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

The Author

Suresh KP

Suresh KP i.e. me have written 1,800+ articles on this blog. I love doing analysis on various Best Investment Plans like mutual funds, Stocks, IPO's, NCD Bonds, Insurance products. If you like our blog, you can share some of the good articles on your Facebook or Twitter. This would be the BIGGEST gift which you would be giving to us.

885 Comments

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  1. Hi Suresh, I am new to your blog, it was really helpful,i want to invest in SIP, which is the best one for 10years 1000/3, per month. Where to contact in Mysore, is pan card necessary for sip, waiting for your valuable comments.

    Thank you,

    1. Anuradha, good to know that you like my blog. All the SIP MF’s indicatd on this article are good. To start with, you can choose largecap mutual fund and increase your portfolio with other SIP’s. 1) You can directly apply for SIP to concerned mutual fund scheme on their websites. You need to have internet banking to do this. 2) Alternatively you can choose any of the brokers like ICICI Direct where you can purchase or sell MF like any other stock. As per my knowledge PAN card is mandatory to apply for MF SIP’s.

  2. Your tips are fantastic. It crisp, and to the point.

    Keep up the good work. You are making us knowledgeable through your writing.

    Cheers!

  3. Hi Suresh,

    I am following your article frm just couple of days and I must say within these short term I became afan of your blogs..Hats off man ….

     

  4. Very good article.. nicely written, easy to understand for new investors who needs direction to start investment in SIP.. Thanks a lot Suresh!!!

    1. Thanks Deepali for encouraging comments.

      1. Hello Suresh,

        I am investing Rs 1500 per month on the following Mutual funds from past 3 years now, i havent got any proper returns.

        1. Birla Sun Life MIDCAP Fund-Dividend plan

        2) HDFC Top 200 Fund-Dividend plan

        3)Reliance Growth Fund-Dividend Plan

        What should i do with the same? Kindly give me your suggession

        I am also planning to buy the following funds

        1. Reliance Equity opportunity fund- 1000/-

        2. Bnp paribas equity fund-1000/-

        3. uti opportunity fund-1000/-

        4. Sbi magnum emerging bussiness fund-1000/-

        Kindly suggest which fund to quit and which i have to add to my port folio

        1. Abhishek, First set indicated by you are “Dividend plans”, means you would get regular returns on your investment and your investment would stay “as-is”. If you want to grow your money, you should invest in “Growth” funds. Reliance Top-200 is good fund. Invest in Reliance Top-200 growth fund. Second set, mutual funds are good. However as I said, invest in growth plans in these mutual funds.

  5. good and informative.

    1. Hi Suresh,

      I have just gone through your articles on myinvestmentideas.com and hence decided to consult on my SIP choices. My(mE AND wIFE) Existing PortFolio is,
      1. Canara Robeco Equity Tax Saver Fund – Gr
      2. DSP BlackRock Top 100 Equity Fund Gr
      3. Franklin India Bluechip Fund Gr
      4. HDFC Top 200 Fund – Gr.
      5.ICICI Prudential Tax Plan-Gr
      6. ING Financial Planning Fund – Aggressive Plan – Gr
      7. Reliance Tax Saver Fund – Gr
      I would like to add couple of SIP's more in my portfolio.Could you please advise me on my existing portfolio change(if required) and your recomended SIP for future investment
      Thanks,
      Satish Dhote

      1. 1. Canara Robeco Equity Tax Saver Fund – Gr – Good fund

        2. DSP BlackRock Top 100 Equity Fund Gr – OK

        3. Franklin India Bluechip Fund Gr – Good fund

        4. HDFC Top 200 Fund – Gr. – Good fund

        5.ICICI Prudential Tax Plan-Gr – Good fund

        6. ING Financial Planning Fund – Aggressive Plan – Gr – This is new fund which came 2 years back. We should wait and watch how it would perform in longer run

        7. Reliance Tax Saver Fund – Gr – Good fund, but underperformer, need to see how it would perform in next 1-2 years

        1. Dear Suresh,

          Thanks for your suggestion,would like know your feedback on coming TOP SIP.

          1. I am a salaried employee.My monthly income is 18000. I can invest monthly 8000. i want the following investments to be done. please suggest where and how much and how long should i need to invest.
            1. emergency funding 2. need a little cash by next year to house renovation  3. retirement planning 4. wealth accumulation
            5. tax saving plan 6. gold accumulation

            My husband is a freelancer.Also my husbands monthly income is 50000-60000 (variable). i want him to do following investments. kindly suggest how much and where and tenure for this invetsments.
            1. tax saving 2. retirement planning 3.emergrncy funding 4.buying a new house by next year  5.wealth accumulation

            many thanks in advance,
            mamta

          2. Mamta, I responded your 2 messages few minutes back, no problem. You are asking too many questions. All the questions what you asked are covered in my articles. Request you to take some time and go through them in next 1-2 weeks. You should be able to get fair idea about what needs to be done. Then post your relevant question. 

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