Best SIP Plans for High Returns in 2024

With numerous SIP options available, it’s crucial to select a plan that aligns with your risk tolerance and investment horizon. This write-up explores the best SIP plans that offer high returns, helping you make informed investment decisions for a secure financial future.

5 Best SIP Plans with High Returns

The following are the best 5 highest return SIP mutual funds in the UAE and worldwide -

Shelton NASDAQ-100 Index Direct (NASDX)

This is the highest-return SIP mutual fund where at least 80% of the investment is allocated to stocks with an index. This mutual fund is managed passively. The NASDAQ-100 Index has the 100 largest domestic and global non-financial companies listed on the NASDAQ stock market based on market capitalisation. 

The maximum return in SIP (year-to-date (YTD return) is 16.65%. 

Edelweiss US Technology Equity FoF

This open-ended equity fund is among the best SIP mutual funds with high returns, known for its impressive returns. It takes a growth-oriented and flexible approach primarily investing in multi-cap funds of technology and innovation companies. 

Key Features: 

• Impressive Returns: Since its inception, the average annual maximum return in this SIP mutual fund has been 30.11% 
• Focussed Investments: This SIP mutual fund invests predominantly in US Technology funds - JPMorgan Funds
• Strong Growth Potential: It is known to double the investment every 5 years

DSP US Flexible Equity Fund

This is another best SIP plan with higher returns. Here, your money is invested in the largest and most renowned US-based companies including major tech companies in the world. The focus of the investment is on companies that are profitable, durable, and well-priced, generating strong free cash flow.

Key Features: 

• Average Annual Returns: Since its inception in 2013, the DSP US Flexible Equity Fund has an average yearly maximum return in SIP of 21.39%
• Volatility Reduction: This SIP mutual fund reduces portfolio volatility by investing money in foreign markets

Voya Russell Large Cap Growth Index Fund

This is a long-term growth index fund with maximum return in SIP. At least 80% of investment is in equity securities of companies at the time of purchase. This also includes convertible securities and other derivatives whose economic returns are equivalent to the returns of the index or other components. 

Key Features: 

• Year-to-Date Return: As of September 2024, the YTD return is 24.23%
• Dividend Payments: The dividends are paid half-yearly
• Investment Focus: The aim here is to identify companies with cash flow growth, returns on invested capital, sustainable competitive advantages, and the ability to manage profitable growth

Fidelity 500 Index Fund

This is the best SIP plan with high returns where at least 80% of the investment is in common stocks listed on the S&P 500 Index. While the stock markets, particularly foreign markets, are volatile and are influenced by regulatory, economic, or market developments, this fund aims to navigate those challenges. 

• Maximum Return: The maximum return in the SIP plan is 27.12% for one year as of 31st, August 2024
• Investment Objective: The objective of this mutual fund is to offer investment results that correspond to the total expected return
• Market Focus: Most of the stocks are publicly traded in the US

Factors to Consider Before Investing in Best SIP Mutual Funds with High Return

The following factors should be considered before investing in the best SIP mutual funds with high returns -

• Define Your Investment Goals - Many people invest in mutual funds just to save taxes or park extra cash. However, they can also effectively help achieve various financial goals, both short and long-term. Before starting an SIP, have a clear financial plan in place. Decide if you’re investing for the long term or short term and assess your risk tolerance. 
• Select the Right Fund Type - Choose a fund type that aligns with your risk appetite and investment goals - 

1. Equity Funds - Invest in stocks and are ideal for higher risk-takers.
2. Debt Funds - Invest in bonds and are suited for risk-averse investors.
3. Balanced Funds - Combine both equity and debt investments.
4. Open-Ended vs. Close-Ended Funds - Open-ended funds allow flexibility to enter and exit anytime, while close-ended ones have fixed investment periods.

• Review Fund Performance - Examine the historical performance of the funds over the past 5-10 years. Compare their returns to see if they can withstand market volatility.
• Choose a Reputable Fund House - Select a fund house with a strong track record and a sound investment approach. A well-managed company can help you achieve better returns.
• Consider the Expense Ratio - The expense ratio includes the fund’s management and administrative fees. Opt for a lower expense ratio, as high fees can reduce returns over time.