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.  Though there are several good mutual funds, we have picked some of the best mutual funds in India.

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. This is one of the best mutual funds in India
  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. This is one of the best mutual funds to invest in India.
  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. This is one of the best mutual funds in India in mid-cap segment.
  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. This fund is performing consistently and we rate this as one of the best mutual fund to invest in India.
  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 500+ articles on this blog. I love doing analysis and identifying the Best investment options.

865 Comments

  1. vinit tembhurne says:

    sir i would like to invest in mutual fund SIP please suggest me better option, which one is better for great results within 15 years.

    • Suresh KP says:

      You can look in these funds. 1) Large cap – HDFC Top-200 / ICICI Pru focussed blue chip fund 2) Mid-cap – HDFC Mid-cap opps fund / Franklin India smaller co’s / SBI Midcap fund 3) Balanced – You can check HDFC Prudence / ICICI Balanced fund. 

  2. Vishal says:

    Hi,

    Planing for start Sip in ICICI discovery-1500 rs and ICICI Blue chip-1500 or ICICI balance fund .Which two to choose for 5 and 10 yr of investment.???Please suggest

  3. Shekhar Sharma says:

    Dear Suresh,

    First of all, Thank a lot .your article is very useful for beginner like me.

    I am getting idea after reading your article and questions below. But my concern is related to open the account for mutual funds. What is a better option to open an account (With some brokers or directly with the Banks). As an example for taking HDFC mutual fund as well as ICICI mutual fund , Should I open dmat account with these 2 banks and start investing in mutual fund OR i should open an account with a broker and invest there. I am just concerned about the charges applied by them. Where will be less charges and better flexibility to manage funds?

    Thanks,
    Shekhar

    • Suresh KP says:

      When you say banks it is not really banks, but 3-in-1 trading and demat account like ICICI direct or kotaksecurities etc., You can open Demat + mutual fund account with them, however they do transaction charges for mf schemes. Other brokers like fundsindia does not charge transaction. However it would depend on your requirement. I would invest in stocks, mutual funds, fd schemes, currency trading, hence I prefer icicidirect though they charge high

  4. santosh barahpuria says:

    Sir I am new investor in mutual fund.
    I start in sip past three months. My portfolio are
    Hdfc top 200 (D)growth-2000
    hdfc midcap opportunity (D) G-3000
    icici focused blue chip (D) growth-2000
    icici value discovery fund (D)G-2000
    idfc primier equity (D) growth-2000
    quantum long term fund(D)G-1000
    relaince small cap (D) growth-1000
    Sir I want invest more 2000 P/M
    PLEASE SUGGEST one or two fund.Thanks.
    Santosh barahpuria

  5. Rajesh says:

    Hi suresh
    First of all , I would like to extend my thanks for ur support nd guidance …
    Brother , actually my age is 31 y nd iam moderate risk taker Nd actually looking forward for long term investment of around 5 years or 10 years .. To make corpust amount of 50 lakh for education of my child .. How should I go for that ..as my objective to get this 50 lakh amount after 20 years….pls guide me ,thanks..

    • Suresh KP says:

      Moderate risk he can invest in large cap and balanced funds. Invest in these funds. 1) Large cap – HDFC Top-200 / ICICI Pru focussed blue chip fund 3) Balanced – You can check HDFC Prudence / ICICI Balanced fund.

  6. rk verma says:

    Sir
    I have invested 1000@ month sip in uti dividend yield fund – growth since last two years. Should I continue? Please suggest.

  7. Anil says:

    Hi Suresh,

    I get married early and i have no PPF & LIC and begginer in MF but want to investmnet 5000 per month in SIP later it will be 10000 per month,So please suggest me It is good or not if good then how to investment because i have no idea about MF and SIP.

     

    Regards,

    Anil

     

     

    • Suresh KP says:

      Anil, Open MF account with ICICI direct or fundsindia. com. Try invest in balanced funds like ICICI balancd fund or HDFC prudence fund. Then go thru MF articles and gain knowledge. You can invest 3-5 funds in next 1-2 months

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