Introduction:
A lot of new investors are confused about how to choose schemes to achieve their long-term goals. They keep looking for a ready-made portfolio of mutual funds to help them achieve their long-term goals.
Therefore, we bring them the top 5 SIPs for Beginners in 2023. We have put together a number of schemes that are based on your risk profile, time horizon, and investment amount.
We have been closely monitoring the schemes in various mutual fund portfolios and providing regular updates. We present a ready-made portfolio that is selected based on our in-house methodology mentioned at the end of this article.
When it comes to investing in mutual funds, systematic investment plans (SIPs) have become a popular choice among investors. SIPs offer a convenient way to invest in mutual funds by allowing investors to make regular, fixed investments over a period of time.
This not only helps in building a disciplined investment habit but also reduces the impact of market volatility on investment returns.
While there are many mutual fund SIPs available in the market, not all of them are suitable for short-term investors. Short-term investors typically have an investment horizon of 1-3 years and are looking for investment options that offer relatively lower risk and higher returns in a short period of time.
It is also important to note that short-term mutual funds are specifically beneficial to new investors or beginners for several reasons as discussed below:
1. Lower risk: Liquid and short-term mutual funds are generally considered to be lower risk than equity funds or long-term debt funds. As a result, investors who are new to mutual fund investing or who are risk-averse may prefer to start with these types of funds.
2. Short investment horizon: New investors or beginners may have a shorter investment horizon or may be saving for a short-term goal such as a down payment on a house or a vacation. Liquid and short-term mutual funds are designed to provide stable returns over a short period of time, making them a good option for investors with short-term goals.
3. Convenience and discipline: SIPs in liquid and short-term mutual funds offer a convenient and disciplined way to invest regularly. By investing a fixed amount of money every month, investors can build a savings habit and avoid the temptation to time the market.
4. Liquidity: Liquid and short-term mutual funds offer high liquidity, which means investors can easily redeem their investments and get their money back quickly if needed. This is important for investors who may need access to their money in the short term.
5. Potential for higher returns: While liquid and short-term mutual funds are generally considered lower risk, they can still offer higher returns than traditional savings accounts or fixed deposits.
By investing in these funds through a SIP, investors can potentially earn higher returns than they would with a traditional savings account or fixed deposit.
On the basis of the above discussion, here are some of the best mutual fund SIPs for short-term investors:
1. Axis Liquid Fund: Axis Liquid Fund is a low-risk mutual fund that invests in the money market and debt instruments. It offers higher returns than traditional savings accounts and fixed deposits and is a good option for short-term investors looking for stable returns. The fund has consistently delivered returns of around 6-7% over the past few years.
2. SBI Magnum Ultra Short Duration Fund: SBI Magnum Ultra Short Duration Fund is another low-risk mutual fund that invests in debt and money market instruments with a maturity of up to one year. It is a good option for short-term investors who are looking for higher returns than savings accounts and fixed deposits. The fund has consistently delivered returns of around 6-7% over the past few years.
3. ICICI Prudential Ultra Short Term Fund: ICICI Prudential Ultra Short Term Fund is a low-risk mutual fund that invests in debt and money market instruments with a maturity of up to one year. It is a good option for short-term investors looking for stable returns. The fund has consistently delivered returns of around 6-7% over the past few years.
4. Aditya Birla Sun Life Savings Fund: Aditya Birla Sun Life Savings Fund is a low-risk mutual fund that invests in debt and money market instruments. It is a good option for short-term investors looking for stable returns. The fund has consistently delivered returns of around 6-7% over the past few years.
5. HDFC Liquid Fund: HDFC Liquid Fund is a low-risk mutual fund that invests in the money market and debt instruments with a maturity of up to 91 days. It is a good option for short-term investors who are looking for stable returns. The fund has consistently delivered returns of around 6-7% over the past few years.
When investing in mutual funds, it’s important to remember that past performance is not a guarantee of future returns. Additionally, short-term investments are subject to market volatility and investors should be prepared to take some risk in exchange for potentially higher returns.
In conclusion, these are the top 5 SIPs for Beginners in 2023. However, it’s important to do your own research and consult with a financial advisor before making any investment decisions.
