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

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.

1,128 Comments

  1. RAJKUMAR SINGH says:

    Hi Mr. Suresh,

    I have just started following SIP from NOVEMBER 2014.

    1) 295G-Birla Sun Life Small & Mid cap Fund Growth – RUPEES – 2000 PER MONTH /
    2) 157-DSP Black Rock Micro Cap Fund – RUPEES – 2000 PER MONTH /
    3) MCOG- HDFC Mid-Cap Opportunities Fund – 1000 PER MONTH /
    4) EOGP- RELIANCE EQUITY OPPORTUNITIES FUND – 1000 PER MONTH /

    ALSO I AM INVESTING 1000 PER MONTH IN NPS LITE (PENSION PLAN) –

    I CAN INCREASE 4000 MORE IN SIP FROM FEBRUARY 15—
    I HAVE 20 YEAR TIME TO INVEST –
    KINDLY ADVISE BEST SIP FOR ME ….

    THANKS,

    • Suresh KP says:

      Birla SL Small and mid cap is average funds. Also DSP Macro fund is performing good now due to market book. We should check long term performance. You can review and exit appropriately. Othesr are good. Try investing in top funds which I recommended for 2015

  2. Mohit says:

    Hi Suresh,

    Need some help please. I have some savings which I want to invest with high risk high return. What would you suggest if:

    1. I want a SIP with 10k p.m. OR
    2. I want to invest 1 to 1.5 lacs lump sum.

    Please suggest – thanks much!

    • Suresh KP says:

      Invest in the mid cap funds and sector funds which I recommended in 2015 top funds article. Here is the link. http://myinvestmentideas.com/2014/12/top-10-best-sip-mutual-funds-to-invest-in-2015/

  3. Mathew says:

    Good evening sir,
    I am investing Rs.20000 pm in Federalbank millionaire scheme for 10 years since one year.I need to continue in this or shift to mutual funds,for your suggestion.
    Thanking you
    Mathew

    • Suresh KP says:

      Good to know that you want to become millionarire in 10 years. Would like to know more details before I provide my views 1) You are paying Rs 20K per month 2) What is the period by which you would become millionarie ?

  4. Hemish Patel says:

    Hello,

    i Am Completly new in this, i have monthly around 2000 rs Savings so can you plz suggest me in which SIP Long Term Should i Invest.

    • 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.

  5. SN says:

    Suresh,
    Am looking out for Monthly dividend funds. At the moment i have narrowed down to ICICI 25 MIP, Birla Sunlife MIP and UTI Advantage MIP monthly dividend funds. Are these good? Any monthly dividend funds from your perspective?

  6. Mahantesh Patil says:

    Hello Suresh,

    Im truelly follower of your blogs. and Based up on this i have taken decsions. I need one more help.
    I would like to invest money one at a time around 50K for this year.I want to keep it for at lest 3-5 years.
    Can you please suggest top 3 Mutual Funds for one time investment?
    Also can you please suggest 3 Mutual Funds for tax saving for one time investment?

    Thank you
    Mahantesh

  7. Rohit Mishra says:

    Sir,
    I need your help/guide in investment in Mutual Fund via SIP. I am new to MF and SIP. Currently i can invest 30000-40000 per month in SIP. My clarification is , suppose i started per month say 40000 rs in top Funds suggested by you. But down the line after two-three year , i don’t have regular income to invest per month in SIP. But i wanted to stay whatever i invested till that time and may require my money back after 8-10 year. In this case is it useful if i invested money in SIP for only 2-3 year?
    What should be strategy for the person who want to invest in SIP but income is not guaranteed e.g example in Private JOB.Today JOb is there but how long it will last no one knows.It happened with one of my friend, he was investing 15000 in SIP but he lost job and not able to continue per month investment.

    Please advise me.

    Rohit

  8. SRIRAM GOPALKRISHNAN says:

    Hi Suresh,

    This is sriram here.

    Please suggest some good MF’S to invest in from DSP, IDFC, &UTI.

  9. Dushyant says:

    Hi Suresh,
    I want to invest through sip a sum of 5000/month.
    Can u suggest me the best suitable funds to invest in??
    Will be investing for 3-5 years.

  10. gopinath says:

    Dear sir i saw your article i want to invest in sip please suggest me which is the best fund for invest iam the beginner for mutual fund

    • 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.

  11. Francis xavier.A says:

    hi suresh,

    Its a good job done by you……my name is francis and im new to mutual funds…..I got a plan to invest 2000rs monthly in SIP mutual funds for 5yrs ……Can you suggest which is the best SIP mutual fund to invest with good retuns..

    Thank you!

    • 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.

  12. Karan says:

    Hi Suresh,

    Which fund is more risky from the below and generally to get good returns how long we need to stay invested. is 10-15 yrs is better

    1. Large Cap
    2. Mid and Small Cap
    3. Diversified
    4. Opportunities MF

    And for short time 3-5 years from below which will be good.

    1. Balanced Fund
    2. Debt Fund
    3. ELSS Tax saving

    Appreciate your advice

    • Suresh KP says:

      Mid cap,Opps fund and sector funds are high risk. for short term, you can consider debt funds or balanced funds

      • Karan says:

        Thanks Suresh.
        I am 33 yrs old and can take mid to high risk, do you recommend to keep Diversified Fund also on a portfolio. Asking as I already have 2 Large, 1 small/mid cap, 1 balanced If yes which one will be good “Reliance equity opportunity fund” or “ICICI PRU Dynamic plan”.
        Also i am on 30% tax bracket will it be good to take one ELSS (ICICI PRU Tax Plan) ?

        • Suresh KP says:

          Based on your risk profile, you should add sector funds too like Reliance Pharma or Reliance Banking fund or HDFC Infra fund. Second query, you can add Reliance equity opps fund. If you want to save tax u/s 80C, it is immaterial where you invest from tax perspective, but you should look for higher returns. Best is to invest in ELSS or PPF

    • NARENDER says:

      hi sir,

      i m 35. i want to invest in mutual funds through SIP starting from Rs. 2500/- for long term for 15 years, you may please suggest funds which can give me higher return for this period.

      • 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.

  13. suvojit ganguly says:

    hi sir
    i am21 and inerestd to investd in mutual funds thru sip..i plan to invest 1000-1500 pm for long term like 5-6 yrs…can u plz suggest sme funds…

  14. Ranganath says:

    Hi Suresh
    Greetings for the day….

    I am investing direct funds and recently I made changes in my portifolio.

    ICIC- Balance funds = 10000/M
    ICICI BluChp fund = 5000/M
    ICICI Value discvry = 7500/M
    Quantum Eqty fund = 10000/m

    Duration 5~7 yrs

    Could you please let me know Should I invest in different t AMC OR diversify good performing single AMC. your advise on above portifolio

    Thanks and regards
    Ranganath

  15. Manish says:

    Dear Suresh,
    I am an avid follower of ur blogs. You are really doing a commendable job. I have read lot of ur blogs & then invested in following Mutual funds. Can you suggest whether I am on right path or not or should I switch some of these SIPs. I am 29 Single & working in a PSU.

    1. SBI Emerging Businesses Fund – Regular Plan – Gr – 3000rs
    2. SBI Pharma Fund – Rgular Plan – Gr – 1000rs
    3. UTI Mid Cap Fund – Gr – 1000rs
    4. ICICI Prudential Banking and Financial Services Fund – Gr – 1000rs
    5. DSP BlackRock Top 100 Equity Fund Gr – 1000rs
    6. HDFC Top 200 Fund – Gr. – 2000rs
    7. DSP BlackRock US Flexible Equity Fund – Gr – 1000rs
    8. ICICI Prudential Tax Plan – Regular Gr- 2000
    9. SBI Magnum MidCap Fund – Gr- 1000rs
    10. Birla Sun Life Infrastructure Fund – Gr -2000rs
    11. ICICI Prudential Technology Gr – 2000rs
    12. HDFC Equity Fund – Div- 2000rs
    13. HDFC Mid Cap Opportunities Fund – Gr
    14. Axis Long Term Equity Fund – Gr – 2500
    15. Reliance Small Cap Fund – Gr -100rs

    • Suresh KP says:

      Good funds except for DSP BR US Flexible equity fund which his just 1 year old fund and Reliance small cap fund which is 3 years old. “You should invest in funds which has been performing well in long term

  16. ANAND says:

    Dear Sir,
    I wish to invest Rs. 12000/-p.m. in about 10 -12 besr Mutual Fund Schemes through SIP Route . Request to suggest me the MF Fund Schemes . I wii invest for 5 to 7 years.

    With regards.

  17. manoj kamar katoch says:

    Hi Suresh ji i am investing 2000 per month in shriram EQU and Debt opp fund GR and 1500 in HDFC Top 200 fund and 2000 in sbi magnum EQU fund reg growth and 1500 in Rel growth fund G i want to invest for the next 05 yrs ? are they good funds ? please let me know sir

  18. Ritesh says:

    Hello Sir,
    I am new to mutual fund scheme and SIP. I wanted to start invest initially 10000 per month through SIP. Later i want to increase amount. I have discussed with different people and done some worked out through google and selected below Mutual funds.I can take moderate to little high risk.
    I need your advise/suggestion on below selection.
    1. ICICI Prudential Focused Bluechip Equity Fund – Rs 1500
    2. UTI opportunity Fund – Rs 1500
    3. Birla Sun Life Frontline Equity Fund- Rs 1500
    4. ICICI Pru Value Discovery – Rs 1500
    5. HDFC Mid-cap Opportunities – Rs 1000
    6. Franklin India Smaller Companies – Rs 1000
    7. Reliance Equity Opportunities Fund – Rs 1000
    8. HDFC Balance fund – Rs 1000

    Please guide me

    Regards
    Ritesh

  19. SANTHANU J says:

    Hai Suresh ,

    I am investing Rs.4000 pm in DSPBR micro cap fund and HDFC Small and midcap fund . Is these funds recommended and suggest me other good funds where I can invest on ? On the long run , which sector we can rely upon like IT , Pharma , industry , banking , finance etc . Waiting for your valuable reply !!!

    • Suresh KP says:

      There are better funds. You can review HDFC Mid cap ops fund and Franklin India smaller companies. You can look for Banking and Pharma sectors which looks promising

  20. Avinash says:

    Hi Suresh,

    Thank you so much for taking time to reply to all our queries. For TAX savers , in the last three years i did invest in hdfc tax saver , and it gave good returns , for this year i am yet to invest i need to invest around 45000 since they have increased 80c to 1.5 laks so please do let me know whether i can continue with hdfc tax saver or please suggest something else .

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