Best SIP Plans to Invest Online in India 2023

You can understand a Systematic Investment Plan (SIP) as reverse of an EMI payout. Just as in an EMI you defray the loan in tranches, in SIP you gradually create wealth by investing small sums of money on a regular basis (normally monthly). A Systematic Investment Plan (SIP) is a simple and systematic, which is what makes it popular since it inculcates the discipline of investment in investors. 

You start by making regular payments into an investment account and the portfolio so created gradually compounds in value over time. This wealth creation happens normally in an equity fund. The most common way to do this is by purchasing shares through a monthly SIP with a set date. There are also fortnightly and quarterly plans but the monthly plans are the most popular form of systematic investment plans (SIP). Here we look at the best SIP plans and the best SIP to invest

Top SIP Plans to invest in India 2023

The table below captures the best sip plans in India across different time frames. These are the best SIP plans or best SIP to invest.
 

Normally, SIPs are linked only to equity funds, but in reality, customers can do SIPs on a variety of mutual fund instruments. Ideally, a good way to assess SIP performance to look at a 5-year CAGR performance or a 10-year CAGR performance. That gives you best SIP plans or best SIP to invest.

Factors and features to consider before investing in an SIP scheme

A SIP is a regular investment scheme so the focus should be on deciding a target that you can sustain over a period of time. Also, before investing in an SIP scheme, it is essential that you zero in on the right scheme. You stand a better chance of getting best SIP investment plan and best SIP to invest now. If you are looking at long term wealth creation, then equity SIPs are the best answer. 

SIPs on debt fund or liquid funds do not give the benefit of rupee cost averaging or the benefit of compounding over time. Ensure that you select the growth plans for SIP and not the dividend plans as regular pay outs will diminish the power of the SIP in a substantial way. That is the way to best SIP plans and best SIP to invest.

Benefits of investing in SIPs for long-term financial goals

There are several benefits of doing a regular SIP. Firstly, it is a habit and a discipline so it inculcates the saving habit in you at an early age. Secondly, SIPs are useful in volatile markets due to rupee cost averaging. That means in higher markets you get more value and in lower markets you get more units. That provides you the best SIP plans and best SIP to invest
Over a longer period of time, they reduce the cost of holding. Thirdly SIPs are natural and automatic wealth creators. You do not have to exert too much of active judgement in them except zeroing in on the right fund. Lastly, SIPs are flexible in that you can have step up SIPs or you can temporarily hold SIPs and still be on track for your long term goals.

How to maximize your returns through regular contributions to your SIP

There are two rules to maximize returns through SIPs. Firstly, you must not start with what you can afford. Instead, look at your goals and decide how much of SIP you need to plan. Then you must adjust your budget and expenses accordingly. Secondly, the rule is that once you start a SIP, do not stop it till the goal is achieved. That is the answer to best SIP plans and best SIP to invest

Conclusion

SIPs have not only emerged as a disciplined way of investing but also allows small investors to dream big about long term wealth creation.

FREQUENTLY ASKED QUESTIONS (FAQ)

Which SIP is best for highest return?

You must choose the SIP on a fund that is best suited to your goals. Ideally, it is diversified equity funds or flexi cap equity funds that can give the best returns over time with lower risk levels.

Is SIP better than FD?

That is hard to say, but one must realize that the new rules for debt funds will result in some money moving out of debt funds and into FDs.

Can I withdraw SIP anytime?

SIPs can be withdrawn at any time unless it is a SIP on an ELSS fund. However, it is advisable not to withdraw SIPs in between.

Do we get loss in SIP?

SIPs are market linked mutual funds after all, so losses are possible. But you can normally find the best SIP investment plan and best SIP to invest now.