Best SIP Plans – Top SIP Mutual Funds to Invest in 2022

SIP (Systematic Investment Plan) is a simple and convenient way to invest a fixed sum in a mutual fund scheme. It enables one to buy units on a specific day each month in order to follow a savings strategy. One can set aside a specific sum to be invested at predetermined periods (quarterly, monthly, weekly, etc.). One of the most significant advantages of this plan is that it instils the habit of saving in the user, allowing them to begin to develop a decent fund for the future.


The proverb “the early bird gets the worm” applies to SIPs, as commencing early can provide significant benefits. An essential feature of a SIP is that it is simple to administer; your money will be automatically deducted from your bank account each month and invested in a mutual fund scheme of your choice. There is no need to pace the market when you use a SIP for your investment requirements. There is also a methodical approach to investing. Furthermore, you may benefit from two effective investing strategies: The Power of Compounding and Rupee Cost Averaging.




What Are The Best SIP Mutual Funds?


Before we get into SIP investment, let’s first talk about mutual funds. A mutual fund is formed when a pooling body (fund house or asset management company) combines assets from many individuals and institutional investors that have similar investment goals to acquire securities. Mutual funds are divided into three types based on their equity exposure: equity funds, debt funds, and balanced/hybrid funds.


Investing in mutual funds through a SIP is recommended for first-time mutual fund investors because it helps establish a sense of financial discipline in the long run. Your SIP can be set to run weekly, monthly, or quarterly, according to your preferences. Most millennials choose SIP because it provides them with a great level of freedom. Investing using SIPs requires you to set away a defined sum on a monthly basis, which is required to make investing a habit.


Best Performing Equity Mutual Funds (Basis 5 Year Return)


Scheme Name Expense Ratio 5Y Return (Annualized)
Quant Tax Plan 0.57% 23.66% p.a.
Quant Active Fund 0.58% 22.54% p.a.
Quant Mid Cap Fund 0.63% 21.54% p.a.
PGIM India Midcap Opportunities Fund 0.38% 19.3% p.a.
Parag Parikh Flexi Cap Fund 0.76% 17.42% p.a.


(As of 29th November 2022)


Best Performing Debt Mutual Funds (Basis 1 Year Return)


Scheme Name Expense Ratio 1Y Return
Aditya Birla Sun Life Medium Term Fund 0.81% 25.25% p.a.
UTI Banking & PSU Debt Fund 0.24% 10.28% p.a.
UTI Bond Fund 1.30% 9.58% p.a.
Nippon India Ultra Short Duration Fund 0.38% 5.17% p.a.
ICICI Prudential Short Term Fund 0.37% 5.03% p.a.


(As of 29th November 2022)


Best Performing Hybrid Mutual Funds (Basis 3 Year Return)


Scheme Name Expense Ratio 3Y Return (Annualized)
Quant Absolute Fund 0.56% 31.34% p.a.
Quant Multi Asset Fund 0.56% 30.69% p.a.
ICICI Prudential Thematic Advantage Fund (FOF) 0.23% 25.59% p.a.
ICICI Prudential Equity & Debt Fund 1.20% 21.32% p.a.
Kotak Multi Asset Allocator FoF – Dynamic 0.13% 20.99% p.a.


(As of 29th November 2022)


Benefits of Best SIP Mutual Funds


Investing in mutual funds through a SIP has a number of advantages. Some of the key benefits of investing in mutual funds through a SIP are as follows:


  • Rupee Cost Averaging


Investing in mutual funds allows you to benefit from rupee cost averaging. That is, you buy fewer units while the markets are flourishing and more units when the markets are falling. The cost of purchasing your fund units averages out over time and turns out to be on the cheap side. As a result, you do not need to time the markets.


  • You Can Invest With A Small Sum


As previously said, investing through a SIP eliminates the requirement to have a lump sum at your disposal to begin your financial journey. The typical minimum investment is Rs 500. Some funds enable you to invest as little as Rs 100 every month. As a result, a minimum investible amount is not a barrier to getting started with mutual fund investing.


  • Flexibility


SIPs give you much-needed flexibility. SIPs can be started or stopped at any moment, and the fund house has no say in the matter. If you are on a tight budget, you may want to consider pausing your SIP for a while. All of this is provided at no cost.


  • You Can Run Many SIPs Concurrently


You can start and run SIPs into numerous mutual fund plans at the same time. As a result, you might profit from many mutual fund schemes at the same time. However, you must use caution while investing in the funds you have picked.


  • Option To Diversify


SIPs can be started in practically all mutual fund schemes. You can select a number of the finest funds for SIP and split your investment amount among them according to your investing strategy. This helps you to limit market risks while earning consistent profits even during downtrends or periods of significant market volatility. Diversify your SIP investment portfolio by investing in equities funds, debt funds, and hybrid funds.


  • Compounding


SIP investments are intended to be long-term. The time period of investment is more important than the quantity invested. Your SIP investments continue to compound over time, generating much bigger returns. As a result, even if you have little money, it is suggested that you begin investing in mutual funds through SIP as soon as feasible.


  • Provides Financial Discipline


The most crucial lesson to acquire while investing in risky instruments is discipline. SIPs teach you financial discipline, which may be applied to various types of investments.


Taxability Of Best SIP Mutual Fund


The same tax regulations apply regardless of the manner of investment (SIP or lump payment). Dividends paid by mutual funds are added to your total income and taxed according to your tax bracket. Here is taxation on mutual funds based on category.


  • Taxation Of Equity Funds


Short-term capital gains will occur from the redemption of equity fund units during a one-year holding period. These profits are subject to a 15% flat tax. If you redeem your fund units after a one-year holding period, you realise long-term financial gains. Long-term capital gains of up to Rs 1 lakh per year are free from taxation. Any long-term profits in excess of this cap are taxed at 10%, with no indexation advantage. Units acquired through SIPs are redeemed first in first out, and the taxes regulations indicated above apply.


  • Taxation Of Debt Funds


Short-term capital gains occurs from debt fund units redeemed within three years after purchase. These profits are added to your income and taxed according to your tax bracket. Long-term capital gains are realised when you redeem your debt fund units after three years of ownership. These profits are taxed at a rate of 20 per cent, with indexation. If you invest in a debt fund for four years and then opt to redeem all of your assets at the end of four years, the profits on units held for more than three years are taxed as long-term capital gains, while the rest is taxable as short-term capital gains.


  • Taxation Of Hybrid Funds


If the stock exposure exceeds 65%, the equity fund taxation rules apply. If not, the fund is taxed similarly to a debt fund.


How Can SIP Help You Achieve More?


To get the most out of your SIP Investments, make sure you complete the following:


  • Make a list of your goals and determine how much you need to save to attain them.


  • Determine how much you want to invest monthly/quarterly through SIP to achieve your goals.


  • Investigate the mutual fund market and determine which funds have fared well in recent years. After that, you’ll be able to select which plan to invest in through a SIP.


  • All mutual fund investments need the completion of the KYC documentation procedure, as well as additional formalities such as the submission of checks and paperwork. Finish the procedure and begin investing.


  • Choose a long-term investment strategy to maximise your rewards.


  • You can invest in various SIPs to diversify your portfolio and maximise your rewards.


Is SIP Investing Better Than Lump Sum Investing?


Investing through lump sum necessitates the preparation of a big chunk of money, say Rs 50,000. A lump sum investment in a mutual fund scheme is equivalent to a bank fixed deposit. Investing through a SIP, on the other hand, does not require a large initial investment. As previously said, you may begin your investment adventure with as little as Rs 100 every month.


If you want to make the most out of your lump-sum investment, you must time the markets. Lump-sum investments are only recommended when the markets have reached rock bottom and are expected to rise in the following days. Investing in mutual funds with a SIP investments eliminates the need to time the markets because you will benefit from rupee cost averaging over time. Know more about SIP Vs Lumpsum before investing.


How To Choose The Best Mutual Fund To SIP?


With over 5,500 mutual fund schemes available in India, selecting the proper one to invest in via SIP is a difficult undertaking. There are around 300 schemes in the equity category alone, and there are additional categories such as debt and gold. Though picking the proper mutual fund is difficult, the following tips might help you navigate through the many alternatives and select the best one.


Objective Of Investment – Every investment has a goal. It might be used to purchase a home, save for a wedding, travel on vacation, fund children’s education, and so on. The investment might be short-term or long-term, depending on the purpose. If you are saving for your children’s education or your retirement, it will be a long-term objective; but, if you are saving for a car, it will be a short-term goal. If you want to achieve a long-term objective, investing in equity funds could be a suitable solution. Short-term goals can be met by investing in debt funds and money market funds. Before investing, be sure your goals are in line with your risk tolerance.


Understanding Of The Fund House – The fund company is in charge of handling your money, and you want them to look after your investments. When selecting a fund company, make sure you know everything there is to know about them because they will make investment decisions on your behalf. Before investing with a fund company, conduct research on them by asking pertinent questions such as how many schemes they provide, what strategy they take to invest, does it offer new products, and so on.


Fund Performance – The ultimate goal of every investor is to maximise profits. As a result, before investing, you must conduct research on the fund’s performance across various time periods and compare it to the benchmark index. A web search will yield information on how a fund has fared.


Expense Ratios And Loads – Although these expenses are little, they can make a significant impact on long-term profits. Look for funds with no or cheap load prices and low expenditure ratios. Load and expenditure ratio statistics can be found in scheme papers or fund fact sheets.


The Fund Manager’s Experience – Aside from understanding the fund house, you need also to conduct some research on the fund manager. Examine how money handled by him/her has performed in difficult market conditions. A smart fund manager will handle your assets effectively to help you obtain higher returns; thus, the fund manager must be knowledgeable in a wide range of investment categories.


When To ULIP Vs When To Mutual Fund:


Investors are sometimes perplexed as to how to pick between ULIP and MF-based systematic investments since each provides distinct advantages. The following are some items to consider based on research conducted by our financial experts to assist investors in selecting the appropriate SIP plan to fulfil their financial objectives.


The SIP investments fund procedure enables investors to manage their personal finances and build a financial buffer in order to fulfil their life’s financial goals. The contribution to SIP enables investors to manage their investments on a regular basis in an easy and convenient manner. Even though the returns on SIP mutual funds are totally dependent on market performance, the list above includes the top-performing best SIP plans for the year 2022, in which you might consider investing.




  • Is SIP Better Than FD?


SIP is a way of investing in funds in which the investor deposits little sums at regular intervals and receives reasonable returns. Fixed Deposits, on the other hand, are an investment option in which a certain sum is placed for a set period of time and the interest is paid at maturity.

In general, the rate of return on SIP investments is larger than that on FDs, but so is the risk. SIP is the best investment choice for investors who are prepared to accept a larger risk in exchange for bigger rewards, whereas FD is the best investment option for investors who have no risk-taking abilities.


  • Does SIP Investment Offer Tax Benefits?


Not all SIP plans provide tax advantages. SIP investments in equity-linked savings schemes qualify for tax exemption under Section 80C of the Income Tax Act.


  • Is SIP Risky?


Ans: It is critical to understand that SIP is a way of investing in funds, not an underlying investment choice. The risk in the SIP investments is defined by the investment choice chosen, the risk involved, and other elements linked to the investment option.

Interested in how we think about the markets?


Read more: Zen And The Art Of Investing

Check out all our “Investor Education Originals” videos on Youtube and get smart about investing

Start investing through a platform that brings goal planning and investing to your fingertips. Visit to discover Direct Plans and Fixed Deposits and start investing today.
#MutualFundSahiHai #KuveraSabs

Leave a Comment