Best mutual fund sip: The trend of investing through SIP in mutual funds has increased rapidly in India in the last few years. In April 2016, where every month there was an investment of 3,122 crore from SIP, now this figure has increased to 26,000 crores. That is, in the last few years, there has been an increase of more than eight times.

Actually, the biggest reason for this is its simplicity, investment of a fixed amount every month, that too without worrying about the market move. This is the reason that today it has become the first choice of middle class and small investors.

44 lakh fund made of SIP

According to financial data, if an investor had been of SIP of 10,000 every month for the last 10 years, then today his investment could reach 44 lakhs. Many top equity mutual funds have given an annual return (CAGR) of more than 20 per cent in the last decade.

These top-10 funds gave the best SIP returns

According to the report of Financial Express, ‘Quant Small Cap Fund’ was at the forefront of these mutual funds, which gave a CAGR return of 24.56 per cent in 10 years. This was followed by Nippon India Small Cap Fund (22.93 percent) and Quant Els Tax Sver Fund (21.74 percent). Quant ELSS Tax Saver Fund was at number three, it has also given an annual return of 21.74 percent.

Midcap funds dominated

Quant funds were also dominated in the midcap segment. Quant Mid Cap Fund has given a return of 21.60 per cent annually. Motilal Oswal Midcap Fund has done well with a return of 21.47 percent. Apart from this, the infrastructure funds also did not lag behind.

Funds focusing on the infrastructure sector have also performed well. Among them, ICICI Prudential Infrastructure Fund has given a return of 21.37 percent annually. Whereas, Invesco India Infrastructure Fund and Franklin Build India Fund have also given a return of 20.67 percent and 20.60 percent annually. Nippon India Growth Fund has made it to the list of top 10 funds with a return of 20.38 per cent annually.

Caution and patience are important

Financial experts believe that SIP is not a guaranteed return scheme. The instability of the market definitely affects this, but in the long term, these fluctuations become average, which gives better returns better.

Who should do SIP?

SIP is considered better for those whose income is regular and who can continue investing for a long period. SIP is a sensible option for youth, employed people and investors planning big financial goals.

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