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Which SIP is best for me

If I have lump sum amount which SIP is best for me?

Apr 24, 2017 by Jaishree, Panvel  |   Mutual Fund

We think your query is not clear as you have mentioned that if you have lump sum then which SIP is best for you.

Please note that if you have lump sum in hand you can straightaway invest in mutual funds. However, if you have regular income, you can invest through monthly SIPs.

Now coming back to your question which SIP is best for me? here our suggestion is that you should first assess how much risk you can take and what is the investment horizon of your SIP or the financial goal for which you want to invest through SIPs.

For example – If your risk profile is low and investment horizon is 2-3 years you can invest in short term bond funds or income funds.

However if your risk profile is moderate and investment horizon 5 years, you can invest in balanced funds. Similarly, if you can take even higher risk and the investment horizon remaining the same, you can invest in large cap funds or diversified equity funds. For the highest risk takers, mid & small cap funds could be the best choice for the long term.

Once you are sure about your risk taking ability, you should select an appropriate fund to start your SIP. Some of the fund choices could be as follows -

Large cap funds - SBI Bluechip fund or Birla Sun Life Top 100 or DSP BlackRock Focus 25 Fund

Balanced funds - ICICI Prudential Balanced Fund or SBI Balanced Fund or DSP BlackRock Balanced Fund or HDFC Balanced Fund

Diversified equity funds - ICICI Prudential Value Discovery Fund, Birla Sun Life Advantage Fund

Mid and Small Cap funds - Mirae Asset Emerging Bluechip or Reliance Small Cap Fund or SBI Magnum Midcap Fund

Hope the above helps! Thanks for writing to Advisorkhoj.

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