What are SIP mutual funds? Mutual funds are professionally managed investment vehicles that pool capital from multiple investors. Investors buy MF schemes just like stocks or company shares and the profits generated are later distributed among the investors according to the proportion of money invested. SIP or Systematic Investment Plan is a method of investing in mutual funds. You can invest through a one-time lump sum payment or make regular investments. The process of making regular investments in the MF scheme can be called SIP. That means you agree to pay a fixed sum, say thousand rupees per month. At the end of the year you will have invested twelve thousand in the plan. Some SIP schemes ask for monthly payments, while others allow payments once every three or six months. The payment amount also depends on the scheme.

The benefits of opting for SIP funds is that it brings financial discipline into your life and forces you to save a certain amount of your earnings on a regular basis. Also, regular payments make it affordable for a larger number of people. All types of mutual funds do not offer SIP facilities. Liquid Funds, Cash Funds and Floating Rate Debt Funds do not have a SIP option. All types of equity, debt and balanced funds typically offer the SIP facility.

SBI schemes are an excellent option for first-time investors. SBI MF has over twenty years of experience and has consistently generated high returns for its investors over the years. With an investor base of more than 5.8 million, it is one of the largest companies operating in the country. These are some of the best SIP plans from SBI.

• SBI Magnum Global (Growth)
• SBI Magnum Sector Umbrella – Startups
• SBI Magnum Tax Gain
• Scheme SBI Magnum Multiplier Plus