Best mutual fund SIPs to invest your money

Investing on regular basis through the SIP route has given better returns in the long term compared to investing lumpsum amount in any mutual fund schemes.

Given in the table below are investments made in various schemes of mutual funds through SIP from January 1, 2007 to December 31, 2009.

We will compare their returns with non-SIP returns invested lumpsum amount in those schemes. The returns from each scheme are given below: Advantages of SIP

Investors don't need to time the market for their entry while investing. The investments get averaged out by investing through SIP on monthly or quarterly basis in MF schemes. It reduces the risk of investing when markets are volatile.

Investments early in life helps to get the benefit of compounding on the invested amount in the long term. So, through SIPs investors can start investing nominal amounts say Rs 100 or Rs 500 or Rs 1000 of his savings to get the benefits of compounding by investing in mutual funds.

Regular savings and investments are easy way to build a corpus compared to investing lumpsum amount in one go.

You can choose the option of auto-debit or ECS while filling the SIP form of any monthly / quarterly date or give post dated cheques for the amount you wish to invest in MF schemes.