Top 10 Best Performing Mutual Funds 2021 – Best SIP Plans in India
In the last two years, there has been few trends that gave direction to the mutual fund schemes. It could be SEBI re-categorization of mutual fund schemes, the down trend in midcap and small cap funds to name a few. Mutual Funds through SIP has always rewarded investors in the medium to long term in spite of several such changes. There are several benefits of investing through SIP in mutual fund schemes. Like every year, even this year, we are providing Top 10 Best SIP Mutual Fund Plans to invest in India in 2021.
Also Read: Best SIP Plans for 5 years to invest in India
What are SIPs in Mutual Funds?
If you are already familiar about SIPs in MFs, you can skip this section.
Mutual funds pool money from investors and invest in equity and debt instruments based on the investment object. Systematic Investment Plan (SIP) in mutual funds is where one can invest small amounts at periodic intervals and accumulate wealth over a period of time. Mutual Funds can be invested either daily or weekly or fortnightly or monthly or quarterly. Most favorable one is monthly SIP.
How does SIP Mutual Funds Work?
Investing in SIP Mutual Funds are simple. Once you choose Best SIP Plans to invest through a mutual fund platform, your money would be automatically debited in your bank account and invested in buying units of a mutual fund which you have opted on a the specific date chosen by you. The number of MF units would be allocated to you based on the NAV of the mutual fund on the date of purchase. NAV would fluctuate based on the underlying stocks invested by the mutual fund scheme.
What are the benefits of SIP / Why to invest in SIP Mutual Funds?
Here are the major benefits and reasons to invest in SIP mutual funds.
1) Rupee Cost Averaraging – It benefits from Rupee Cost Averaging. If the stock markets are low, the NAV of your mutual fund scheme would be low, but you would get higher number of MF units. On the other hand, if stock markets are high, the NAV of your mutual fund scheme could be high and you would get a lower number of MF units.
2) Power of Compounding Returns – When you invest in mutual fund through SIP, you would get returns every year based on the underlying stocks invested. Such returns would get compounded year on year and you can create more wealth due to compounding power.
3) You would cultivate with disciplined savings.
4) SIP in mutual funds provides flexibility about investing and taking out money. However, one should invest in mutual funds for long term to reap the benefits.
5) Mutual Funds SIPs provide higher returns compared to FD or RD. While FD/RDs provide 6% to 7.5% annualized returns, SIP mutual funds can earn between 12% to 18% annualized returns.
What is the methodology we considered in picking up these mutual funds?
Below is the methodology we have used to pick-up Best SIP Mutual Fund Plans to invest in 2021.
1) Mutual Fund schemes that have performed well in the last 5-10 years are considered here.
2) Mutual Fund schemes that have performed well in various stock market cycles are further filtered.
3) 2-3 Mutual Fund schemes from various mutual fund categories like large cap, midcap, smallcap, hybrid have been selected.
4) Funds that are rated 5 star, 4 star, 3 star by value research online are considered.
5) Majority of these funds are already recommended by us, hence if you have already invested, it could be repetition for you.
Top 10 Best SIP Mutual Fund Plans to invest in 2021
Here is the list of Top 10 Mutual Funds to invest through SIP in 2021.
#1 – Mirae Asset Large Cap Fund
#2 – Axis Bluechip Fund
#3 – SBI Bluechip Fund
#4 – Mirae Asset Emerging Bluechip Fund
#5 – SBI Small Cap Fund
#6 – Kotak Emerging Equity Fund Regular Plan
#7 – Kotak Standard Multicap Fund Regular Plan
#9 – SBI Equity Hybrid Fund
#10 – HDFC Hybrid Equity Fund
Now let us jump into an individual mutual fund scheme about their performance and their ratios.
Top and Best Largecap SIP Mutual Fund Plans to invest in 2021
In the large cap segment we are recommending 3 mutual fund schemes that can be invested through Systematic Investment Plan (SIP).
#1 – Mirae Asset Large Cap Fund
Investment Objective: The scheme aims to maximize long term capital appreciation by finding investment opportunities resulting from Indian economic growth and its structural shifts through investing in equity and equity related securities.
Performance and Ratios of the fund
| Fund | Mirae Asset Large Cap Fund |
|---|---|
| Category | Largecap |
| Returns in 3mth | 9.1% |
| Returns in 1 year | 6.5% |
| Annualised Returns in 3 years | 5.3% |
| Annualised Returns in 5 years | 10.0% |
| Annualised Returns in 10 years | 11.7% |
| Exp Ratio | 1.71% |
| Net Assets (AUM) Rs Crs | 18,386 |
| 1 Lakh invested 3 years back is now | 1.17 Lakhs |
| 1 Lakh invested 5 years back is now | 1.61 Lakhs |
| 1 Lakh invested 10 years back is now | 3.01 Lakhs |
| Standard Deviation | 20.96 |
| Sharpe Ratio | 0.11 |
| Sortino Ratio | 0.12 |
| Beta | 0.99 |
| Alpha | 0.00 |
| R-Squared | 0.99 |
#2 – Axis Bluechip Fund
Investment Objective: The scheme aims to generate long term capital growth by investing in a diversified portfolio predominantly consisting of equity & equity related instruments of large cap companies.
Performance and Ratios of the fund
| Fund | Axis Bluechip Fund |
|---|---|
| Category | Largecap |
| Returns in 3mth | 7.4% |
| Returns in 1 year | 4.3% |
| Annualised Returns in 3 years | 9.5% |
| Annualised Returns in 5 years | 10.5% |
| Annualised Returns in 10 years | 10.0% |
| Exp Ratio | 1.70% |
| Net Assets (AUM) Rs Crs | 16,764 |
| 1 Lakh invested 3 years back is now | 1.31 Lakhs |
| 1 Lakh invested 5 years back is now | 1.65 Lakhs |
| 1 Lakh invested 10 years back is now | NA |
| Standard Deviation | 16.68 |
| Sharpe Ratio | 0.30 |
| Sortino Ratio | 0.32 |
| Beta | 0.74 |
| Alpha | 3.30 |
| R-Squared | 0.88 |
#3 – SBI Bluechip Fund
Investment Objective: The scheme seeks to provide investors with opportunities for long-term growth in capital through an active management of investments in a diversified basket of large cap equity stocks (as specified by SEBI/AMFI from time to time).
Performance and Ratios of the fund
| Fund | SBI Bluechip Fund |
|---|---|
| Category | Largecap |
| Returns in 3mth | 7.1% |
| Returns in 1 year | 1.2% |
| Annualised Returns in 3 years | 2.6% |
| Annualised Returns in 5 years | 6.8% |
| Annualised Returns in 10 years | 9.2% |
| Exp Ratio | 1.69% |
| Net Assets (AUM) Rs Crs | 22,604 |
| 1 Lakh invested 3 years back is now | 1.08 Lakhs |
| 1 Lakh invested 5 years back is now | 1.39 Lakhs |
| 1 Lakh invested 10 years back is now | 2.41 Lakhs |
| Standard Deviation | 20.79 |
| Sharpe Ratio | -0.03 |
| Sortino Ratio | -0.03 |
| Beta | 0.97 |
| Alpha | -2.81 |
| R-Squared | 0.97 |
Top & Best Midcap/Smallcap SIP Mutual Fund Plans to invest in 2021
Here we are recommending 3 Best mutual fund schemes from Midcap and Smallcap segment that can be invested through Systematic Investment Plan (SIP).
#4 – Mirae Asset Emerging Bluechip Fund
Investment Objective: To generate income and capital appreciation from a diversified portfolio predominantly investing in Indian equities and equity related securities of large cap and midcap companies at the time of investment.
Performance and Ratios of the fund
| Fund | Mirae Asset Emerging Bluechip Fund |
|---|---|
| Category | Midcap |
| Returns in 3mth | 9.7% |
| Returns in 1 year | 14.4% |
| Annualised Returns in 3 years | 6.9% |
| Annualised Returns in 5 years | 13.7% |
| Annualised Returns in 10 years | 17.7% |
| Exp Ratio | 1.86% |
| Net Assets (AUM) Rs Crs | 11,316 |
| 1 Lakh invested 3 years back is now | 1.22 Lakhs |
| 1 Lakh invested 5 years back is now | 1.9 Lakhs |
| 1 Lakh invested 10 years back is now | NA |
| Standard Deviation | 22.38 |
| Sharpe Ratio | 0.20 |
| Sortino Ratio | 0.22 |
| Beta | 1.02 |
| Alpha | 2.25 |
| R-Squared | 0.95 |
#5 – SBI Small Cap Fund
Investment Objective: The scheme seeks to provide investors with opportunities for long-term growth in capital along with the liquidity of an open-ended scheme by investing predominantly in a well diversified basket of equity stocks of small cap companies.
Performance and Ratios of the fund
| Fund | SBI Small Cap Fund |
|---|---|
| Category | Smallcap |
| Returns in 3mth | 17.0% |
| Returns in 1 year | 15.4% |
| Annualised Returns in 3 years | 4.8% |
| Annualised Returns in 5 years | 13.2% |
| Annualised Returns in 10 years | 16.6% |
| Exp Ratio | 1.88% |
| Net Assets (AUM) Rs Crs | 5,039 |
| 1 Lakh invested 3 years back is now | 1.15 Lakhs |
| 1 Lakh invested 5 years back is now | 1.86 Lakhs |
| 1 Lakh invested 10 years back is now | 4.63 Lakhs |
| Standard Deviation | 26.29 |
| Sharpe Ratio | 0.16 |
| Sortino Ratio | 0.20 |
| Beta | 0.82 |
| Alpha | 8.29 |
| R-Squared | 0.92 |
#6 – Kotak Emerging Equity Fund Regular Plan
Investment Objective: The scheme seeks to generate long-term capital appreciation from a portfolio of equity and equity related securities, by investing predominantly in mid companies.
Performance and Ratios of the fund
| Fund | Kotak Emerging Equity Fund Regular Plan |
|---|---|
| Category | Midcap |
| Returns in 3mth | 12.6% |
| Returns in 1 year | 11.1% |
| Annualised Returns in 3 years | 3.1% |
| Annualised Returns in 5 years | 9.3% |
| Annualised Returns in 10 years | 11.6% |
| Exp Ratio | 1.86% |
| Net Assets (AUM) Rs Crs | 7,300 |
| 1 Lakh invested 3 years back is now | 1.09 Lakhs |
| 1 Lakh invested 5 years back is now | 1.56 Lakhs |
| 1 Lakh invested 10 years back is now | 2.99 Lakhs |
| Standard Deviation | 24.35 |
| Sharpe Ratio | 0.06 |
| Sortino Ratio | 0.06 |
| Beta | 0.92 |
| Alpha | 0.79 |
| R-Squared | 0.97 |
Top Multicap SIP Mutual Fund Plans to invest in 2021
In Multicap / diversified mutual fund segment we are recommending 2 SIP Mutual Fund Schemes.
#7 – Kotak Standard Multicap Fund Regular Plan
Investment Objective: The scheme seeks to generate longterm capital appreciation from a portfolio of equity and equity related securities, generally focused on a few selected sectors.
Performance and Ratios of the fund
| Fund | Kotak Standard Multicap Fund Regular Plan |
|---|---|
| Category | Multicap |
| Returns in 3mth | 6.2% |
| Returns in 1 year | 2.9% |
| Annualised Returns in 3 years | 3.7% |
| Annualised Returns in 5 years | 8.8% |
| Annualised Returns in 10 years | 10.6% |
| Exp Ratio | 1.66% |
| Net Assets (AUM) Rs Crs | 29,714 |
| 1 Lakh invested 3 years back is now | 1.12 Lakhs |
| 1 Lakh invested 5 years back is now | 1.53 Lakhs |
| 1 Lakh invested 10 years back is now | 2.73 Lakhs |
| Standard Deviation | 20.73 |
| Sharpe Ratio | 0.03 |
| Sortino Ratio | 0.03 |
| Beta | 0.94 |
| Alpha | -0.76 |
| R-Squared | 0.98 |
Best Hybrid / Balanced SIP Mutual Fund Plans to invest in 2021
In Hybrid / Balanced mutual fund segment we are recommending 2 Mutual Fund Plans to invest through SIP.
#9 – SBI Equity Hybrid Fund
Investment Objective: The scheme seeks to provide investors long-term capital appreciation along with the liquidity of an open-ended scheme by investing in a mix of debt and equity. The scheme will invest in a diversified portfolio of equities of high growth companies and balance the risk through investing the rest in fixed income securities.
Performance and Ratios of the fund
| Fund | SBI Equity Hybrid Fund |
|---|---|
| Category | Aggressive Hybrid |
| Returns in 3mth | 3.6% |
| Returns in 1 year | 2.8% |
| Annualised Returns in 3 years | 5.7% |
| Annualised Returns in 5 years | 8.1% |
| Annualised Returns in 10 years | 9.9% |
| Exp Ratio | 1.62% |
| Net Assets (AUM) Rs Crs | 31,993 |
| 1 Lakh invested 3 years back is now | 1.18 Lakhs |
| 1 Lakh invested 5 years back is now | 1.48 Lakhs |
| 1 Lakh invested 10 years back is now | 2.57 Lakhs |
| Standard Deviation | 15.07 |
| Sharpe Ratio | 0.10 |
| Sortino Ratio | 0.11 |
| Beta | 0.82 |
| Alpha | -0.48 |
| R-Squared | 0.91 |
#10 – HDFC Hybrid Equity Fund
Investment Objective: The Scheme seeks to generate capital appreciation / income from a portfolio, predominantly of equity & equity related instruments
Performance and Ratios of the fund
| Fund | HDFC Hybrid Equity Fund |
|---|---|
| Category | Aggressive Hybrid |
| Returns in 3mth | 6.2% |
| Returns in 1 year | 1.9% |
| Annualised Returns in 3 years | 2.5% |
| Annualised Returns in 5 years | 7.0% |
| Annualised Returns in 10 years | 10.4% |
| Exp Ratio | 1.80% |
| Net Assets (AUM) Rs Crs | 16,198 |
| 1 Lakh invested 3 years back is now | 1.08 Lakhs |
| 1 Lakh invested 5 years back is now | 1.41 Lakhs |
| 1 Lakh invested 10 years back is now | 2.7 Lakhs |
| Standard Deviation | 16.86 |
| Sharpe Ratio | -0.10 |
| Sortino Ratio | -0.11 |
| Beta | 0.94 |
| Alpha | -3.94 |
| R-Squared | 0.94 |
You may like: Top Performing Mutual Funds in 20 years
Top 10 Best SIP Mutual Funds for 2021 – 3 months to 10 year performance
If you enjoyed this article, share it with your friends and colleagues through Facebook and Twitter.
Suresh KP
Top 10 Best SIP Mutual Fund Plans to invest in 2021
- How a 5K SIP Can Fetch You Rs 1.8 Lakhs per Month Fixed Income in Mutual Funds in 30 Years? - April 16, 2024
- Bandhan Innovation Fund NFO – Issue Details and Review - April 14, 2024
- I’m 40, Have 30 Lakhs, Where Should I Invest in Mutual Funds? - April 13, 2024
Hi Suresh
I have been following your articles for the past five years. I have been investing in the following funds (SIP) but these seems to be under performing now and not in this year’s List. Can you please advice if i need to continue in the below funds
1. ICICI PRUDENTIAL BLUECHIP FUND – GROWTH
2.ADITYA BIRLA SUN LIFE FRONTLINE EQUITY FUND – GROWTH
3.HDFC MID-CAP OPPORTUNITIES FUND – GROWTH
4.DSP SMALL CAP FUND – GROWTH
5.Franklin India Smaller Companies Fund GROWTH
Additionally i am also investing in Axis Midcap Fund, Axis Small cap fund, SBI Blue chip,HDFC Hybrid Equity fund, L&T Mid cap fund which i will continue.
Thanks
Jagan
Hello Jagan, Good to hear about you. Many of my friends are too asking that their stocks are not increasing, but SENSEX is at new high. If you observe SENSEX reaching new highs, but only few stocks and mutual funds are performing well. you are seeing this in your portfolio too. 1 and 2 are in largecap/multicap, hence returns should be average. 3, 4 and 5 are midcap/smallcap funds. All midcap/smallcap funds are underperforming in the last 1-2 years owning to SEBI recategorizatoin in May-2018 and fund manager focus only in large cap stocks. This should get shifted to midcap/smallcap segment in 2020-2021. If you are long term investor, just invest and forget about short term performance. Otherwise, you can exit and invest in largecap or multicap mutual funds only. Other funds indicated at the end are good, you can continue.
Hello Sir,
How are SBI magnum midcap (G) & SBI Magnum multicap fund (G)??
I am doing SIP from last 2 years in these funds.
Shall I continue in these??
Thank you in advance,
Santosh
Hello Santosh, SBI magnum midcap is under performer in the last 3-5 years. You can wait for 1-2 years and then take call, otherwise you can exit. SBI Magnum multicap fund is good fund, you can continue
Hello Sir,Thank you for your great Blog.I have some query related to my portfolio.I want to create a wealth for 1crore through SIP.
MY Time Horizone is in differet yrs -6 lakh(10 yrs from now child study),35 lakh(12 yr from now),60 lakh retirement (23 yrs from now).
My existing Portfolio- ELSS-1)SIP of 2k in L & T Tax Advantage fund Growth(3.5 lakh worth ow)
2)SIP of 2k in Axis Long Term Equity fund Growth(2 lak worth now)
3)SIP of 3k in Aditya Birla Tax relif 96 fund -G(started 1 yera before)
Large Cap- 2.5k SIP in Axis Blue-chip fund direct- G(started this Year)
Small Cap- 2.5k SIP in Axis small Cap Fund Direct-G(started this Year)
Multi Cap- a)3k SIP in Franklin India Equity Fund Direct-G(started 1 Year before)
b)3k SIP in Parag Parikh Long term Fund Direct-G(started 1 Year before )
Lump sum one time Amount invested 9 year ago into –SBI Magnum Tax gain (20k) & Sundaram BNP Paribas Tax saver (12k)
Please review above funds and suggest your comment incase of any changes or modification required?
Also I have shortlisted some dyamic fund to invest in this year which is-Kotak Dynamic Bond Fund and Franklin India Dynamic Accrual Fund?
Please suggest one best mid cap and value fund to be added into the above portfolio. Also suggest if any other kind of funds need to be invested or any changes in current portfolio is required to achieve my 1 cr target. I am a moderate kind of investor risk profile.
Hello Kumar, The funds in your portfolio are good except for Franklin India equity fund. This is under performer in multicap mutual funds segment. Try to review this fund and replace with any other multicap mutual fund. You can select any multicap fund from this article.
Thank you Suresh Sir for your kind review and suggestion.Can you also provide your valuable thought on the below 2 points.
1)Also I have shortlisted some dyamic fund to invest in this year which is-Kotak Dynamic Bond Fund and Franklin India Dynamic Accrual Fund?Can i go ahead with these dynamic fund.Is these fund good to go ahead with this.
2)Please suggest one best mid cap and one value fund to be added into the above portfolio.
Thanking You.
Thanks,
kumar Raju
Hello Kumar, Let me know why you want to invest in dynamic bond fund or value funds. Since these are high risk funds, asking this question to you. For midcap, you can invest in any of the midcap funds indicated in this article
Hello Sir,I want to invest in value funds for higher returns as value funds is investing in low valuation stocks which is having strong fundamentals to grow it faster.But as per your suggestion can I invest in Hybrid funds suggested by you in place of value or dynamic bond funds as I m having more time horizon.
Also I m having some Fixed deposit,PPF,EPF worth more than 6 lakh.So what would be your suggestion to add anything into my portfolio in terms of Value,debt or any other funds which require to balance my overall current portfolio.
Thanking you
Thanks
Kumara
value funds are high risk. Hybrid funds are moderate risk. You can consider any of the hybrid funds indicated in this article
How power of compounding works in mutualfunds (sip).for eg. How power of compounding works in “Indexfund ICICI nifty next 50 direct,growth (SIP)” in long term investment?
Hello Dr. Sudhakar, It is immaterial of lumpsum or SIP, compounding works in similar way. The invested amount would grow year on year based on the opening balance at beginning of the year. That is how the mutual fund returns are also computed.
Sir if i am investing 5k or 10k in sip. Is it better to put whol amount in one fund or diversify it into large, small, mid cap fund, balanced fund, hybrid fund, sectorial fund and index fund. I am ready to take high risk and for long term horizon.. A ideal portfolio should consist how many funds or investing in more scheme could nullify overall return?
Let me explain this with an example. 1) If you invested in one good fund (as per today) for 10K. After 10 years, assume that fund fails to perform well or performs well but still lagging behind its peer funds, you would always regret 2) If you invested in 3-5 funds now. In long term of 8-10 years assuming that out of 5 funds, 3 are performing well, 1 is normal performer and 1 is under performer compared to its peer funds. Just imagine the situation. You would be still able to create good wealth with this second senario. There is no ideal portfolio. It would depend on your risk appetite, tenure and how long you want to invest. As an example, I am moderate to high risk investor, willing to invest in variety of mutual fund schemes. Now I cannot limit myself as even if I take 2 funds from largecap, midcap, smallcap, balanced funds, sector funds, international funds, debt funds, this would become a dozen of funds. If you simply want to diversify your portfolio invest in 5-7 mutual fund schemes.