Best SIP Plans in Mutual Funds for 2019 for low risk investors
There are several SIP Mutual Funds in India. Some SIP plans are high risk and provide good returns. Some SIP Mutual funds are high risk, but one need to wait for a long time to get good returns. You may find it difficult to identify a high return mutual fund scheme if you are moderate to low risk taker. We have filtered some of the Best SIP Plans in Mutual funds for such investors in this article. Which are the Best SIP Plans that are low risk and provide high returns? Which are the Top SIP Plans in Mutual Funds for moderate to low risk taker?
SIP Plans for Moderate to low risk takers – What we meant here?
First of all, let us understand that Mutual funds does not eliminate risk at all. Even debt funds have become risky after IL&FS scam. However, if you can invest in mutual funds that invests partly in equity and partly in debt, you can reduce your risk. You can pick-up some of these low risk, high return mutual funds if you are a conservative investor or moderate to low risk taker. You can expect 15% to 20% annualized returns if you can invest for 10-20 years time frame.
Who should not invest in this Low risk and High Returns Funds?
Here are some of the investors who can stay away from these mutual fund schemes.
1) If you are thinking to make quick money in the stock market, these mutual funds are not for you.
2) If you are a high risk taker and willing to invest in midcap/small cap funds, then you can ignore this article.
3) If you are thinking that SENSEX would grow in coming years and expect to get returns similar to that of SENSEX or any Index, you may skip these SIP plans.
How we analyzed these Best SIP Plans in Mutual Funds for 2019 that are Low Risk and provide High Returns?
We have filtered these low risk, high return MFs based on some of these key parameters.
1) Mutual fund scheme whose strategy is to invest in equity + debt instruments. These are hybrid in nature.
2) Mutual Fund schemes that have performed well in 1 year, 3 years, 5 years and 10 years time frame when invested through SIP.
3) Mutual Fund Schemes that have overcome losses in the last 1 year as stock market being volatile these days.
4) Funds that have good rating by Value Research Online
5) Funds that have good rating by Crisil.
6) Mutual Funds that have AUM of over Rs 500 Crores which gives confidence to investors.
Some of these hybrid MFs have not performed well in the last 1 year as stock market being volatile. You need to keep this aspect aside, as your goal is to invest for long term of over 10 years.
5 Best SIP Plans in Mutual Funds for 2019 – Low Risk and High Returns
Let us jump into these Best Mutual Funds to invest through SIPs.
Top#1 – ICICI Prudential Equity & Debt Fund
What is its investment Strategy?
The mutual fund aims to generate capital appreciation by investing in a portfolio that is invested in equities and related securities as well as fixed income and money market securities. The approximate allocation to equity would be in the range of 60% to 80% with a minimum of 51%, and the approximate debt allocation is 40% to 49%, with a minimum of 20%.
How is the Performance of fund in case of SIP investment?
If you would have invested Rs 1,000 per month through SIP for 10 years, the invested value would have been Rs 120,000 (Rs 1,000 x 120 months) and the value of the fund would have now grown to Rs 2.6 Lakhs.
If you would have invested Rs 1,000 per month through SIP for 5 years, the invested value would have been Rs 60,000 (Rs 1,000 x 60 months) and the value of the fund would have now grown to Rs 78,000.
If you would have invested Rs 1,000 per month through SIP for 3 years, the invested value would have been Rs 36,000 (Rs 1,000 x 36 months) and the value of the fund would have now grown to Rs 40,000.
How is the Performance of fund in case of lump sum investment?
This mutual fund scheme gave 15% annualized returns in the last 5 years and 17% annualized returns in the last 10 years. If you would have invested Rs 1 Lakh 5 years back, your investment would have grown to Rs 2.1 Lakhs. If you would have invested Rs 1 Lakh 10 years back, your investment would have now grown to Rs 4.8 Lakhs.
Why to invest?
This fund has been performing well in the last 10-20 years. This fund gave highest SIP returns in this segment. Since inception (last 20 years), this fund has given 14% annualized returns. VRO rated this as 4 Star. This is one of the Best SIP Plans in India in 2019 which is low risk and can provide the highest returns in the next 10-20 years.
Top#2 – HDFC Hybrid Equity Fund
What is its investment Strategy?
The Scheme seeks to generate capital appreciation / income from a portfolio, predominantly of equity & equity related instruments.
How is the Performance of fund in case of SIP investment?
If you would have invested Rs 1,000 per month through SIP for 10 years, the invested value would have been Rs 120,000 (Rs 1,000 x 120 months) and the value of the fund would have now grown to Rs 2 Lakhs.
If you would have invested Rs 1,000 per month through SIP for 5 years, the invested value would have been Rs 60,000 (Rs 1,000 x 60 months) and the value of the fund would have now grown to Rs 70,000.
If you would have invested Rs 1,000 per month through SIP for 3 years, the invested value would have been Rs 36,000 (Rs 1,000 x 36 months) and the value of the fund would have now grown to Rs 38,000.
How is the Performance of fund in case of lump sum investment?
This mutual fund scheme gave 16% annualized returns in the last 5 years and 19% annualized returns in the last 10 years. If you would have invested Rs 1 Lakh 5 years back, your investment would have grown to Rs 2.1 Lakhs. If you would have invested Rs 1 Lakh 10 years back, your investment would have now grown to Rs 5.7 Lakhs.
Why to invest?
This fund has been performing well compared to its peers in the low risk high return segment. This fund gave good SIP returns in this hybrid segment. Since inception (last 13 years), this fund has given 16% annualized returns. VRO rated this as 4 Star. This is one of the Top SIP Plans for 2019 to invest in India for the long term.
Top#3 – SBI Equity Hybrid Fund
What is its investment Strategy?
The mutual fund scheme aims to provide investor capital appreciation along with the liquidity 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.
How is the Performance of fund in case of SIP investment?
If you would have invested Rs 1,000 per month through SIP for 10 years, the invested value would have been Rs 120,000 (Rs 1,000 x 120 months) and the value of the fund would have now grown to Rs 2.4 Lakhs.
If you would have invested Rs 1,000 per month through SIP for 5 years, the invested value would have been Rs 60,000 (Rs 1,000 x 60 months) and the value of the fund would have now grown to Rs 76,000.
If you would have invested Rs 1,000 per month through SIP for 3 years, the invested value would have been Rs 36,000 (Rs 1,000 x 36 months) and the value of the fund would have now grown to Rs 42,000.
How is the Performance of fund in case of lump sum investment?
This mutual fund scheme gave 15% annualized returns in the last 5 years and 16% annualized returns in the last 10 years. If you would have invested Rs 1 Lakh 5 years back, your investment would have grown to Rs 2 Lakhs. If you would have invested Rs 1 Lakh 10 years back, your investment would have now grown to Rs 4.4 Lakhs.
Why to invest?
This fund too gave highest SIP returns in this hybrid segment. Since inception (last 23 years), this fund has given 16% annualized returns. VRO rated this as 4 Star. This is one of the Best SIP Plans in India that has been consistently performing in the last 20 years.
Top#4 – L&T Hybrid Equity Fund
What is its investment Strategy?
The MF scheme aims to generate long-term capital appreciation from a diversified portfolio of predominantly equity and equity related securities.
How is the Performance of fund in case of SIP investment?
This fund came 7.5+ years back (94 months), hence let us compare equivalent performance. If you would have invested Rs 1,000 per month through SIP for 94 months, the invested value would have been Rs 94,000 (Rs 1,000 x 94 months) and the value of the fund would have now grown to Rs 1.55 Lakhs.
If you would have invested Rs 1,000 per month through SIP for 5 years, the invested value would have been Rs 60,000 (Rs 1,000 x 60 months) and the value of the fund would have now grown to Rs 76,000.
If you would have invested Rs 1,000 per month through SIP for 3 years, the invested value would have been Rs 36,000 (Rs 1,000 x 36 months) and the value of the fund would have now grown to Rs 40,000.
How is the Performance of fund in case of lump sum investment?
This mutual fund scheme gave 15% annualized returns in the last 5 years and 12% annualized returns in the last 7.5 years. If you would have invested Rs 1 Lakh 5 years back, your investment would have grown to Rs 2 Lakhs.
Why to invest?
This is one of the consistent performing SIP mutual funds in the last 8 years that gave 12% annualized return since inception. VRO rated this as 4 Star. This is one of the good SIP Plans for 2019 that can be invested for next 8-10 years.
Top#5 – Franklin India Equity Hybrid Fund
What is its investment Strategy?
The mutual fund seeks to get long-term capital appreciation with stability of investment and current income from a balanced portfolio of high quality equity and fixed-income securities.
How is the Performance of fund in case of SIP investment?
If you would have invested Rs 1,000 per month through SIP for 10 years, the invested value would have been Rs 120,000 (Rs 1,000 x 120 months) and the value of the fund would have now grown to Rs 2.2 Lakhs.
If you would have invested Rs 1,000 per month through SIP for 5 years, the invested value would have been Rs 60,000 (Rs 1,000 x 60 months) and the value of the fund would have now grown to Rs 74,000.
If you would have invested Rs 1,000 per month through SIP for 3 years, the invested value would have been Rs 36,000 (Rs 1,000 x 36 months) and the value of the fund would have now grown to Rs 40,000.
How is the Performance of fund in case of lump sum investment?
This mutual fund scheme gave 14% annualized returns in the last 5 years and 15% annualized returns in the last the last 10 years. If you would have invested Rs 1 Lakh 5 years back, your investment would have grown to Rs 1.9 Lakhs. If you would have invested Rs 1 Lakh 10 years back, your investment would have now grown to Rs 3.9 Lakhs.
Why to invest?
This is one of the consistent performing mutual funds in the last 21 years that gave 14% annualized return since inception. VRO rated this as 3 Star. This is one of the Best SIP Plans to invest in India for long term of 10-15 years.
Summary of Best SIP Plans in India for 2019 is here
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Suresh
Best SIP Plans in Mutual Funds for 2019 – Low Risk and High Returns
Hi Suresh Ji,
Please suggest should I redeem Motilal Oswal Ultra short term fund- I parked some amount for STP to Multicap35, but UST fund is already down 9%.
Thanks.
Ashish
Hi Ashish, this fund has exposure to IL&FS entities and based on the scam, the fund NAV has fallen. Now you don’t need to worry as the negative is already considered in the latest NAV, you can continue as of now.
Hi Suresh,
I have the below SIPs in my portfolio and both going negative, please suggest what should i do in this case?
DSP Small CAP Fund- Regular Plan- Growth
Franklin India Smaller Companies Fund Growth
Thanks,
Suresh
Hi Suresh, Both are good funds. However due to down trend in small cap and midcap stocks, you are seeing such negative returns in these small cap funds. Thats I I always advice to invest in a portfolio that has largecap, diversified, midcap, small cap and balanced funds. This way if any down trend in one particular fund would not impact you much in your MF portfolio
Thanks Suresh. I do have investments in other below funds. Hope my overall portfolio is good. Please suggest, is there anything i have to do.
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
L and T MIDCAP FUND – GROWTH
ICICI PRUDENTIAL VALUE DISCOVERY FUND – GROWTH
HDFC BALANCED FUND – REGULAR PLAN – GROWTH
HDFC HYBRID EQUITY FUND – REGULAR PLAN – GROWTH
Thank you very much for your review and suggestion,
Jey Suresh
Good Portfolio where it has largecap, diversified and balanced funds. Continue to invest in these funds
After the Budget AND DHFL scam
1) would you like to give NEW & latest choices of best MFs / SIP Funds list for low risk high return And All other recommendations which you made before 1st Feb 2019
A NEW survey in view of the above SCAMS IL&SL & DHFL .
These things are making things confusing & difficult to follow by senior citizen of my age of 72 years plus
Hello Rajendra, The way you and me are thinking, even fund managers are thinking of such risks. You can leave that to fund managers. There would not be any change in our portfolio recommendations as these risks would continue in future too
Thanks Boss..
Dear Mr. Suresh
Good day, Can i invest in Escort Mid cap / Miare Blue chip / Kotak Midcap , can you suggest wich one is good to invest from the same..
You can invest in Mirae blue chip fund and Kotak Midcap fund
Thanks Boss..