I am sure that you must have taken benefit of Top 20 Best Mutual Funds article written by me in 2015. All the mutual funds mentioned in the article are doing extremely well and giving very good returns to the investor. Today I am here with Top 10 Best performing mutual funds SIP to Invest in India for the long term.
Top 10 Best Mutual Funds SIP to invest in India for long term
Fund Selection parameters-
- Fund Performance – First parameter to select the mutual fund is the fund performance. All funds given below are performing well and giving very good returns since past 3-5 years. I have considered 3-5 years tenure for all the funds.
- Fund Holdings – The second parameter for the selection of Top 10 Best Mutual fund is fund holding. Most of the funds are holding blue chip large cap stocks or making an investment in stocks which are likely to appreciate in future.
- Expense Ratio – Expense ratio is one of the important factors that affect mutual funds return. Higher the expense ratio means lower the return. All the funds given below are with low expense ratio.
- Fund Manger Expertise and Experience – A Fund manager is the person who makes the decision about selling, purchasing or holding the stock in the mutual funds. The returns of the fund depend on the decision taken by the fund manager and its expertise.
- Scheme and Asset Size – Scheme type and asset size is another important factor while selecting funds. All funds selected here are higher in asset size – 500 Cr or above.
- Performance Ranking – A Performance ranking among peers is another important factor for the selection of Mutual Funds for SIP. The selected funds are with higher CRISIL ranking 4 star or above.
Based on Mutual fund selection parameters here are top 10 Best mutual Funds SIP to invest in India for long term.
Large Cap Fund
- Birla Sun life Top 100 Fund
Fund Objective: The scheme seeks to provide medium to long-term capital appreciation, by investing predominantly in a diversified portfolio of equity and equity related securities of top 100 companies as measured by market capitalization.
Fund Performance: The performance of this stock is very good. In last 3 years stock has given 21% return. In last 5 years stock has given 14% positive return.
Why to Invest: Birla Sun Life Top 100 Fund has invested in 73 shares. Major stock holdings of this fund are Infosys, HDFC bank, Larsen & Toubro and ICICI bank. All these blue chip stocks are performing very well and expected to perform well in future.
- SBI Bluechip Fund
Fund Objective: The scheme would invest in stocks of companies whose market capitalization is at least equal to or more than the least market capitalized stock of BSE 100 Index.
Fund Performance: SBI Bluechip Fund is performing very well and giving extremely good return YOY. In last 3 years fund has given 23% return to investor. In last 5 years stock has given 15.9% return to the investors.
Why to Invest: SBI Bluechip Fund is Five Star rated, Fund. As the name indicates it is blue chip fund investing in blue chip companies like Infosys, Sun Pharma, Reliance Industries, Maruti Suzuki etc. The fund manager of SBI Bluechip fund has 6 years experience. The expense ratio of the fund is low. Although it is high-risk fund it is expected to give a better return in future.
- Franklin India High Growth Companies Fund(G)
Fund Objective: The fund seeks to achieve capital appreciation through investments in Indian companies/sectors with high growth rates or potential. It will focus on companies offering the best trade-off between growth, risk and valuation.
Fund Performance: Franklin India High Growth Companies Fund has given 29% return in last 3 years and 18.4% return in last 5 years. This return is far better than category average return.
Why to Invest: Major investment done by Franklin India High Growth Companies Fund is in the financial sector. Smart city project, 7th Pay and reduction in interest rate are expected to give benefit to the financial sector. Thus investment in this fund will be a profitable affair.
- ICICI Pru Value Discovery Fund-Reg(G)
Fund Objective: To invest in a well-diversified portfolio of value stocks.
Fund Performance: ICICI Pru Value Discovery Fund is one of the top performer fund suggested by me earlier also. This fund is giving consistently positive returns since last five years. In last 3 years, this fund has given 32% return to the investor.
Why to Invest: ICICI Pru Value Discovery Fund is well diversified mutual fund which makes investment in valued stocks like L&T, Sun Pharma, ICICI Bank etc. This fund is managed by experienced fund manager.
- Axis Long Term Equity(G)
Fund Objective: The scheme aims to generate regular long term capital growth from a diversified portfolio of equity and equity related securities. The Scheme will invest in companies with strong growth & a sustainable business model.
Fund Performance: Axis Long Term Equity Fund is giving very good returns. In last 3 years, Axis Long Term Equity fund has given 28.2% returns to Investors. Last 5 years return of this stock is 19.5%.
Why to Invest: Axis Long Term Equity fund is 5 Star rated Fund. The performance of this fund is extremely good. The expense ratio of this fund is very low (1.99%). This fund is best for Tax planning purpose.
- Birla Sun life Tax Relief 96 (G)
Fund Objective: The scheme seeks long-term capital growth and will invest approximately 80 % of its assets in equity, while the balance would be invested in debt and money market instrument.
Fund Performance: This fund is giving consistent good return to the investor. In last 3 years, this mutual fund has given 26% return to the investor.
Why to Invest: Birla Sun Life Tax Relief fund is 5 Star rated ELSS fund. If you are planning to save tax by making investment you should invest in this fund. This fund is managed by the most experienced fund manager. This fund invests in both equity and debt so it is good for medium risk investor.
Small & Mid Cap Fund
- DSP Black Rock Micro Cap Fund (G)
Fund Objective: The aim of the fund is to seek long-term capital appreciation by investing in a portfolio that is substantially constitutes of stocks that are not part of the top 300 companies by market capitalization.
Fund Performance: DSP Black Rock Micro Cap Fund is small & mid cap Fund. This fund is giving consistent two digit return to the investors. In last 3 years, this fund has given 46.7% return to the investor.
Why to Invest: DSP Black Rock Micro Cap Fund is making an investment in good mid cap and small cap companies. A superior fund return and investment in equity and debt instrument are plus point for this fund.
- Franklin India Smaller Companies Fund (G)
Fund Objective: The scheme aims to provide long-term capital appreciation by investing in mid and small cap companies.75% of this fund will be invested in smaller companies.
Fund Performance: This fund has given 38.8% return to the investor in past 3 years. If we take a look at last 5 years performance of this fund this fund has given 24.9% return to the investors.
Why to Invest: Franklin India Smaller Companies fund invest in the stock of smaller companies which has potential to become larger companies. This five star rated fund is managed by experienced fund managers. If you are looking for higher growth in future it is good to invest in this fund.
- Franklin India Balance Fund (G)
Fund Objective: The scheme seeks to achieve long-term capital appreciation with a stability of investment and current income from a balanced portfolio of high quality equity and fixed-income securities.
Fund Performance: This balance fund has given 20% return to the investor in last 3 years. In last 5 years, this fund has given 14.3% return to the investors.
Why to Invest: If you are moderate risk investor and looking for safety along with capital appreciation you can invest in this fund. This fund has invested in many blue chip stocks like Infosys, HDFC bank, L&T etc. In addition to that, this fund has also invested in GOI sovereign bonds.
- HDFC Prudence Fund (G)
Fund Objective: The scheme seeks periodic returns and long-term capital appreciation from a balanced portfolio of debt and equity.
Fund Performance: This fund has given very good returns to the investor. In last 3 years this mutual fund has given 20% return to the investor. In last 5 year this fund was able to give 14.5% return to the investor.
Why to Invest: This fund is managed by experienced fund manager. It is giving very good returns since past few years. The majority of investment of this fund is in diversified well known stocks. These stocks are expected to give better return in future which will contribute to the performance of this fund.
Over to you –
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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