For SIP investments in hybrid funds, which provide a balanced mix of equity and debt, here are some of the top-performing options for 2024:
1. ICICI Prudential Equity & Debt Fund
- Allocation: 74% in equities and 19.7% in debt, offering a balanced risk-return profile.
- Why it's good for SIP: It offers stable growth with a mix of large-cap equity and government securities, making it suitable for moderate-risk investors.
- Expense Ratio: 1.02%(
2. HDFC Balanced Advantage Fund
- Allocation: Invests 67% in equities and 27% in debt, with a flexible strategy between the two asset classes.
- Why it's good for SIP: It's one of the largest and most stable hybrid funds in India, ideal for long-term SIP investors who want both growth and stability.
- Expense Ratio: 0.74%(
3. SBI Equity Hybrid Fund
- Allocation: About 65-75% in equities and the rest in debt.
- Why it's good for SIP: Offers a well-diversified portfolio, making it a safer choice for conservative investors looking for equity exposure without much volatility.
- Expense Ratio: 0.97%
4. Mirae Asset Hybrid Equity Fund
- Allocation: Around 65% in equity and 35% in debt.
- Why it's good for SIP: Known for consistent returns, it offers a balanced approach, making it an excellent choice for long-term SIPs.
- Expense Ratio: 0.44%(
5. Axis Hybrid Fund
- Allocation: Focuses on high-quality large-cap equity and government securities.
- Why it's good for SIP: Suitable for investors with a low-risk appetite but looking for equity exposure in a stable fund(
If you're looking for low-risk SIP options, here are some mutual fund categories and specific funds that are designed to offer stability while generating moderate returns, primarily focusing on debt or balanced strategies:
1. Liquid Funds
- Purpose: These are ultra-low-risk funds that invest in short-term debt instruments like treasury bills, government securities, and commercial paper.
- Best Funds:
- Aditya Birla Sun Life Liquid Fund
- ICICI Prudential Liquid Fund
- HDFC Liquid Fund
- Why it's good for SIP: Liquid funds are ideal for parking short-term funds and are extremely low-risk, providing steady returns with high liquidity(
2. Debt Funds
- Purpose: These funds invest primarily in bonds and other fixed-income securities, offering stability with minimal risk.
- Best Funds:
- SBI Magnum Medium Duration Fund: A medium-duration debt fund offering consistent returns.
- ICICI Prudential Corporate Bond Fund: Focuses on high-rated corporate bonds, providing relatively higher safety with decent returns.
- Why it's good for SIP: Suitable for conservative investors looking for consistent, low-risk returns over the medium to long term(
3. Hybrid Conservative Funds
- Purpose: These funds invest a higher proportion in debt (around 70-80%) and the remaining in equity, offering more safety with limited equity exposure.
- Best Funds:
- HDFC Hybrid Debt Fund: A conservative hybrid fund with a larger debt allocation for low risk.
- ICICI Prudential Regular Savings Fund: Another solid choice for conservative investors, focusing on debt instruments.
- Why it's good for SIP: These funds strike a balance between safety and modest equity exposure, which can be beneficial in the long run without taking much risk(
4. Arbitrage Funds
- Purpose: Arbitrage funds take advantage of price differences in the cash and derivatives markets, providing very low risk similar to debt funds.
- Best Funds:
- Edelweiss Arbitrage Fund
- Nippon India Arbitrage Fund
