Introduction to Top 10 Best Mutual Funds for SIP to invest in 2024
Nifty50 index generated a 20% return in the last one year. On the other hand, high-risk indexes like the midcap index or smallcap index generated 44% and 48% returns, respectively. If you are an investor looking for a diversified portfolio, investing in a combination of large-cap, midcap, and smallcap mutual funds can always help you balance your portfolio. If you are looking for a diversified portfolio of the Top 10 Best Mutual Funds for SIP to invest in 2024, this article is for you.
What are SIP Mutual Funds?
Skip this section if you are already familiar with SIP mutual funds.
Mutual Funds pool money from investors and invest in equity or debt or both, depending on the objectives of the scheme.
SIP, also known as Systematic Investment Plan, is a method of investing in mutual funds with a fixed amount at fixed intervals, as per the choice of the investor. Investors can invest in SIP with as little as Rs 100 per month. The most preferred interval for SIP is monthly, while some investors do it quarterly too.
How did we filter these Best Mutual Funds for SIP to invest in 2024?
Like every year, even this year, we have used key criteria to filter the best SIP mutual funds to invest in 2024.
- Mutual Funds that delivered the highest returns in the last 5-10 years.
- Mutual Funds that generated the highest SIP returns.
- Funds that have the highest rolling returns.
- Considered only direct plans in mutual funds while assessing the returns.
- AUM of the funds > Rs 100 crores.
Top 10 Best Mutual Funds for SIP to invest in 2024
Here is the list of the best mutual funds to invest in 2024 for SIP, along with their annualized returns in the last 1 to 10 years. Like every year, we have selected large-cap, mid-cap, small-cap, hybrid, and international funds as part of the top 10 mutual fund portfolios for 2024.
| Category | Mutual Fund Name | 1 Yr | 3 Yrs | 5 Yrs | 10 Yrs |
|---|---|---|---|---|---|
| Index / Largecap | UTI Nifty Index Fund | 20.3% | 16.7% | 15.8% | 14.0% |
| Index / Largecap | UTI Nifty Next 50 Index Fund | 26.5% | 18.6% | 14.3% | NA |
| Index / Largecap | Nippon India Largecap Fund | 32.9% | 26.0% | 18.0% | 18.1% |
| Index / Largecap | Canara Robeco Bluechip Equity Fund | 23.1% | 17.2% | 18.6% | 16.5% |
| Midcap / Smallcap | Quant Mid Cap Fund | 37.9% | 36.0% | 29.0% | 20.0% |
| Midcap / Smallcap | SBI Small Cap Fund | 26.9% | 27.4% | 24.6% | 28.1% |
| Flexicap | Parag Parikh Flexi Cap fund | 37.9% | 24.2% | 23.9% | 20.2% |
| Flexicap | PGIM India Flexi Cap Fund | 21.1% | 19.4% | 21.4% | NA |
| Hybrid | ICICI Prudential Equity & Debt Fund | 28.6% | 27.3% | 20.0% | 18.5% |
| International | Motilal Oswal Nasdaq 100 FoF | 54.8% | 13.2% | 25.1% | NA |
Top 10 Mutual Funds for SIP to Invest in 2024 – SIP Returns
Here is the list of the top mutual funds for 2024 and their SIP returns in the last 3 to 10 years.
| Category | Mutual Fund Name | 3 Yrs | 5 Yrs | 10 Yrs |
|---|---|---|---|---|
| Index / Largecap | UTI Nifty Index Fund | 17.2% | 18.5% | 14.7% |
| Index / Largecap | UTI Nifty Next 50 Index Fund | 19.6% | 19.2% | NA |
| Index / Largecap | Nippon India Largecap Fund | 26.0% | 24.3% | 17.6% |
| Index / Largecap | Canara Robeco Bluechip Equity Fund | 17.5% | 19.7% | 16.5% |
| Midcap / Smallcap | Quant Mid Cap Fund | 33.8% | 36.3% | 23.3% |
| Midcap / Smallcap | SBI Small Cap Fund | 23.5% | 28.3% | 23.3% |
| Flexicap | Parag Parikh Flexi Cap fund | 22.7% | 25.4% | 20.3% |
| Flexicap | PGIM India Flexi Cap Fund | 15.8% | 22.2% | NA |
| Hybrid | ICICI Prudential Equity & Debt Fund | 24.4% | 24.6% | 18.3% |
| International | Motilal Oswal Nasdaq 100 FoF | 18.1% | 21.0% | NA |
FAQs on Top 10 Best Mutual Funds for SIP to invest in 2024
Best Mutual Funds to Invest in 2024 for long-term
Investors should always align their mutual fund portfolios with their financial goals and the tenure of their investment. If you have long-term goals over a 10-year time frame, investing in large-cap mutual funds could be the best choice. If you are a high-risk taker, adding some mid-cap or small-cap mutual funds can provide superior returns to your overall portfolio in the long term.
Check our 5 Mutual Funds with Highest SIP returns in the last 20 years article too.
Which mutual fund has the best 10-year return?
Nippon India Small Cap Mutual Fund has generated a 28.8% annualized return in the last 10 years, which is the highest among the mutual fund category.
Even when looking at the best 10-year returns from an SIP perspective, Nippon India Small Cap Mutual Fund has generated a 26.6% SIP return, which is the highest among all the mutual fund schemes.
You can check 5 Mutual Funds with Highest Returns in the last 10 years article too.
Best mutual funds next 10 years
If you are looking for the best SIP to invest in for 10 years in India, you need to align your financial goals and consider funds based on how long you can invest in them. If your goal is over 10 years, investing in the top 10 funds indicated above can be one of the choices
Which mutual fund has highest return in last 5 years?
Quant Small Cap Fund generated the highest annualized returns of 33.7% in the last 5 years.
Even from an SIP perspective, Quant Small Cap Fund generated 46.5% SIP returns in the last 5 years, which is the highest among equity funds.
Which SIP gives 30% returns?
SIP in mutual funds can help investors invest in a disciplined way and does not guarantee any specific returns.
Investors looking for very high returns can take high risks and invest in midcap and smallcap mutual funds.
Historical performance indicates that midcap and smallcap funds generated between 17% to 26% SIP returns in the last 10 years, 22% to 46% SIP returns in the last 5 years, and 20% to 40% SIP returns in the last 3 years. Best High Return Mutual Funds article can provide further guidance too.
Best SIP to invest for 3 years
If you are looking for the best SIP mutual fund for 3 years, you can consider medium-duration debt funds. Historically, these funds have generated 7% to 8% annualized returns. However, such returns are in line with bank FD rates, hence these may not be attractive investment options for investors.
Which is the Best SIP to invest for 5 years?
If you are thinking about which mutual fund is the best for the next 5 years, you can consider large-cap funds. Historically, large-cap funds have shown stable performance in the medium term to long term of 5+ years.
How to make 1 crore in 5 years in mutual funds?
Do you know that even with Rs 5,000 per month SIP, you can make 1 Crore wealth?
If you want to make one crore rupees in 5 years through mutual funds, you can adopt any of the following strategies:
- SIP of Rs 122,000 per month can fetch 1 Crore in 5 years, assuming 12% annualized returns. An SIP value of Rs 112,000 is good enough if a 15% return is assumed.
- SIP of Rs 102,000 per month can fetch 1 Crore in 5 years, assuming 12% annualized returns with a 10% increase in SIP every year. An SIP value of Rs 94,000 is good enough if a 15% return is assumed in such a case.
- In the case of a lump sum, one can invest Rs 57 Lakhs, and this can make 1 Crore in 5 years with a 15% annualized return. A lump sum of Rs 50 Lakhs is good enough if a 15% return is assumed in such a case.
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I want to spend the money in SIP. Please suggest best SIP mutual funds to invest. I can invest 20000 per month
Hello AKP, Like I ikndicated in my earlier articles, you need to choose SIPS based on your financial goals, risk appetite and tenure.
Hi Sir,
I’m 30 years old government employee, earing 30k per month. I have selected a mutual fund portfolio to invest kindly check and let me know whether it’s a good option or do i have to make some changes?
1.Nippon India Large Cap Fund
2.Parag Parikh Flexi Cap Fund
3.Quant ELSS Tax Saver Fund
4.Motilal Oswal Mid Cap Fund
5.Axis Small Cap Fund
It would be really helpful if you give me some suggestions and kindly let me know how much should I invest in each fund my investment budget is around 8k oer month.
These are good funds, you can continue to invest. However since it contains midcap and smallcap, these are high risk and you should hold for medium to long term to get high returns
Sir, Please review my portfolio as given below and suggest modifications needed, if any. I have been investing in all these direct funds starting 2013 and 2015 (for some funds) through SIP mode. Would like to continue investing for 15-20 years or more.
ICICI Nifty Index – 10k PM
ICICI Technology Fund – 10k PM
Axis ELSS – 10K PM
DSP Small Cap – 5K PM
DSP Mid Cap – 10K PM
SBI Healthcare – 10K PM
SBI Small Cap – 7K PM
SBI Focused Equity – 10K PM
Quant Infrastructure Fund – 3K PM (started investment in July 2023 only)
My further question would be if I want to exit certain fund, and divert that SIP amount to a new fund, would that be beneficial (since I lose compounding effect from the old fund). what is a god way of doing this if at all recommended.
Your portfolio has diversified funds from index, midcap, smallcap and sector funds. I would recommend reducing sector funds (e.g. healthcare) and add more into largecap funds
Thank you Sir,
Did you mean, put more money into a large cap fund? Please recommend a good large cap fund. Or put more money in focused equity fund (kind of large cap only)?
That’s correct. I am personally investing in Nippon India Largecap Fund and HDFC Top 100 Fund along with UTI Index Fund. There are several other funds too which you can explore
Hello Sir,
If I wish to stay invested in mutual funds for long term I.e 15-20 years, should I go for passive investing through etfs or should I stick to active funds ?what would be more profitable in your opinion for that long horizon?
Thank you so much!
If I am in your place, I would go with both. We do not know whether active funds would perform well or not in long term. Hence have a mix of both can always benefit
Hello Sir,
The tracking error of Quant mid cap is 12 percent. Is it normal for mid cap to have such high tracking error? Should I invest in Quant mid cap irrespective of high tracking error or shld I consider some other fund ? It would be a long term
Investment. Pls suggest.
Tracking error is the difference between returns of the index Vs returns of the fund. Hence tracking error applies for index funds and not active funds. Quant Midcap fund is active fund and not index fund.
Hi Sir, what to do with Axis ELSS fund? Should I continue my SIPs? I have been doing SIPs in this fund since 2013? Not sure what to do now?
Hello Shivani, All the funds under Axis MF has performance issue in the last 2-3 years only. If you are already investing in them for last 10 years, please continue. Alternatively you can divert fresh investments / fresh SIPs to other ELSS funds.
should i reduce the amount of SIPs in Axis elss and divert the same to other elss fund? or continue axis elss plust make some fresh/ new SIPs to other elss?
For a benefit of doubt, you can move new SIPs to other ELSS funds
Hi,
I m employee (30yrs) with a salary of Rs 30000/month. Suggest me some details like where, how much , which kind of investment will be best. So that I can have a stable savings of my income.
Hello Karan, If you are looking for stable savings, you can invest in diversified list of mutual funds containing largecap, flexicap, midcap, smallcap and hybrid funds. However midcap and smallcap funds comes with high risk, but can give high returns too. Based on the risk appetite, you can invest in these funds listed in this article.
Hi sir,
Is it a good plan that I make one time investment SIP or a monthly plan. Which is better .
Kindly suggest.
I would always recommend going through SIP instead of lumpsum. In case of any major stock market corrections (5% to 10% or more), one can invest in lumpsum too.
Please send your regular investment informative post to me.
Hi Sir,
i want to start SIP of monthly 40k for atleast 5 years to 10 years.
My goal is to get 1 CR in 10 years.
Could you help me in preparing the portfolio please.
and also once i invest how/when can i monitor/review the funds ?
PS: I have one advisor but he is always investing in Regular funds which having more than 2.5% expense ratio.
Please help sir.
Thanks,
Praveen Bindla,
Hello Praveen, Good to hear about you. If you are high risk investors, you can invest in the 10 funds I have listed which includes midcap/smallcap funds which are high risk-high return funds. Otherwise you can exclude them and invest in balance. Since I am already investing in majority of the funds listed in this article, I don’t advice differently.
Also I would suggest you to for direct plans. You can directly invest through AMC website or go through third party websites like ETMoney, Kuvera etc. I personally use Kuvera which is simple to use and comes with zero charges for now.
Dear sir , I am ready engineer from ISRO. I have invested 30 L ,some 6 years back.Now doubled
I also looking for a suitable SIP of 20L P.M for atleast 5 to 10 Y
..Can u suggest a suitable SIP
SLSO I WANT TO PARK 20L for around 5. To. 10 y.Pl suggeste a. Way out
Hello Loganathan, If you are looking for 5 to 10 years you can go for largecap + flexicap funds. If you can take high risk then you can go for 10 funds indicated in the article
Good one Suresh. Aligns well
Thank you Kalyana Sundaram
Thank you Suresh garu for your valuable investment ideas. I wish you a very happy new year.
Thank you Renganathan. Wish you happy new year 2024