Top 10 SIP Mutual Funds to Start in 2024 for maximum growth and stability
Systematic Investment Plans, popularly known as SIPs, are one of the most secure ways of investing in mutual funds in India. It will provide an opportunity to make small and regular investments, which will amount to really huge amounts over some time. With 2024 arriving, many investors are on the lookout for the best SIP mutual funds that they can unearth. They are on the lookout for those funds that have really strong growth prospects and are less volatile and stable. This article will give you a list of the top 10 mutual funds where you can start your SIPs in 2024.
1. Axis Bluechip Fund
An ever-consistent performer from the large-cap category. It essentially pools funds into blue-chip companies with stability and moderate growth. In terms of return, it has been able to generate year after year. Thus, it is one of the most preferred choices for SIP investors where growth is what is expected but at relatively low risk.
Key Features:
Category: Large Cap
5-Year Returns: 13% p.a. (approx.)
Suitable for: Conservative investors targeting steady returns.
2. Mirae Asset Large Cap Fund
Mirae Asset Large Cap Fund is another best-in-class large-capital fund. This scheme has been at the top of most investors’ list of schemes seeking stability with a consistent performance record and well-diversified portfolio. The fund mainly invests in large-cap companies that have set up their business franchises with sound fundamentals.
Key Features:
Category: Large Cap
5-Year Returns: 14% p.a. (approx.)
Suitable for Investors looking at long-term growth with low risk.
3. SBI Small Cap Fund
SBI Small Cap Fund is for investors who are looking for high returns but are willing to expose themselves to higher risks. It invests in small-cap stocks, which have the propensity to grow exponentially over time. Of course, there would be more roller coasters in small-cap funds but SBI Small Cap Fund has the guts and the stomach for consistent returns that makes this fund amongst the best in this category.
Key Features:
Category: Small Cap
5-Year Returns: 25% p.a. (approx.)
Ideal for: Aggressive investors looking for high yields
4. HDFC Mid-Cap Opportunities Fund
Mid-cap funds are a combination of large-cap for the sake of stability and small-cap for their growth. HDFC Mid-Cap Opportunities has been one of the most consistent performers in the mid-cap fund category. This fund predominantly invests in companies that are in the mid-segment with very strong growth prospects. This offers the chance to make more significant returns and the risk associated with it remains manageable.
Key Details:
Category: Mid-Cap
5 years Returns: 18% p.a. (approx)
Suitable for: Investors looking for higher growth with moderate risk.
5. ICICI Prudential Equity & Debt Fund
The ICICI Prudential Equity & Debt Fund is an open-ended scheme that is a balanced or hybrid fund that invests in both equity and debt instruments. This mix provides equilibrium, offering capital appreciation together with some level of stability accruing from the debt instruments. Hence, it is appropriate for conservative investors who want exposure to the equity market and, at the same time, want to limit their risks.
Key Features:
Category: Hybrid (Equity-Oriented)
5-Year Returns: 12% p.a.
Suitable for: Moderately conservative investors looking for a balanced approach between debt and equity in a fund.
6. Parag Parikh Flexi Cap Fund
Flexi-cap funds give you the freedom to invest your money across market capitalizations large-cap, mid-cap, and small-cap. Parag Parikh Flexi Cap Fund flaunts a diversified portfolio and sound investment strategy. Tremendous return delivery has helped this fund to become one of the most preferred choices for SIP investors in the year 2024.
Key Features:
Category: Flexi Cap
5-Year Returns: 18% p.a. (approx.)
Suitable for: Investors looking for diversified growth across market segments.
7. Kotak Emerging Equity Fund
Kotak Emerging Equity Fund can be identified as a mid-cap stock fund with high growth potential, thereby suiting investors with the capability to take moderate risks. The fund has proved its potential in choosing good emerging companies whose growth prospects are strong, and therefore it is a good choice for individuals looking for high returns.
Key Features:
Category: Mid-Cap
5-Year Returns: 16% p.a. (approx.)
Suitable for: Investors looking for high growth with moderate risk.
8. UTI Flexi Cap Fund
UTI Flexi Cap Fund is another fund that falls in the flexible category of funds that invest across market capitalization. It has a bias for companies with solid fundamentals and growth potential. The approach in terms of dynamic allocation between large–, mid- and small-cap stocks has helped this fund to deliver stable returns over the long term.
Key Details:
Type: Flexible Equity
5-Year Returns: 15% p.a. (approx.)
Suitable for: Investors looking for a balanced and flexible growth strategy.
9. Nippon India Growth Fund
This fund factors in the exposure of the fund in the mid-cap companies which, over time and consistently, have outperformed the benchmark. The very kernel of this fund is its strategy of spotting high-potential mid-cap stocks that can deliver a consistent and sustainable return over time. This is a fund on which those investors should rely, as it is going to have a long-term horizon and be ready to take on a higher value of risk.
Key Features:
Category: Mid-Cap
5 Year Returns: 17% p.a. (approx.)
Suitable for: Aggressive investors looking for high returns from mid-cap stocks.
10. Tata Digital India Fund
A sectoral like the Tata Digital India Fund is a suitable one for those investors eyeing big growth opportunities in the context of digital transformation. The fund is weightily allocated to technology and IT-related companies, so, an investor having faith that the digital economy is yet to expand might find this fitting.
Key Features:
Category: Sectoral/Technology
5-Year Returns: 22% p.a. (approx.)
Suitable for: Those investors who have the utmost faith in the technology sector.
Conclusion
Hence, starting a SIP in 2024 can be expected to be a fund-building exercise for the three aforesaid funds, dealing with a mixed bag of stability, giving an edge in growth with risk potential, and appealing to investor profiles. There is something for everyone, whether one would like to have the stability of the large-cap, the growth of the mid-cap, or even more free-spirited small-cap funds. The logical conclusion is to consult a financial advisor before investing so that your choices are in sync with your goals.
