Best mutual funds for SIP in 2018 – 2019
SIP is one of the best methods to invest in mutual funds. It gives you the benefits of rupee cost averaging and helps you taking a disciplined approach in your investments. In this article we will list down 10 best mutual funds for SIP. We have included funds from all equity categories apart from sector funds. These funds are chosen on the basis of their superior and consistent performance over the years.
This large cap fund is one of the most consistent performers. It has the ability to contain the downside and has shown it in the bear markets of 2008 & 2011. The portfolio of the fund is heavyweight on financial sector and it has helped it in getting good returns. The 3 year and 5 year SIP returns of the funds have been 16.09% & 18.18% respectively.
This fund has beaten the benchmark and category each time in last 5 years. Though it is a large cap fund, it takes some exposure in mid cap too which is currently around 14%. It invests in top 100 companies as per market capitalization. Its SIP returns for 3 years & 5 Years have been 15.16% & 18.67% respectively.
The fund is a good and consistent performer having a multi cap approach with around 45% of the portfolio invested in mid caps. Majority of rest of the portfolio is in large caps. The fund tends to lose more during the bear markets but covers that up with higher returns than the category in the bull run. The SIP returns have been 19.91% & 23.05% for 3 years and 5 years respectively.
The fund brings a track record of more than 33 years with it. It has been an impressive performer and currently has an exposure of around 20% in mid and small cap stocks. The fund considers past record along with the future strategies of the company before investing in them. It has given 14.39% & 18.95% SIP returns in past 3 years & 5 years respectively.
The fund has been a very strong performer in past 5 years. It has beaten the benchmark comprehensively in 3 year and 5 year returns. The fund invests in undervalued stock and doesn’t restrict itself to any particular market-cap. It has given SIP returns of 22.87% & 27.51% in past 3 years and 5 years respectively.
The fund stays true to its label and invests more than 65% of the portfolio in Small cap funds as per its mandate. Despite having minimal allocation to large cap funds, it has contained its losses in bear markets. The fund focuses on valuations, scalability and management while selecting a stock to invest in. It has given 29.56% & 35.8% SIP returns in last 3 & 5 years respectively.
Small cap funds tend to be highly volatile but this fund has managed to have standard deviation lower than the category by 2% in both, 3 years and 5 years. The fund has been consistently beating the benchmark. The fund has around 50% of the portfolio in small caps and around 40% in mid caps. It invests in low capital intensive business having high growth potential. The SIP returns of the fund for last 3 & 5 years are 22.09% & 29.61% respectively.
The fund has been consistently beating the benchmark year on year since its inception. Though it is a mid cap fund but it looks out for good value stocks in other categories too and hence its portfolio is 45% in mid caps, 35% in large caps and rest in small cap stocks. It has given very impressive SIP returns of 29.2% & 32.42% in last 3 years and 5 years respectively.
The fund has beaten both category and benchmark in last 5 years in year on year returns. The fund has around 60% allocation in mid cap stocks and has given impressive returns consistently since its launch in 1993. It follows the growth strategy and invests in stocks which are reasonably priced. The SIP returns in last 3 years and 5 years have been 18.68% and 25.16% respectively.
The fund is one of the best performers in its category. It has consistently beaten the benchmark and category over the years. It maintains the allocation in equity around 70% at all times and doesn’t change the market cap wise allocation drastically. It invests in stocks with reasonable valuations having good management and quality business with a possibility to deliver high growth and good return on equity. The SIP returns of the fund have been 16.51% & 19.49% in the last 3 years and 5 years respectively.
Here are the details about these funds:
As discussed above, SIP as an investment mode brings in the discipline and lets you invest across market cycle without bothering about the short term news.