Difference Between SIP & Mutual Fund

1. The Net Asset Value of the fund is calculated at the end of a trading day.

 SIP

1. SIP or Systematic Investment Plan is a method by which investors invest a small amount of money in a particular mutual fund portfolio, at regular intervals.
2. A predetermined amount will be paid throughout the investment period.
3. This is different from the usual method of mutual fund investment wherein the investor pays a lump sum amount on a one-time basis.
4. This method is highly flexible since the investor can decide when to pay the next installment of funds to purchase assets and can also exit the mutual fund when needed.
5. The investment can be made in a quarterly, monthly, bi-monthly or weekly basis

Examples of SIP vs Mutual Funds in India

SIP: Examples

Some of the SIP Mutual Funds that have been performing well in the past 5 years are:

Mutual Fund: Examples

Moderate Risk Equity Funds

1. Kotak Select Focus Fund(G)
2. ICICI Pru Focused BlueChip Eq Fund(G)
3. Franklin India Prima Plus Fund(G)
4. BNP Paribas Equity Fund(G)
5. Birla SL Frontline Equity Fund(G)

High Risk Equity Funds

1. UTI Mid Cap Fund(G)
2. SBI Magnum MidCap Fund-Reg(G)
3. Reliance Equity Opportunities Fund(G)
4. L&T India Value Fund-Reg(G)
5. Invesco India Mid N Small Cap Fund(G)
6. ICICI Pru Value Discovery Fund(G)
7. HDFC Mid-Cap Opportunities Fund(G)
8. Franklin India Prima Fund(G)

Moderate-Risk Tax-Saving Funds

1. IDFC Tax Advt(ELSS) Fund-Reg(G)
2. Franklin India Taxshield(G)
3. BNP Paribas LT Equity Fund(G)

High-Risk Tax-Saving Funds

1. Reliance Tax Saver (ELSS) Fund(G)
2. Invesco India Tax Plan(G)
3. ICICI Pru LT Equity Fund (Tax Saving)(G)
4. Axis LT Equity Fund(G)

Long-Term Debt Funds (Moderate - High Risk)

1. UTI Dynamic Bond Fund-Reg(G)
2. Reliance Reg Savings Fund-Debt Plan(G)
3. HDFC Medium Term Opportunities Fund(G)
4. Franklin India IBA-A(G)
5. BNP Paribas Medium Term Income Fund(G)
6. Birla SL Dynamic Bond Fund-Ret(G)

Disclaimer

Mutual Fund investments will be subject to market risks. Any mutual fund listed in the document does not guarantee fund performance or its underlying creditworthiness. Do read the mutual fund document thoroughly before investing. Specific investment needs and other factors have to be taken into account while designing a mutual fund portfolio.

GST rate of 18% applicable for all financial services effective July 1, 2017.