Which is the best SIP(Systematic Investment Plan) of mutual fund?

Hi,

There is nothing called the best SIP. The SIP is the best way to invest in mutual funds. It totally depends in which mutual fund you want to invest in. Ideally to get good returns from SIP you should invest about Rs 1000 or more every month for at least 2 years. If you are not very sure about how long you want to continue investing, then do 6 SIPs and if you are satisfied then continue for another 6 months and then so on. But do remember you need to do a minimum of 6 SIPs.

If you can invest about Rs 3000 every month, then you divide the amount in three mutual funds. If not, invest only in one fund.

You can pick a equity diversified fund such as HDFC Equity, Sundaram Select Midcap, Magnum Global. If you do not want to take too much risk, invest in a balanced fund such as HDFC Prudence or Magnum Balanced.

If Rs 1000 is too high for you, then consider investing in a Reliance Mutual Fund. You can invest in a Reliance Fund for as little as Rs 100 but you will have to invest in it on a monthly basis for about 5 years. Reliance Vision is a good fund from this fund family to invest in.

So you need to work out
1. How much you want to invest.
2. Then which funds to invest in.
3. Then for how long you want the SIP to go on. Whether 12 SIPs or 24 SIPs.

I hope this helps

It's rather difficult to answer your question, would you be more specific has to your goals and objectives regarding investing in mutual funds.

I have always heard that if you place a given amount into a mutual fund on a periodic basis, say $100 a month for example that that is an excellent way to do it. When prices are low you buy more. When prices are high you buy less and over the long term the approach yields great rewards provided you pick good mutual funds. It does not have to be monthly. It can be every 6 months or even only once a year but it needs to be regularly. Actually, in my opinion, it also need to be in more than one mutual fund 3 to 5 different funds would be much better because different funds have different results from time to time.

invest in balance or derivative fund

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