Mutual Funds

Best Mutual Fund for SIP in 2022

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Investors are in search of investment avenues with lucrative returns. As the global inflation rate is expected to rise to 7.5% by the end of 2022, return on investment has become the predominant criterion while selecting assets.

With your value for money depreciating each day, it becomes essential to invest your money and get a good return. 

You could go for several good investment options, but SIP investment is the best. We say this because the return they provide is higher than the inflation rate and less risky than stock market trading. 

But since SIP investment is related to the stock market, you need to educate yourself and find the best SIP to invest in. 

And to help you with this, we have curated this article where you will learn in detail about mutual funds and how to find the best SIP mutual fund to invest in. And to top it off, we will also list the best SIP mutual fund of 2022 that you should invest in.  

Let’s start investing!

What Is A Mutual Fund

Mutual Fund is an investment pool where investors put their money to invest in the share market to buy shares, bonds, and equity. You might wonder if it’s like normal investing, but that’s not true. 

The thing about mutual funds, apart from normal investing, is that the portfolio is much more diversified, and professional fund managers handle them. 

The in-depth research is to be done by the fund manager, and you only have to select the SIP mutual fund to invest in.

So it’s fair to say that investing in mutual funds is the safest way to earn money from the share market. Now that you understand what a mutual fund is, let’s discuss the types available in the market. 

Different Types Of Mutual Funds

You can divide mutual funds into numerous categories depending on your investment purpose and the expected return.  

1. Open-ended funds

These funds give you the freedom to enter and exit at any time. These funds are the best option for you if you seek more liquidity.

2. Closed-ended funds

In such funds, you can only buy a specified number of units.  Also, you can only gain the return on its maturity date.

3. Equity funds

In these funds, your money is invested in corporate stock, and the return depends on the stock market’s performance. These investments are regarded as risky even if they might offer big profits. 

4. Debt funds 

These have a low-risk way of providing stability and a consistent income. These plans can be further divided into duration-based groups and funds for credit risk, among others.

5. Growth funds

These funds are the best if you want to grow your wealth, as they give a high and continuous return in the long run.

6. ELSS (Tax-saving funds)

In this, the investment majorly goes into company securities, which qualifies such investment for a tax deduction.

7. Liquidity-based funds

These types of funds are best if you want a good return in the short term. And to have a good return, you’ll need to invest in highly liquid assets.

8. Pension funds

These funds are the best if you want a regular return on your investment. Although they have a lower potential but are likely to give reasonable and continuous returns in the future.

Now that you know about the different types of SIP mutual funds, it’s time for us to tell you about the best SIP mutual fund for investment in 2022.

10 Best Mutual Funds For SIP Investment In 2022 

There are thousands of mutual funds to start your SIP investments, but we have picked out the best from this crowd that offers the best returns.

Serial NoName of the mutual fundType of mutual fundLevel of risk1-Year Return in %3-Year Return in %5-Year Return in %
1PSU & IDFC Debt fundDebt mutual fundLow6.709.698.09
2HDFC money market fundDebt mutual fundLow4.576.906.81
3Mirae asset tax saver fundELSSHigh73.5819.7621.18
4Kotak tax saver fundELSSHigh55.7612.4914.64
5SBI liquid fundLiquid mutual fundLow3.225.435.98
6Nippon India liquid fundLiquid mutual fundLow3.235.556.09
7SBI Flexi cap fundModerate mutual fundMedium-high29.1321.7220.83
8HDFC Flexi cap fundModerate mutual fundMedium-high62.0513.4514.41
9Motilal Oswal midcap fundAggressive mutual fundVery high68.0911.4311.59
10Kotak small cap fundAggressive mutual fundVery high124.8320.9519.68

Now that you know about the best mutual funds, it is time to start your SIP investments. But some of you might make the mistake of investing in a mutual fund based on return percentage. 

But that’s not the right approach and could lead you to a major loss. To help you avoid this mistake, we have pointed out some tips to help you find the best mutual fund to invest in.

4 Tips To Select The Best SIP Mutual Fund In 2022

You will get the best return possible from your mutual fund investment by following the tips below. 

1. Define your objective

You must define why you want to invest in a mutual fund. Is it for long-term or short-term gain, or maybe you want a pension income when you retire?

Whatever the reason, decide for yourself and only select the mutual fund that fits your requirement.

2. Understand the risk

You should understand that mutual funds are prone to market conditions.

If a certain national or global condition influences the market, the stock prices can go either way. That’s why you should understand the level of risk the mutual funds hold and whether you are ready to take the risk.

3. Check the performance history

Not all mutual funds perform to provide you with the same returns. Hence, it becomes crucial to check how the fund has performed over the years.

You should also see who the fund managers are and their experience working in this field. 

4. Check the expense ratio

It can be simply understood as the fee charged by the fund manager to handle the portfolio. That is why you should always choose mutual funds with lower expense ratios.

You will generally find mutual funds with higher AUM (Assets Under Management) have a lower expense ratio. 


After reading this article, we hope you understand mutual funds better. Not only this, but you also have the list of best mutual funds for SIP in 2022 from which you can choose to start your SIP investment journey. If you wish to invest in mutual funds but are getting confused about the selection of the right plan, then contact investment experts on the Piramal Finance website and help yourself to the knowledge of wide-ranging financial products and services, especially personal loans. By understanding your investment goals and risk appetite, we will help you select the best plan. Start your investment journey now!