Equity mutual funds are schemes that invest a minimum of 65% of the total asset value in equity. These schemes invest in company stocks across different market capitalizations. For making the most of your equity mutual funds, you need the right investment approach. This is where a systematic investment plan, or SIP, comes into the picture.
Many consider investing in SIPs a better investment strategy as compared to a lump sum investment. Essentially, SIPs involve investing a fixed sum at regular intervals over a certain duration, and this can be done on a hassle-free auto-deduction basis. Depending on your investment horizon, different equity mutual funds will suit your SIP differently. Read on to know which is the best equity mutual fund category for your systematic investment plan