Top 5 SIP Plans for Investment in UAE

SIPs offer an easy and effective way to build wealth over time with consistent, manageable investments. Here’s a breakdown of everything you need to know about SIPs and the top SIP plans in the UAE.

What is SIP?

Investing a certain sum of money into mutual funds on a regular basis, usually monthly or quarterly, is known as a Systematic Investment Plan (SIP). Unlike lump sum investments, where you invest a large amount of money at once, SIP allows you to invest smaller amounts consistently. This ensures that you don’t have to worry about market timing or the risks associated with large investments at a single point in time.

Here’s a quick overview of how SIP works —

• Small, regular investments: You can start investment in UAE with as little as AED 500 a month
• Discipline: Investing regularly builds a habit, helping you stay on track with your financial goals
• Market Risk: SIPs are subject to market risk, but they tend to average out over time due to regular investments at different market levels

SIPs vs Lump-Sum Investments

While both SIPs and lump-sum investments have their advantages, SIP investment tends to be a better option for many investors. Here is why: 

Here's how they compare —

With SIPs, you benefit from dollar-cost averaging, meaning your investment spreads out over time, reducing the impact of market volatility. 

On the other hand, lump-sum investments require perfect timing, which can be difficult to predict.

Best SIP Mutual Funds in UAE

Here are the top SIP plans in UAE you should consider for your investment portfolio —

Here’s the overview of schemes with their SIP returns in UAE —

1. Fidelity International Equity Fund

• Investment Goal: Aims for long-term capital growth by investing mainly in non-U.S. securities, including those from emerging markets
• Focus: Invests primarily in large-cap international equities, especially in growth and value stocks, as well as small-cap companies
• Risk Level: Medium to High
• Key Benefit: Provides global market exposure, ideal for those seeking long-term growth
• Ideal For: Investors looking for global diversification

2. Invesco Asian Fund

• Investment Goal: Seeks long-term capital growth by investing at least 80% of its assets in shares of companies based in Asia and Australasia (excluding Japan)
• Focus: Focuses on undervalued companies with strong balance sheets, aiming for sustainable growth. It may also use derivatives to manage risks, though this could lead to more fluctuations
• Risk Level: High
• Key Benefit: Focuses on undervalued stocks in emerging markets, offering high growth potential
• Ideal For: Investors seeking long-term growth in Asian markets

3. Scottish Mortgage Investment Trust 

• Investment Goal: Seeks long-term capital growth by investing in global equities, especially growth stocks
• Focus: Invests in companies from diverse sectors and regions, using a strong management team and market leadership as key criteria
• Portfolio Composition: Typically holds between 50-100 stocks with a focus on liquid, publicly traded equities. It may also invest up to 30% in private companies
• Risk Level: Medium to High
• Key Benefit: Offers exposure to high-growth companies across the globe
• Ideal For: Investors looking for global diversification with a focus on high-growth sectors

4. Voya Russell Large-Cap Growth Index Fund

• Investment Goal: Focuses on investing in large U.S. companies with above-average growth potential
• Focus: Primarily invests in companies within the Russell 1000 Growth Index, emphasising consistency and positive business momentum
• Investment Style: The fund follows a straightforward growth strategy, selecting companies with market recognition and growth potential
• Risk Level: Medium
• Key Benefit: Provides consistent performance by investing in large-cap U.S. growth companies
• Ideal For: Investors seeking stable growth through large, established U.S. companies

5. M&G Global Macro Bond Fund

• Investment Goal: Seeks a higher total return (capital growth and income) 
• Focus: Invests in bonds issued by governments and companies worldwide, including emerging markets, in any currency
• Investment Strategy: The fund considers global macroeconomic conditions to create a diverse portfolio that focuses on short-term opportunities in the bond market
• Risk Level: Medium
• Key Benefit: Offers global bond exposure and helps balance risky stock investments with safer, fixed-income investments
• Ideal For: Investors looking to add bond exposure to their portfolio while managing risks