Currently, which is the best mutual fund for SIP?
- Nikhil
The Systematic Investment Plan, or SIP, is a method of investing in mutual funds. While that is a smart way to invest, there is no one single fund which is 'good'.
What is good for one portfolio may be a disaster in another portfolio.
For instance, an investor with a long-time horizon who has a portfolio full of large-cap funds would do well to have some allocation to a small/mid-cap fund. But the same fund would not be recommended to a portfolio that is already heavily tilted towards small/mid-cap funds already. And for someone who is starting out with their very first fund, a hybrid one could be the answer.
The decision on whether a particular fund is suited for a portfolio must be taken in conjunction with:
- the time horizon of the individual’s investment goals
- other components of the portfolio
- risk ability and risk appetite of the investor
- what the investor hopes to gain from the investment
