Top 10 SIP Mutual Funds to Invest in 2019
Mutual funds are considered to be the safest option for long-term investment. It is one of the most fast-growing and popular investment plans. For those seeking long-term investment in SIP, the best advice is to adopt a top-down approach where the investor can first reach optimum asset allocation level and then can select the Best SIP Mutual Funds to invest in 2019 which match with his/her risk-taking capability and reward investment plan.
All those who are investing for the first time, the best advice is to start with a Systematic Investment Plan (SIP) instead of selecting a lump sum investment. The primary benefit of SIP investment is that in spite of the ups and downs in the market the MF portfolio will not be much affected as the investors can invest money at regular intervals. SIP Mutual Funds in India offer tremendous growth prospects for naive investors as it doesn’t require much speculation and experience. Moreover, the risk factor is also comparatively low in it.
What is SIP?
SIP is a plan which helps in avoiding ups and downs of the share market and helps in creating funds disciplined manner. SIP or Systematic Investment Plan is a way to build a portfolio over a long time by investing regularly without the risk of the volatility of the stock market. A person can select to invest the SIP in mutual funds, stocks, gold or ETFs. There are many SIP Mutual Funds in India.
Types of SIP Funds
There are two different types of SIPs which are as follows:
Amount Based SIP:
In an amount based SIP; the investment amount is pre-fixed by the investors along with the predefined frequency of investment. It can be calculated by dividing the SIP amount by the market price of the share. The fractional value is not considered while calculating SIP Mutual Funds in India and the order is placed based on the remaining amount.
Quantity Based SIP:
In a quantity based SIP the quantity of the share is fixed for the company desired by the investor and frequency of the purchasing is also pre-defined. The value of the order is calculated on the basis of the existing market price of SIP when the order is executed. The Best Mutual Funds to Invest for SIP should be selected after thorough analysis.
Salient Features of SIP
The long-term benefits in the equity market are possible by adopting a disciplined approach and wide outlook. Following are the features which make SIP Mutual Funds in India an ideal choice for the investors in the equity market:
- Disciplined investment plan
- The foundation of SIP is ‘Rupee Cost Averaging’.
- Flexibility in terms of quantity or amount based Sip
- Flexibility in terms of time intervals viz. per week, per month, per fortnight and so on.
Advantages of SIP
SIP is a viable option for all those who lack time and funds. The advantages of SIP Mutual Funds in India are as follows:
- Lower risk factor based on ‘Rupee Cost Averaging’.
- Investment is possible even with a small amount.
- No need to keep a track of the market timing.
- The possibility of fixing long-term financial goals.
- Disciplined approach
How to Select Best SIP Investment?
The ground rule for selecting the companies is to select the one which the investor would like to own if got an opportunity. Some stocks are ideal for the SIP investment purposes, hence can be accumulated but by following a gradual and study approach. It is ideal to select the companies which had a strong track record as these only can offer a firm and constant strategy for ensuring long-term growth. The best SIP mutual funds to invest can be selected after a deep analysis of various plans.
What’s so special about SIP?
SIP is a well-planned investment that helps a person to invest at regular intervals. SIP Mutual Funds in India thus helps in inculcating the habit of saving money and building assets for using it in future. A person can use a SIP calculator for finding what can be the smallest investment amount which can help in reaping lucrative returns in the long run by investing at regular intervals.
How to start SIP and Underlying Decisions
The SIP funds can be bought through online modes. It can be taken by anyone who is interested in a safe investment plan. The first decision is regarding the asset allocation, i.e., how much the investor wants to invest in which kind of the mutual fund. The investor can choose the funds such as large-cap funds, small or mid-cap funds or debt funds. In general, the allocation can be 50 percent in large-cap, 20 to 30 percent in small or mid-cap funds and remaining in the debt funds. However, it is vital that the SIP portfolio should have some debt fund in it. In the case of an aggressive portfolio chosen for the long term, it can be as small as 20 to 25 percent of the investment per month. The best SIP mutual funds to invest can be carefully chosen by thoroughly studying various options.
The second important decision is about the number of a scheme to be included in any portfolio. As there are three main asset classes as discussed above, the portfolio of an investor should include a minimum of three schemes. However, the maximum number should not go above seven or eight. More than this number means a portfolio will become cumbersome and difficult to manage. An ideal portfolio can have five schemes with 4 schemes on equity and 1 on debt funds.
The third vital decision is about selecting the schemes. It is easier to take this decision when one is sure about which type of schemes he/she is looking for and the number of schemes of each type to be incorporated in the portfolio, this decision becomes easy. One can carry out thorough research on the internet for selecting the desired scheme. However, the final decision should be made by comparing and contrasting various schemes.
When talking about the SIP Mutual Funds in India, one should select those who can offer the most lucrative returns and the best investment opportunity. One can invest in these funds for a period of about five to seven years. The mutual fund schemes with mid-cap and small are riskier than the other ones. For this reason, those are considered a great option for all those who are looking for high-risk rewards attached to it.
Best SIP Mutual Funds to invest in 2019
SIP Mutual Funds to invest in India in 2019 are as follows:
SBI Blue-chip Fund SIP:
SBI Blue-chip Fund is one of the excellent SIP funds. It invests in high profile companies such as Maruti Suzuki, Infosys, Reliance Industries, Sun Pharma, etc. Its manager holds an experience of more than six years. Moreover, the expense ratio of the fund is not very high. It comes under the category of large-cap funds. Its NAV is 39.037. The asset size is 11,360.65 crores. Its return is the 1st year is 28.8%, the third year is 13.8% and the fifth year is 18.3%.
Birla Sun Life Top 10g0 Fund
Birla Sun Life Top 100 Fund is an investor is about seventy-three Its main stocks are invested with well-known players such as Infosys, Larsen & Toubro, HDFC Bank and ICICI bank. These well-known companies have already shown amazing performance and expected to show excellent results in the future also. It comes under the category of large-cap funds. Its NAV is 59.184. The asset size is 2,480.75 crores. Its return is the 1st year is 29.6%, the third year is 11.5% and the fifth year is 17.4%.
Aditya Birla Sun Life Frontline Equity
Aditya Birla Sun Life Frontline Equity is the large-cap It consistently shows good performance. Its portfolio is advantageous for the financial sector as it is expected to bring about better returns. It comes under the category of large-cap funds. Its NAV is 224.020. The asset size is 14,203.54 crores. Its return is the 1st year is 29.6%, the third year is 12.1% and the fifth year is 17.1%.
Reliance Tax Saver Fund
Reliance Tax Saver Fund refers to an open-end SIP plan. The objective of the fund is to maintain a delicate balance between the large and mid-cap firms. These companies mainly target in investing in those companies which have tremendous growth prospects in the coming two or three years. The funds are also allocated to mid-cap companies with high growth perspectives and MNCs. It comes under the category of ELSS. Its NAV is 69.863. The asset size is 8,405.84 crores. Its return is the 1st year is 44.8%, the third year is 14.1% and the fifth year is 22.7%.
HDFC Balanced Fund:
It is a long player in the SIP sector. The fund has shown great performance consistently and is a good option for those who are investing for the first time. Under Balanced funds category, it is the best HDFC Mutual Funds to Invest in SIP. Its NAV is 152.600. The asset size is 12,231.78 crores. Its return is the 1st year is 26.5%, the third year is 12.9% and the fifth year is 18.6%.
ICICI Prudential Balanced Fund
ICICI Prudential Balanced Fund is considered to be the one the best mutual fund diversified plan. The fund is considered to be the topmost player in the sector as it has shown excellent performance with 18% yearly returns in the past five years. It can be considered as the best SIP mutual funds to invest due to its benefits. It comes under the category of Balanced Funds. Its NAV is 131.530. The asset size is 15,709.33 crores. Its return is the 1st year is 23.4%, the third year is 13.2% and the fifth year is 18.3%.
SBI Magnum Multicap Fund
SBI Magnum Multicap Fund has proved itself as a constant achiever with a good track record. It comes under the category of Diversified funds. Its NAV is 49.187. The asset size is 2,269.99 crores. Its return is the 1st year is 35.4%, the third year is 16.7% and the fifth year is 20.9%.
Franklin India Smaller Companies
Franklin India Smaller Companies is a small cap fund. Unlike other similar funds, it is not much volatile. In fact, it has shown a lower standard deviation than the other similar funds by 2% is its third and fifth years. It is mainly concerned with investing in the low capital-intensive business with chances of high growth. It is also a good SIP mutual funds to invest in India. It comes under the category of small and mid-cap funds. Its NAV is 64.217. The asset size is 4,898.91 crores. Its return is the 1st year is 41.3%, the third year is 20.0% and the fifth year is 29.8%.
Mirae Asset Emerging Bluechip Fund:
Mirae Asset Emerging Bluechip Fund has standout among all others in the sector by showing spectacular performance with 31% yearly returns in the past five years. It has in fact explored diversified market cycle and is a unique fund in this regard. It comes under the category of small and midcap funds. Its NAV is 53.925. The asset size is 3,669.34 crores. Its return is the 1st year is 47.8%, the third year is 24.3% and the fifth year is 30.7%.
L&T Emerging Businesses Fund
L&T Emerging Businesses Fund is mainly interested in investing in the companies which are in its budding stage and have tremendous growth prospects and target at becoming a topnotch player in the coming years. Hence, it has the potential of becoming the best SIP mutual funds to invest. It comes under the category of large-cap funds. Its NAV is 29.716. The asset size is 1,224.23 crores. Its return is the 1st year is 66.6% and the third year is 27.9%.
This was about SIP Mutual Funds in India. One can definitely have a great opportunity by investing in SIP. However, only the best SIP mutual funds to invest can be selected on comparing and analyzing the various features and benefit of various mutual funds. A thorough comparison can help in selecting the best from the rest. By investing in Sip one can be sure about tremendous growth prospects.