Top 20 Best Mutual Funds SIP Investment in India for 2016

Best Mutual Funds

Mutual funds are one of the best investment options for wealth creation in India. But, the biggest pain is to find out best performing mutual funds that will help you in fulfilling your financial goals. There are thousand numbers of mutual funds schemes available in the market, which makes Investor confused about which mutual fund they should select for investment. So, if you are a confused investor and looking for the good mutual fund for the investments you are at right place. In this post, I will be sharing information about Top 20 Best Mutual Funds for 2016.

Methodology to Identify Best Mutual Funds –

I have followed methodology given below to identify best mutual funds.

  • Historical Return – I have short- listed these mutual funds based on historical performance. Last 5-year return is considered in order to decide best performing fund. This return is compared with peer funds in the same category.
  • Age of Fund House and Credibility – Another important selection factor is the age of fund house and credibility. I have considered mutual funds from oldest fund house with good credibility.
  • Risk Factor – Higher the risk, higher the return considering this philosophy in mind I have selected mutual fund High and Moderate Risk factor.
  • Fund Manager – I have considered Fund Manager Expertise and experience for the selection of these mutual funds.
  • I have checked investment portfolio of these funds.
  • Last but not least I have also checked rating of this fund by CRISIL and Value Research.
  • I have tried to identify mutual funds from all major categories like Large Cap, Small Cap Mid Cap, Balance, ELSS etc.
  • All information given here are taken from Value Research and Money Control.

Read – How to Invest in Direct Mutual Funds Plans?

20 Top Performing Mutual Fund SIPs in India for 2016

Best Mutual Funds

Top 4 Best Performing SIP Large Cap Funds

Equity mutual funds that invest more than 75% in CRISIL defined Large Cap stocks for six months or above is known as large cap funds. Average return given by this category in 1 year is 17.1%. Top 4 best performing fund under this category are SBI Blue Chip Fund, UTI Equity Fund, UTI Top 100 Fund and ICICI Prudential Focused Bluechip Equity Fund.

Top 4 Best Performing Large & Mid Cap Funds

Equity Mutual funds that invest their money in the large cap as well as mid-cap stock is known as large & mid cap fund. Average return given by this category in last 1 year is 15%.Top 4 Best performing fund in this category are Franklin India Flexi Cap, BNP Paribas Equity, Franklin India Prima Plus and ICICI Pru Value Discovery fund.

 Top 3 Best Mid and Small Cap Funds

Funds that invest their money in a mid cap and small cap stocks is known ad mid cap small cap fund. Average return given by this category in last 1 year is 29%. Top 3 Best performing mid & small cap funds are SBI Magnum Mid Cap, Franklin India Smaller Companies Fund and BNP Paribas Mid Cap fund.

Top 3 Best Balance Funds

Mutual Funds that invest 65-80% amount in equity and rest in debt are known as balance fund. These types of funds are suitable for new investors. The Average return provided by this fund category in last one year is 14%. Top 3 Best balance funds for investment are HDFC Balance Fund, SBI Magnum Balance Fund and Tata Balance Plan A.

Top 3 Best ELSS Funds

The main objective of this fund category is to provide income tax benefit to the investor under section 80c. The Average return provided by this fund category in last one year is 21%. Top ELSS funds are Axis Long-term Equity fund, Franklin India Tax Shield Fund and IDFC Tax Advantage fund.

Top 3 Debt Income Funds

These types of mutual funds invest their money in debt instruments like government bonds, fixed deposit, corporate deposit etc. These types of funds are for conservative investors. Top 3 debt income funds are ICICI Prudential Long-term fund, Franklin India Income Opportunity fund and Tata Dynamic Bond Fund Plan B.

Also Read – Best Balance Mutual Funds in India

Points to Consider before making Investment in Mutual Funds –

  • Before making any investment, you should be clear about time horizon expected return and investment objective. Build your mutual fund portfolio based on your financial goals.
  • I have given some of the top performing best mutual funds here. It is not necessary to invest in each category mutual funds to build your portfolio. Select only four to five mutual funds as per your investment goal.
  • Always select SIP route for investment rather than doing lump sum investment. Invest in mutual funds for the long term at least 5 years or above. If you are a conservative investor you can start building your portfolio by investing in debt or balance funds.
  • Please do not invest in any mutual funds based on tips. Carry out proper research before making an investment. Take advice from expert or Certified Financial planner.
  • Review and balance your mutual fund portfolio at regular interval. Consider STP (Systematic Transfer Plan) for switching from one mutual fund to other.
  • If your mutual fund portfolio is generating negative returns, do not panic. Don’t redeem or Stop SIPs. Avoid taking any decision based on short-term market movements. Continue your SIPs for the longer period.
  • Invest in Growth based mutual funds over dividend based mutual funds. Stay away from New Fund offers (NFOs).
  • Please Remember “Mutual Funds Investments are subject to market risks. Please read the offer document carefully before investing”.

You might have already invested in mutual funds. You may or may not find your funds in above Best performing mutual funds that does not mean that your selection is wrong. Remember that there are thousand number of mutual funds scheme and selection terminology selected by every individual is different.

Stay invested in your mutual funds and monitor performance of the funds closely.

Do share your queries and comments.

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Article by Raviraj

Raviraj is the man behind moneyexcel.com. He is graduate in finance, engaged in blogging since 6 years. Moneyexcel blog is ranked as one of the Top 10 Personal Finance Blog in India. He is not affiliated with any financial product, service provider, agent or broker. The purpose of this blog is to spread financial awareness and help people in achieving excellence for money. Please note that the views expressed on this Blog/Comments are clarifications meant for reference and guidance of the readers to explore further on the topics. These should not be construed as investment advice or legal opinion.

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122 Comments

  1. amit bhatiya says:

    I want to invest 3000/ Monthly in a good Mutual fund for atleast 5 yrs , which is the best opting in considering long term investment and good return.

  2. Karthik.G says:

    Hi,
    As I am new to this Mutual Fund, this is my First investment, I need to start an SIP of 3000 for 3years , long term investment is not possible. So please suggest an Sip for 3Years.

    • Dear Karthik,

      You can invest in HDFC Balance Fund and ICICI Pru Value Discovery Fund. HDFC Balance fund is balance fund with moderate return and ICICI Pru is Largecap fund with good track record.

      Raviraj

  3. pradeep says:

    i am looking for retirement plan or MIP, pls suggest some best funds to invest.
    also inform options of SIP or lump sum amount. pls reply
    pradeep

  4. Kumar says:

    My current portfolio is as under
    Due for renewal (SIP INR 5000/month)
    1. HDFC Prudence Fund Growth Oct 12 till Sep 15 CV- INR 225K
    2. ICICI Pru Focused Bluchip Eq Fund Oct 12 till Sep 15 CV-INR 220K
    Regular Plan – Growth
    3. IDFC Premier Eq Fund-Reg Pln-G Oct 12 till Sep 15 CV-INR 250K
    4. SBI Emerging Business Fund Sep 11 till Sep 15 CV-INR 350K
    Regular Plan – Growth
    5. UTI Opportunity Fund-G Oct 12 till Sep 15 CV-INR 200K

    Old Investment (No new investment)
    1. Franklin India Prima Fund Growth Sep 10 till Aug 11 CV – INR 140K
    2. HDFC Equity Fund – Growth Sep 10 till Aug 12 CV – INR 200K
    3. HDFC Top 200 – Growth Sep 10 till Aug 12 CV – INR 200K
    4. ICICI Pru Value Discovery Fund Sep 10 till Aug 12 CV – INR 280K
    Regular Plan – Growth
    5. Franklin India Taxshiled-G Oct 12 till Mar 15 CV-INR 150K
    6. ICICI Pru Tax Plan-Reg Plan-G Oct 12 till Mar 15 CV-INR 150K

    Please advise the following;
    1. Which SIP to start for next 12 months from the above or new – Total investment planned 50k/ month
    2. Which of the above need to exit through sell
    Please note that I do not have any immediate fund needs. The investment horizon is for long term say 5 years plus.

  5. Ranjan says:

    Hi Ravi,

    Thanks for valuable information as of now .

    I am 33 and i have 1 kid. I have already invested in LIC(Jeevan saral- continue-25k/Yr- 6 yrs comeplete-25 yr plan)
    PPF-2 yrs-1.5 lkh each
    2 SBI Fixed deposit-75k Each(maturity date-2017-2018)
    2 LIC Money back policy-55k and 75k(2020 and 2023 maturity)

    As per current market FD rates are very less. So i am panning to invest in SIP so that i can get some lump sum amount after 15 yrs. My Plan is 1 cr for retirement and 50 lkh for my kids education and currently my take home is 66k and expenditure is 25k.for PPF 12k and 2000 for LIC every month i am paying.I can invest upto 7-8 k per month in SIP. I am not interested to take high risk as i am only income person at my home.i have plan for to buy plot which might cost me 12-15 lkh (might take personal loan but not yet decided.). Please suggest me some funds to invest. Also if could help me how to open SIP and which bank is good. i will be really thankful to you.

    Thanks
    Ranjan

    • Dear Ranjan,

      Thanks for your comments.My advice to you is

      (1) Switch from LIC Jeevan Saral plan to Term plan.Jeevan Saral will end up giving 6% return.
      (2) You can do SIP in UTI Opportunity and HDFC Prudance Fund.
      (3) You can directly approach fund house and invest in Direct Mutual Funds.
      (4) I will not advice you to invest in real estate.

      Regards,
      Raviraj

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