What are the best funds for SIP?

Important factors before deciding on what mutual fund to invest in-

• Duration of the investment
• Risk taking appetite
• Return expectation
• Investment objective of the investor

Choice of the ideal SIP fund can be broadly categorized into the following 3 categories-

1. 0-3 years- When investment duration is less than 3 years, invest in this portfolio called 'Short Term Low Risk Portfolio'. It consists of 3 debt funds and 1 balanced fund and is designed to give you a stable return in the short term.
2. 5 years- When investment duration is around 5 years, invest in the portfolio 'SIPs for 5 yrs Moderate Risk. It has 3 mutual mutual funds of which 2 are equity funds and 1 is a debt fund.
3. 10+ years- When investment duration is 10 years or more, invest seeking high returns with higher risks. You can look at the portfolio, 5 Best SIPs To Invest In FY 2017-2018. This fund has 4 equity funds and 1 balanced fund. It aims to take advantage of the incredible growth experienced by equity funds over a long period of time.

You can read more about most suggested SIP schemes here.

The first step when investing is to decide the duration for which you will be investing. The next step is to decide your risk appetite.

1. If you are investing for less than 3 years, invest in this portfolio called 'Short Term Low Risk Portfolio'. It consists of 3 debt funds and 1 balanced fund and is designed to give you a stable return in the short term.
2. If you are investing for around 5 years, invest in the portoflio 'SIPs for 5 yrs Moderate Risk. It has 3 mutual mutual funds of which 2 are equity funds and 1 is a debt fund.
3. If you can remain invested for 10 years or more, you can look at the portfolio, 5 Best SIPs To Invest In FY 2017-2018. This fund has 4 equity funds and 1 balanced fund. It aims to take advantage of the incredible growth experienced by equity funds over a long period of time.