Top 4 SIPs To Invest In 2022

What is SIP?

A Systematic Investment Plan (SIP), often known as a SIP, is a mutual fund facility that allows participants to invest in a disciplined manner. The SIP function allows an investor to invest a set amount of money in a mutual fund scheme at pre-determined periods. The fixed amount can be as low as Rs. 500, with pre-determined SIP intervals of weekly, monthly, quarterly, semi-annually, or annually. By investing in a SIP, the investor invests in a time-bound manner without having to worry about market fluctuations and stands to benefit in the long run owing to average costs and compounding power.

How Does a SIP Work?

When you make a SIP investment in a mutual fund scheme, you buy a particular number of fund units equal to the amount you put in. When you invest in a SIP, you don’t have to time the markets because you gain from both bullish and negative market trends.

When the markets are down, you buy more fund units, whereas when the markets are up, you buy less. Because all mutual fund NAVs are adjusted daily, the cost of buying may differ from one SIP instalment to the next. The cost of buying averages out over time and turns out to be on the low end. Rupee cost averaging is the term for this. When you invest a lump sum, this benefit is not available.

Top 4 SIPs

Because of its simple investment procedures and cheap commitment amounts, systematic investment plans, or SIPs, are perhaps the most popular financial tool among young Indians. People now have a higher risk appetite, and a substantial portion of the population is starting their investments with SIPs and making disciplined financial plans for the future.

In terms of the last three years’ results, here are some of the best-performing SIP mutual funds for investors to consider in 2022.

ICICI Prudential Technology Fund

In the last three years, the ICICI Prudential Technology Fund has returned 42.1 per cent. The fund’s net assets are Rs. 6,887 crore and the NAV is Rs. 163. This SIP requires a minimum investment of Rs. 100. This fund’s cost ratio is 1.84 per cent. Crisil, a research agency, has awarded this fund a three-star rating.

Infosys Ltd., Tata Consultancy Services Ltd., Tech Mahindra Ltd., HCL Technologies Limited, and Persistent Systems Ltd. are the top five holdings of this fund.

It’s vital to note that IT companies have surged the most, which is why IT funds have produced the strongest returns in terms of returns.

It’s also a distinct possibility that some of these will underperform in the days ahead.

TATA Digital India Fund

In the last three years, the TATA Digital India Fund has returned 39.4 per cent. The fund’s net assets are Rs. 3842 crore and its net asset value (NAV) is Rs. 38.2. This fund’s cost ratio is 2.02 per cent. This SIP requires a minimum investment of Rs. 500. This SIP’s net assets are invested in equity/equity-related instruments of corporations in the Information Technology Sector to the tune of 80%. Infosys Ltd., Tata Consultancy Services Ltd., HCL Technologies Limited, Tech Mahindra Ltd., and Bharti Airtel Ltd. are the top five holdings of this portfolio.

Aditya Birla Sun Life Digital India Fund

In the last three years, the Aditya Birla Sun Life Digital India Fund has returned 40.5 per cent. The fund’s net assets are Rs. 2658 crore and its net asset value (NAV) is Rs. 140. This SIP requires a minimum investment of Rs. 1000. This fund has a 2.19 per cent expense ratio. Infosys Ltd., Tata Consultancy Services Ltd., Tech Mahindra Ltd., HCL Technologies Limited, and Bharti Airtel Ltd. are the top five holdings of this portfolio. The target allocation for this SIP is 100 per cent equity, with a focus on the technology, hardware, software, telecom, media, internet, and e-commerce sectors. Crisis, a research agency, has awarded this fund a four-star rating.

SBI Technology Opportunities Fund

In the last three years, the SBI Technology Opportunities Fund has returned 36.6 per cent. The fund’s net assets are Rs. 1891 crore and its net asset value (NAV) is Rs. 156. This SIP requires a minimum investment of Rs. 500. This fund has a 2.27 per cent expense ratio. Infosys Ltd., HCL Technologies, Alphabet Inc. – Foreign equity, Tech Mahindra Ltd., and Bharti Airtel Ltd. are the top five holdings of this fund.