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

885 comments

  • Rajiv

    Dear Suresh ,
     
    I am presently living in middle east. Have already invested in MF since last 3 years. I am looking for a long term investment. Request your advise if my current investments are ok and also tips for my future investment.
     
    My current investments are-
     
    FT INDIA DYNAMIC PE RATION FUND OF FUNDS -GROWTH
     
    JP MORGAN INDIA FIXED MATURITY PLAN SERIOES 302 GROWTH
     
    ICICI PRU MULTIPLE YIELD FUND SERIES 2 PLAN E DIVIDENT PAYOUT
     
    JP MORGAN INDIA HYBRID FUND SERIES 1 GROWTH
     
    JP MORGAN INDIA INCOME FUND SERIES 501 GRWOTH
     
    FRANKLIN INDIA BLUECHIP GROWTH-SIP
     
    HDFC TOP 200 GRWOTH-SIP
     
    PRU ICICI DYNAMIC PLAN CUMULATIVE –
     
    PRU ICICI DISCOVERY FUND GROWTH-SIP
     
    SUNDARAM SELECT MIDCAP GROWTH
     
    TEMPLETON INDIA GROWTH FUND -SIP
     
    UTI OPPORTUNIES FUND GROWTH- SIP
     
    Please advise if  i should continue with these or go for some better funds. I am looking for some new investments as well.
     
    Warm regards,
     
     
     
    Rajiv

    • Rajiv, here are my recommendations:

      FT INDIA DYNAMIC PE RATION FUND OF FUNDS -GROWTH –  Fund of funds – Returns are average – continue for some more time and exit with littler higher returns

      JP MORGAN INDIA FIXED MATURITY PLAN SERIOES 302 GROWTH – This is FMP, returns can be computed at the end of the maturity period. Cannot analyse.
      ICICI PRU MULTIPLE YIELD FUND SERIES 2 PLAN E DIVIDENT PAYOUT – there are multiple ones with this name, pls be specific
      JP MORGAN INDIA HYBRID FUND SERIES 1 GROWTH – there are multiple ones with this name, pls be specific
      JP MORGAN INDIA INCOME FUND SERIES 501 GRWOTH – there are multiple ones with this name, pls be specific
      FRANKLIN INDIA BLUECHIP GROWTH-SIP – Good fund – Stay invested
      HDFC TOP 200 GRWOTH-SIP – Good fund – Stay invested
      PRU ICICI DYNAMIC PLAN CUMULATIVE – Thought this fund was good some time back, currently it has lagged behind. Returns are average. Don’t advice for fresh investment. If you have invested, you can continue for some more time and exit.
      PRU ICICI DISCOVERY FUND GROWTH-SIP – Good fund – Stay invested
      SUNDARAM SELECT MIDCAP GROWTH – Avg returns – Wait for some more time and exit – No fresh investment suggested
      TEMPLETON INDIA GROWTH FUND -SIP – Below avg fund – Exit
      UTI OPPORTUNIES FUND GROWTH- SIP – Good fund – Invest more

  • Jayalakshmi

    Hi Suresh,

    I am new to MF. I wanted to invest in mutual funds with Tax benifits. I have invested in SIP for

    Franklin Templetion Mutual Fund – Blue Chip Fund Growth – 1000/month

    Franklin Templetion Mutual Fund  – Tax Shield Growth – 2000/month

    HDFC lonf Term Advantage Fund – Growth – 500/month

    ICICI Prudential Tax Plan – Growth – 1000/month

    SBI magnum Tax Gain Scheme – Growth 500/month

    Total 5000/Month

    I am not sure if I did a right choice or not also if not right is there any option to switch the MF? I have paid one month Premium. Please advice.

    Thanks

    Jaya Bhat

    • Jayalakshmi, Good to hear that you joined the MF world. Here are my suggestions. 1) Franklin Tax shield fund is good (Crisil-1 with 12% annualised returns in last 3 years); 2) HDFC Longterm advantage fund (Crisil rank-3; Avg returns of 10%) and ICICI Pru Tax-Crisil-3 avg returns of 10% annualised returns in last 3 years;  SBI Magnum tax gain-Crisil-3 avg returns of 7% annualised returns in last 3 years;  Why you need to comprimise on low crisil ranking and less returns MF’s when there are better options; Try these instead: Axis-Long term equity fund; Franklin-Tax shield; Can rebocco-Tax saver fund; I am not saying these would provide extraordinary returns. Since these are tax saving schemes, the returns would be limited, but these are better than what you invested. I would also like to know who has suggested such MF’s for you ? You can mail to suresh@myinvestmentideas.com for my analysis purpose.

  • Subrata

    I am new in mutual fund world. I am a professional, aged 54 years. At present I am running SIP for HDFC Top 200 fund. I wish to invest (by SIP) in either UTI Opportunity or UTI Dividend yield and DSP BR Equity or DSP BR Top 100. Will you please suggest?

    • Welcome to the mutual fund world Subrata. UTI Opportunities is Crisil-1 ranked MF with good returns. You can investe. UTI-Divident yield, DSP Br Equity and DSP BR Top-100 are crisil-3 and average returns. There are better SIP’s which you can invest. You can invest in any other mutual funds which I suggested

  • Bhavik Merchant

    As per your article and other advises from around me i want to start investing in MFS with a small SIP Rs. 5000 per month.

    I have other investments in equity markets and Banking FD’s.

    Am a first time investor in MF am 27 years married with a Kid and earn about 10 lacs per annum.

    Horizion for investment is between 5 to 10 years looking forward with a goal of earning 10% per annum with a medium risk taking capacity on my choices please correct me if am wrong anywhere.

    My choices for MF’s which can suit my goal and risk

    1. Large Caps – DSP Black rock Top 100 Equity – 1000/month
    2. Large & Mid Cap – Icici Prudential Dynamic Plan – 1000/month
    3. Balanced Fund – HDFC Prudence – 1000/month
    4. Tax Planner – Canara Robeco Equity tax saver – 1000/month
    5. Debt Fund – SBI Dynamic Bond Fund – 1000/ month

    TOTAL 5000/MONTH

    Await your feeds and suggestions want to start it asap.

    Regards
    Bhavik

    • The top-10 SIP’s indicated in my article are good. Regd your choices, DSP Top-100, ICICI Pru dynamic plan are ranked Crisil-3, returns are far below other MFs,  HDFC Prudence is crisil-rank-2, returns are average, you can invest, but there are better funds. Canrebocco is good, SBI Dynamic bond is also good.

  • Gaurav

    Hi suresh,

    It is really nice article. I'm looking to invest 20000 per month in MF for next 10-15 years. My age is 31 so I can take risk. Would you like to suggest how to divide my money in different MF options.

    • Gaurav, thanks. You can invest in 4-5 mutual funds from this top 10. However select other than sector based mutual funds as they are little high risk.

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