Best SIP to Invest in Mutual Funds

You must have been searching to invest in SIP plans, that is the only reason how you would have opened this blog. So you must already know about the SIP way to invest. If still not sure, you can scroll below and go through the FAQs provided later in this blog. For now, however, not wasting your time and coming straight to the point, given below is a list of Equity Mutual Funds. These, we have selected to suggest to those clients who are looking to receive higher Returns on their Investments, by keeping invested for a longer period. Those beginner investors who are seeking to create wealth by starting small and with the Best SIP.

To pick these funds, from amongst the unending range of investment options available, we have applied below standards as benchmarks:

• These funds are amongst the Top Performers consistently over the past 3 to 5 years.
• Have a minimum Rating of “4” by Value Research Online.
• CRISIL has rated these funds in either Rank 1 or 2.

Do go through the features of these investments to understand better why these Mutual Funds Investment got selected to be offered to you, by the professionals and market experts at WealthBucket.

These are Annualised Returns, by considering the Direct Mutual Funds. Data has been based on NAV of Direct (G) variant of schemes, as on March 29, 2019. Do check the latest Returns & Regular Returns by clicking on the related links.

Re-affirm your financial objectives with the help of our SIP Calculator or Lump Sum Calculator.

1. The Best SIP Plan of Mirae Asset Tax Saver Equity Fund

An immensely popular product from Mirae AMC. the Best Equity Fund from Mirae Asset has outperformed its peers by a good margin. The Fund started giving huge returns within its short period since inception, in Dec 2015.  It has an AUM of 1,381 cr, currently.

The fund has garnered Returns at 19.25% CAGR in the last 3 years as against the 13.85% Returns of its benchmark S&P BSE 200. It was ranked at 22 as per total assets in Sep 2017.

77% of the holding from its portfolio is in the Large-Cap, with the rest 23% of its assets allocated amongst the Small and Mid Cap opportunities. It has a well-diversified asset class with 58 stocks in its portfolio. Its portfolio boasts of investing in the market giants such as HDFC Bank, Reliance Industries, L&T, TCS, Maruti, to name a few. All this sound investment makes it stand firm in times of market turmoil.

It is an Open-Ended ELSS (Equity Linked Saving Scheme) with a compulsory lock-in period of three years.

2. HDFC Small Cap Fund

The HDFC Small Cap Fund Scheme is benchmarked against IISL NIFTY Small-Cap 100 TR INR, from HDFC MF.  During the past year 2018, the fund contained losses at around 9% compared to a whopping 19% losses on its benchmark, the Nifty Small-Cap Index. It has displayed tremendous performance despite the back-slide of 2018. The setback in the Mid and Small Cap category in 2018 has been recovered well and the Fund has managed to provide a 5-year CAGR at 20.83%. As against the benchmark of Nifty Small-Cap at 16.04% in the same period.

HDFC Small Cap Fund has taken outsized exposure to chemicals, engineering and services companies by investing approx 41% of the corpus. Around 57% of the corpus is invested in Small-Cap companies and about 36% in the Mid-Cap ones leaving about 6% funds for Large-Caps. Currently, the fund does not hold any significant Liquid Component which shows its optimism about growth in the Mid and Small-Cap sector.

The scheme has been ranked No 1, by CRISIL, in the Small-Cap Mutual Funds category for the quarter ending 30 September 2018, and the one before that.

It is an Open-Ended Equity Scheme with its AUM approximately 5,320 Cr. In case you are looking for a good SIP plan to Invest in Equity Fund that makes value stock investments, you need to look no further.

Click to know more about  NIFTY.

3. Mirae Asset Large Cap Fund

Before May 2019, it was known as “Mirae Asset India Equity Fund”. Now the revised name is “Mirae Asset Large-Cap Fund”, as per updated information received from BSE.

In the past 3 and 5-year periods, the scheme has given 13.9% and 21.9% Returns, whereas its benchmark, S&P BSE200 TRI, has given 12.8% and 16.7% Returns during the same periods. It is a well-diversified and balanced portfolio with no sector, stock, theme or style being disproportionate.

The Fund has invested 95.2% of the corpus in Indian stocks with 83.42% in the Large-Cap stocks, 8.18% in Mid-Cap stocks and 3.58% in the Small-cap stocks. Since its launch in April 2008, a significant part of the corpus is invested in equities and equity-related securities by identifying sectors that are likely to do well over the medium term. The portfolio is well-diversified at the stock level across market capitalization.

4. Kotak Standard Multi-Cap Fund, another Best SIP

The flagship scheme of Kotak Mutual Fund AMC, the Kotak Standard Multi-Cap Fund has made the AMC quite popular. It has delivered returns at 19.48%, far above the 13.95% returns delivered by its benchmark S&P BSE Sensex 200.

This Fund was launched in 2009 and has been under the management of Mr. Harsha Upadhyaya since 2012.  Over the last 5 years, Mr. Harsha has swerved strongly towards Large-Cap. Overcoming the volatility of 2018 and 2019, around 77% of the corpus is in Large-Caps. 21% in Mid-Caps and 1% in Small caps which opens it up to growth opportunities in the mid-cap space. The Fund is currently managing an AUM of Rs. 23, 881 cr. The portfolio is fairly diversified with as many as 56 stocks, under its wings.

The Fund has distinguished itself by following a concentrated strategy at a sector level and diversifying its exposure to stocks. Due to which, the scheme has outperformed its benchmark every time in the past seven years.

This Mutual Fund is relatively cautious and the equity investors will find themselves well-taken care of in this scheme.

5. Invesco India Contra Fund

The Fund has been a distinguished player in the Contra Fund category. Contra Funds basically mean a type of value investing where the fund manager invests in those stocks that are presently underperforming and facing a little more downside, before coming up. In other words, it invests against market sentiments.

The scheme has generated 5-year Returns at 19.93% CAGR  and has beaten its benchmark, S&P BSE 500, which could only give Returns at 13.65%. Moreover, the Plan has also outperformed its category average by a large margin that gave Returns at a mere 14.67%. The Returns across time frames are better than the average category Returns.

The portfolio analysis of the Fund reveals that this is heavily allocated in Large-Cap stocks as of now. With 65% of its portfolio invested in Large-Cap stocks, the Scheme has a steady stand in the times of market fluctuations. About 33% of the asset has been invested in the Mid and Small-Cap companies, making this a growth-oriented fund.

The scheme has concentrated around 35% of its portfolio stocks into the financial sector. However, the asset allocation is in line when compared to the portfolio allocation of the benchmark.

6. Axis Bluechip Fund

Axis Bluechip Fund emerged as one of the top-performing Large-Cap Mutual Funds of 2018, from the house of AXISMF. Despite the widespread failure of actively managed funds in 2018, this Fund has impressively outperformed its peers. With most of the other Mutual Funds falling behind their benchmarks in their 1-year returns last year.

The Fund’s performance also holds good over a longer duration of time. The 5-year CAGR of 15.16%  from this Fund is well ahead of 13.22% on the Nifty.

This is an Open-Ended Equity Scheme with a significant portion of the corpus being invested in Large-Cap stock. The portfolio is well-diversified and consists of Equity and Equity-related securities of Large-Cap companies including derivatives.

The emphasis is on quality and growth to select stocks. Those stocks are favored where the improvement in cash flows and higher earnings is quite visible. The portfolio has only 24 stocks in the bag, currently. With this compact portfolio, and the number of stocks cut down sharply in recent times, it keeps steady and dependable in the prevailing market conditions where only some select stocks are doing well.

7. DSP Equity Opportunities Fund Best SIP

From DSP BlackRock, DSP Equity Opportunities Fund looks for growth opportunities across sectors and stocks within attractive looking sectors. The Fund Manager decides the investment portfolio based on the macro positions of the companies. While at the same time considering the micro impact of economic reforms, restructuring and mergers & acquisition activity. He evaluates key economic trends and studies various investment opportunities Thereby identifying rewarding opportunities. He may make concentrated investments in sectors with considerable risks but present an attractive long-term investment opportunity. At the time of selecting stocks, a lot of consideration is given to corporate earnings and company fundamentals.

The Scheme is benchmarked against NIFTY 50 – TRI and NIFTY 500 as the primary index and NIFTY 500 – TRI as its secondary index.

Under normal circumstances, the DSP Equity Opportunities Fund will invest over 80% of its corpus in equity, while its exposure to liquid will not exceed 10%. The significant part of its portfolio is usually in the Large-Cap stocks.

The Plan has historically maintained a highly diversified portfolio of investments, which has helped it significantly outperforming the peer group.

8. Axis Long Term Equity Fund

The most favored SIP plans for investors seeking consistent returns along with tax benefits. The main objective is to generate consistent ROI in the long term through a portfolio comprising of high-quality Equity stocks and Equity Derivatives.

The exceptional performance of the Axis Long Term Equity Fund is best depicted by the fact that it has managed to provide high Returns, consistently, to its investors. Outperforming its benchmark as well as its peers since its launch over a decade ago, by a huge margin.

By consistently beating the peer group and the benchmark, this premier tax saving Mutual Fund offering has been a preferred choice for investing in MF.

Axis Long Term Equity Fund is an Open-Ended tax-saving Investment, with a compulsory lock-in period of 3-years.

9. Franklin India Prima Fund

Franklin India Prima Plus Fund is a premier Equity Scheme from the Franklin India Mutual Fund AMC, one of India’s top Fund Houses. The primary objective of this Scheme is to provide capital appreciation and regular dividend income as its secondary objective.

The Scheme boasts of a well-diversified Equity portfolio mainly investing in stocks from the Mid-Cap companies. It identifies these companies during the early start and as per their business cycle as the growth potential in such start-up companies is greater. The investment focus is on companies capable of creating wealth encompassing all sectors and market capitalization. The stocks may be across equity, debt and money markets.

It is an Open-Ended Growth Scheme.

As of now, around 75% of the portfolio consists of Large-Cap Equity investments. And the balance is distributed across other investment options.

10. ICICI Prudential Value Discovery Fund

ICICI Prudential AMC Fund has consistently maintained a high rating since its launch way back in 2004. Its portfolio boasts of value stocks with great future growth potential while being reasonably valued in the current market conditions.  Or you can say, these stocks feature attractive low valuations considering their book value, earnings or future/current dividends.

This Fund is an Open-Ended Equity Scheme by primarily investing in well-diversified value equities. The investment objective is to generate returns through a combination of dividend income and capital appreciation, by following a value investment strategy. The Corpus is invested in stocks and securities available at a fair or below-intrinsic value.

It invested quite heavily in Mid-Cap Stocks at the initial stages, making it seem like a risky investment strategy to investors with lower risk appetite. However, in recent times, its Large-Cap component has grown to be as high as 80%. This implies an increased possibility of consistent future returns over the long term.

FAQs while selecting Best SIP

Q. What is SIP?

Ans. SIP is a short form for the Systematic Investment Plan. In such plans, you can invest in Mutual Funds, a fixed amount every month in a Plan of your selection. It works on the law of averaging and protects you from the risk of investing a Lump Sum while the market is at a high. You accumulate more mutual fund units at the time of the market fall and lesser when the market is up. With SIP installment consistent, this averages out on the number of units with you.

Q. How does SIP Work?

Ans. The Best SIP Plan is typically a monthly investment but you can also choose to invest weekly, monthly or quarterly. Investments are made at regular intervals according to your preference.

Q. How To Set Up SIP?

Ans. To start your SIP, you need to simply fill up a SIP form. Furnish details about your KYC  documents (PAN card, Address Proof) on our trustworthy online portal of WealthBucket. We make investing in Mutual Funds an easy task, completed in less than 10 minutes.

The amount is then invested in the best mutual fund scheme of your choice, as per the applicable NAV.

For example, you start a monthly SIP plan, of Rs. 1,000 for 5-years, starting from the 7th of the month. So every month, on the same date, Rs. 1,000 will get deducted from your bank account and get invested in your selected Mutual Fund.

Q. How is NAV calculated?

Ans. Let’s say the 7th is the date of your SIP. The applicable NAV for your SIP installment would be the chosen mutual fund’s NAV at the close of the Stock Exchange Market on the 7th.

Now, the date of the 7th would depend on whether the markets are open or closed on the actual 7th? Whether the 7th is a working day for the stock market or a Saturday, Sunday or Public Holiday when it is closed? In case the markets are closed then NAV obtained at the end of the next working day would be applicable.

Q. What is a Systematic Transfer Plan (STP)?

Ans. With an STP or Systematic Transfer Plan, you can transfer a fixed amount or number of units into another scheme of the same fund house, as per the STP dates defined by the AMC.

Q. What is a Systematic Withdrawal Plan (SWP)?

Ans. Using SWP or Systematic Withdrawal Plan (SWP) you can withdraw a fixed amount or number of units from an existing fund at certain pre-defined frequencies and dates fixed by the AMC.

WealthBucket offers an extensive range of services related to the mutual funds, Equity Mutual Funds, Debt mutual fund, Large Cap mutual fund or Multi-Cap mutual fund.

Call us at +91 9999379929. Or email your queries at contact@wealthbucket.in.

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