Have you heard of SIP plans for high returns? In today’s time money’s overall role and importance in our lives have increased more and surely with time it will see even more rise because people’s needs and demands are rising daily.
Earlier only three things were necessary for people to survive, Food to eat, clothes to wear and a roof overhead but now even to exist and function we have more necessities than the mentioned three”, To fulfil all of our desires and needs we need a good amount of money.
Now it is also a fact that only earning won’t help in this scenario, What’s important here is saving and what’s more important here is investing.
Investing is like bringing your resources together with the vision of generating a profit from it. To be more precise, we can say that Investing is the art of money creating money for you even when you are sleeping.
Now what could be better than that? But not everyone knows the game of investing. Investing when done correctly can boost your financial security to the sky but if done impulsively, without proper understanding and knowledge can put you at a loss as well.
It’s important to know and create the right strategy based on your financial scenario before jumping into anything and therefore SIPs are one of the best ways to start your investing journey, by investing in the right SIP Plans for High Returns.
A Brief Overview of Systematic Investment Plans (SIPs)
SIP stands for Systematic Investment Plans, The name itself gives a positive sign when it comes to investing that is “Systematic investing”. It’s very risky to put your hard-earned money into anything without proper planning and analysis of the market scenario.
SIP plans for high returns are a strategically designed and methodical investing technique that allows people to make regular, systematic investments in mutual funds.
This approach allows investors to start investing a set amount of money regularly, usually on a monthly or quarterly basis, in contrast to making a beginning investment with a lump sum payment.
SIPs give investors a simple and easy approach to start investing in the financial markets in their comfort and build their wealth over time.
Key features and characteristics of SIPs
The cost: Not everyone has the same financial situation therefore a wide variety of people can start their investing journey in SIPs by starting with a very small amount of money based on their financial situation at the present moment, SIPs are that affordable. This makes it an appealing option for people who might not have a large amount of money to invest at first.
The ability to adapt: Depending on your risk tolerance and financial objectives, you can decide how much money you wish to invest in SIPs. Also, a fact that you can simply customise your SIP contributions depending on your evolving financial circumstances and fluctuations happening in the financial market.
Long-Term Wealth Creation: If you are thinking of a long-term investment then definitely consider SIPs. They are the best option for achieving financial objectives such as saving for retirement, purchasing a home, or financing schooling. Investors who stay invested for a long time reap the benefits of compounding.
Periodic Investments: Systematic Investment Plans (SIPs) allow investors to keep making investments after a set time by allowing them to make regular, periodic investments.No matter how the market fluctuates, this strategy encourages people to invest regularly, which creates a sort of financial discipline, which is always better to learn early in life.
Expert Fund Management: Don’t worry, if you are still not sure of how will you do it, if you don’t understand these terms fully or if you don’t have that much time to manage or look into your SIPs by yourself. SIPs make investments in mutual funds, which are managed by qualified fund managers. These fund managers help you to achieve the fund’s specified goals, these managers make investment choices on your behalf.
Variety of Fund Options: We are used to getting options in everything now from toothpaste to changing Aeroplanes then how can we not look for it when it comes to our money into SIPs? SIPs give investors a large selection of mutual fund categories, such as debt, hybrid, and equity funds. This helps investors to diversify their portfolios by their risk tolerance and financial objectives.
Rupee Cost Averaging: SIPs are based on the rupee cost averaging concept, which implies that investors should purchase more units at lower prices and fewer units at higher prices. This strategy may eventually lessen the effect that market volatility has on the investment as a whole.
Factors to Consider Before Investing in SIP 2024
Financial targets: It’s always suggested that before jumping into investing, Clearly outline your financial objectives, including saving for retirement, building wealth, and paying for school based on your needs and desires. Different investing techniques may be needed to achieve different goals.
Tolerance for Risk: Everyone has different risk tolerance levels mentally as well as financially. To find out how much volatility you can tolerate, evaluate: and understand your risk tolerance. Select funds based on your willingness to take on risk, taking into account things like market volatility and possible losses.
Vision of Investment: Choose the length of your investing horizon, short-, medium-, or long-term. Various mutual funds are appropriate for varying time horizons; longer horizons provide better compounding and risk control.
Evaluate the Portfolio’s Performance: Over a Few Years, Assess the Performance of the Portfolio regularly. Reviews of your SIP mutual fund portfolio are recommended. This can help you get rid of underperformers funds and increase the returns on your portfolio once every three or four years.
The Fund’s Size: Although it is not the only factor, a fund’s size might reveal information about its stability and level of popularity. Greater resources and more experienced fund managers are likely to be found in larger funds.
Top 10 SIP Plans for High Returns in 2024
Some of the top ten SIP plans for 2024 are:
1)HDFC Credit Debt Fund Direct-Growth Risk-Reduction
A debt mutual fund scheme called HDFC Credit Risk Debt Fund Direct-Growth was introduced by HDFC Mutual Fund.
The programme invests primarily in corporate debt rated AA and lower, to generate income and capital appreciation.
2) ICICI Prudential Direct-Plan-Growth All Seasons Bond Fund
ICICI Prudential Mutual Fund introduced the ICICI Prudential All Seasons Bond Fund Direct-Plan-Growth debt mutual fund scheme.
Through investments in several debt and money market products, the programme aims to create income. The strategy also attempts to keep the best possible balance between safety, yield, and liquidity.
3) Quant Absolute Fund Direct-Growth
Quant Mutual Fund introduced the hybrid mutual fund scheme Quant Absolute Fund Direct-Growth.
Through a combination of fixed-income securities and equity instruments, the programme aims to deliver both current income and long-term capital appreciation.
4) BOI AXA Small Cap Fund Direct-Growth
BOI AX Small Cap Fund Direct-Growth is an Equity Mutual Fund Scheme launched by BOI AXA Mutual Fund and is known as the Best SIP Plan.
The scheme seeks to generate long-term capital appreciation by investing predominantly in equity and equity-related securities of small-cap companies.
5) ICICI Prudential Smallcap Fund
The Equity – Small Cap fund known as ICICI Prudential Smallcap Fund was introduced on October 18, 2007. This fund, which has a moderate level of risk, has produced an annualised CAGR return of 13.3% since its inception. Placed 26th in the Small Cap division. The returns for 2022 were 5.7%, 2021 was 61%, and 2023 was 37.9%.
6) Kotak Small Cap Fund
Generating gains in value from a diverse portfolio of equities and equity-related securities is the Scheme’s investment goal. The Kotak Small Cap Fund was introduced on February 24, 2005, as an equity small cap fund. This fund, which has a moderate level of risk, has produced an annualised CAGR return of 17.9% since its inception.
Placed 23rd in the Small Cap division. Returns were 34.8% in 2023, -3.1% in 2022, and 70.9% in 2021.
7) Aditya Birla Sun Life Digital India Fund
An open-ended growth scheme that spans several sectors and aims to generate long-term capital growth through a portfolio that targets 100% equity allocation. The plan concentrates on investing in technology and technology-dependent enterprises, hardware,
8) SBI Contra Fund
To provide investors with the best possible growth potential by investing in equities of economically growing industries.
The SBI Contra Fund was introduced on May 6, 2005, as an Equity-Contra fund. This fund, which has a moderate level of risk, has produced an annualised CAGR return of 17.3% since its inception. 48th place in the Contra division. Returns were 38.2% in 2023, 12.8% in 2022, and 49.9% in 2021.
9) Motilal Oswal Midcap 30 Fund
It was formerly known as the Motilal Oswal Midcap 30 Fund. The Scheme’s investment goal is to generate long-term capital growth by making up to thirty quality mid-cap investments in businesses with growth potential and long-term competitive advantages. But there can be no certainty or confidence.
10) The Invesco India Infrastructure Fund
The Scheme invests in a portfolio primarily composed of stock and equity-related securities of infrastructure businesses to generate long-term capital appreciation. Nevertheless, there can be no guarantee that the Scheme’s investment goal will be met.
Launched on November 21, 2007, the Invesco India Infrastructure product is a sectoral equity product. This high-risk fund has produced an annualised CAGR return of 10.4% since its inception. in the Sectoral category, ranked 24. 2023 had a 51.1% return, 2022 had a 2.3% return, and 2021 had a 55.4% return.
Conclusion
By choosing the best scheme plan for 2024, the investor depending on their risk-return profile, a Systematic Investment Plan may be initiated at any moment to guarantee that risk is reduced. Choose Gain Fintech which is built to make investing easy and to start your investing Journey.
