What Are The Best Performing Mutual Funds for SIPs to Invest in 2024?

Witness the growing spectrum of mutual funds in India, which is no longer limited to a certain group of wealthy individuals in big cities. It is diversifying with a dynamic shift towards asset shares in smaller cities, thanks to digital penetration and the prevalence of innovative investing disciplines like Systematic Investment Plan (SIP), which has paved the way for investors to get started with just Rs. 100. If you are ready to start investing here and now, this article will guide you on the best mutual funds for SIPs to go for as of January 2024. So let’s get started.

SIP for Your Information

 

SIP is a discipline of investing in mutual funds that starts with a fixed amount of money paid at regular intervals. The experience works more like EMIs, where your allocated amount is deducted, either monthly, quarterly or yearly, from your bank account. Subsequently, you are allotted a specific number of units of that specific mutual fund, which is determined by the fund's net asset value (NAV) on the date of purchase.

 

The Association of Mutual Funds in India (AMFI) revealed that mutual fund SIP accounts stood at an amount of 6.97 crore (69.7 million). Inflows of SIP surpassed the Rubicon of Rs 15,000 crore in July 2023. In August, SIPs alone collected a revenue of Rs 74,270 crore for FY 2023-24.

Choosing Between Small Cap, Mid-and-Large Cap, and Large-Cap Funds

 

There is a common tiff about whether you should choose mid-large cap mutual funds or head for large-cap funds only. Small-cap funds are usually addressed with a more defined strategy. The tiebreaker here is your risk appetite and how aggressive you are.

 

It is because mid-cap funds can yield high returns within a shorter period that more aggressive and impatient investors choose them. In contrast, large-cap funds are usually less volatile and more favoured by steady and conservative inventors.

Top Performing SIP Mutual Funds to Invest in January 2024

The investing environment in 2024 will provide a wide range of options to accommodate varying risk tolerances and investment goals. Inbest has been the hub of the best resources for selecting the best-performing mutual funds and associated investing preferences available in India.

 

Whether you are an aggressive, moderate, or conservative investor in India, or just a beginner, as a leading mutual fund distributor in India, we make it more of an independent and conscious decision for our clients. Below are some of the recommendations for the best mutual funds for SIPs for January 2024.

 

 

  • Motilal Oswal Midcap 30 Fund: With an AUM of ?6,059.92 crore, this fund is most suitable for investors who expect a 3-4year investment period and good returns. The fund has 17.59% investments in domestic equities and 38.15% in small-cap stocks.

 

  • Edelweiss Large and Mid Cap Fund: This is a large and midcap fund with an AUM of ?2,221 crores, and its current value is ?10.29 lakh. The minimum investment is ?500, and you can expect a return of +21.73% per annum.

 

  • Nippon India Large Cap Fund: This fund has an AUM of ?16,637 crores and allows both SIP and lumpsum investments. You can start investing with just ?100 and expect a return of 27.43% per year. It has top-notch holdings by HDFC Bank, ICICI Bank, Reliance Industries and the State Bank of India.

 

  • SBI Blue Chip Fund: This is one of the most prospective long-term or minimum 10-year investment vehicles for capital appreciation. The minimum SIP investment is ?1,000, or go for a lumpsum investment of a minimum ?5,000. It is recommended to invest in this fund for a minimum of ten years. Though a highly volatile fund, it has an AUM of ?38,597.97 crores and a solid background of over 12 years.

 

  • Bajaj Allianz Pure Stock Fund: This is a pure stock fund that has a diverse equity portfolio that includes investing in small-cap, mid-cap, and large-cap funds. With a total asset value (TAV) of Rs. 44.03 billion, the net asset value (NAV) is ?97.97 per share. By investing the majority of the funds in equity stock funds, it can yield an annual return of 14.93% over a 10-year period.

Consult Experts at Inbest to Navigate The Mutual Funds Industry in India Confidently

 

As of October 2023, the average assets under management (AAUM) of the Indian mutual fund industry stood at ? 47.80 lakh crore (INR 47.80 trillion). A recent Bank Bazar survey indicated that mutual funds are the most popular mode of investment, with over 54% of investors choosing them over other options like fixed deposits, gold and cryptocurrency.

 

Most mutual fund brokers would agree that most incremental sales of mutual funds come from tier-2 and tier-3 cities, where there is a lot of buy-in for the concept of systematically managed investing. Inbest, however, also has a client base in small cities and young investors that are enthusiastic about smart investing.

 

If you are looking to start or grow your investment portfolio, consult Inbest Mutual Fund Distributors for tailored guidance and expert opinion. Take a step-by-step approach by understanding the best practises, the best time, and the value of your investments.

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