An experienced investor is well aware of the best ways to utilize his funds by investing in equity mutual funds. Systematic Investment Plan (SIP) is the best one amongst them.
A recent study clearly showed that SIP is taking the market by storm and mutual fund investors are happily investing in them.
SIP is said to be a planned approach towards investment. It is the best way for investment for the investors who admit that they have some amount of money that can be saved every month.
To decide about the best Mutual Funds to Invest In SIP there are three things that are needed to be planned in advance.
Firstly, you should have an idea about your asset allocation. The simplest way is to focus on 3 kinds of funds i.e. small/mid cap fund, debt funds and large-cap oriented funds. For stable and maximum returns, you should aim to have some kind of debt fund.
Secondly, number of schemes should be pre-determined. Ideally, your MF portfolio should have 5 schemes – out of which 4 are equity schemes and the other is one debt scheme.
Lastly, decide which schemes you want. Once you are done with the second step, it becomes easy. There are also websites that give you information on the top-rated funds.
There are various value-added services related to SIP, which include flexible types of SIPs, portfolio level SIPs, Designer SIPs and financial advisory services. Although SIP is said to be gaining popularity, investing without a road map or a proper plan for the investment will not yield good returns.
There are several reliable mutual funds management companies in the market, which have teams specially trained to help investors and guide them. Guidance is provided to the investors not only during the investment process but also to ensure that the right product is purchased at a right time.