Of the 78 million households in the United States, 44%, or more than 90 million people, invest in mutual funds.

Bank deposits, insurance funds and provident & pension funds accounted for two-thirds of the financial assets of Indian households as of December 31, 2020, according to data released by the Reserve Bank of India (RBI). Mutual fund investments formed just 9.4 percent of an Indian household’s savings in financial assets.

Mutual Fund Portfolio Using the 5% Rule of Investing.

There are as many as 44 AMFI (Association of Mutual Funds in India) registered fund houses in India which together offer more than 2,500 mutual fund schemes. The wide array of funds often make it a little difficult for investors to choose the best scheme for them.

Different Types of Mutual Funds

• Equity or growth schemes. These are one of the most popular mutual fund schemes.
• Money market funds or liquid funds:
• Fixed income or debt mutual funds:
• Balanced funds:
• Hybrid / Monthly Income Plans (MIP):
• Gilt funds:

• ICICI Prudential Ultra Short Term Fund.
• Aditya Birla Sun Life Savings Fund.
• Indiabulls Ultra Short Term Fund.
• IDBI Ultra Short Term Fund.
• UTI Ultra Short Term Fund.
• Kotak Savings Fund.
• IDBI Liquid Fund.
• BOI AXA Ultra Short Duration Fund.

There is no limit to how much you can invest in a systematic investment plan or SIP. It has to be determined based on your goals and what is the corpus you propose to achieve. Normally, the minimum SIP amount that most AMCs accept is Rs. 500 per month.

• Mirae Asset Emerging Bluechip Fund.
• PGIM India Diversified Equity Fund.
• Parag Parikh Long Term Equity Fund.
• Mahindra Badhat Yojana.
• DSP BlackRock Equity Fund.
• UTI Equity Fund.
• SBI Large and Midcap Fund.
• DSP BlackRock Equity Opportunities Fund.

Mutual funds and risk go hand-in-hand, but SIPs spread out the risk over a period and reduces the risk. The longer your investment, the lesser is the risk. That is why the best time to start sip is when you are fine with the investment period.

SIP is a very safe method to invest in mutual funds. If you invest in a mutual fund lump sum, depending on the market condition, you could end up paying a very high price for a mutual fund. You do not need to worry about timing the market when investing via SIP.

If the long-term capital gains are less than Rs 1 lakh, then you don’t have to pay any tax. However, you make short-term capital gains on the units purchased through the SIPs from the second month onwards. These gains are taxed at a flat rate of 15% irrespective of your income tax slab.

three years

Top SIP Mutual Funds in India