Top 10 Best Performing SIP mutual funds to invest for 2014


Top and Best Mutual Funds in India to invest for 2014-  Best SIP schemes for 2014Top 10 Best Performing SIP mutual funds to invest for 2014

If you are looking for Top 10 Best Performing Mutual funds for 2015, you can refer this article.

When I have written article last year on Top-10 SIP mutual funds to invest, there was good response from readers. However, those 10 mutual fund schemes were only among a bunch of the best performing mutual funds. In this  year too, I have analyzed best and top performing SIP mutual funds invest in 2014 and providing our analysis here. In case you have already invested in those top-10 funds recommended by me earlier, you can stay invested, but if  you want to add some more funds to your portfolio or if you are a new investor in mutual fund world, then you can consider these top funds to invest for 2014. These are some of the best mutual funds in India

Also Read: Top 10 Best Performing Mutual Funds to invest in India for 2015

What is the criteria I used for choosing best and top SIP funds?

I have used the following criteria for choosing the top funds.

  • Mutual funds across various sectors are considered
  • Mutual funds from various segments (large cap, mid cap, balanced, debt, international fund)
  • Mutual funds where Assets Under Management (AUM) > Rs 100 Crores
  • Consistent performers in the last 5 years, 3 years and 1 year.
  • Crisil Rank-1 and Rank-2 funds for equity and hybrid funds. However, for sector funds these are not ranked by Crisil.
  • Value research rating of 5-Star, 4-Star funds. However sector funds are not ranked by Value Research.  
  • Portfolio diversified more into equity and hybrid funds and ignored debt mutual funds. You should invest for long term of 8 to 10 years to get good returns.
  • While I was doing this  analysis I found that Mutual fund annualized returns may or may not make sense sometimes when you do SIP. Some SIP schemes provide good returns of more than 12%, even though the annualized returns are only 9%. This indicate that investment through SIP would provide good scope to maximize the returns.

Top 10 Best Performing SIP mutual funds to invest for 2014

We have analyzed top and the best mutual funds to invest and below is the analysis.

1) ICICI Pru Tech Fund

Overview: The scheme invests in Information Technology and IT dependent companies. Since IT companies are more dependent on exports of software to US and European countries, the performance of these funds would dependent on US, Europe and other countries spending on IT across the globe. US economy has grown in the last 2-3 years and expected to continue to grow for the next couple of years. This would give an enormous amount of opportunities for IT / Software companies in India.

Performance of the fund: This is 1st top performing mutual fund as per our analysis and its 5 year returns are 38% per annum which has beaten even equity mutual fund returns. This fund gave 20% annualized returns in last 3 year. This fund is expected to perform well in the future. If you have invested Rs 1,000 in SIP in last 3 years, your invested amount would  be Rs 36,000 and investment value would have been Rs 60,000 now.

Suitable for: Since this invests only in one sector, i.e. IT, it is high risk high return scheme. Investors with high risk appetite can invest in these funds.

Also Read: How to Maximise returns from SIP Mutual funds?

2) SBI Pharma Fund

Overview: The scheme looks for growth opportunities in various Pharma stocks.

Performance of the fund: As per our analysis, this is 2nd top performing mutual fund in India.  Its 5 year annualized returns are 35% per annum, which has beaten even equity mutual fund returns. It gave 24% annualized returns in last 3 year. If you have invested Rs 1,000 in SIP in last 3 years, your invested amount would  be Rs 36,000 and investment value would have been Rs 53,000 now.

Suitable for: This sector has been performing well in the last 5 years. However, since this is a sector based fund and invests only in the Pharma industry, it is high risk, high return investment. Investors with high risk appetite can invest in these funds. This is one of the best mutual funds in India.

3) FT Feeder Franklin US Opps fund

Overview: The Fund seeks to provide capital appreciation by investing predominantly in units of Franklin U. S. Opportunities Fund, an overseas Franklin Templeton mutual fund, which primarily invests in securities in the United States of America. This is one of the top mutual funds in the International fund category.

Performance of the fund: This is the 3rd best SIP mutual fund as per our analysis. Last 1 year returns are 46% and last 2 years annualized returns are 29%. If you have invested Rs 1,000 in SIP in the last 3 years (extrapolated 2 years returns for 3 years), your invested amount would  be Rs 36,000 and investment value would have been Rs 49,500 now.

Suitable for: This fund invests in FT US Opportunities fund which invests in top US Stocks. This is purely based on US economic growth. US economy is expected to grow at a higher pace even in next 2-3 years. However, this is high risk, high return fund. One should consider this risk before investing in this.

4) SBI Magnum Mid-cap mutual fund

Overview: The scheme objective is to invest at least 65 per cent in mid cap stocks. Mid-cap stocks are those which have high potential to grow in the long run. These can create good wealth for investors. s

Performance of the fund: This is 4th top performing mutual fund in India and its 5 year returns are 26% per annum which has beaten even equity mutual fund returns. It gave 14 annualized % returns in last 3 year. If you have invested Rs 1,000 in SIP in last 3 years, your invested amount would  be Rs 36,000 and investment value would have been Rs 47,000.

Suitable for: Since this invests in mid-cap, this carries a high risk. Investors with high risk appetite looking for high returns can invest in these funds.

5) Franklin India Smaller Companies fund

Overvview: This fund aims for long term capital appreciation by investing in Midcap and small cap companies. This fund invests 75% in smaller companies.

Performance of the fund: This is 5th top performing mutual fund and its 5 year returns are 27% per. It gave 13% annualized returns in last 3 years. If you have invested Rs 1,000 in SIP in last 3 years, your invested amount would  be Rs 36,000 and investment value would have been Rs 46,500.


Suitable for: Since this invests in mid-cap, this carries a high risk. Investors with high risk appetite looking for high returns can invest in these funds.

6) ICICI Pru balanced Adv fund

Overview: The scheme seeks to provide an appreciation of your capital by using equity derivatives strategies, arbitrage opportunities and pure equity investments.

Performance of the fund: This is 6th best performing mutual fund as per our analysis. Its 5 year returns are 18% per annum. It gave 12% annualized returns in last 3 year. If you have invested Rs 1,000 in SIP in last 3 years, your invested amount would  be Rs 36,000 and investment value would have been Rs 44,000 now.

Suitable for: Investors with medium risk, and looking for high returns can invest in these funds.

7) ICICI Pru Dynamic Plan

Overview: The scheme invests in equities and for defensive consideration in fixed income securities, including money market instruments with the aim of generating capital appreciation. The actual percentage of investments will be decided after considering the prevailing market and economic conditions.

Performance of the fund: Its 5 year returns are 22% per annum. It gave 9% annualized returns in last 3 years. If you have invested Rs 1,000 in SIP in last 3 years, your invested amount would  be Rs 36,000 and investment value would have been Rs 44,000.

Suitable for: The fund is known as defensive fund. Its agility and composition changes according to the market volatility. It would help in falling less during downturns and post good gains during upturns. Investors with medium risk, but looking for high returns can invest in these funds.

8) UTI MNC Mutual Fund

Overview: The objective of this fund is to invest predominantly in the equity shares of multinational companies (MNC) in diversified sectors such as FMCG, Pharma, Engineering etc.

Performance of the fund: This is one of the best performing mutual fund in India and its 5 year returns are 24% per annum which has beaten even equity mutual fund returns. It gave 12% annualized returns in last 3 year. If you have invested Rs 1,000 in SIP in last 3 years, your invested amount would  be Rs 36,000 and investment value would have been Rs 43,000 now.

Suitable for: Investors looking for medium risk, but looking for high returns can invest in these funds.

9) ICICI Top-100 mutual Fund

Overview: The scheme invests 95% in equities and balance in debt funds. This fund consistently invests in quality stocks like SBI, BHEL, L&T, ITC, ONGC and ICICI Bank, with the top-5 holdings accounting for around 40 per cent of the portfolio. Financial, technology, energy and FMCG are the sectors that have dominated the portfolio over the past 4 years, which has aided performance.

Performance of the fund: Its 5 year returns are 18% per annum. It gave 9% annualized returns in last 3 years. If you have invested Rs 1,000 in SIP in last 3 years, your invested amount would  be Rs 36,000 and investment value would have been Rs 42,000 now.

Suitable for: Medium risk investors expecting high returns can invest in these funds.

Also read: Mutual fund SIP Investment- Success or failure depends on you

10) Quantum Long Term Equity Fund

Overview: The scheme invests primarily in shares of companies that are included in the BSE 200 Index.

Performance of the fund: Its 5 year returns are 24% per annum. It gave 8% annualized returns in last 3 years. If you have invested Rs 1,000 in SIP in last 3 years, your invested amount would  be Rs 36,000 and investment value would have been Rs 42,000.

Suitable for: This is a good fund for those with a medium risk appetite, but looking for good returns.

Below is the quick summary of what we discussed.

Top and Best Mutual Funds in India to invest for 2014; Best SIP schemes for 2014

Conclusion: The above top SIP mutual funds are categorized from various sectors and for various risk appetite investors. Pick-up the best performing mutual funds which are suitable to you and invest them for the long term. If you can invest for say 8 to 10 years, I am sure you can create good wealth.

Readers, have you invested in these best funds? What other funds have you invested where you have gained high returns?

If you found this article is good, share the link in Twitter/Face book.

Suresh
Best and Top Performing SIP mutual funds to invest for 2014


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.

1,151 Comments

  1. Nikita Karkera says:

    Hellllooo Suresh sir,

    I am planning to start investing in mutual fund SIP for 2000 rs. per month & need to diversify these into 2 SIPs for 3 yrs.

    Funds in which i am looking is : 1) HDFC equity fund or 2) SBI bluechip fund or 3) Reliance small cap fund or 4) UTI mid cap fund.

    PLs advice & suggest which 2 funds should i invest in???????? or is there any other SIP best than these.

    Regards,.
    Nikita Karkera

  2. alokmohan says:

    WANT TO INVEST IN SIP FOR 10 YEARS IN MONTHLY RS10000 FOR LONGER PERIOD.EXPECTING RETURN OF AROUND20% .PLS SUGGEST.

  3. Mohit says:

    I am new in investing in mutual fund i am thinking to invest in these fund is it good funds?
    uti oppourinty fund(d)–1000
    icici prudential balanced Fund(d)–1000
    hdfc balanced fund(d)-1000
    hdfc top-200 fund(d)-1000

  4. B N Sinha says:

    I want to invest a good amount in short term for better return in open ended fund specially large and midcap fund in Jan 2015.
    Please advice me the best fund to invest through SIP or single payments.

  5. Sandeep says:

    hi suresh sir,
    I have a 18-months daughter,i want to make some investment for her future through sip,initially I want to invest Rs 40,000 per year or Rs 3000 per month.
    so please suggest me best sip..

    • Suresh KP says:

      Refer this article of latest and top funds to invest in 2015, which is useful for all investors. http://myinvestmentideas.com/2014/12/top-10-best-sip-mutual-funds-to-invest-in-2015/

  6. Kapil Ganbote says:

    Hello Sir,
    I haven’t invested in any mutual fund till date. I’m new to this but I want to invest in 2 sips. 5000 each per month. Can you advice which two to invest for. Thanking you.
    Regards
    Kapil 7276411884

    • Suresh KP says:

      Since you are new to investment, my suggestion is to invest in balanced mutual funds to start with. 1) Invest in ICICI Balanced fund and HDFC Balanced fund. Keep some amount into recurring deposits also. 2) Once you are familar on how mutual funds operate, you can invest in large cap funds and diversified mutual funds. 3) If you can take some risk, you can invest in top 5 mid cap and small cap funds which I have recommended. But note that you should hold them for 8 to 10 years to get good returns. You can keep tracking every month on how your funds are progressing.

  7. Roshni says:

    My experience:
    1) Quantum is really good. Still invested.

    2) ICICI is good too but for online investors like me if they have restrictions on banks with which I can / cannot transact, it will be easier to switch to another AMC. Which is what I did when they removed my bank from their list for no reason :)

    3) SBI funds are good but their customer service is TERRIBLE. They sat on my money for 3 months. All the emails begin with a standard “At the outset we apologize for the delay in replying” whether the reply comes in 3 days or 3 weeks (yes they reply after any number of days. In my case one reply came after 3 weeks). They also lie blatantly. I exited all my funds after this experience knowing that I will have to pay exit load.

    • Suresh KP says:

      Very sad to hear this experience. But I opened through ICICIdirect and I have not faced such situation. Would like to know from where you opened mutual fund account

      • Roshni says:

        I went to the respective offices for the first time and completed the formalities of opening an online account.

        Checked your list of funds for 2015. Good ones. Thanks for your time and effort.

        Would also like to correct my statement regarding SBI fund – “The fund performance is good” is what I meant to say.

  8. Gaurav says:

    I have never invested in Mutual funds before.

    I wish to start investing in Mutual funds .But with respect to Mutual l funds , I am like an illiterate person.

    How to start investing in mutual funds ? Can I get some papers like I receive in case of Bank FD’s & NSC’s ?

    I am also concerned about the liquidity factor & the redemption factor by nominee ( In case God forbid .. )

    My wife ( nominee ) does not know how to use the internet. So I am concerned if something happens..

    In case of Insurance , Agent will take care . She can go to the bank to process the FD’s .. But in case of Mutual funds .. what ??

    Please guide me on this .

    With Highest Regards

    • Suresh KP says:

      approach icici direct or fundsindia to open mutual fund account. Then read articles on this blog about mutual funds. Once you understand them, start investing in funds based on your risk appetite

  9. Anupam says:

    Hi,

    I am new to investment. My requirement after 3 yrs will be 2 lakhs, could you please let me know a good SIP from ICICI for beginners.

    Thanks & Regards,
    Anupam

  10. c p kulkarni says:

    just gone through ur article on 5 best sips for tax saving 4 2015.
    article is informative. pl advise me if i can start any one of the 5 star rated sips 4 3 years.
    i am rerired and falls ur 10% tax bracket.
    regards & thanks
    c p kulkarni
    ps hope i will receive ur reply on email too.

  11. gopal says:

    Hi …… Suresh bhai,

    I am 30 years old newly married person, i want to invest in 1000/ month in SIP . I am in confusion about my investment. because I have 1 LIC 500/- pre month from 6 years and anather is 1500/- per months from 4 yeras both are Jiivan saral policy. I am also invest in 1000/- per month in Bajaj Aliiance ULIP policy . All the policy are for 20 years . but i am not satisfied my investment I want to start 1000/- per month in SIP but my salary in 15000/- per month, I am not able to invest more. Now tell me can i PAID UP or surrender any LIC policy or contine or start invest in SIP? pls help me.

  12. mukesh says:

    i am saving per month 2000rs of ten to fifteen year in best mutual fund high return best company

  13. vijay kumar says:

    hi sir iam new to in mutual fund .i invest in mutual fund with sip. (1)bsl equity fund 2100rs.(2)icici pru tax saver 2100.(3)uti oppourtunity fund 1500 (4) icici pru dynamic plan 1500rs. sir i want know thease fund is good or not good.pls guide me. iam long term investor.

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