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 5 Tax Saving Mutual funds (ELSS) to invest in 2014

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.

1,045 Comments

  1. suresh says:

    Hi Suresh ji
    I have 2 kids( 5 years and 3 years) and i would like to invest in SIP for their higher education. I can invest 10k per month(or gradually can increase more in future)
    could you please suggest in which funds i can invest?. My risk apetitite is medium to high. Many thanks.

  2. Avinash says:

    Hi Suresh,

    I am investing 7500 per month in UTI opportuntieis growth and 2500 in ICICP pru value discovery fund. i want to invest for the next 10 years ? are they good funds? Please let me know

  3. Bikash says:

    Sir I want to invest Rs. 3000 PM in sip . which one is perfect for me.

    01. Reliance small midcap fund (g)
    02. Uti midcap (g)
    03. SBI Blue chip fund

  4. arjun says:

    Hi suresh,

    i have been investing in canara robeco equity diversified regular growth since last 3 years SIP 2000/- the sIP is ending shortly.I havnt teddemed the amount yet although it has given good returns. should I renewe the sIP in same plan or direct growth . ? or should I start investing in another diversified fund?

    I am looking for 10 years horizon I already have sips in funds like icici pru dynamic , uti opprtunities etc.

  5. Vikash kumar says:

    Sir, I want to invest 2000 per monthly through sip for long terms for children education purpose at least 08 to 10 yrs, plz intimate which funds will be suitable for me

  6. Syam says:

    Hi,
    I am new to MF. I want to invest 5000 in SIP. I have couple of questions. Please help me out.

    1. what are the best funds should I select?
    2. How to invest the money through SIP? Should I login to corresponding bank portal and apply for that or can I choose portals like fundsindia/moneycontrol etc? what is the best option?
    3. How to transfer once SIP tenure is completed?
    4. Will there be minimum guarantee for basic investment amount apart from annualized returns

    Thanks

    • Suresh KP says:

      1) You can look for the following funds. Quantum Equity fund, ICICI Focused blue chip fund, Birla SL Front line, HDFC Top-200 fund etc. 2) You need to open MF account with any MF broker like ICICI direct or fundsindia 3) These are like shares. When you buy they would get credited to your MF account. You can sell and amount would be credited to your bank account 4) There are no minimum returns here. It would depend on stock market and fund performance

  7. roshan says:

    hello suresh
    i want to start invest 5000 rs per month for ten years and i can increse 2000 rs per year .. bt i am confused how to create a good portfolio.. please help me to create my folio . regards

  8. pradeep tekwani says:

    Dear Suresh ji,
    Presently I am investing : birla sunlife longerm advantage , birla pure value, icici focused bluechip equity, bilra tax relief, birla frontline equity, icici pru technology, icici discovery funds each INR 1000, should I continue or change any fund?
    Also I have NFO of birla bacnking and financial services limited, I invested INR 10,000 when NFO opened in December 2013 and Now NAV is 15.50 and due to good returns, I am thinking of investing inr 100,000 at once in this fund, please seuggest what returns can be expacted before budget next year,
    Pradeep

  9. manoj y says:

    sbi bluchip-2000,uti midcap-1000,franklin india smaller com-1000 my aim in 22years 50lac

  10. Sameer says:

    Hi Suresh,
    I m initially planing for sixth month investment ,is there any investment available to get some returns after 6 months ,I can invest upto 4k per month

  11. sunil says:

    hi suresh

    yr blog is very educative/useful.I want to invest thriugh sip in one each of large,medium & balanced fund. I have shortlisted few as under. Please suggest one each of each type. you may suggest even if not listed below.

    Large: icici focus blue chip,Birla SL front life equity,hdfc top 100,sbi blue chip, uti equity

    Mid:sbi emerging business,hdfc mid cap,hdfc equity opportunity,hdfc mid cap,uti mid cap,sbi mid cap

    Balanced:icici balance adv,hdfc prud.

    regds

    sunil

    • Suresh KP says:

      Sunil, I prefer this way 1) Large cap – ICICI focussed blue chip or Birla SL Frontline 2) Midcap – HDFC Mid cap Opps or Franklin India smaller companies fund 3) Balanced, ICICI Balanced Adv

  12. ramesh says:

    Hai
    I m a new investor with a single sip of sbi gold. I can afford upto 5000 pm…can u plz suggest me good sips

  13. sandeep says:

    I would like to start SIP of 2000 PM.
    which MF to invest

    Sandeep

  14. JAYARAMAN says:

    My age is 38, I want to invest Rs. 1000/- every month as SIP in MF. Suggest me to choose the best fund and also the number of years.

  15. Bhairav Patel says:

    Dear Sir, I had already 2 SIP with HDFC which is 1) HDFC tax saver (4000 P.M ) & HDFC Mid cap( 3000 P.M) investing. Pls suggest whether these are good one or not. Also suggest i want to invest further 3000 Rs in SIP. now i am confusing whether to take GOLD SIP or in other SIP like above. Pls suggest me with solution

    • Suresh KP says:

      Bhairav, Both are good. 1st is for tax saving, second is mid cap fund which is good to grow money. But you should look investing in large cap and mid cap funds for long term. You can look for the following funds. Quantum Equity fund, ICICI Focused blue chip fund, Birla SL Front line, HDFC Top-200 fund etc.

  16. Ankit says:

    Hi Suresh,

    Thanks for the article. I was searching in google for the best mutual funds for 2014 and came across this website. I am relatively new to this field and would like to start investigating in mutual funds. Could you please suggest some good funds –

    Here’s the criteria –
    1) Want to invest 5000 Rs per month for short span ( around 1-2 years depending on the rate of return).
    2) want to invest in three different funds ( two for 2000 pm and one for 1000 pm)
    3) would like to go for high rate high return for 3000 Rs and moderate risk for remaining.

    • Suresh KP says:

      Ankit, Mutual funds are for long term investment. If you want to invest in short term of 1-2 years, just go for debt funds like Franklin India Corporate bond opps fund, ICICI Pru long term debt income fund, Birla SL Dynamic Bond Fund etc

  17. amit shinde says:

    I currently have following fund SIP for 10 years, 1000 each
    DSP Black rock top 100 equity
    HDFC TOP 200 FUND – GROWTH
    RELIANCE GROWTH FUND – GROWTH PLAN – GROWTH OPTION
    SBI Magnum Global Fund – G

    can you please suggest 3-4 good long term 10 year high returns SIP to invest.

    Thanks in advance
    Amit

  18. nmurty says:

    I am a retired person. I am investing in following funds thro’ SIP.
    IDFC PREMIER EQUITY-2000
    FI PRIMA PLUS-2000
    FI SMALLCO.-2000
    UTI OPPORTUNITY-2000
    UTI MID CAP-2000
    ICICI FOCUSSED BLUE CHIP-2000
    kindly advise any corrections/modifications

    • Suresh KP says:

      Hello Mr.Murthy, These are good funds. Since you are retired, investing in mid-cap funds would be high risk. If you still want to take risk, you can continue. Alternatively you can invest in large cap funds and balanced funds to reduce risk.

  19. Ravi says:

    Hi Suresh,

    I am investing in the following funds as SIP for the past three years. I am planning to invest RS.4000 more in Mutual funds.
    1.Franklin India Bluechip (G) – Rs.2000
    2.IDFC Premier Equity – Regular (G) Rs.2500
    3.ICICI Pru Focused Bluechip Eqty (G) Rs.1500

    Please let me know which Fund I shall invest the Rs.4000 and also provide your suggestions about my existing SIP mentioned above to retain or move on to other plan.

    Thanks,
    Ravi

  20. MIKE says:

    Hello Sir,

    Thanks for your valuable comments on the financial planning front. I would like to get your kind advise on my financial planning as a newbee.. Let me tell me about myself.

    I am currently working abroad and would like to invest in India. Could you please suggest me various option available to do so.
    I am currently 28 and can take medium to high risk with annual investment of 5L. My current holdings are as below which was started 2 months before.

    Reliance Equity Opportunities Growth – 1500
    DSP BlackRock Micro Cap Fund – Regular Growth – 1500
    ICICI Prudential Focused Equity Fund Retail Growth – 2000
    ICICI Prudential Balanced Growth – 2000
    Franklin Inida smaller Companies -Fund Growth – 2000
    HDFC Top 200 Growth – 2000

    SYSTEMATIC INVESTMENT IN EQUITY ON MONTHLY BASIS
    MARUTHI
    TECH MAHINDRA
    ASIAN PAINTS
    BEL
    SNOW MAN
    DCB
    UNIONBANK

    Could you please kind advise if any.

    Thanks.
    MK

    • Suresh KP says:

      Hi Mike, You are investing in good funds. DSP BR Macro Fund is not that good as there are better funds. You can review and invest in other funds.You can look at investing Quantum Long term equity fund or Birla SL Frontline fund

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