Top 10 Best Mutual Funds for SIP to invest in 2018

Top 10 Best Mutual Funds for SIP to invest in 2018 in IndiaTop 10 Best Mutual Funds for SIP to invest in 2018


In the next 3 months, 2017 year would end. I have been recommending Top 10 Best Mutual funds to be invested through SIP every year. There are new additions based on the latest market trends. Some of the top SIP mutual funds recommended by me in the last few years gave as high as 30% annualized returns. Now its turn to look at Top 10 Best Mutual Funds for SIP to invest in 2018 in India. These Best mutual funds are filtered based on several key parameters and one can make it as a model portfolio and invest in these funds. These funds are suitable to moderate risk to high risk investors. Lets Review Top 10 Best Mutual Funds to invest in 2018 in India.

Also Read: Best Sector Mutual Funds to invest in 2018 in India




How I filtered Top 10 Best Mutual Funds for SIP to Invest in 2018?


These top 10 mutual funds to invest in India have been filtered, analyzed and shortlisted based on key parameters.

These mutual funds are picked based on highest returns received in the last 5 years, including when market was bearish / down trend.

Mutual fund Schemes rated by Crisil as Rank-1, Rank-2, Rank-3 and Rank-4 are picked for these top funds list which indicates consistent performance in all market cycles.

Value research Online (VRO) rated these funds as 5 star, 4 star and 3 star. Highest star rating indicates that these funds can perform well compared to its peers in various stock market cycles.

Filtered based on Mutual fund AUM (Assets under management) which has > 1000 Crores. This refers that more and more investors are investing in such funds create investor confidence about the fund.

Some of the funds would be a repetition from my earlier recommendations as they continue to perform well.

List of Top 10 Best Mutual Funds for SIP to Invest in 2018


You might be low risk investor or high risk investor. Since these Top 10 Funds are selected across various market capitalizations, you can go ahead and invest in these Top 10 mutual funds in India.

Top#1: SBI Blue Chip Fund


SBI Blue Chip Fund - top mutual fund for SIP to invest in 2018 in India

Fund Objective: The scheme would invest in stocks of companies whose market capitalization is at least equal to or more than the least market capitalized stock of BSE 100 Index.

Fund Performance: This is one of my favourite large cap fund. This fund has beaten all its peers and provided 18% annualised returns in last 5 years. If you have invested 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 grown to Rs 96,000 now. Since Inception it gave 12% annualized returns. If one would have invested Rs 1 Lakh 5 years back, the invested amount would have grown to Rs 2.3 Lakhs.

Why to invest: Fund performed well in various market cycles. This fund beats all its peers and provided 18% annualised returns in the last 5 years compared to the S&P BSE 100 benchmark of 12% in a similar period. Risk Grade is low and Return grade is high. Crisil ranks it as Rank-1 and Value Research Online (VRO) as 5-Star (5 out of 5). This is one of the best mutual funds to invest in for long term of 10-20 years.

Top#2: Aditya Birla Sun Life Frontline Equity Fund


Aditya Birla SL Frontline Equity fund - best mutual fund for SIP to invest in 2018 in India

Fund Objective: This mutual fund scheme aims to generate long term growth of investment, through a stock portfolio with a target allocation of 100% equity aiming at being as diversified across various industries and or sectors.

Fund Performance: This is another fund which is my favourite. This fund has beaten all its peers and provided 17.7% annualised returns in last 5 years. Even in the short term of 1 year, it gave 15% returns which proves it as good short term fund too. If you have invested 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 grown to Rs 91,000 now. Since Inception it gave 22% annualized returns. If one would have invested Rs 1 Lakh 5 years back, the invested amount would have grown to Rs 2.25 Lakhs. This has been one of the top performing mutual funds in India in the last 5-10 years.

Why to invest: Last year the asset size was Rs 12,000 Crores and currently this is over Rs 18,500 Crores. Fund performed well in bull markets and reduced losses during bear markets. This fund beats all its peers and provided 17.7% annualised returns in the last 5 years compared to the S&P BSE 200 benchmark of 13% in a similar period. Risk Grade is below average and return grade is above average. Crisil ranks it as Rank-2 and Value Research Online (VRO) as 4-Star (4 out of 5). This is one of the best mutual funds to invest in 2018 for SIP to invest for medium to long term of 10-20 years. If you want to just invest in Top 5 Mutual Funds for SIP, you should make this mutual fund scheme as part of your portfolio.

Also Read: Top Rated Equity Mutual Funds to invest now

Top#3: ICICi Pru Focussed Blue Chip Fund


ICICI Pru Focussed blue chip fund - top and best mutual fund for SIP to invest in 2018 in India

Fund Objective: This mutual fund's objective is to invest in 20 large cap companies from the top 200 stocks listed on the NSE on the basis of market capitalization and since it has already crossed Rs 1,000 Crores asset size, it invests beyond Top 200 Stocks in NSE.

Fund Performance: This fund has beaten all its peers and provided 16% annualised returns in last 5 years. If you have invested 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 grown to Rs 90,500 now. Since Inception it gave 15% annualized returns. If one would have invested Rs 1 Lakh 5 years back, the invested amount would have grown to Rs 2.1 Lakhs.




Why to invest: Fund performed well in various market cycles. This fund beats all its peers and provided 16% annualised returns in the last 5 years compared to the S&P BSE 100 benchmark of 12% in a similar period. Risk Grade is below average and return grade is above average. Crisil ranks it as Rank-3 and Value Research Online (VRO) as 4-Star (4 out of 5). This is one of the good mutual fund for SIP to invest for long term of 10-15 years.

Top#4: Reliance Small Cap Fund


Reliance small cap fund - good mutual fund for SIP to invest in 2018 in India

Fund Objective:  This scheme aims to generate capital appreciation by investing in smaller companies. This is just 6 years old scheme. However, in these 6 years, it has beaten its peers with high returns.

Fund Performance: This fund has beaten all its peers and provided 30% annualised returns in last 5 years. If you have invested 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 grown to Rs 136,000 now. Since Inception it gave 21% annualized returns. If one would have invested Rs 1 Lakh 5 years back, the invested amount would have grown to Rs 3.7 Lakhs. This is one of the top mutual funds india which proved its performance in just 5 years time frame. This is one of the best performing mutual funds in India in the last 5 years.

Why to invest: This smallcap fund has performed well in just 6 years of its history. This fund beats all its peers and provided 30% annualised returns in the last 5 years compared to the S&P BSE Small Cap benchmark of 18% in a similar period. Risk Grade is above average and return grade is above average. Crisil ranks it as Rank-2 and Value Research Online (VRO) as 3-Star (3 out of 5). This is one of the Top 10 Mutual Funds for sip to invest in 2018 for medium to long term of 5-10 years.

Top#5: Mirae Asset Emerging Bluechip Fund


Mirae Emerging Bluechip fund - top mutual fund for SIP to invest in 2018 in India

Fund 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 fund has beaten all its peers and provided 29% annualised returns in last 5 years. If you have invested 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 grown to Rs 128,000 now. Since Inception it gave 24% annualized returns. If one would have invested Rs 1 Lakh 5 years back, the invested amount would have grown to Rs 3.65 Lakhs.

Why to invest: This midcap fund has performed in various market cycles making this as unique fund. This fund beats all its peers and provided 30% annualised returns in the last 5 years compared to the NIFTY Free float midcap 100 benchmark of 18% in a similar period. Risk Grade is low and return grade is high. Crisil ranks it as Rank-1 and Value Research Online (VRO) as 5-Star (5 out of 5). This is one of the best midcap mutual fund for 2018 for SIP to invest for medium to long term of 5-10 years.




Top#6: Franklin India Smaller Cos Fund


Franklin India smaller cos fund - best mutual fund for SIP to invest in 2018 in India

Fund 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 all its peers and provided 30% annualised returns in last 5 years. If you have invested 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 grown to Rs 120,000 now. Since Inception it gave 16% annualized returns. If one would have invested Rs 1 Lakh 5 years back, the invested amount would have grown to Rs 3.7 Lakhs.

Why to invest: This small cap fund has performed well in various market cycles. This fund beats all its peers and provided 30% annualised returns in the last 5 years compared to the NIFTY Free float midcap 100 benchmark of 18% in a similar period. Risk Grade is low and return grade is average. Crisil ranks it as Rank-3 and Value Research Online (VRO) as 5-Star (5 out of 5). This is one of the top mutual fund for SIP to invest for medium to long term of 5-10 years. This is one of the best performing mutual funds in india in smallcap segment.

I have recommended Principal Emerging Bluechip fund (part of midcap/smallcap) last year as part of top 10 funds. This fund too performed well by providing 29% returns in the last 5 years, however since the above 3 midcap/smallcap funds are comparatively better, this fund has been pushed to 4th position in midcap/small cap position. In case you have invested in this fund, continue to invest in such fund.

I have also recommended DSP BR Microcap fund last year which is running well. However since the size of the fund is increasing they have stopped fresh investments. Existing SIP's are continuing. Hence I have recommended this Fund now. If you are invested, continue to invest in this fund. This one of the top peforming mutual funds in India in small cap segment.




Also Read: Top 10 Sector Based Mutual Funds for 2017-2018

Top#7: Franklin India Higher Growth Companies Fund


Franklin India high growth cos fund - mutual fund for SIP to invest in 2018 in India

Fund Objective: The fund seeks to achieve capital appreciation through investments 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. The fund managers will follow an active investment strategy and will be focusing on rapid growth companies which will be selected based on growth, measures such as Enterprise value, growth rate, price/earnings/growth, forwardprice/sales, and discounted EPS.

Fund Performance: This fund has beaten all its peers and provided 22% annualised returns in last 5 years. If you have invested 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 grown to Rs 100,000 now. Since Inception it gave 14% annualized returns. If one would have invested Rs 1 Lakh 5 years back, the invested amount would have grown to Rs 2.7 Lakhs.

Why to invest: This diversified fund has performed well in various market cycles. This fund beats all its peers and provided 22% annualised returns in the last 5 years compared to the NIFTY 500 benchmark of 14% in a similar period. Risk Grade is average and return grade is high. Crisil ranks it as Rank-3 and Value Research Online (VRO) as 5-Star (5 out of 5). This is one of the top and best mutual fund for SIP in 2018 to invest for medium to long term of 5-10 years.

Top#8: Kotak Select Focus Fund


kotak select focus fund - top mutual fund for SIP to invest in 2018 in India

Fund Objective: The mutual fund scheme aims for capital appreciation from a diversified portfolio of equity and equity related instruments, generally focused on a few selected sectors.

Fund Performance: This fund has beaten all its peers and provided 20% annualised returns in last 5 years. If you have invested 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 grown to Rs 100,000 now. Since Inception it gave 15% annualized returns. If one would have invested Rs 1 Lakh 5 years back, the invested amount would have grown to Rs 2.5 Lakhs.

Why to invest: This is one of the best diversified fund. This fund beats all its peers and provided 20% annualised returns in the last 5 years compared to the NIFTY 200 benchmark of 13% in a similar period. Risk Grade is average and return grade is Above Average. Crisil ranks it as Rank-1 and Value Research Online (VRO) as 4-Star (4 out of 5). This is one of the good diversified fund among Top 10 Mutual Funds for sip to invest in 2018 for long term of 10-20 years.

Top#9: ICICI Pru Balanced Mutual Fund


ICICI Pru Balanced fund - good mutual fund for SIP to invest in 2018 in India

Fund 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 all its peers and provided 18% annualised returns in last 5 years. If you have invested 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 grown to Rs 92,000 now. Since Inception it gave 15% annualized returns. If one would have invested Rs 1 Lakh 5 years back, the invested amount would have grown to Rs 2.3 Lakhs.

Why to invest: This is one of the best diversified fund. This fund beats all its peers and provided 18% annualised returns in the last 5 years compared to the Balanced Fund category benchmark of 13% in a similar period. Risk Grade is below average and return grade is Above Average. Crisil ranks it as Rank-2 and Value Research Online (VRO) as 4-Star (4 out of 5). This is one of the top and best balanced mutual fund for SIP to invest for long term of 10-20 years.

Top#10: HDFC Balanced Fund


HDFC Balanced fund - top mutual fund for SIP to invest in 2018 in India

Fund 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 all its peers and provided 17.7% annualised returns in last 5 years. If you have invested 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 grown to Rs 95,000 now. Since Inception it gave 15% annualized returns. If one would have invested Rs 1 Lakh 5 years back, the invested amount would have grown to Rs 2.25 Lakhs.

Why to invest: This is the second best balanced fund. This fund beats all its peers and provided 18% annualised returns in the last 5 years compared to the Balanced Fund category benchmark of 17.7% in a similar period. Risk Grade is below average and return grade is Above Average. Crisil ranks it as Rank-1 and Value Research Online (VRO) as 4-Star (4 out of 5). This is one of the good balanced mutual fund for SIP to invest for long term of 10-20 years.

Also Read: Best MIP Mutual Funds to invest now

Complete list of Top 10 Mutual Funds to invest for long term in 2018 are given below


Last year, I have recommended   apart from some of the above listed funds. You should continue to invest in them. If you would like to add more funds, select some of the new funds indicated in this article.

List of Top 10 best mutual fund for SIP to invest in 2018

Conclusion: These funds are the Best SIP to invest for highest growth for medium to long term. This is standard portfolio which is designed for all kinds of investors like high risk investors and moderate risk investor. If you are a high risk investor and expecting higher returns, you can add more funds from mid-cap/small-cap segment. If you are moderate risk investor, you can add more funds in balanced mutual fund category which are little low risk compared to other funds. If you simply want to invest in a diversified portfolio, go ahead and invest in these top 10 mutual funds to get high returns in coming years.

Happy investing in best mutual funds in 2018!!!

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Suresh

Top 10 Best Mutual Funds for SIP to invest in 2018



429 comments

  • Sural Rainger

    Hi Suresh, lovely and easy site to understand for newbies like me. Thank you!

    I have lump sum of about 10 lac which I would like to get a monthly or quaterly income from and something that also helps the capital to appreciate. What do you suggest as I am not a SIP?

    Thanks in advance 🙂

  • Kaliprasad

    Hi Suresh,

    Starting this April, Planning to Invest for this two purposes.
    Based on your article and other articles I have went through,
    Selected this set for a Monthly investment of 5000 in this two categories
    Is this combination is correct to start with Mutual Fund investments?

    Child Hr Education
    ICICi Pru Focussed Blue Chip Fund — 2000
    Frankline India Higher Growth Companies Fund  — Diversified — 1500
    Reliance Small Cap Fund  — Mid Cap — 1500

    Retirement
    Aditya Birla Sun Life Frontline Equity Fund  — Large Cap  — 1500
    Kotak Select Focus Fund  — Diversified  — 1000
    HDFC Balanced Fund — Balanced — 1500
    Mirrae Asses Emerging Bluechip Fund  — Mid Cap  — 1000

     

  • Siva

    Dear Sir,

    I have 4 funds and current value is more than 400000/-..My friend suggested to get the money before Apr 1st 2018 to skip the 2018 Budget 10%  tax(believe its called LTCG).
    And also i have one more query, (As per recent Paper article) can we get relaxation if  we start SIP for kids and give to them once they crossed 18 as Gift, so we can avoid that Tax. Is it a good move? I have started my SIP just a year before and need money now.

    If you reply above my queries , i can withdraw my money and start SIP for my son/daughter…Please advise Sir!!

    thanks,
    Siva.

    • Hi Siva, what your friend said is correct that if you sell your mutual funds before 31-Mar-18, LTCG is zero. If you sell after 1-Apr, you need to pay 10%. If you don’t need money now in coming months, you can still continue to invest.  Regd second query, yes you can do that by gifting them after 18 years

      • Siva

        Thanks a lot , Sir!! thanks for your clarification!!

        My gain would be around 30-40k only in that FY from equity investment, so i believe there will not be any tax.Isnt it Sir? (Just get this info…)

        Yes, I need money for Real estate purchase so i can get & invest in that and start fresh SIP for my kids marriage & my retirement. I believe below funds can be useful for me and it can be average my risk – Please kindly advise , Sir.

        =>Mirae Asset emerging Blue chip or Reliance small cap – 5k
        =>Tata Equity P/E ratio fund or Invesco India Contra Fund – Growth – 5k
        =>Tata retirement savings fund or Principal Growth Fund– 3k/-

        Thanks,
        Siva

        • Siva

          Just add, my current funds…

          Franklin India Prima Plus

          Mirae Asset emerging Blue chip

          DSPBR Micro cap

          Reliance small cap  

          Should i continue my current funds?? or i can start new sip as i mentioned earlier?

        • Hi Siva, If you are doing profit booking of 30K to 40K in a year from your LTCG, yes it would be exempted within 1 Lakh exemption and is not taxable. First 2 funds are good. 3rd one, why you want to invest in retirement savings fund, select couple of good diversifieds or large cap funds for your retirement.

  • Vinay

    Sir i have invested 15000 each (lumsum) in reliance tax saver & DSP black rock tax saver (for tax saving purpose).

    In addition i am looking to invest in MF's with 15000 to 20000 per month SIP (total amount). 

    Please suggest funds for:

    1. short term (2-3 years) 

    2. medium term (3-5 years) 

    3. Long term (7-10 years)

    Your views are highly appreciated.

    • Vijay, You can invest in balanced funds for 5 years period and for 7-10 years go for diversified and large cap funds indicated in the article. For 2-3 years, I would advice you go for short term debt mutual funds

  • Kaliprasad

    Hi, Need to know do the list is still valid or any changes?

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