Features Of Low-Risk Best SIP Mutual Fund Investment

Have you been to the mutual fund realm? If you haven’t, you might want to know that it has been quite a nice place for the past few years. Let’s just say that mutual funds can be split before the COVID19 pandemic and after the COVID19 pandemic. The pandemic did leave us locked at home, but it surely brought us even closer to the internet. This closeness to the internet, in turn, brought forth the new age investment option – that being mutual funds.

 

There were more investments in mutual funds at this time because of several reasons, and they are:

 

Mutual funds were the best investment through the internet.
There was a wide range of options when it came to investments in mutual funds.
People could start off as small as Rs. 500 with a mutual fund.
There were options for high-risk and low-risk investments.
They had good returns, and they were not as risky as shares.

 

These are just some of the huge bunch of reasons that the mutual fund environment saw a sudden surge.

 

But – do you know what the best part about investing in mutual funds is? You also get to invest in SIP mutual funds. You can pay off small and never have to deal with risks. Let’s look at it a little more in detail.

 

What are SIP Mutual Funds?

 

Mutual funds are financial entities that aggregate money from many investors and invest it in various securities in order to increase returns. You have the choice to begin investing with mutual funds through a SIP. Investors can invest a fixed amount in a fund scheme on a weekly, monthly, or quarterly basis through a system called a systematic investment plan, or SIP. The finest mutual fund SIP plans give investors the opportunity to invest for the long term and experience higher returns.

 

But, just before we can go to find the Best low risk mutual fund, you might want to know the major characteristics of a SIP mutual fund.

 

Features of Low-Risk SIP Mutual Funds

 

SIP has a number of advantages for investors; a few are listed below.

 

1. It is safe

 

First things first, it’s one of the safest options that you can take. A successful investment career can be started with mutual funds. If one is unfamiliar with stocks and shares, a mutual fund offers a low-risk option or exposure to the equity market. Additionally, the money is periodically invested, which is handy for the investor and takes money right out of the bank. As the money is put in the mutual fund plan that the investor chooses, it is a secure investment.

 

2. The Payments you Make Can be Small

 

To acquire better and greater results from the majority of investments, the investor must invest enormous sums of money. A few investments are also so expensive that most investors would not be able to make them. So, where do all of these investors put their money? Mutual funds are a possibility. Investors can invest in mutual funds through the SIP option for as little as Rs. 500, making it accessible to a bigger range of people.

 

3. it is Highly Organized

 

A systematic or organized approach to using money and distributing it with interest forms the fundamental basis of mutual funds. SIP operates in a systematic and disciplined way to accommodate investor convenience. Despite not being exclusive to mutual funds, there is a tiny distinction in the stock market where SIP aids in investing despite market volatility. SIP gives the investor more units when the stock market is at its lowest point and fewer units when it is at its highest point.

 

4. It is Easy-Peezy for Anyone

 

SIP mutual funds, unlike other investments, are easy for investors to invest in since there are no hassles involved. The investor only needs to ask the bank to enable auto-debits when the mutual fund is applied. Without using a manual method, the monthly, weekly, or quarterly SIP is taken directly out of the bank account. For investors who want to let the process run automatically while they focus on making money, this is a fantastic alternative.

 

5. You Can Earn More with Small

 

To diversify their portfolio, investors could wish to acquire a number of different equities, and buying individual stocks may need a sizable excess. While not all investors are able to do this, those who invest in mutual funds can buy many stocks in smaller numbers and at a lower cost.

 

6. You Can Get Out of It When you Want

 

One advantage of SIPs is that participants can withdraw their consent at any moment. One of the main advantages over periodic deposits, which are okay when the investment is terminated, is this. After stopping the SIP, the investor has two options: either increase the amount or keep funding the mutual fund.

 

For instance, you can look at some of the best-performing SIP mutual funds here.

 

Top-Performing SIP Mutual Funds in 2022

 

Here is a list that you would want to get a good look at:

Aditya Birla SL India GenNext Fund
ICICI Pru Top 100 Fund
Aditya Birla SL Top 100 Fund
ICICI Pru Dynamic Plan
Canara Rob Emerg Equities Fund – Reg
Aditya Birla SL Small & Midcap Fund
HDFC Capital Builder Fund
Kotak Opportunities Fund

 

Now you might want to keep in mind that these names can change quite often, which is when you need to keep an eye on the market.

Final Takeaway

SIPs are a great way to start investing in mutual funds. Moreover, you can just start off small, but the key is starting

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