Top 15 Best Mutual Funds to invest through SIP in 2021 India
Generally, mutual fund investors would invest in 3-5 mutual fund schemes through SIP and redeem as and when they need money. Instead of this, they should invest based on the risk appetite, financial goal and tenure. This way they can maximize the returns from such SIP mutual funds. Like every year, even this year, we are recommending top and best mutual funds to invest through SIP in 2021. This time instead of top 10 mutual funds, we would recommend Top 15 Mutual Funds for 2021. Which are the Top 15 Best SIP to invest in 2021 in India?
Also Read: International Mutual Funds with 1 year return of 75%
You may also like
What are SIP Mutual Funds?
Systematic Investment Plan popularly known as SIP is the option provided by mutual fund houses where one can invest a small amount in a disciplined manner. You can invest in SIP Plans either daily, fortnightly, monthly, quarterly or yearly. Most popular one is monthly SIP. You can invest as low as ₹ 500 per month in SIP Plans.
How to choose SIP Mutual Funds?
Here are some tips on choosing Best Mutual Funds to invest in India.
1) Risk Appetite: Choose a SIP mutual fund based on your risk appetite (High risk, moderate risk and low risk). If you are low to moderate risk taker, no point in investing in a midcap mutual fund, which is meant for high risk takers. Investing in the correct SIP mutual fund would always reward you with higher returns.
2) Tenure of investment: Choose a mutual fund based on tenure you want to invest. This would help you to choose right mutual fund scheme. If you want to invest for 3 months, liquid mutual funds could be better. If you are looking to invest for 10 years, large cap mutual fund scheme / Flexicap mutual funds could be better options than debt mutual funds.
3) Fund Performance: When you choose a mutual fund scheme check how a mutual fund scheme performed in various market cycles. An extra step of checking the rolling returns i.e. checking consistency returns compared to peers and benchmark would always help you to invest in winning mutual funds.
You may also like
4) Ranking and Ratings: Ranking given by Crisil and Ratings by Value Research could be taken additional parameters to assess the quality of the mutual fund scheme. This parameter should not be the sole reason to buy a SIP mutual fund.
Sector funds are avoided here. Index funds would work for strategy of long term investment, but many investors are still not in favor of it. while I am not against them, we have not considered in this article.
We have filtered based on the above criteria and came out with Top 15 Best Mutual Funds to invest in India through SIP in 2021.
Top 15 Best Mutual Funds to invest through SIP in 2021 in India
Here are Best SIP to invest in 2021 in India.
#1 – Mirae Asset Large Cap Fund
#2 – Axis Bluechip Fund
#3 – SBI Bluechip Fund
#4 – Canara Robeco Bluechip Equity Fund
#5 – Mirae Asset Emerging Bluechip Fund
#6 – SBI Small Cap Fund
#7 – Kotak Emerging Equity Fund Regular Plan
#8 – Axis Midcap
#9 – Axis smallcap
#10 – Kotak Standard Multicap Fund Regular Plan
#11 – Parag Parikh Flexicap fund
#12 – UTI Equity fund
#13 – SBI Equity Hybrid Fund
#14 – HDFC Hybrid Equity Fund
#15 – Canara Robecco Equity Hyrbid fund
Top 15 Best Mutual Funds to invest through SIP in 2021 – More Insights
Let us get into more insights about these funds.
Best Largecap Mutual Funds to invest through 2021
We have filtered 4 largecap mutual funds from this segment. Out of them 3 are already recommended by us last year. Canara Robeco Bluechip equity fund is a new entrant this year in our list.
Performance of these large-cap SIP mutual funds
| Mutual Fund Scheme | 1yr | 3yr | 5yr | 10 Yrs |
|---|---|---|---|---|
| Mirae Asset Large Cap Fund | 13.7% | 8.4% | 13.8% | 13.5% |
| Axis Bluechip Fund | 19.7% | 14.7% | 15.0% | 12.5% |
| SBI Bluechip Fund | 16.3% | 7.6% | 11.2% | 11.8% |
| Canara Robeco Bluechip Equity Fund | 23.1% | 13.7% | 14.5% | 12.1% |
* Annualised returns
Who should invest?
Largecap mutual funds would invest in largecap / bluechip stocks and provide stability to your portfolio. If you are moderate to high risk investor and willing to invest for 8 to 10 years, you can invest in these best largecap mutual funds to invest in 2021 through SIP.
Best Midcap and Smallcap Mutual Funds to invest in 2021
We have filtered 5 mutual funds from this segment. Out of them 3 are already recommended by us last year. Axis Midcap and Axis Smallcap funds are new entrants this year in our list.
Performance of these Midcap/Smallcap SIP mutual funds
| Mutual Fund Scheme | 1yr | 3yr | 5yr | 10 Yrs |
|---|---|---|---|---|
| Mirae Asset Emerging Bluechip Fund | 22.4% | 9.9% | 17.3% | 20.1% |
| SBI Small Cap Fund | 33.6% | 4.4% | 15.6% | 18.9% |
| Kotak Emerging Equity Fund Regular Plan | 21.9% | 5.4% | 13.1% | 14.5% |
| Axis Midcap Fund | 26.0% | 13.2% | 14.8% | NA |
| Axis Small Cap Fund | 22.4% | 10.0% | 13.8% | NA |
* Annualised returns
Who should invest?
Midcap and smallcap mutual funds would tap opportunities in midcap/smallcap stocks. While there are many multibagger midcap stocks and smallcap stocks, these are risky too. If you are a high risk investor and willing to invest for 10+ years, you can invest in such funds. Moderate or low risk investors should stay away from such high risk mutual funds.
Best Flexicap Mutual Funds to invest in 2021 through SIP
We have filtered 3 flexicap mutual funds from this segment. Out of them 1 is already recommended by us last year. UTI Equity Fund and Parag Parikh Flexicap funds are new entrants in this year.
Performance of these Flexicap SIP mutual funds
| Mutual Fund Scheme | 1yr | 3yr | 5yr | 10 Yrs |
|---|---|---|---|---|
| Kotak Standard Multicap Fund | 11.8% | 7.5% | 12.8% | 12.6% |
| Parag Parikh Flexicap fund | 32.3% | 14.6% | 15.0% | — |
| UTI Equity fund | 31.6% | 15.0% | 14.9% | 13.0% |
* Annualised returns
Who should invest?
Flexicap mutual funds (erstwhile multicap funds) would invest across market cap. Such funds provide diversification to your portfolio. If you are moderate to high risk investor and willing to invest for 8-10 years, you can invest in these Flexicap / Multicap mutual fund schemes in 2021.
Best Hybrid Mutual Funds to invest in 2021 through SIP
Hybrid funds also known as balanced mutual funds. We have filtered 3 mutual funds from this segment. Out of them 2 are already recommended by us last year. Canara Robecco Equity Hybrid Fund is new entrant in this year.
Performance of these Hybrid / Balanced SIP mutual funds
| Mutual Fund Scheme | 1yr | 3yr | 5yr | 10 Yrs |
|---|---|---|---|---|
| SBI Equity Hybrid Fund | 12.9% | 8.6% | 11.1% | 11.8% |
| HDFC Hybrid Equity Fund | 13.4% | 5.8% | 10.6% | 12.3% |
| Canara Robeco Equity Hybrid Fund | 19.7% | 10.6% | 11.9% | 12.4% |
* Annualised returns
Who should invest?
Hybrid funds/ balanced funds would invest in equity and debt based on investment objective of the fund. The beauty of such funds is that while debt portion can provide stability, equity portion can provide growth in the fund. If you are moderate risk investor and willing to invest for 5+ years, you can invest in these Best Hybrid / balanced mutual funds.
How much should you invest in these funds?
I keep getting these kind of questions now and then saying what is an ideal mutual fund portfolio and which are the best mutual funds to invest for long term. This would depend on various factors. Here are a few tips that would help you to design your mutual fund portfolio. This is just an ideal mutual fund portfolio and one can fine tune them.
1) If you are young, willing to take risks (high risk taker) and invest for 20 to 30 years, you can consider the higher portion of mutual fund portfolio in midcap/smallcap, moderate portion in largecap/flexicap and hybrid portion. While there is no hard and fast rule, you can consider 50 : 25 : 25 (Midcap/Smallcap : largecap/flexicap : Hybrid fund).
2) If you are young or in 40’s, willing to take some risks (moderate to high risk taker) and invest for 10+ years, you can consider the moderate portion in all these categories of funds. Again, while there is no hard and fast rule, you can consider 30 : 40 : 20 (Midcap/Smallcap: large cap/flexicap: Hybrid fund).
3) If you are moderate risk taker / in 50’s and want to invest in 8-10 year tenure, avoid midcap/smallcap and consider your portfolio in other equity funds. Again, while there is specific rule, you can consider 40 : 60 (large cap/flexicap : Hybrid funds).
4) If you are a moderate risk taker, willing to invest for 5-8 years and want to balance your portfolio, invest in balanced mutual funds. You can also try an alternative option of investing in a combination of large cap/flexicap funds and debt funds. Another best way is to invest in balanced mutual funds.
- Best SIP Mutual Funds for 5 Years: 17 Funds with 15%+ SIP Returns (XIRR) - November 5, 2026
- What Should Beginners Learn Before Investing in Mutual Funds? - November 3, 2026
- Gold ETF vs Gold Mutual Fund vs SGB vs Digital Gold: Key Differences Explained - November 2, 2026
64 comments
Add a comment ↓Sir,
I have 7lakh to invest . which I get it as a arrear of last 2 years. I want to invest iam planning this.
A) 2 laks in liquid fund & STP of 2000 / day from liquid to icici flexi cap.
B) 2Lakhs STP 2000/day from liquid to DSP quant fund
C) 1Lakhs STP 1000/day from liquid to Axis small cap
D)1Lakhs STP 2000/day from liquid to UTI flexi cap.
E) 1Lakhs STP 2000/day from liquid to kotak eq. opportunity
( My time frame to invest is 5+ year)
please give your valuable comments
Rgds,
Good funds except for Quant Funds. Such funds go by rule book and difficult to assess how such funds can perform in medium to long term. Add one fund from largecap or from global funds category too to balance your portfolio
your comment means a lot before proceeding.
Many thanks Suresh ji for giving continuous awareness & guidance through your blog.
Hi Sir,
I am investing in HDFC mid cap, franklin small cap, Franklin high growth (now focused fund) from last 7 year .Is this time to switch to better performing mutual fund or continue the same fund. Please suggest