financial world, there is a growing desire to invest in the market. Systematic Investment Plan (SIPs) have become a popular choice because they help you save and invest money in a disciplined way. It is a service offered by mutual funds. With the SIP, you can invest a Fixed amount of money at regular intervals in mutual fund schemes that you choose. These intervals can be monthly, weekly, quarterly, semi-annually, or annually.
SIP helps you plan your investments to achieve your long-term financial goals. You can do this by setting a target amount that you want to reach. Decide how much money you need to achieve your financial goal, or how much you want to invest regularly to reach that goal through mutual fund schemes. If you want to calculate your investment value you can use the SIP Calculator.
One of the benefits of SIP is that you don't have to worry too much about the ups and downs of the market, or try to time your investments perfectly.
Now it’s time to explore the best-performing SIP Plans there will be the 3 points
- SIP is counted to be the best-performing fund only if the return is 12-15%.
- When the fund is a quality fund
- Managed by top fund manager
Best Performing SIP Plans for 2024
| Fund Name | Launch Date | AUM (crore) | 3-year Rolling Return (%) | 5- year Rolling Return (%) |
|---|---|---|---|---|
| Quant Small Cap Fund | 24-Dec-1996 | 17193 | 44.05 | 29 |
| Edelweiss MidCap Fund | 26-Dec-2007 | 5115 | 21.62 | 18.13 |
| Nippon India Large Cap Fund | 08-Aug-2007 | 22766 | 15.23 | 14.21 |
| Parag Parikh Flexi Cap Fund | 5-May-2013 | 58901 | 18.46 | 18.18 |
| Quant Active Fund | 21-Mar-2001 | 8467 | 33 | 23 |
Quant Small Cap Fund
The Quant Small Cap Fund is one of the best-performing fund. This fund launched on January 1, 2023, and the fund asset under management (AUM) as of February 29, 2024, is Rs.17,193 crores. This makes it a great option for those who want to invest in the small-cap market segment. If you want to see how much Return it generated in the past year view more.
Parag Parikh Flexi Cap Fund
The Parag Parikh Flexi Cap Fund is the flagship scheme of PPFAS AMC and was introduced to the investor on May 28, 2013, and currently has an asset under management (AUM) of Rs. 58,901 crores. The returns over the past 3 and 5 years have delivered rolling returns. This fund has consistently outperformed its benchmark, which highlights the fund's capability of generating higher returns for its investors. View more for extra information.
Nippon India Large Cap Fund
The Nippon India Large Cap Fund is managed with the top investment strategy and by seasoned professionals. Being launched on August 8, 2007, this fund has held strong assets under management (AUM) of Rs. 24,378 crores. This fund has consistently outperformed its benchmark over the past 3 and 5 years if you want to see how amazingly this fund has beaten its benchmark tap to know more
Quant Active Fund
The Quant Active Fund was launched on March 21, 2001, it belongs to a multi-cap category with a strong asset under management (AUM) of Rs. 8,467 crore. It has the ability to generate high returns and at the same time manage risk efficiently. The fund manager of this fund has been able to make effective investment decisions and deliver better results than the market. To know more details about this fund click here.
Edelweiss Mid-Cap Fund
The Edelweiss Mid-Cap Fund, managed by Trideep Bhattacharya, was launched on December 26, 2007, and currently has an asset under management (AUM) of ₹5,115 crores, with this amazing AUM this fund has achieved the tittle of highest growing mutual fund schemes. If you are curious about with how much return it has beaten it’s benchmark explore more.
How Best SIP Plans Work?
Once you apply for one or more SIP plans, the payment is automatically debited from your bank account and invested in the mutual funds you have chosen at the predetermined time interval. Finally, you will receive the mutual fund units based on the mutual fund's Net Asset Value (NAV) which is a value per unit of a mutual fund. More units are added to your account with each investment in an SIP plan in India, according to the market rate. The amount reinvested and the return on those investments increase with each investment. It is entirely up to the investor whether to receive the returns after the SIP's tenure or regularly.
Let’s understand this with an example-
Imagine you want to invest Rs.5000 per month in a Mutual Fund. Each month you buy units of the mutual fund with your Rs.5000. The price of these units can change each month, depending on the market conditions.
First Month: You buy 100 units because each unit costs RS.50 (Rs. 5,000 / Rs. 50 = 100 units).
Second Month: If the price of each unit goes up to ₹60, you'll get fewer units for your ₹5,000, around 83 units (Rs. 5,000 / Rs. 60 ≈ 83 units).
Third Month: If the price stays at ₹60 per unit, you'll still get around 83 units.
Fourth Month: If the price drops to ₹45 per unit, you'll get more units for your ₹5,000, around 111 units (Rs. 5,000 / Rs. 45 ≈ 111 units).
So, each month, you buy mutual fund units, and the quantity of units you receive is determined by the price per unit. Over time, the value of your investment might increase as you gather more units.
Once you understand how the best SIP plans work, you may be curious about how to calculate SIP on your own. Let’s begin with this
How to Calculate the future value of SIP?
This is a tool to simplify your calculation without any complex formula. An SIP calculator is a useful tool that shows you how your mutual fund investments will increase over time offering you to continue adding money on a regular basis. It predicts how much your investment will be worth in the future based on its expected growth over a set period of years. Managing SIPs on your own can be challenging because the time of each investment might change, resulting in different rewards. But with the SIP calculator, you do not have to bother about calculation
Time for an example:
Let's suppose you plan to invest Rs. 5,000 every month in a mutual fund SIP for the next 10 years. You estimate an average annual return of 12%.
Using a SIP Calculator is simple, you have to put in 3 basic details:
Investment amount (Rs. 5,000).
Investment duration (10 years).
Expected annual return rate (12%).
The calculator then generates an estimate of your potential returns. In this case, it might indicate that your Rs. 5,000 monthly investments could potentially grow to Rs.10 lakh in 10 years, based on the assumed rate of return. This shows the power of a SIP calculator in helping you visualize the growth of your investments and plan for your financial future with confidence.
Is Best SIP Plan Worth Your Money?
Here are a few factors that determine is the Best SIP Plan worth your money or not:
Regular Saving Habit
SIP helps you save regularly by investing a fixed amount every month.
Buying More When Prices Are Low
You buy more units when prices are low and fewer when prices are high, it resulting in a cost average over time.
Rupee Cost Averaging
By investing fixed amounts at regular intervals, SIP mutual fund allow you to buy more units when prices are low and fewer units when prices are high, potentially reducing the impact of market volatility.
Compounding Benefits
SIPs use the power of compounding to generate extra returns over time, resulting in faster growth of your investment.
Diversification
Mutual funds usually invest in a diverse portfolio of securities, spreading risk across several assets and reducing the impact of a single investment's performance on the total portfolio.
Professional Management
Mutual funds are managed by skilled fund managers who make investing choices on your behalf, which might result in higher returns.
SIPs provide a systematic and disciplined approach to investing, using methods such as regular saving habits, rupee cost averaging, compounding effects, diversification, and expert management to possibly increase returns and reduce risks over time.
Conclusion
In conclusion, SIP are an excellent approach to invest consistently and achieve your financial objectives. They allow you to save money each month and buy more when costs are low, which can help your assets grow quicker over time. SIPs also diversify risk by investing in a variety of assets, and they are managed by specialists who strive to provide you with the highest potential results. So, if you want to increase your money regularly and safely, SIPs might be an excellent choice for you.
Best Funds
| Top funds | 1M Return | 6M Return | 1Y Return | 3Y Return | 5Y Return |
|
|
|---|---|---|---|---|---|---|---|
| Nippon India Large Cap Fund- Growth Plan -Growth Option | 0.39% | 17.61% | 39.01% | 23.8% | 23.16% | Invest | |
| Edelweiss Mid Cap Fund - Regular Plan - Growth Option | -4.54% | 23.72% | 54.02% | 23.83% | 29.98% | Invest | |
| Quant Small Cap Fund-Growth | 0.79% | 27.03% | 60.88% | 40.91% | 35.05% | Invest | |
| Quant Active Fund-Growth | 2.34% | 20.8% | 45.47% | 27.64% | 27.89% | Invest | |
| Parag Parikh Flexi Cap Fund Regular-Growth | 0.42% | 16.62% | 41% | 22.29% | 22.97% | Invest |