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Systematic Investment Plan (SIP) is a popular investment option in India, offering investors a convenient and disciplined way to invest in mutual funds. With so many mutual funds to choose from, it can be challenging to identify the best options for your investment needs.
In this article, we’ll take a closer look at the best mutual funds for SIP investment, analyzing factors such as historical performance, fund manager experience, and investment strategy.
We’ll provide insights into top-performing mutual funds in different categories, such as large-cap funds, mid-cap funds, and multi-cap funds.
Use our SIP Calculator to help visualize investment options.
Page Contents
Top 10 Best Large Cap Mutual Funds for SIP
Large-cap mutual funds are considered relatively safe, as most of the large-cap companies are blue-chip companies with a good track record of stock prices.
Based on the performance of the last 10 years here are the Top 10 best large-cap mutual funds for SIP:
| Scheme Name | AuM (Cr) | 1Y | 2Y | 3Y | 5Y | 10Y |
|---|---|---|---|---|---|---|
| Nippon India Large Cap Fund – Direct Plan – Growth | 21453.98 | 23% | 37% | 48% | 87% | 157% |
| ICICI Prudential Bluechip Fund – Direct Plan – Growth | 49837.78 | 24% | 35% | 43% | 80% | 149% |
| Baroda BNP Paribas Large Cap Fund – Direct Plan – Growth | 1743.14 | 24% | 34% | 40% | 73% | 142% |
| Canara Robeco Bluechip Equity Fund – Direct Plan – Growth | 11823.30 | 18% | 26% | 31% | 65% | 141% |
| Edelweiss Large Cap Fund – Direct Plan – Growth | 717.88 | 20% | 31% | 38% | 71% | 138% |
| Invesco India Largecap Fund – Direct Plan – Growth | 925.41 | 23% | 32% | 38% | 70% | 136% |
| HDFC Top 100 Fund – Direct Plan – Growth | 30979.87 | 22% | 34% | 43% | 77% | 136% |
| Kotak Bluechip Fund – Direct Plan – Growth | 7446.82 | 19% | 27% | 33% | 67% | 132% |
| JM Large Cap Fund – (Direct) – Growth | 80.77 | 29% | 39% | 47% | 76% | 129% |
| Bandhan Large Cap Fund – Direct Plan – Growth | 1329.55 | 23% | 31% | 37% | 68% | 125% |
Consider reading: Best Blue Chip Companies in India
Top 10 Best Mid-Cap Mutual Funds for SIP
Mid-cap mutual funds invest in mid-cap companies. These are companies that have future potential to become large-cap companies. The mid-cap mutual funds are relatively riskier as compared to the large-cap mutual funds as the companies are vulnerable to giving negative returns.
Here are the Top 10 best mid-cap mutual funds for SIP:
| Scheme Name | AuM (Cr) | 1Y | 2Y | 3Y | 5Y | 10Y |
|---|---|---|---|---|---|---|
| Quant Mid Cap Fund – Direct Plan – Growth | 4857.91 | 41% | 57% | 77% | 169% | 285% |
| Edelweiss Mid Cap Fund – Direct Plan – Growth | 4915.47 | 31% | 45% | 57% | 120% | 228% |
| HDFC Mid-Cap Opportunities Fund – Direct Plan – Growth | 59027.47 | 32% | 52% | 66% | 126% | 223% |
| Nippon India Growth Fund – Direct Plan – Growth | 24365.53 | 31% | 48% | 61% | 121% | 218% |
| Invesco India Mid Cap Fund – Direct Plan – Growth | 4169.32 | 29% | 43% | 53% | 104% | 208% |
| Kotak Emerging Equity Fund – Direct Plan – Growth | 39027.24 | 21% | 33% | 43% | 99% | 206% |
| Tata Mid Cap Growth Fund – Direct Plan – Growth | 3223.96 | 28% | 42% | 52% | 103% | 195% |
| PGIM India Midcap Opportunities Fund – Direct Plan – Growth | 9962.07 | 17% | 24% | 33% | 104% | 194% |
| Baroda BNP Paribas Mid Cap Fund – Direct Plan – Growth | 1745.54 | 29% | 42% | 51% | 106% | 194% |
| SBI Magnum Midcap Fund – Direct Plan – Growth | 15957.21 | 21% | 33% | 45% | 107% | 184% |
Top 10 Best Small Cap Mutual Funds for SIP
Small-cap mutual funds are seen as the riskiest out of all the mutual fund types. Small-cap mutual funds tend to give either extremely good returns or extremely bad returns depending on the time frame you are looking for.
Here are the Top 10 best small-cap mutual funds for SIP:
| Scheme Name | AuM (Cr) | 1Y | 2Y | 3Y | 5Y | 10Y |
|---|---|---|---|---|---|---|
| Quant Small Cap Fund – Direct Plan – Growth | 15663.84 | 43% | 65% | 86% | 238% | 350% |
| Nippon India Small Cap Fund – Direct Plan – Growth | 45894.01 | 30% | 49% | 68% | 159% | 312% |
| SBI Small Cap Fund – Direct Plan – Growth | 24861.53 | 20% | 32% | 44% | 106% | 253% |
| Axis Small Cap Fund – Direct Plan – Growth | 19530.69 | 23% | 36% | 50% | 116% | 250% |
| HDFC Small Cap Fund – Direct Plan – Growth | 28606.62 | 28% | 49% | 64% | 134% | 245% |
| Kotak Small Cap Fund – Direct Plan – Growth | 14425.52 | 20% | 31% | 42% | 119% | 232% |
| DSP Small Cap Fund – Direct Plan – Growth | 13858.70 | 25% | 39% | 52% | 121% | 216% |
| Franklin India Smaller Companies Fund – Direct – Growth | 11833.66 | 31% | 52% | 67% | 133% | 216% |
| ICICI Prudential Smallcap Fund – Direct Plan – Growth | 7455.41 | 25% | 40% | 54% | 129% | 212% |
| Sundaram Small Cap Fund – Direct Plan – Growth | 3063.23 | 30% | 46% | 58% | 123% | 184% |
Consider reading: Best Small Cap Companies in India
Top 10 Best Tax Saving ELSS Mutual Funds for SIP
We have handpicked some excellent top 10 best tax-saving mutual funds for SIP that have consistently given excellent returns over the last 10 years.
| Scheme Name | AuM (Cr) | 1Y | 2Y | 3Y | 5Y | 10Y |
|---|---|---|---|---|---|---|
| Quant ELSS Tax Saver Fund – Direct Plan – Growth | 7237.64 | 36% | 46% | 61% | 156% | 323% |
| Bank of India ELSS Tax Saver – Direct Plan – Growth | 1090.31 | 32% | 45% | 53% | 107% | 207% |
| Bandhan ELSS Tax saver Fund – Direct Plan – Growth | 5976.05 | 22% | 34% | 44% | 96% | 180% |
| JM ELSS Tax Saver Fund – Direct Plan – Growth | 114.64 | 26% | 38% | 45% | 86% | 171% |
| SBI Long Term Equity Fund – Direct Plan – Growth | 20085.15 | 35% | 51% | 62% | 107% | 171% |
| DSP ELSS Tax Saver Fund – Direct Plan – Growth | 13846.06 | 26% | 36% | 43% | 86% | 170% |
| Kotak ELSS Tax Saver Fund – Direct Plan – Growth | 4797.29 | 21% | 31% | 40% | 80% | 162% |
| Canara Robeco ELSS Tax Saver Fund – Direct Plan – Growth | 7154.65 | 19% | 27% | 33% | 74% | 155% |
| Franklin India ELSS Tax Saver Fund – Direct Plan – Growth | 6032.54 | 27% | 38% | 47% | 87% | 149% |
| Invesco India ELSS Tax Saver Fund – Direct Plan – Growth | 2516.75 | 25% | 34% | 38% | 72% | 147% |
What is SIP in a Mutual Fund
The full form of SIP is a Systematic Investment Plan. SIPis an investment strategy offered by different mutual fund houses to investors wherein, the investors can invest a fixed sum of money at regular intervals in their mutual funds.
Looking to see How you can get the best returns on your SIP investments?
I see many people think SIP is a type of mutual fund whereas SIP is nothing but just a method of investing in your preferred choice of mutual fund.
The SIP term became famous after mutual fund houses started a campaign of Mutual Funds Sahi hai. This platform encourages retail investors to invest their money in their favorite mutual fund via SIP.
Consider reading: Types of Mutual Funds in India
What is the Best Approach to Starting a SIP in Mutual Funds?
Investing in mutual funds via a Systematic Investment Plan (SIP) can be an effective strategy for long-term wealth creation. Here’s an optimized approach to guide your investment decisions:
- Assess Risk Tolerance and Financial Situation:
- For Risk-Takers: If you’re young with strong financial backing, consider riskier investments like small-cap mutual funds. These funds invest in smaller companies with potential for high growth, albeit with increased volatility.
- For Risk-Averse Investors: If you prefer stability and predictable returns, large-cap mutual funds are more suitable. They invest in well-established companies with a consistent performance record.
- Emergency Fund: Before initiating a SIP, establish an emergency fund. This reserve should cover 3-6 months of living expenses, ensuring financial security during unforeseen circ*mstances.
- Long-Term Approach:
- SIPs are most effective when maintained over an extended period. This approach benefits from market cycles, as you purchase more units when prices are low and fewer when prices are high, known as rupee cost averaging.
- Avoid frequent changes to your SIP based on short-term market fluctuations. Consistency is key in SIP investments.
- Benefits of Market Cycles:
- During market lows, your SIP buys more units, potentially increasing overall returns when the market recovers.
- This strategy helps in mitigating the risk of market timing, as you invest across various market phases.
Mistakes to Avoid While Doing a SIP in a Mutual Fund
Many retail investors start SIP in a mutual fund with much enthusiasm but they start getting disappointed the moment they see negative returns on their investment.
When you start SIP in a mutual fund, you must understand that the SIP approach gives excellent returns over the long term period but most probably give negative/lesser returns in the short term.
Here are a few mistakes you must avoid while doing SIP in a mutual fund:
- Do not start a SIP with an expectation that mutual funds will give positive returns always.
- Do not invest in too many mutual funds.
- Do not close your SIP because your SIP investments are showing negative returns
- Do not try to time the market while investing in SIP
- Do not sell your SIP investment if the market has gone down a lot
Tips and Tricks While Finding Out the Best Mutual Funds for SIP
While there are no proven tips and tricks for investing in mutual funds here are a few pointers on how you can effectively find the best mutual funds for SIP:
- Try to increase your SIP allocation if markets have more than a 10% correction.
- Have a SIP in index funds, as index funds tend to give better returns over the long term.
- If the market has given a quick return then think of diverting your SIP to debt mutual funds( this is recommended only for people who actively track market movements)
Final Thoughts on The Best Mutual Funds for SIP
In conclusion, investing in mutual funds through SIP can be a smart and disciplined way to achieve your long-term investment goals. By choosing the right mutual fund, you can potentially earn better returns on your investment and build a diversified portfolio.
It’s important to consider factors such as the fund’s historical performance, investment strategy, and the fund manager’s experience before making any investment decisions.
Whether you’re looking for large-cap funds, mid-cap funds, or multi-cap funds, there are several top-performing mutual funds available for SIP investment in India. However, it’s essential to consult a financial advisor and do your research before investing in any mutual fund.
By taking a strategic and thoughtful approach, you can choose the best mutual funds for your investment needs and achieve your long-term financial goals.
So, consider your investment goals, do your research, and choose the best mutual funds for SIP investment that align with your investment objectives.
FAQ on Best Mutual Funds for SIP
Which mutual fund is best for SIP?
The best SIP mutual funds in India for 2024 can vary based on individual financial goals and market conditions. However, consistently high-performing funds include HDFC Balanced Advantage Fund, AXIS Bluechip Fund, and SBI Magnum Multicap Fund. Always consider funds’ performance history, expense ratios, and investment strategies before selecting. Consult with a financial advisor for personalized advice.
Who gives the highest return on SIP?
The highest return on a Systematic Investment Plan (SIP) often comes from equity-oriented funds, particularly mid-cap or small-cap funds, due to their higher risk-reward ratio. However, returns can vary greatly depending on market conditions, fund management, and investment duration. It’s advisable to consult with a financial advisor for personalized investment advice.
Which is the rank 1 mutual fund?
The rank 1 mutual fund can vary as rankings are updated periodically based on performance and market conditions. To find the current top-ranked mutual fund, consider checking reliable financial information sources such as Morningstar, Bloomberg, or your preferred financial news website for the latest analysis and mutual fund ratings.
Which is the best SIP plan for 10 years?
Identifying the best SIP plan for a 10-year investment horizon depends on your risk tolerance and financial goals. For a balanced approach, consider the HDFC Balanced Advantage Fund or the ICICI Prudential Multi-Asset Fund. For a focus on debt, the Aditya Birla Sun Life Banking and PSU Debt Fund is highly regarded. Always review fund performance and seek financial advice tailored to your needs.
