Groww Logo
Home>Blog>Mutual Funds>I Want to Invest a Sum of 2000 in an Equity Oriented Fund Through SIP. Please Suggest in Which Scheme Should Invest?

I Want to Invest a Sum of 2000 in an Equity Oriented Fund Through SIP. Please Suggest in Which Scheme Should Invest?

13 May 2022

Congrats on the excellent decision of starting SIP. Small savings can have a big advantage in the long run.

There are two steps you should take to choose the right funds for your investment needs.

1. Choose the right category of Mutual Funds – Based on your investment horizon, risk appetite and returns expectations your answer will be different.

Equity Vs Debt?
If you are looking for ultra-safe investments and are happy with returns below 10%, you should consider debt funds. You can read more about these funds here.

If you are considering SIP, you are most likely looking for long term and high growth. Therefore the right choice for you is Equity Funds.

Large Cap/Multi Cap or Mid Cap Funds?
The second level category selection is the type of equity funds.Large Cap funds – if you are looking to invest for 2-3 years with less risk, you should go for Large Cap funds. These funds can give around 12-18% returns if markets perform well.

Multi Cap funds – These are good funds for 3-5 years and moderate risk. These funds invest in companies of all sizes and the fund manager decides the allocation based on the market situation and opportunities available.

Mid/Small Cap funds – These are highly risky funds that give very high returns in long term (5-7 years or more). These funds invest in mid or small sized companies that have the potential of giving high growth.

For beginners with moderate risk appetite, multi cap funds and Large Cap would be most suitable.

2. Select the best funds in the chosen category of Mutual Fund
Once you are clear of the category, the next and final step is to identify the Mutual Funds in the category that are potentially good performers in future. Here is the criterion to choose the funds in a category –
1. Groww Rating (this includes best returns, consistency, AUM)
2. Minimum Investment – it should match your requirements
3. Asset allocation (should be true to the category)

Disclaimer

The stocks mentioned in this article are not recommendations. Please conduct your own research and due diligence before investing. Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. NBT do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.
Do you like this edition?
LEAVE A FEEDBACK
ⓒ 2016-2022 Groww. All rights reserved, Built with in India
MOST POPULAR ON GROWWVERSION - 3.2.4
STOCK MARKET INDICES:  S&P BSE SENSEX |  S&P BSE 100 |  NIFTY 100 |  NIFTY 50 |  NIFTY MIDCAP 100 |  NIFTY BANK |  NIFTY NEXT 50
MUTUAL FUNDS COMPANIES:  ICICI PRUDENTIAL |  HDFC |  NIPPON INDIA |  ADITYA BIRLA SUN LIFE |  SBI |  UTI |  FRANKLIN TEMPLETON |  KOTAK MAHINDRA |  IDFC |  DSP |  AXIS |  TATA |  L&T |  SUNDARAM |  PGIM |  INVESCO |  LIC |  JM FINANCIAL |  BARODA PIONEER |  CANARA ROBECO |  HSBC |  IDBI |  INDIABULLS |  MOTILAL OSWAL |  BNP PARIBAS |  MIRAE ASSET |  PRINCIPAL |  BOI AXA |  UNION KBC |  TAURUS |  EDELWEISS |  NAVI |  MAHINDRA |  QUANTUM |  PPFAS |  IIFL |  Quant |  SHRIRAM |  SAHARA |  ITI