Best SIP plans to Invest in 2018

What are SIP plans?

SIP plans are systematic investment plans that work on the process of getting investors to invest money into SIP mutual funds so that a large amount can be accrued through a long period of time. Systematic investment plans work best when funds are invested into them on a long – term basis for maximum capital appreciation.

Benefits can be reaped if the investor keeps investing into the mutual fund for a long period of time. Sip mutual fund plans have good flexibility in terms of the period as the investor has complete control and power over the decision of when they want to end their SIP plan or if they want to keep investing into it for a longer duration.

How much control does the investor have?

The money that is going to be invested into SIP investment plans is pre – determined. The payment periods that the investor has to invest through again and again at regular intervals are chosen earlier by the investor itself out of weekly, monthly or quarterly, whatever suits the investor’s convenience. The investor has the liberty to being able to choose the payment mode in accordance with their convenience and ease. The deposit is supposed to be made at regular intervals till the time the investor chooses to end the tenure of the SIP mutual fund.

Once the investor starts to invest into the Systematic investment plans, there is an option that the total amount of your fund that they need to pay for that particular month or year can be automatically debited from their bank account and be invested into the Systematic investment mutual fund plans if they register with it and inform their bank account to do so. This also eliminates the risk of non – payments and the hassle of keeping in mind the dates for payments. This money will be invested into the mutual fund schemes that are chosen by the investor itself out of debts, equities, equity related instruments, etc. Systematic investment plans are really easy when they come to the payments as there is no risk of the lapse of the policy.

The best SIP plans to invest into in 2018

  • HDFC Small Cap Fund

The small cap fund is a SIP fund offered by HDFC. This is a fund that has been giving good returns. It is a long term fund which has an ideal term of over 6 years. In the year 2017, the HDFC small cap fund had a whopping 61.52 % returns. Let us have a look at the returns year – wise:

1 year return – 61.52 %
3 years return – 23.28 %

Minimum SIP amount – INR 500

  • Aditya Birla SL Small & Midcap Fund

The Aditya Birla SL small and midcap fund includes both small and midcap but it is more focused on the midcap fund. The Aditya Birla SL fund is one of the best SIP funds to invest into in the year 2018. At least a 15 % return per annum I what this fund gives. For the best returns, it is advised to invest into this plan which is one of the best SIP plans for a term of at least 5 good years. Let us have a look at the returns year – wise:

1 year return – 55.29 %
5 years return – 27.77 %

Minimum SIP amount – INR 1000

  • SBI Blue Chip Fund

The SBI Blue Chip Fund is one of the best SIP plans for investing into in the year 2018. The thing that makes it one of the best SIP plans is that it has been providing the investors with consistent returns over the years. It is advised to keep investing into the SBI Blue Chip fund for at least a good 4 years if you want to receive significant returns. In 5 years, you might be subject to a return of at least 18.51 % which is pretty high.
Let us have a look at the returns year – wise:

1 year return – 30.21 %
5 years return – 18.51 %

Minimum SIP amount – INR 500

  • Kotak Select Focus Fund

Let us have a look at the returns year – wise:

1 year return – 18.0 %
3 years return – 16.5 %
5 years return – 20.0 %

The Kotak Select Focus Fund works by investing the SIP funds into equity related markets or instruments and equities to increase the capital money so that the investors receive good returns. This is one of the best SIP plans as it has given a tremendous 20 % return in the past five years, which is among the highest returns.

  • Reliance Small Cap Fund

Let us have a look at the returns year – wise:

1 year return – 31.3 %
3 years return – 21.0 %
5 years return – 30.0 %

The reliance small cap fund is one of the best SIP plans. It has been giving at least 21 % returns per year. It is advisable to invest into the Reliance Small Cap fund for at least 5 years to get good returns. This is one of the SIP plans which invest the funds into smaller companies to get capital appreciations.

Conclusion

These are some of the best SIP plans to invest your money into in the year of 2018 so that you can get great benefits at low investments. It is a good decision to invest into them in 2018 as they have been providing returns to investors for a long time, now with returns almost always above 15 % within a year.