Top 10 Mutual Funds for SIP to invest in 2013


Top 10 Mutual Funds for SIP to invest in 2013; Top mutual funds for SIP

Top 10 Mutual Funds for SIP to invest in 2013

Systematic Investment Plan (SIP) is the best route to invest small savings month on month and create a bigger wealth. Select best SIP mutual funds to invest for 2013 and start growing your wealth. Today we would discuss about these top mutual funds for SIP to invest. These Best SIP Plans / Best SIP in India would help investors to grow their money. 

What is a Systematic Investment Plan (SIP)

Systematic investment plan in mutual fund is where an investor makes regular equal investments in mutual funds month on month. There are several advantages to invest by SIP method. Through SIP investment, rupee-cost gets averaged out, market fluctuations are taken care etc. This is one of the good ways to create the wealth by investing regularly. However identification of top mutual funds for SIP to invest is a key for the success.

10 Top mutual funds for SIP to invest in 2013


We have analyzed 10 best mutual funds for SIP to invest and below is the analysis.

  1. ICICI Pru focused blue chip fund (Large cap)
  • Overview: This is one of the top mutual funds for SIP in large cap category. Crisil ranked this mutual fund as Rank-1 in large cap category.
  • 3 year annualized returns: 11.5% annualized returns in the last 3 years compared to large cap mutual fund category average of 5.1% annualized return.
  • Suitable for: This is large cap mutual fund which invests in top 20 companies in large cap domain. Any investor who is looking for long term capital appreciation and with moderate returns can invest it in SIP route. Since it invests in large cap equities, the downside is limited unless it is a bearish market.
  1. UTI Opportunities fund (Large cap)
  • Overview: This is also one of the best SIP mutual funds in large cap category. The scheme is running for 5+ years and providing consistent good returns. Crisil ranked this mutual fund as Rank-1 in large cap category.
  • 3 year annualized returns: 11.5% annualized returns in the last 3 years compared to category average of 5.1% annualized return.
  • Suitable for: Any investor who is looking for long term capital appreciation with moderate returns can invest it in SIP route. Since it invests in large cap equities, the downside is limited unless it is a bearish market.
  1. SBI magnum emerging fund (Mid-cap and small-cap)
  • Overview: This is one of the top mutual funds of SBI SIP for mid and small cap category. Crisil ranked this mutual fund as Rank-1 in Small and Midcap category.
  • 3 year annualized returns: 24% annualized returns in the last 3 years compared to category average of 9% annualized return.
  • Suitable for: This is Small and Midcap mutual fund which invests in mid size and small size companies. Any aggressive and high risk investor who is looking for short term capital appreciation with high returns can invest it through SIP. Since it invests in mid-cap and small-cap companies, the risk is very high. However an investment in such best mutual funds in SBI SIP creates good wealth provided the investor is willing to take the risk.
  1. IDFC Premier equity fund (Mid-cap and small-cap)
  • Overview: This is also one of the top mutual funds for SIP in mid and small cap category. Crisil ranked this mutual fund as Rank-1 in Small and Midcap category.
  • 3 year annualized returns: 16% annualized returns in the last 3 years compared to category average of 9% annualized return.
  • Suitable for: This is Small and Midcap mutual fund which invests in mid and small size companies. This scheme is running for 5+ years and is a consistent good performer. Aggressive high risk investor looking for short term capital appreciation with high returns can invest in this scheme. Again, since it invests in mid-cap and small-cap companies, these are high-risk high returns investments.
  1. HDFC midcap opportunities fund (Mid-cap and small-cap)
  • Overview: This is also one of the best mutual funds for SIP in mid and small cap category. Crisil ranked this mutual fund as Rank-1 in Small and Midcap category.
  • 3 year annualized returns: 15% annualized returns in the last 3 years compared to category average of 9% annualized return.
  • Suitable for: This is Small and Midcap mutual fund which invests in mid size and small size companies. This scheme is running for 5+ years and is a consistent good performer. Aggressive investor who is willing to take high risk for high returns can invest in this scheme
  1. Reliance equity opportunities fund (Diversified)
  • Overview: This is also one of the top mutual funds for SIP among diversified mutual funds. Diversified mutual funds invest 45% to 75% in large cap stocks (as specified by Crisil). Crisil ranked this mutual fund as Rank-1 in diversified mutual funds category.
  • 3 year annualized returns: 16% annualized returns in the last 3 years compared to category average of 6% annualized return.
  • Suitable for: This is a diversified mutual fund scheme which invest in multiple sectors and majority in large cap stocks. It also invests 25% to 50% of amount in debt related instruments which provides security against the downside of the capital. This scheme is running for 5+ years and is a consistent good performer. Investors who want to diversify their risk through diversified mutual fund and take moderate risk and expect good returns can invest in this through SIP.
  1. Reliance Pharma Fund (Pharma)
  • Overview: This is one of the top mutual funds for SIP in Pharma and healthcare mutual funds.
  • 3 year annualized returns: 18% annualized returns in the last 3 years compared to category average of 7% annualized return.
  • Suitable for: This mutual fund scheme, invest only in Pharma and healthcare sector with no diversification in other sectors. It would be very high risk in investing such sector based mutual funds. However, Pharma and healthcare sector will grow in future. Investors looking for high returns with high risk appetite can invest in such top mutual funds through SIP.
  1. SBI Magnum FMCG fund (FMCG)
  • Overview: This is one of the best mutual funds for SIP among FMCG sector based mutual funds.
  • 3 year annualized returns: 35% annualized returns in the last 3 years compared to category average of 31% annualized return.
  • Suitable for: This mutual fund scheme invest only in FMCG sector. It would be very high risk in investing such sector based mutual funds. Investors with high risk and high returns appetite can invest in such mutual funds through SIP. However invest in smaller portion of your portfolio into such mutual funds as it is sector based fund and it can wipe off your capital itself in case the sector is not performing well.
  1. HDFC Balanced fund (Balanced)
  • Overview: This is one of the top mutual funds for SIP in balanced sector based mutual funds. Balanced funds invest 65% to 80% in equity securities and balance in debt and money market instruments. Crisil ranked this mutual fund as Rank-1 in balanced mutual funds category.
  • 3 year annualized returns: 13% annualized returns in the last 3 years compared to category average of 8% annualized return.
  • Suitable for: Balanced funds invest 20% to 35% in debt and money market instruments. Due to this strategy, even in case of any downside of investments in equity related instruments, it would get balanced and provide little downside on the capital investment. These balanced mutual funds have becoming prominent now due to its investment strategy and it would be best suitable for investors who are looking for higher returns compared to bank fixed deposits and looking for safety of the investment. It is a moderate-risk, moderate-return investment option.
  1. ICICI Balanced fund (balanced)
  • Overview: This is also a good performing mutual fund in balanced sector based mutual funds. Crisil ranked this mutual fund as Rank-1 in balanced mutual funds category.
  • 3 year annualized returns: 12% annualized returns in the last 3 years compared to category average of 8% annualized return.
  • Suitable for: Best suitable for investors who are looking for higher returns compared to bank fixed deposits and looking for safety of the investment.

Quick recap

Top 10 Mutual Funds for SIP to invest in 2013; Top mutual funds for SIP

Conclusion: Investment in mutual funds through SIP has provided good returns over the long term. However based on the risk appetite, investor can choose the best SIP mutual funds to invest for 2013. Such best investment options would help you in creating wealth.

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Suresh
Happy investing in 10 Top mutual funds for SIP in 2013


Article by Suresh

Suresh KP i.e. me have written 400+ articles on this blog. I love doing analysis and identifying the Best investment options.

812 Comments

  1. Prabhakaran says:

    Hi, Suresh

    I am 23 years old and i can save Rs.1000 pm. As i am new to this cenario pls help and suggest me some ideas to get started. Any suggestion would be a great help….

    • Suresh KP says:

      Prabahkar, Start investing in balanced mutual funds like ICICI Balanced fund or HDFC balanced fund. Once you are familiar, you can look for other mutual funds too.

  2. amar says:

    Sir which is better investment in SIP or TN power finance fd

    • Suresh KP says:

      Amar, TN Power finance FD is one time investment where you would get fixed income, your returns are limited. However this can be used for 3 to 5 years tenure. However SIP is monthly investment and there are higher chances that you would get double digit returns for long term of 8 to 10 years.

  3. sandip patel says:

    Dear Sir,

    Good evening. I am following your blog since last one year. You are doing great jog. Currently i having SIPs in the following funds: icici pru focused bluechip fund, uti oppo fund, hdfc mid cap oppo. fund, rel eq oppo. fund and rel pharma fund. All are growth plan. Now  i have some cash in my hand and i want to set up STP in some equity fund. The funds i have choosen are: ici pru discovery fund, hdfc balanced fund and rel reg saving fund- equity. I want your suggestion for choosing the source fund for the above mentioned fund. Which one is good: debt or liquid fund? Please suggest some good debt or liquid fund as source fund for my STP. Also give your comment on my SIP fund selection and STP fund selection. Waiting for your reply. Thanks in advance.

    • Suresh KP says:

      Sandip. You have chosen good funds. Regd STP, you can consider either of them (Liquid or debt). However if you consider debt fund, consider short term debt funds. You can refer our articles where I gave top 10 debt funds.

  4. Sushil says:

    Hi,

    Can you please suggest best Debt fund to invest?

    I want to invest 3 Lkh in good debt fund to get maximum return.

    Regards

    Sushil

    • Suresh KP says:

      Sushil, There are several debt funds, however the returns in last 1-2 years are not that good. If you still want to invest, you can look for SBI dynamic bond fund or IDFC dynamic bond fund

  5. Vinoth says:

    Hi Suresh,

    I am 25 yrs Old. I wanna to start SIP for 10~20 yrs. i can invest 10k~20k per month. Is it good to start? I am looking higher return. Please suggest good investment plan.

    Regards,

    Vinoth

    • Suresh KP says:

      Vinoth, Yes it is good to start. However if you are new to MF world, start low in MF and invest in large cap mutual funds. You can start with Rs 5K per month for next 3 to 6 months. Once you are familair on how such funds run, you can invest majority of amounts in MF’s in various categories of Mutual funds. You can look for large cap, mid-cap/small cap and diversified funds.

  6. Puja says:

    Hello Suresh,

    Thanks for sharing such useful information.

    I am looking to invest lumsum amount of 3L to 5L for 1 to 2 years. Is ICICI Prudential Balanced fund okay to invest such big amount. Can you please suggest any other mutual funds for lumpsum amount investment.

    Thanks in advance.

    • Suresh KP says:

      Hi Puja, MF’s are generally meant for long term investment. If you are looking for 1 to 2 years, invest only in debt related funds. Though balanced funds are also ok to some extent, but due to market condition after 2 years, they may provide very less returns. Invest in debt funds like SBI Dynamic fund or IDFC dynamic bond fund or any other debt fund

  7. jagdish says:

    Hi sir. I m a defence person working since 7 yrs. I m going to b retire after 8 yrs at d age of 34 yrs. Presently i m investing 13 k in my pf per month. Other den dis i can invest 10k per mth. So pls suggest me which plan r better fr me to get a gud return aftr 8 yrs. I m nw here. Waitng fr ur advice.

    • Suresh KP says:

      Hi Jagdish, Since you are doing to retire in 7 years, you should not be taking risk. My suggestion is to you is you should invest in bank RD only. If you still want to take some risk, invest in balanced mutual funds like ICICI Balanced fund or HDFC balanced fund. Beyond this you can also invest in post office recurring deposit which are also safer.

  8. Santosh says:

    Hi  Suresh,

    Shall i stick to SBI Magnum FMCG fund , for past 8 months i have a SIP of 3000 but it is not performing well it seems .Please advise

    regards

    Santosh

     

     

    • Suresh KP says:

      Santosh, Look at the performance of 3 to 5 years. You should invest. However invest in smaller amounts as this is sector based fund which is high risk

    • Dinesh Shirvaikar says:

      Hi Santosh,

      Firstly, it is not advisable to measure the performance of a MF over a short period of 8 months.

      Secondly, u have chosen a sector fund which as Suresh has rightly pointed out is high-risk. You have't mentioned if u have other diversified funds or this is your only fund. If it is the only fund, then it is certainly not advisable. As a retal investor, u should stick to well diversified MFs ideally multi-cap ones which will free u from the trouble of tracking stocks across market caps.The fund manager will do it for you.

      If u still wish 2 stick to SBI FMCG fund, continue it for a 5-year period and then see where u are.

  9. Sameer says:

    Hi Suresh ,

    Hope you are doing good.

    I am thinking to invest montly 10 to 12 thousand in SIP plans . My Goal is to get a good returns after 5 years . could you please suggest me the Best SIP with good returns

    Regards

    Sameer Dokuparthi

    • Suresh says:

      Sameer, You can choose any of the funds indicated here. I am also posting some top-10 funds in tomorrow’s article, just check and let me know in case you have further query.

  10. ALAM says:

    DEAR MR SURESH

    I AM VERY THANKSFULL FOR YOUR SUPPORT PLEASE SEE MY PORTFOLIO IF OK PLEASE REPLY ME IF NEED CHANGES

    1.ICICIC PRU FOCUSED BLUCHIP G  2000 

    2.ICICI PRU TECHNOLOGY FUND G 1000

    3.QUANTUM TAX SAVING FUND G    1500 INVESTED WITHOUT SIP

    4.HDFC BALANCED FUND G            5000 INVESTED WITHOUT SIP

    5.SBI EMERGING BUSSINESS FUND G 5000 INVESTED WITHOUT SIP

    6.UTI EQUITY FUND G 5000 SAME

    7.RELIANCE EQUITY OPP FUND G  5000 SAME 

     

    I HAVE PLAN TO INCREAS EVRY MONTHS AMOUNT ON EACH FUND .SO PLEASE REPLY ME THATS GOOD FOR ME I HAVE A GOAL TO ACHIVE 15% RETURN AFTER 20 YEARS.

    THANKS 

    ALAM

  11. Archana says:

    Dear suresh,

    I wish to invest in sector fund catagory. Which one may produce better results in future? Past 10 years performance vice  pharma and FMCG are good. In future sir?

    • Suresh says:

      Hi Archana, I like Pharma sector as it is giving consistent returns. IT is also good for now, but stay only for 1-2 years. Pharma you can invest for next 3 to 5 years.

  12. Aruna says:

    Dear Suresh

    Which Investment is better: Recurring deposit or SIP, which gives good returns?

    Thanks in Advance

     

     

    • Suresh says:

      Aruna, it depends. If you are low risk taker, invest in RD. You can expect only 8.5% to 9%. However through SIP you can expect 11% to 13%, however they carry risk. You cannot withdraw just like that. You need to invest for long term for 8 to 10 years to get these returns which I indicated. Net summary, if you are low risk taker and need money for short term or any time, RD is better, else SIP in mutual funds are better.

    • Pooja says:

      Dear Suresh,

      I am 23 yrs old and have just started a job and am wanting to know how should i go about planning my finances..I usually am able to save around Rs. 1000-2000 pm.I would really appreciate if you could help me the same…

       

       

      • Suresh says:

        Hi Pooja, Good to hear that at young age you are planning for savings. My suggestion is to start with a recurring deposit and invest Rs 1,000 per month. Keep reading our mails on mutual funds and open a SIP for Rs 500 in each mutual fund. Open two mutual fund SIP’s like ICICI Pru focussed blue chip fund or HDFC Balanced fund. Once you are familiar, you can keep adding some more funds to your portfolio. Happy investing !!!!

  13. bala says:

    Dear suresh,

    Presently i invested in SBI-FMCG-1000 Rs,HDFC-Midcap opportunities-1000Rs, ICICI balanced advantage fund-1000Rs. Every year i can add atleast 1 SIP scheme and increase my investment also based upon my salary appraisal. I planed to invest appoximately 13 yrs. Because i need more amount at that time. Am i in a correct track?

    • Suresh says:

      Yes Bala. Alternatively you can increase the SIP value once you reach 5 to 7 funds as investing in more funds would be difficult to track.

      • bala says:

        Dear Suresh,

        Thanks sir. I have one two doubts. Presently i received bonus amount (20000). Shall i invest it in lumpsum mutual fund or add one more SIP sir? I throught to invest in UTI opportunities or Franklin bluechip fund or Axis equity? Which one may give better results? In current situation lumpsum or SIP? Kindly guide me sir!

        • Suresh says:

          Hi Bala, I always prefer SIP. You can choose any funds out of them. I prefer Franklin Bluechip as first priority among three.

          • bala says:

            Dear Suresh,

            Thanks sir. Surely i will start 1000rs SIP for Franklin Bluechip fund.I assigned my mutual fund portfolio is one fund from large cap, one from small and midcap, one from balanced, one from sector oriented fund. Is this correct method sir? If i have add onemore fund in future means which side i have to choose? I will wait for your reply.

          • Suresh says:

            Correct. It depends which MF you want to add in future. If you are young age and high risk taker, add in large cap and midcap/small funds. If you are married and with kids, add SIP MF in future in balanced fund.

  14. amit says:

    Sir I want to invest 2000 monthly in ICICI blance fund.are this available in ICICI bank or how much time is good for good return please suggest sir

    • Suresh says:

      Amit, You should invest atleast 5 to 8 years if you want to invest in such balanced funds to get good returns. You can expect between 10% to 13% returns per annum.

  15. Sandip patel says:

    Dear Sir,                                                       First of all thank u very much for doing such a great job of educating people like us about personal financial planing. I am following your blog since last ten months. Your articles are very informative and useful. Now coming to the point, I am investing in the following funds through sip route. I want your suggestion. Is my portfolio is good or need any correction?  These are for my daughter education and her marriage. The funds are: icici pru focused blue chip eq fund- Rs 2000, uti oppor fund- Rs 1000, reliance eq oppor fund- Rs 1000, reliance pharma fund-Rs 1000. All are direct plan with growth option. Apart from this, I have a term plan of Rs 50 lacs of HDFC C2P and a PPF account. So pl give your comments on my planing. Eager to know your response. Thanking u in advance.

    • Suresh says:

      Sandip, You have chosen good funds. Have a great day

    • Dinesh Shirvaikar says:

      Hi Sandip,

      Good to see that u have started thinking about aspects of FP other than investment also.

      However, 50L term cover today may not suffice after say 10-20 years due to the effect of inflation. As a thumb rule, u should have a cover of 10-12 times ur annual income. U can decide the cover based on this.

      In your portfolio, there is a sector fund, which in my opinion, is risky. As a retail investor, u should leave the job of choosing sector and stocks within it to the fund manager. A fund manager of a good diversified MF will surely do this job for you. And remember there is no one sector which will do well over 15-20 years, there  will be a continuous churn after every few years to newer sectors. Since u are already into some well performing diversified funds, u don't need a specific sector fund. As I said leave that job to the fund manager. Stop the SIP in the Rel. Pharma fund and instead move that money to the Eq. Opp. Fund of Reliance. If u don't want to do that, add a complementary fund such as a Mid-cap fund which is missing in your portfolio. Go for either IDFC Premier Equity or HDFC Mid-cap Opp. in place of the Pharma fund.

  16. Arnab Chatterjee says:

    Hi Suresh,

    Hope you are doing well. I have one question as far as choosing between two different balanced mutual funds is concerned. I'm a bit confused while choosing the balanced fund for me since I'd like to invest by SIP investment. Two I've finalised, one is ICICI Pru Balanced fund Growth & Another one is ICICI Pru balanced advantage fund. But I can invest in any of these two, kindly guide me and help me out , where should I invest and what's the difference between these two. I'm not very familier with mutual fund investment though. Awaiting for your valuable reply.

    Thanks

    • Suresh says:

      Arnab, w.e.f. 1-Nov-13, ICICI Volatality advantage fund was renamed to ICICI Balanced advantage fund and shifted to balanced fund category. The objectives also got changed for this fund. But my suggestion is to invest in ICICI Balanced fund as other one should get stabilised due to change in the fund objectives. 

  17. purna says:

    Hi Suresh sir, i want to add  mid & small cap funds to my portfolio along with large cap, please suggest good funds in above category to invest throguh SIP, what is your suggestion on Birla Sun Life MNC Fund (G), Mirae Emerging Bluechip Fund (G), 

  18. ALAM says:

    DEAR MR SURESH THATNKS FOR HELP US.NOW MR SURESH I WANT TO KNOW SOME SCHEME WHERE I CAN GET MORE PROFIT IN SHORT TIME 3 YEARS PERIOD SO CAN YOU HELP ME FOR INVESTEMENT I WNAT A GOOD RETURN ON MY AMOUNT WITHIN 3 YEARS.

     

     

    • Suresh says:

      Alam, If you are looking for a tenure of 3 years you should invest in debt funds like SBI Dynamic bond fund or IDFC Bond fund or hybrid funds like ICICI Balanced fund and HDFC Balanced fund.

  19. Debiprasad Ray says:

    Hi Suresh,

    I have some investments like LIC, PPF, ULIP etc now I want to start investing in SIP as this gives me tax benifit as well as it grows my money. As a beginer i am looking at long term (10 to 15 years) as well as short term (3 to 6 years) investments.  Can you please guide me in this. I want to invest around 6 to 7 thousand in different funds. 

    Thanks,

    Debiprasad Ray.

  20. rajeev says:

    Hi,

    I wanted to invest in the Mutual Fund through SIP. The total amount which i am willing to invest is 5-6K per month. How i can distribute the amount and which all plan i can select. i am looking to invest some on short term policies (5 years) and some on Long term policies (10-15 years). Kindly suggest for the same.

    Thanks

    Rajeev!!!

    • Suresh says:

      Rajeev, For 5 years invest in balanced funds like ICICI balanced fund or HDFC balanced fund. For 10-15 years invest in large cap funds, diversified and mid-cap funds.

  21. Kishore says:

    Hi,

    I want to invest in the below mentioed Mutual fund for atleast 15 years through SIP. please let me know are these are good mutual finds to invest or not and also suggest me the good SIP mutual fund

    ICICI Pru Focused Bluechip Eqty                              largeCap 1000
    Birla SL India GenNext       Diversified 1000
    ICICI Pru Exp&Other Services-RP     Diversified 1000
    ICICI Prudential Balanced Advantage Fund    balanced 1000
    UTI Pharma & Healthcare Fund – Income or SBI Pharma Fund G divident 1000
    SBI Magnum emergng fund      MidCap  1000

    Thanks,

    kishore

    • Suresh KP says:

      Hi Kishore, All are good funds. However you should hold sector funds like UTI Pharma and ICICI Pru exports fund for limited period. Sector may or may not grow in such long run of 15 years. Please keep a close watch on such funds and exit at right time. Keep watching this blog and I can anyhow would advice at appropriate time

  22. Goutam Mahata says:

    Sir I am Planing to invest in the following funds through SIP

    1.HDFC BALANCED(G): 2000/Month

    2.HDFC TOP 200 (G):1000/Month

    3.SBI ENERGING BUSINESS(G):1000/Month

    4.SBI MAGNUM GLOBAL: 1000/Month

    5.SBI PHARMA (G):500/Month

    Please suggest are these good or not? Should I change my portfolio?

  23. chandra says:

    Hi Sir,

    how to invest in sbimf online, when i trying to click invest online option it ask for folio number… i cant understand… is it possible to invest online on any mutual fund websites, if so what is the procedure?

  24. Priyajit says:

    Hi suresh…wish u avry vry happy new yr.I have been following ur bolg for more than 8 mnths now & I will grateful to u for making me a liitle bit literate ab finanacial planning.During the last 8 mnths i have done the following investments as per ur guidance.Plz review my portfolio & comment

    1.Opened PPF a/c & invested 1,00,000/

    2.Started  following SIPs-

    i) ICICI Pru Focuused Bluechip Direct(G)- 2000/ on 7th of each month

    ii) IDFC dynamic bond fund(G)-1000/ on 10th of em

    iii) SBI Pharma Fund Direct(G)-1000/ on 15th of em

    iv) UTI oppotunities fund Direct(G)- 2000/ on 25th of em

    3. Stared SEP in SBI GETS of 1 unit on 22nd of em through ICICI direct.

    4. Invested 80,000/  in HUDCO tax free bond 

    5. Invested 30,000/ in PFC tax free bond.

    Now i want to start two SIPs,one each in small/mid cap & balanced fund.Plz suggest me 

    • Suresh KP says:

      Priyajit, Fund selected are good. Yes you are making good diversification by investing in various tax free bonds too. You can look for ICICI Balanced fund and any mid-cap fund like ICICI Pru discovery fund etc.

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