Top 10 Best Performing SIP Mutual Funds to invest in 2016

Top 10 Best Performing SIP Mutual Funds in 2016Top 10 Best Performing SIP Mutual Funds to invest in 2016


Earlier, I  have written on top and best performing SIP mutual funds in past years i.e. 2013, 2014 and 2015. These best sip plans 2015 mutual funds have been giving superior returns. We have another 2.5 months for 2016. There are several best mutual funds to invest in 2016. However, I have analysed them on various aspects and providing top 10 mutual funds to invest in 2016 in this article. These best sip plans can be invested for child education, child marriage or for retirement or for accumulating wealth. Which are the Top 10 Best Performing SIP Mutual Funds to invest in 2016? Which are best mutual funds 2016? How are these top performing mutual funds in india? What parameters I have selected before considering such best mutual funds to invest in India? Which is the best mutual fund to buy now? Which are the best sip plans for children?

Also Read: Top SIP Mutual Funds to invest in 2017-2018

Top 10 Best Performing SIP Mutual Funds to invest in 2016


These top 10 best performing mutual funds to invest through SIP in India have been analysed and shortlisted based on several key parameters. These top mutual funds to invest is suitable based on risk appetite.

  • These are picked based on highest returns received in the last 5 years. Care has been taken to see that such funds gave superior returns when you invest through SIP and not just a lump sum amount.
  • Mutual Funds that are rated by Crisil as Rank-1, Rank-2, Rank-3 and Rank-4 which indicates top performance across various market cycles.
  • Value research (VRO) rated these mutual funds as 5 star and 4 star.
  • AUM (Assets under management) > 100 Crores. This is the amount invesed by investors till now which proves investor confidence among these top 10 best performing mutual funds.
  • Some of the funds might be a repetition from my earlier recommendation.
  • Mutual funds SIP returns are also considered while ranking these funds. You can check SIP calculator on value research online for more info.

Top#1: UTI Equity Fund


Top and Best Mutual Funds-UTI Equity Fund

Fund Objective:  This mutual fund objective is to invest at least 80% of its funds in equity and equity related instruments with medium to high risk and balance 20% in debt instruments with low to medium risk profile.

Fund Performance: This fund has beaten its peers and provided 12% annualised returns in last 5 years. If you have invested in this fund for Rs 1,000 per month through SIP for 5 years, your total investment would have been Rs 60,000 and your investment value would have been Rs 94,900 now. I had recommended this fund last year and it continues to be another best fund to invest for long term of 10-20 years.

Why to invest: The fund has provided low volatility returns through a difficult period in equity markets.  The strategy is clearly articulated and has delivered exactly what it promised. This fund has provided 12% annualised returns in last 5 years compared to S&P BSE 100 returns of 5.8%. This has given 15.5% returns in last 10 yars compared to S&P BSE 100 returns of 12.2%. This is one of the oldest fund of 22 years of history and performed well even in bear markets and Best Mutual fund 2016.

Top#2: ICICI Pru Focussed Blue Chip Fund


Top large cap Mutual Fund-ICICI Focussed blue chip fund

Fund Objective: This mutual fund objective is to invest in 20 large cap companies from the top 200 stocks listed on the NSE on the basis of market capitalization. This fund’s objective would get altered if assets cross more than 1,000 Crores (which we are seeing now) where it would invest beyond 200 stocks listed in the NSE.

Fund Performance: This fund has beaten all its peers and provided 11% annualised returns in last 5 years. If you have invested in this fund for Rs 1,000 per month through SIP for 5 years, your total investment would have been Rs 60,000 and your investment value would have been Rs 89,200 now. Recently this fund has lagged in performance compared to its peers, however, I still believe this is one of the best performing mutual fund to invest for long term of 10-20 years.

Why to invest: This fund has a clear strategy and consistently performing in the long run. This fund beats all its peers and provided 11% annualised returns in the last 5 years comparing to CNX Nifty returns of 6.05% in a similar period. This makes this as a unique fund among its peers. This was part of best sip plans 2015 too. Hence, this is one of the top mutual funds to invest. One can consider this as one of the best sip plans for children education too.

Top#3: Birla SL Frontline Equity Fund


Top large cap Mutual Fund-Birla SL frontline fund

Fund Objective:  This fund aims to generate long term growth of capital by diversifying across various industries/sectors in BSE 200.

Fund Performance: This fund has beaten its peers and provided 11.2% annualised returns in last 5 years. As per SIP calculator at Valueresearchonline, if you have invested in this fund for Rs 1,000 per month through SIP for 5 years, your total investment would have been Rs 60,000 and your investment value would have been Rs 94,040 now. This is another top fund to invest for long term of 10+ years.

Why to invest: This MF scheme is a consistent performer. In long run of 10 years, it has given 17.8% annualized returns against S&P BSE 200 which just gave 12% annualized returns. This has never lagged in last 10 years and winner in various investment cycles. This is one of the consistent top performing mutual fund to invest in 2016 as it has performed well in various market cycles over a decade. Since this is large cap fund, you can consider this too as one of the best sip plans for children education or child marriage.

You may also like: Should you invest through ZIPSIP mutual fund platform of myuniverse ?

Top#4: Franklin India Smaller Companies Fund


Top midcap-smallcap-Mutual Fund-Franklin India Smaller cos fundFund Objective: This fund’s objective is to generate long-term capital appreciation from a portfolio of mid-cap and small-cap companies. It invests upto 75% in smaller companies.

Fund Performance: This fund has beaten its benchmark and provided 19% annualised returns in last 5 years. If you have invested in this fund for Rs 1,000 per month through SIP for 5 years, your total investment would have been Rs 60,000 and your investment value would have been Rs 130,650 now. This is one of the best performing funds to invest for long term of 8-10 years. This is one of the higest return mutual fund which provided 30% annualised returns in last 3 years.

Why to invest: This fund differentiates itself from market cap orientation. This fund invests smaller portion in large cap and invests a sizeable amount in small companies, hence it can be termed as smaller stock fund. This fund performed excellent in last 5 years and given 19% annualised return comparing to CNX Midcap benchmark of 7.1%. In my personal view, this is one of the top mutual funds to invest in mid-cap/small-cap segment. I have recommended this as part of best sip plans 2015 last year and I have been getting good returns.

Top#5: Mirae Asset Equities Blue Chip Fund


Top midcap-smallcap-Mutual Fund-Mirae Emerging blue chip fundFund Objective: This fund aims to generate income and capital appreciation from a diversified portfolio predominantly investing in Indian equities and equity related securities of companies which are not part of the top 100 stocks by market capitalization and have market capitalization of atleast Rs.100 Crores at the time of investment.

Fund Performance: This is new entrant in to my top 10 best performing funds. This fund has beaten its benchmark and provided 22% annualised returns in last 5 years. If you have invested in this fund for Rs 1,000 per month through SIP for 5 years, your total investment would have been Rs 60,000 and your investment value would have been Rs 128,500 now. This is one of the good funds to invest for long term of 8-10 years.

Why to invest: This fund performed well in last 5 years and given 22% annualised return comparing to CNX Midcap benchmark of 7.1% and overall category average of 13.8%.

Top#6: UTI Mid Cap Fund


Top midcap-smallcap-Mutual Fund-uti mid cap fundFund Objective: This mutual fund scheme objective is to provide ‘Capital appreciation’ by investing primarily in mid cap stocks.

Fund Performance: This fund has beaten its benchmark and provided 17.8% annualised returns in last 5 years. If you have invested in this fund for Rs 1,000 per month through SIP for 5 years, your total investment would have been Rs 60,000 and your investment value would have been Rs 126,700 now. This is one of the best mid-cap funds to invest for long term of 8-10 years. This is one of the best performing mutual funds which gave 19% annualised returns in last 2 years.

Why to invest: This fund invests majority in mid-cap funds which outperforms in shorter duration if one invests in the right mid-cap stocks.  This fund performed excellent in last 5 years and given 17.8% annualised return comparing to CNX Midcap benchmark of 7%.  High risk investors can invest in best performing mid-cap funds through SIP.

Top#7: ICICI Pru Value Discovery Fund


Top diversified Mutual Fund-icici value disc fundFund Objective: This fund aims to invest in a well-diversified portfolio of value stocks which are having attractive valuations in relation to earnings or book value or current and/or future dividends.

Fund Performance: This fund has beaten its benchmark and provided 17% annualised returns in last 5 years. As per SIP calculator, if you have invested in this fund for Rs 1,000 per month through SIP for 5 years, your total investment would have been Rs 60,000 and your investment value would have been Rs 114,400 now. This is one of the top performing funds to invest in India for long term of 8-10 years.

Why to invest: ICICI Pru Value Discovery is actually a market-cap agnostic fund that practises classic value investing.  The fund beaten records when the markets have reversed directions unexpectedly. This fund performed excellent in last 5 years and given 17% annualised return comparing to CNX Midcap benchmark of 7.1%. Even in last 10 years it generated 19.3% annualized returns compared to its CNX Mid-cap bnenchmark of 13%. If you want to play safe and reduce losses in a downturn and make the most in bull run, you should own this mutual fund scheme.

Also Read: Best Hybrid Mutual Funds for moderate to low risk investors

Top#8: Franklin (I) High Growth Cos fund


Top diversified Mutual Fund-franklin india growth co fundFund Objective: The fund invests in Indian companies/sectors with high growth rates or potential. It will focus on companies offering the best trade-off between growth, risk and valuation.

Fund Performance: This fund has beaten its benchmark and provided 15.4% annualised returns in last 5 years. If you have invested in this fund for Rs 1,000 per month through SIP for 5 years, your total investment would have been Rs 60,000 and your investment value would have been Rs 114,700 now. This is one of the best funds to invest for long term of 8-10 years. This is another good highest return mutual fund that provided over 30% returns in last 3 years.

Why to invest: This fund performed well in last 5 years and given 15% annualised return comparing to CNX 500 benchmark of 6.29% and overall category average of 9%. This invests in various sectors and hence this multi-cap is expected to perform well in future too.

Top#9: HDFC Balanced Fund


Top balanced Mutual Fund-hdfc balanced fundFund Objective: This mutual fund scheme aims to generate capital appreciation from a combined portfolio of equity and debt instruments. This scheme invests up to 60% in equity and balance in debt related instruments.

Fund Performance: This fund has beaten its benchmark and provided 14.1% annualised returns in last 5 years. If you have invested in this fund for Rs 1,000 per month through SIP for 5 years, your total investment would have been Rs 60,000 and your investment value would have been Rs 96,900 now.

Why to invest: This fund performed well in last 10 years and given 16.3% annualised return comparing to balanced fund category of 10.8%. Equity centric balanced funds limit volatility by keeping part of investments in fixed income and regularly rebalancing the portfolio. This fund re-balances its portfolio with an aggressive equity part. While large cap is good for higher returns, balanced fund can help you to balance your portfolio which would be useful and can be considered as one of the best sip plans for children education or marriage.

Top#10: ICICI Balanced Fund


Top balanced Mutual Fund-icici balanced fundFund Objective: The scheme invests in equities and related securities as well as fixed income and money market securities. It invests 60% minimum in equity and balance in debt related instruments.

Fund Performance: This fund has beaten its benchmark and provided 14.5% annualised returns in last 5 years. If you have invested in this fund for Rs 1,000 per month through SIP for 5 years, your total investment would have been Rs 60,000 and your investment value would have been Rs 95,600 now.

Why to invest: This fund performed well in last 10 years and given 14.5% annualised return comparing to balanced fund category of 6.3%. It would reduce risk by investing part of the investment in debt instruments.

Also Read: Top Funds which I recommended to invest in 2015

Complete list of Best Performing Mutual Funds are indicated below


List of Top 10 Best Performing SIP Mutual Funds to invest in 2016Conclusion: These Top and Best Performing SIP Mutual funds can be invested to get good returns for the long term. This portfolio is designed for all types of investors. I have excluded sector based funds as these are for high risk investors and we need to monitor them regularly. If you are a high risk investor, you can add more in the mid – cap portfolio. If you are moderate risk investor, you can add most balanced mutual funds in your portfolio.

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Suresh
Top 10 Best Performing SIP Mutual Funds to invest in 2016

634 comments

  • Vijay

    Sir,

    I have a lumpsum amount of 3L in my account, Pls suggest me whether to invest full amount in mutual funds lumpsum or in SIP,

    pls advise some good funds,
    my investment horizon is about 5 years,

    regards,
    Vijay

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