What is Sip? A Complete guide to your finger.

Safalta Expert Published by: Om Soni Updated Thu, 30 Nov 2023 11:23 AM IST

Highlights

  • In January 2023, SIP inflows increased to Rs 13,856.18 crore.
  • In June 2023, SIP inflows were above ₹14,000 crore for the second consecutive month.

Free Demo Classes

Register here for Free Demo Classes

Please fill the name
Please enter only 10 digit mobile number
Please select course
Please fill the email
Something went wrong!
Download App & Start Learning

SIP has been gaining popularity among Indian MF investors as it helps in investing in a controlled without panic about market variability and timing the market. as we know, old-generation people invest their money in Post Offices, RD, some small finance companies, and also in Bank FD. Now, a new generation of people invests in the ease of the internet at their home with mobile phones with the many companies' apps and websites. 

What is SIP? A Complete Guide to SIP. 

SIP means - Systematic Investment Plan. In simple words, we can all say a Good start for your future. SIP is just like a bank FD, where you can get more interest on returns per year if you wait 5 to 6 years.

Source: Safalta.com

In India, it's been very popular for the past 4 to 5 years. and after the effects of the coronavirus pandemic, SIP has become a very great thing for everyone, whether they are in their jobs, or education, like students, or retired people. But when it comes to females, they can also invest in SIP and start a better future. In SIP, you will invest your money in Mutual Funds Every month or once a year. When you invest an amount once a year this type of SIP’s amount is called the lump sum amount. More details are here.

 

Who will help you to Start your SIP?

The answer is yourself. Everyone whose age is above 18 can start their SIP with a minimum amount of ₹100 per month through various apps or websites that have government permissions for their network. and you can go one step ahead for a better future.

What are the networks for Start a SIP?

There are many apps available on the Internet, like Groww, Paytm Money, ET Money, and many more. These apps are trusted and have legal permission to open a SIP and to invest in the share market.

The Benefits of SIP.

There are many benefits to SIP, like free brokerage, if you do it yourself. And saving time, and many more are here.


 

Top Mutual Funds in which you can start your SIP.

There are many types of Mutual funds( A trusted type of bank where you can invest in SIP) available on Many types of SIP apps, which we discussed already in this article. So for your confusion, many types of Mutual funds will give you a good 18 to 20% return per annum, which is too good from bank FD. Here is the list of the top 10 Mutual funds which gave customers, a good return of 15 to 20% per annum on average on the performance of the last 5 years and reliable and legal Mutual funds which are organized by top companies.

Here is the list of top 10 Mutual funds:- 

  • Quant Active Fund:- This fund has very best performer in the SIP field for the last 4 years with a maximum return of 28.70% p.a. A good fund to start your SIP. 
  • Kotak Equity Opportunities Fund:- This fund is managed by Mahindra Group which is a very respected firm in India. This fund gave a good 20.98% return p.a. Over the last 5 years. 
  • Parag Parikh Flexi Cap Fund:- A good fund of a reliable Parag group with a return of 19.73% p.a. Over the last 5 years.
  • Quant Large And Mid Cap Fund:- Another fund of Quant group, which ranks 4th on my list with a return of 18.7% p.a. A reliable company with a good return on an average every year in this field. 
  • SBI Focused Equity Fund:- SBI - State Bank Of India no need to tell anyone about this fund. So, this fund gave 17.27% return p.a. And ranks 5th in this list. 
  • Kotak Bluechip Fund:- Another from Kotak Mahindra Bank’s fund which is managed by Mahindra Group which is a very respected firm in India. And also gave a good return of 16.79% p.a. 
  • Canara Robeco Bluechip Equity Fund:- A fund from Canara Bank, which is a trusted bank in India and has more than 1000 branches in India. This fund gave a 16.61% p.a. Return. and ranks 7th on my list.
  •  Mirae Asset Large Cap Fund:- This fund is from Mirae Group, A cement company in India, and is linked with international businesses. gave a return of 16.29% p.a. and ranks 8th on my list. 
  • Edelweiss Large Cap Fund:- An international brand that started its services in India recently. A legal fund that gave a maintained 15.66% return p.a. on an average and ranks in the list of Top 10 Mutual funds in this article. 

To Know More: 138 Unicorn Companies 


UTI Flexi Cap Fund:-
Another trusted group’s fund in the list of top 10 is UTI Flexi Cap Fund, which gave a return of 15.34% p.a. And ranks up the 10th in this list of Top 10 Mutual funds lists.

  • These Mutual Funds are great to invest in. but we will not suggest anyone invest in these funds on our behalf. So, invest with a good knowledge of SIP without the tension of not losing your all money. 
  • Mutual Funds investments are subject to market risks, read all scheme-related documents carefully. 
  • Mutual Funds Sahi Hai. 

 

Read About it: Fintech Technology

Tax implications of SIP

SIPs are no doubt the best way to invest in Mutual funds, but before making your first investment knowing the tax implications is also important. However, the tax implications of different types of mutual fund schemes are different.

Although all gains from Mutual Fund investments are classified as Capital Gains, the sub-classification into Short-Term Capital Gains and Long-Term Capital Gains is based on the kind of fund and the duration of the investment.

If equity fund units are held for a tenure of more than 12 months, the gains generated are treated as Long Term Capital Gain (LTCG) for taxation. If the period of holding is less than 12 months, the gains are treated as Short-Term Capital Gains.

For debt funds, the units need to be held for a tenure of more than 36 months to qualify for LTCG taxation. Otherwise, the units qualify for Short-Term Capital Gain (STCG) taxation.

 

So, Here are the listwise details of the Tax implications of SIP:- 

         Taxation of Equity-Oriented Mutual Funds:

  • Long-Term Capital Gains (LTCG) are tax-free up to Rs.1 lakh every financial year

  • Long-Term Capital Gains over Rs.1 lakh per year are taxed at a flat rate of 10%

  • Short-Term Capital Gains are taxed at 15% 
  • Taxation of Debt Mutual Funds:
    • Long-Term Capital Gains (LTCG) are taxed at 20% with indexation benefits
      Short-Term Capital Gains are taxed as per the investor's tax slab 

So, this is the complete guide to SIP to enhance your knowledge of SIP and Mutual Funds.    
 

SIP is a good thing to open your investing career on your own to start a better future. Everyone has to invest in SIP. It is a very powerful thing to start your investing career. And many more details in the video are here. Also, see this to enhance your knowledge.

How does SIP work?

SIP works by allowing investors to invest a fixed amount at regular intervals, taking advantage of rupee cost averaging and compounding over time.

Can SIPs be started with a small amount?

Yes, one of the key advantages of SIPs is that they can be started with a relatively small amount. This makes mutual fund investing accessible to a wider range of investors.

Are SIP returns guaranteed?

 No, SIP returns are subject to market fluctuations. The value of mutual fund units can go up or down based on market conditions.

Can SIPs be done in any type of mutual fund?

 Yes, SIPs can be initiated in various types of mutual funds, including equity funds, debt funds, and hybrid funds, based on the investor's risk tolerance and financial goals.

How to choose the right mutual fund for SIP?

Choosing the right mutual fund involves considering factors such as investment goals, risk tolerance, fund performance, and fund manager expertise.

Free Demo Classes

Register here for Free Demo Classes

Trending Courses

Master Certification in Digital Marketing  Programme (Batch-11)
Master Certification in Digital Marketing Programme (Batch-11)

Now at just ₹ 64999 ₹ 12500048% off

Professional Certification Programme in Digital Marketing (Batch-4)
Professional Certification Programme in Digital Marketing (Batch-4)

Now at just ₹ 45999 ₹ 9999954% off

Advanced Certification in Digital Marketing Online Programme (Batch-21)
Advanced Certification in Digital Marketing Online Programme (Batch-21)

Now at just ₹ 20999 ₹ 3599942% off

Advance Certification In Graphic Design  Programme  (Batch-8) : 100 Hours Live Interactive Classes
Advance Certification In Graphic Design Programme (Batch-8) : 100 Hours Live Interactive Classes

Now at just ₹ 15999 ₹ 2999947% off

Flipkart Hot Selling Course in 2024
Flipkart Hot Selling Course in 2024

Now at just ₹ 10000 ₹ 3000067% off

Advanced Certification in Digital Marketing Classroom Programme (Batch-3)
Advanced Certification in Digital Marketing Classroom Programme (Batch-3)

Now at just ₹ 29999 ₹ 9999970% off

Basic Digital Marketing Course (Batch-24): 50 Hours Live+ Recorded Classes!
Basic Digital Marketing Course (Batch-24): 50 Hours Live+ Recorded Classes!

Now at just ₹ 1499 ₹ 999985% off

WhatsApp Business Marketing Course
WhatsApp Business Marketing Course

Now at just ₹ 599 ₹ 159963% off

Advance Excel Course
Advance Excel Course

Now at just ₹ 2499 ₹ 800069% off

Latest Web Stories