When considering investing your money, there are dozens of options in India, but which is the best for you? Based on your specific needs, requirements, and risk appetite, only you can figure out which is best for you.
I wanted to determine the best investment option to buy a car. After much research and deliberation, I landed on SIP as my investment method of choice.
First, let us explore SIP, how they relate to Mutual Funds, what it means, and how you can calculate the best SIP interest rate.
A SIP is a form of investment offered by mutual funds providers that allow you to invest small amounts of money rather than a lump sum. Based on your calculations, you can decide the frequency of investments to be monthly, quarterly, bi-annually, and annually.
As this is a form of mutual fund, it is linked with similar risks associated with mutual funds. Still, it is considered a relatively safe and secure method of investing due to its flexibility of investment, an advantage in diversification, tax benefits, and higher returns.
Today, it is straightforward to simulate and see your returns on investment online. It is made possible due to mutual fund providers like Bajaj Finserv, Groww Stocks, ET Money, and Coin by Zerodha, which have made it possible for an average investor to invest their idle money and earn on it. While doing that, they have also made it quick and simple to figure out how much we can earn when the investment term is complete.
Using an Interest Calculator provided by Bajaj Finserv, you will get accurate results to plan your goals and analyze the scenario to make a suitable investment. You will just need to input the monthly sum you would be investing, the estimated rate of return, and the tenure, and you will be able to calculate and see how much you can earn based on your investment and which provides you with the best return on your investment.
What are the best mutual funds for SIP in 2023?
There is no perfect mutual fund for everyone, but here are a few of the best-performing mutual funds in each type for you to invest in.
- Quant Small Cap fund
- Axis Small Cap fund
- Aditya Birla Sunlife Digital India fund
- Dsp Government Securities Fund
- Aditya Birla Sun Life Medium Term Plan
- Sbi Magnum Gilt Fund
- Quant Multi Asset Fund-Growth
- Kotak Multi Asset Allocator Fund
- Icici Prudential Equity & Debt Fund
Once I had finalized SIP and after researching and getting recommendations from my friends, I chose Bajaj Finserv as my mutual fund provider. After downloading their app and using their mutual fund calculator, I realized that I would need to invest Rs. 13,300 for seven years or Rs. 20,000 for five years to buy the car of my dreams and still have a fair bit saved up.
Using this and assessing my financial situation, I decided to go for the former. This was the best option as it let me invest a lower investment sum and get a higher return than I would have otherwise.
This is why use a calculator to simulate and understand what would work the best for you and which mutual fund will provide you with the best return.