Which is a good fund to begin an SIP?

By Morningstar |  22-06-18 | 
 

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:

  1. the time horizon of the individual’s investment goals
  2. other components of the portfolio
  3. risk ability and risk appetite of the investor
  4. what the investor hopes to gain from the investment
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