Looking for the best SIP mutual funds to buy in 2023. See the top mutual funds recommended by Cube’s Mutual Fund Advisory Partner, WealthFirst. Also, learn how Cube Wealth simplifies SIP mutual fund investments for you.
A Systematic Investment Plan (SIP) is a sustainable way to save money, create wealth, and become a disciplined investor. We’re assuming you already know all about SIPs so let’s help you decide which ones you should invest in.
In this story, we'll get right down to business by revealing a snippet of the best SIPs for 5 years in equity, debt, and international funds currently being recommended on the Cube Wealth App. You may also consult a Cube Wealth Coach before investing in any such vehicle.
Equity funds primarily in shares of companies to generate long term wealth. This approach presents a potential opportunity to long term investors who want to benefit from the Indian stock market's growth.
The Quant Small Cap Fund Direct Plan Growth has been there from 07 Jan 2013 and the average annual returns provided by this fund is 15.33% since its inception.
Quant Mid Cap Fund Direct-Growth scheme's ability to deliver returns consistently is in-line with most funds of its category. Its ability to control losses in a falling market is average. The fund has the majority of its money invested in Financial, Healthcare, Energy, Automobile, Services sectors.
SBI Contra Direct Plan-Growth scheme's ability to deliver returns consistently is in-line with most funds of its category. Its ability to control losses in a falling market is above average.
The ICICI Prudential Smallcap Fund Direct Plan Growth has been there from 02 Jan 2013 and the average annual returns provided by this fund is 12.72% since its inception.
Nippon India Growth Fund Direct- Growth scheme's ability to deliver returns consistently is in-line with most funds of its category. Its ability to control losses in a falling market is above average.The fund has the majority of its money invested in Financial, Services, Healthcare, Capital Goods, Technology sectors.
Debt funds invest in high grade bonds and other debt securities in order to generate solid, predictable returns over the long term. This offers investors the potential to generate better returns than the average bank FD for long term wealth creation goals.
The IDFC Banking & PSU Debt Fund is an open-ended debt scheme that invests in the money market and debt assets from the banking and PSU sector.
Banking & PSU debt funds invest in the high-quality bonds of companies with a high credit rating (AAA). This implies that the fund carries low volatility but can be prone to interest rate fluctuations.
Thus, the IDFC Banking & PSU Debt Fund may be suitable for investors who want to leverage the benefits of the banking & PSU sector for generating wealth over 5+ years.
ICICI Prudential Corporate Bond Fund is an open-ended debt scheme that primarily invests in corporate bonds with a high credit rating (AA+). Corporate bonds pay a fixed interest that these funds look to leverage.
Corporate bond funds carry a low risk of default and generate better returns than your average bank fixed deposit. Thus, the fund may be suitable for conservative investors looking for long term wealth creation with a SIP plan for 5 years.
HDFC Money Market Fund is an open-ended debt scheme. It primarily invests in top-quality money market instruments that mature in approximately a year.
Money market funds carry a low interest rate risk and volatility due to the average maturity duration of their portfolio. Thus, the fund may be suitable for investors looking to add debt funds to their portfolio for the long run.
Dynamic bond funds like IDFC Dynamic Bond Fund can adjust their investment strategy based on interest rate fluctuations. This simply means that the fund manager can buy bonds that they deem fit - for the long or short term - based on RBI's interest rate changes.
International funds fall under the equity funds category and invest in either foreign shares of companies like Apple, Amazon, Google, etc. or other off-shore mutual funds. International markets grow at different paces over the long term, a potential that these funds allow investors to access.
Franklin India Feeder - Franklin U.S. Opportunities Fund is an open-ended equity scheme. It is a feeder fund which means it invests its capital in an offshore fund - Franklin U.S. Opportunities Fund.
Franklin U.S. Opportunities Fund uses the capital to invest in high growth US stocks with the potential to generate long term wealth for its investors. There are two benefits to this:
Thus the fund can be beneficial for investors looking to geographically diversify their portfolio with a SIP plan for 5+ years.
Edelweiss Greater China Equity Off-shore Fund is an open-ended 'fund of funds' scheme. Fund of funds don't invest in stocks or bonds, they invest in other mutual funds.
Edelweiss Greater China Equity Off-shore Fund invests in JPMorgan Fund’s - Greater China Fund which invests in stocks of high growth companies in the Greater China region.
This fund may be suitable for investors with a long term outlook (5+ years) and the patience to bear short term fluctuations.
This international fund is a fund of funds (FoFs) scheme that invests in the units of PGIM Jennison Global Equity Opportunities Fund.
Note: All facts and figures in the tables above are updated as of 16/07/2021 and are taken from publicly available sources.
The fundamental idea behind SIP investing in mutual funds is to make long-term investments in fixed amounts at regular intervals. With this investment strategy, you can gain from the power of compounding.
Investing in the right SIPs can be one of the best ways to pay your future self. But here’s the catch, nobody really tells you what's right for you.
That is why most investors struggle to find the right SIP mutual funds based on their goals and risk profile. But there's a solution - Cube Wealth!
Cube gives you access to curated mutual fund advice from Wealth First, Cube's mutual fund advisory partner. WF handpicks the best SIP mutual funds for Cube users. You may also consult a Cube Wealth Coach before investing in any such vehicle.
You can take the detailed risk analysis quiz on Cube Wealth and start a mutual fund SIP based on your investment goals and risk appetite with the QuickSIP feature for as low as ₹1000.
Cube's SuperSIP feature goes on to simplify the SIP process by letting you snooze your SIP payments in case you don't have capital.
Watch this video to know more about handpicked mutual funds on Cube Wealth
[Updated on September 16th 2021]
Ans. The answer is to build a perfect portfolio of SIP mutual funds for 5+ years based on your investment goals and risk appetite. Cube's perfect portfolio philosophy sets you up for the short term, medium term, and long term with diversified investments within and across mutual fund categories.
This could include SIPs in liquid funds for emergencies, debt mutual funds for the short and medium term along with conservative, moderate, aggressive, and international SIP mutual funds for 5+ years. You may download the Cube Wealth App to begin your investment journey.
Ans. A long-term SIP investment is investing regularly in smaller amounts. This helps you save a larger amount over the long term with small investments at regular intervals. It has the power to compound and accumulate into a large corpus. This consistency can transform your future financial health.
Ans. Compounding is reinvesting your returns. You also gain returns on your investments with the principal amount invested. This very effect is called the compounding effect. It is often compared to the snowball effect; small actions over time can lead to big gains.
Ans. The minimum investment amount on the Cube Wealth app is ₹1000
Ans. Equity funds, international funds, and ELSS funds are known to be suitable for long term SIP investments. The reason behind this lies in the nature of their investment portfolio.
These funds invest in shares of companies in the Indian stock market that may experience volatilty in the short term but has historically been observed to grow over 5+ years. Read more about long term SIP investments here
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