Top 10 Mutual Funds For SIP

Funds become mutual funds when an asset management company pools investment from various individuals and institutions to purchase securities. For this purpose assets management company have a fund manager who manages all this process and tries to provide the best return to its investors. Under this post, we will try to explain to you the Top 10 Mutual Funds For SIP to Invest in 2021.

According to the experts, the best place to invest in the long term is equity and if the investment is being made in mutual funds, then that should be done in equity mutual funds via SIP. so here is the List of Top 10 Mutual Funds For SIP to Invest in 2021.

List of Top 10 Mutual Funds For SIP to Invest in 2021

Considering the various benefits of the Systematic Investment Plan (SIP), investing in equity mutual funds via SIP is better. Based on the last 3-year returns of equity mutual funds, here are the top 10 mutual funds for SIP to invest in 2021-

Mutual FundsScheme Size (Cr.)Min SIP (Rs.) 3 Yr (%)5 Yr (%)
Quant Small Cap Fund DP (G)700.52100036.3022.74
Quant Active Fund DP (G) 736.14100029.5424.16
Axis Small Cap Fund DP (G)6008.7450028.9222.31
PGIM India Midcap Opp Fund DP (G) 1952.07100028.4121.23
Kotak Small Cap Fund DP (G)4765.50100027.7421.51
Quant Mid Cap Fund DP (G) 110.32100025.5420.29
ICICI Pru Small Cap Fund DP (G) 2664.1810024.6118.72
Nippon India Small Cap Fund DP (G) 15353.1210023.3823.53
Mirae Assets Emerging Bluechip Fund DP (G) 18675.71100023.2421.79
SBI Small Cap Fund DP (G) 9091.4750023.0023.33
Source- Paytm Money as of 30th June 2021

How to Invest in Mutual Funds?

After getting knowledge about “Top 10 Mutual Funds For SIP to Invest in 2021”, it is necessary to know how to invest in mutual funds.

To invest in mutual funds, you can choose the offline or online mode as well. Making an offline investment in mutual funds makes a lot of paperwork. To avoid paperwork, it is better to invest online for which you can choose Upstox.

Upstox is a platform, where you can invest online through its web or app. There is no paperwork and all the procedure is online with e-KYC facilities.

Here is the link to Upstox, through which you can invest online in more than 2000 mutual funds. You can choose the best mutual fund of your choice and study all the detailed analyses.

Why to Invest in Mutual Funds- Advantage of Mutual Funds

Benefits of Mutual Funds- Here is why investing in mutual funds is a good idea-

  • Liquidity
  • Diversification
  • Expert Management
  • Fits All Financial Goals
  • Cost efficiency
  • Tax-efficient returns

Liquidity- Except for the cases when you decided to go for close-ended mutual funds, it is easy and hassle-free to buy and exit mutual fund scheme, because close-ended scheme issue a fixed number of units, which means that new investors can not enter, nor can the existing investor’s exit until the term of the scheme ended.

Diversification- Mutual funds do come with their set of risks since they are impacted by the performance of the market. They invest in assets classes- equity, debt, and others and within asset classes in different sectors and company sizes.

Expert Management- This is another main reason to invest in mutual funds, where investors do not require to do any research, here is the fund manager who takes care of it and makes decisions on what needs to be done with your investments.

Fits all financial goals- In today, mutual funds industries have many schemes that fit the investors’ financial goals, such as for children’s marriage education, retirement or buying a house, etc.

Cost efficiency- An investor also can go for a mutual fund with low expense ratios. You can check the expenses ratio of a range of mutual funds and then decide on the one that fulfills your financial goals.

Tax-efficient returns- Mutual funds returns are more tax-efficient compared to traditional investment avenues like FDs. In equity mutual funds you pay 15% tax on return if you invest for less than one year. You need to pay tax only if your return exceeds Rs. 1 Lakh in a financial year for long-term gain. Even then the tax rate is 10% and you pay it on the amount over Rs. 1 Lakh.

Frequently Asked Questions- FAQs

  1. Which Mutual Funds are best for SIP in 2021?

    Top 10 Mutual Funds For SIP to Invest in 2021-

    Quant Small Cap Fund DP (G)
    Quant Active Fund DP (G)
    Axis Small Cap Fund DP (G)
    PGIM India Midcap Opp Fund DP (G)
    Kotak Small Cap Fund DP (G)
    Quant Mid Cap Fund DP (G)
    ICICI Pru Small Cap Fund DP (G)
    Nippon India Small Cap Fund DP (G)
    Mirae Assets Emerging Bluechip Fund DP (G)
    SBI Small Cap Fund DP (G)

  2. Which SIP should I invest in 2021?

    Top 10 Mutual Funds For SIP to Invest in 2021-

    Quant Small Cap Fund DP (G)
    Quant Active Fund DP (G)
    Axis Small Cap Fund DP (G)
    PGIM India Midcap Opp Fund DP (G)
    Kotak Small Cap Fund DP (G)
    Quant Mid Cap Fund DP (G)
    ICICI Pru Small Cap Fund DP (G)
    Nippon India Small Cap Fund DP (G)
    Mirae Assets Emerging Bluechip Fund DP (G)
    SBI Small Cap Fund DP (G)

  3. Which SIP gives the highest return?

    List of top 10 mutual funds for SIP to Invest in 2021 with the highest return of 5 Years-

    Quant Active Fund DP (G)- 24.16%
    Nippon India Small Cap Fund DP (G)- 23.53%
    SBI Small Cap Fund DP (G)- 23.33%
    Quant Small Cap Fund DP (G)- 22.74%
    Axis Small Cap Fund DP (G)- 22.31%
    Mirae Assets Emerging Bluechip Fund DP (G)- 21.79%
    Kotak Small Cap Fund DP (G)- 21.51%
    PGIM India Midcap Opp Fund DP (G)- 21.23%
    Quant Mid Cap Fund DP (G)- 20.29%
    ICICI Pru Small Cap Fund DP (G)- 18.72%

  4. Is SIP better or lumpsum?

    According to the experts, the best place to invest in the long term is equity and if the investment is being made in mutual funds, then that should be done in equity mutual funds via SIP

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Disclaimer: The information contained in the above article are solely for informational purpose after exercising due care. However, it does not constitute professional advice or a formal recommendation. The author does not own any responsibility for any loss or damage caused to any person, directly or indirectly, for any action taken based on the above article.

Mutual Funds Investments are subject to market risk, read all scheme-related documents carefully.

Feedback/Suggestion- Hope you all find the “Best Mutual Funds to Invest in 2021“, please give your valuable feedback & let us know if there is an error. Thanks in Advance

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