Feb 26
0
Best SIP Mutual Funds
A SIP (Systematic Investment Plan) is a smart, hassle-free method of investing a fixed sum in a mutual fund scheme. It permits one to purchase units on a particular date every month in order to implement a saving plan.
Following is a list of SIP mutual funds that are, according to certain criteria, the best to invest in this year:
- UTI Equity Fund:The objective of UTI Equity Fund is to invest a minimum of 80% of its funds in equity related instruments and equity. The risk related will be medium to high. The remaining 20% will be invested in debt instruments with medium to low-risk profile. In a particularly difficult period in equity markets, the fund has provided low volatility returns. The promised returns have been delivered by this clearly articulated strategy. It has given 15.5% returns in the last year as compared to S&P BSE 100 returns of 12.2%.
- Birla SL Frontline Equity Fund:The main aim of this fund is to diversify across various sectors in BSE 200 in order to procure long term growth of capital. This mutual fund is known to be a consistent performer. It can be considered as one of the best SIP plans for your child’s marriage and education.
- ICICI Pru Focussed Blue Chip FundThe aim of this mutual fund is to invest in 20 large cap companies from the top 200 stocks that are listed on the NSE. This list is based on market capitalization. This fund has been a consistent performer in the long run. It has a clear strategy and was part of the best SIP plans in 2015. Other than beating all its peers in the last 5 years, it has provided 11% annualized returns when compared to CNX Nifty returns of 6.05% in the similar period. The ICICI Pru Focussed Blue Chip Fund is considered to be one of the best when it comes to children’s education.
- Franklin India Smaller Companies FundFranklin India Smaller Companies Fund invests up to 75% in smaller companies. The main objective of the mutual fund is to procure long term capital appreciation from a portfolio of small-cap and mid-cap companies. This is a unique plan which invests larger portions in small companies and smaller amounts in large-caps. This fund is thus aptly called smaller stock fund. In the last 5 years, this fund has performed very well and provided 19% annualised return as compared to CNX Midcap benchmark of 7.1%. If you are looking to invest in a small-cap/ mid-cap segment, Franklin India Smaller Companies Fund is a safe bet.
Following is a table depicting the related values for the SIP funds mentioned:
| Category | Mutual Fund Scheme | Crisil Rank | Assets under Management (AUM) (Rs. Crores) | 3 months | 1 year | 3 years | 5 years |
| Large-cap | UTI Equity Fund | Rank – 2 | 4,499 | 0.6% | 12.0% | 19.7% | 12.2% |
| Large-cap | Birla SL Frontline Equity Fund | Rank – 2 | 9,792 | -1.1% | 11.4% | 20.4% | 11.2% |
| Large-cap | ICICI Pru Focussed Blue Chip Fund | Rank – 3 | 9,433 | -1.1% | 7.6% | 18% | 10.9% |
| Mid-cap/ small -cap | Franklin India Smaller Companies Fund | Rank- 2 | 2,512 | 2.3% | 20.6% | 35.8% | 19.3% |
