Best Performing SIP Mutual Funds

 

SIP is one of the best ways to invest in mutual funds. It is affordable, easy, convenient, and more importantly—it helps in reaching financial goals in time!

Our Systematic Investment Plan (SIP) provides you the facility to periodically invest a fixed sum over any defined period of time (6 months or more).
SIPs help in arresting uncertainties associated with trying to time the market and thus, in the long term tends to iron out market fluctuations.

It also brings in the much-needed investment discipline as you allocate a defined sum to your investments for a defined frequency, thus making investments a mandatory component while you allocate your resources.

SIP Advantages

  • SIPs help in arresting uncertainties associated with trying to time the market and thus, in the long term tends to iron out market fluctuations.
  • The market brings down your average cost of acquisition of units. As you would allocate a fixed sum every month, you would buy more units when the prices of our units are lower than when they are higher. We call this Rupee Cost Averaging.
  • mark through this arrangement, your funds otherwise lying idle (and if you know it, on account of inflation, depleting in real value) in your bank account get channelized into future wealth-creating investments.

 

Some of the Best Performing SIP Funds are:

Kotak Select Focus Fund— 22.20% (1Yr), 17.13% (3Yr), 22.11% (5Yr)

Kotak Opportunities Fund— 22.08% (1Yr), 16.24% (3Yr), 19.97% (5Yr)

Birla Sun Life Frontline Equity Fund— 17.16% (1Yr), 13.29% (3Yr), 19.19% (5Yr)

DSP BlackRock Opportunities Fund— 21.98% (1Yr), 16.71% (3Yr), 21.38% (5Yr)

Birla Sun Life Top 100 Fund— 19.23% (1Yr), 13.14% (3Yr), 19.32% (5Yr)

SBI BlueChip Fund— 15.73% (1Yr), 14.40% (3Yr), 19.59% (5Yr)

DSP Blackrock Focus 25— 14.38% (1Yr), 13.10% (3Yr), 18.26% (5Yr)

ICICI Prudential Nifty Next 50 Index Fund— 27.61% (1Yr), 18.09% (3Yr), 22.86% (5Yr)

L&T Equity Fund— 17.33% (1Yr), 11.93% (3Yr), 17.07% (5Yr)

Reliance Top 200 Fund— 20.65% (1Yr), 12.63% (3Yr), 18.40% (5Yr)

 

How to Choose Best SIPs?

Know the Fund House: Always consider the reputation of the fund house. A fund house with a long-standing record, large AUM, good performing funds, etc., is the one to invest in.

Monitor Fund Performance: It is important to analyze the performance of funds over a period of time. One should weigh how a fund behaves in a bull market phase. The most consistent fund is the ideal one to choose.

Know Fund Manager: Investors should go through the performance of the funds managed by the particular fund manager, especially during the tough market phases. Going to a fund manager who has been consistent over his career is a preferred choice.

Estimate SIP Returns: It is always good to determine your investment amount and profits. SIP calculator makes a great tool to estimate SIP returns. All you need to do is put some inputs like monthly investment amount, investment tenure and the calculator will give you the values!

 

The Indian equities had a dream run over the last few months. The Nifty had delivered a YTD return of 18.72% whereas Mid Cap & Small Cap Indices had given returns of 33.97% and 31.13% respectively.

The recent run-up may have made the market a bit expensive but we firmly believe that current political stability in the country, policies are undertaken by the central government along with the different state governments, a good monsoon, pick up in the earnings of Corporate India, GST, etc. will help us to generate good returns from the equity market over a 5 years’ time horizon.

We feel that every household shall take the benefits of this Bull Run and lead a prosperous financial life.

We advocate that an investor should invest his savings in the equities through SIP.

Systematic Investment Plan (SIP) is a disciplined way of investing a predetermined fixed amount of money regularly in a mutual fund scheme. It helps an investor to create wealth by investing a small amount of money every month over a period of time. The two powerful strategies that help an investor create wealth through SIP are Rupee Cost Averaging and the Power of Compounding. The biggest advantage of SIP is that one doesn’t need to time the market. As a result, the chances of missing a larger rally or getting stuck in an overvalued market are reduced. SIP helps an investor to make the volatility of the market work in his favor by averaging out the cost.

You can start a SIP in any well-established Equity funds; your selection can be based upon any of the following choices:

  • Future themes, which can turn into big realty! Like- Energy, Gas, Power, Infra etc
  • Discounted themes, which will certainly come up and deliver huge returns, like – IT, Pharma etc
  • Hot themes which are a best seller in the current scenario, like- Micro Cap, Midcap and Banking etc

Of course, the last one would be very costly but its historic chart will appear too good to resist! And the other will not look so attractive on the chart. Also, the risk factor in the first two is little higher than the general ones

So in case, I have a SIP plan for 10 plus years, I would rather go for Discounted themes or futuristic themes, instead of buying the current hot favorites at such a high cost.

 

I’ve considered 3 factors while quoting here good performing Small-Midcap Mutual fund.

  • Rating by Crisil
  • Returns & Consistent Performance
  • It’s Track Record & Investment Strategy

Based on Above parameters I’m listing below good funds especially in Mid-small cap category.

  1. L&T Emerging Business Fund: This fund is rated no 1 by Crisis & has an excellent track record of performance. Its 1-year return is whopping 37% followed by 31 & 28% annualized return for 2nd and 3rd year respectively. S.N Lahiri & Abhijeet Dakshikar are managing this fund.
  2. Reliance Small Cap fund: Again a consistent performer in this category with 33% return over a year with 26 & 25% returns for 2nd and 3rd year respectively. This fund is part of 3rd Largest AMC with excellent crisis rating.
  3. Mirae Asset Emerging Bluechip Fund: over 5 years annualized return of this fund is nearly 30 %. For a year it is hovering around 26% & has crisis rating of 1.

There are quite a few mid and small-cap Mutual Funds that have been doing well. You can start a SIP in any of them. However, please keep in mind that Mid and especially Small-cap funds carry higher risk in the Equity funds category. They definitely generate higher returns but because of their risk factor, it is advisable to hold them for a period of at least 10 years.

So before you start a SIP make sure you can handle the risk.

You can find the latest top performing Mid and Small Cap Mutual Funds here. You can check and compare their NAVs, AUM size, past performances and other information and then make an informed decision.

BENEFITS OF SIP

Regular Investing

  • Identify your financial goals like buying a house, your first car, marriage, education.
  • Set aside and invest a fixed sum of money regularly to meet these financial goals.
  • Become a disciplined investor – maintain regularity.
  • A SIP will ensure all these for you.

 Maintain discipline in your asset allocation

SIP helps avoid the temptation of jumping from one asset class to another during certain market conditions

 Rupee Cost Averaging

  • By investing a fixed sum at fixed intervals we can buy fewer units when the price is higher and more units when the price is lower. This is called Rupee Cost Averaging.
  • SIP takes care that your average price works out to be lower than the price you would have paid at the market peak. It takes care that you invest across market cycles. Your average price works out to be lower than investing at the market peak. It helps you avoid the temptation of timing your investments “Market Timing” is best left to professionals

.The Power of Compounding

  • Instead of saving a huge chunk of money and investing it in a lump sum investment, it is better to invest regularly in smaller amounts. The reason being while your lump sum investment may attract returns it does not give you the benefit of compounded interest that happens in SIP investment. With a SIP investment your investment grows and also your interest earns interest.

You can easily enroll yourself for SIP in our leading schemes by just submitting an Auto-debit mandate with the completed enrollment form. The mutual fund will debit your account on the requested date, credit the units to your account and will send the confirmation for the same.


2 Comments

tiya uppal · at

With thanks! Valuable information!

Cedric Brossman · at

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