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 |
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Suresh KP
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Hi Suresh,
I am regular visitor of your website. Presently I am investing in below Mutual funds.
ICICI PRUDENTIAL BLUECHIP FUND – GROWTH
HDFC HYBRID EQUITY FUND – REGULAR PLAN – GROWTH
Can you suggest me some good funds for investment.
Regards,
Jigar
Hello Jigar, ICICI Pru Bluechip fund is largecap fund. If you observe, majority of the largecap funds are under performers. I would suggest you hold.
Regd HDFC Hybrid equity fund, this fund is still able to beat aggressive funds category in the last 3 to 5 years time frame. I would suggest you to hold even these cases. Regd your 3rd question, based on your risk appetite and tenure of investment, you can pick-up some of the funds from this article itself
Sir
Is it worthy in long run to invest a lumpsum amount in equity fund of which NAV is below 10 at present .Also I chose SBI Gold fund,Franklin Templeton Feeder India US
Opportunities Fund, Edilwiess balanced growth fund as long term investment (all are Sips). Request your advice on this.
Hello Sreekesh, Less NAV does not mean that mutual fund is coming cheaper. There are several mutual fund NAVs which are above Rs 50, but give high returns too. One should pick mutual fund scheme based on risk appetite, past performance and based on financial goal tenure.
Hi Suresh,
Have these below funds in my SIP, and performing very low.
LNT INDIA VALUE FUND-REGULAR PLAN-GROWTH OPTION
Franklin India Smaller Companies Fund GROWTH
DSP SMALL CAP FUND – REGULAR PLAN – GROWTH
Please suggest what should i do?
Should i start invest more and average out then sell them? Is it a good idea?
Should i switch to another fund now?
Should i keep for some time?
Please share average out formula.
Thanks for your suggestions
Jey suresh
Hello Jey, you have smallcap in your portfolio. If you are high risk taker and willing to invest for 8-10 years atleaest, you can continue to invest in these funds. Otherwise, you should diversify and have largecap, midcap, balanced also in your portfolio. You can refer our article about 10 funds which are diversified across market cap
Dear Suresh,
Thanks for your suggestion, i do have diversified porfolio as per your previous suggestions.
Please find
FRANKLIN TEMPLETON MUTUAL FUND
ADITYA BIRLA SUN LIFE ASSET MANAGEMENT COMPANY LTD
ICICI PRUDENTIAL MUTUAL FUND
SBI FUNDS MANAGEMENT PVT LTD
L&T ASSET MANAGEMENT COMPANY
DSP MUTUAL FUND
FRANKLIN TEMPLETON MUTUAL FUND
ICICI PRUDENTIAL MUTUAL FUND
HDFC ASSET MANAGEMENT COMPANY LIMITED
So can i keep these funds for some more time not investing on them.
Franklin India Smaller Companies Fund GROWTH
DSP SMALL CAP FUND – REGULAR PLAN – GROWTH
Thanks,
Jey Suresh
Last two are smallcap funds and high risk. If you are high risk investor continue. All other names you have provided are AMC names and not fund names
Sorry Suresh,
Please find my schemes in porfolio
Franklin India Focused Equity Fund GROWTH
ADITYA BIRLA SUN LIFE FRONTLINE EQUITY FUND – GROWTH
ICICI PRUDENTIAL BLUECHIP FUND – GROWTH
SBI BLUE CHIP FUND – REGULAR PLAN – GROWTH
LNT Mid Cap Fund-Regular Plan-Growth
DSP SMALL CAP FUND – REGULAR PLAN – GROWTH
Franklin India Smaller Companies Fund GROWTH
ICICI PRUDENTIAL VALUE DISCOVERY FUND – GROWTH
HDFC HYBRID EQUITY FUND – REGULAR PLAN – GROWTH
Thanks,
Jey
Jey, there are 4 funds (5 to 8) which are midcap/smallcap funds which are high risk. ICICI Pru value discovery fund is also under performer. You can review and exit such funds
Hi Suresh,
I have invested in the following funds and currently these are not doing good. Can I switch over to some other funds or continue to invest.
1) BNP Paribas F25EF – DP (G)
2) DSP Small Cap Fund – Regular (G)
3) ICICI Pru Value Discovery Fund (G)
4) HDFC MidCap Opport.- Direct (G)
5) HDFC Hybrid Equity Fund (G)
6) HDFC Equity Fund (G)
7) Franklin (I) Smaller Co -Direct (G)
8) DSP Small Cap Fund – Regular (G)
9) BNP Paribas F25EF – DP (G
Hello, Subramanian, Your fund selection is good except for BNP Paribas Focussed 25 equity fund which is relatively new fund (< 3 years). Consider switching this to another multicap fund indicated in our article. Also your fund has over weightage of idcap and smallcap segments. Unless you are very high risk investor, you should have diversified portfolio of largecap, multicap also in your portfolio. Pls review and add some funds from these segments too
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. Aditya Birla Sun Life Tax Saver Fund(ELSS) – SIP of 1k for 20 years
2. Reliance Tax Saver Fund(ELSS) – SIP of 1.5k for 20 years
3. Axis Mid Cap Fund – SIP of 2k (Start this year) for 10 years
4. SBI Small Cap Fund – SIP of 2k (Start this year) for 10 years
My goal is to accumulate 20-25 lakh for my daughter’s higher education and marriage. Please suggest besides this funds, need to invest any other funds.
Thanks
Saikat
These are good funds. Don’t look for underperformance in short term. Even small cap funds would take U TURN in next 1-2 years. Continue to invest