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Top 5 Mutual Funds to Invest in SIP

According to the risk-appetite of investors, our financial experts have compiled a list of top 5 mutual funds for next 10 years. Moreover, it is always suggested that a new investor should begin the investment journey through SIP mode of investment.

Now, let us have an overview of the schemes:-

• HDFC Top 100 Fund : It is the top recommended large cap fund of HDFC Mutual Fund that diversify the assets in the combination of growth and value stocks of 48 companies. The AUM of HDFC Top 100 Fund is Rs. 16,705 Crore (as on 30th April, 2019) with an exit load of 1%, if the redemption is made within 365 days. The minimum mutual fund investment in case of lumpsum and SIP is Rs. 5000 and Rs. 500, respectively. The large cap fund of HDFC has provided excellent returns in the long term and 19.99% of the returns since the inception date. This top performing large cap fund of HDFC Mutual Fund is suitable for an investor having moderately high risk appetite. An analysis of the sector allocation tells that the scheme parks the cash in large number of sectors with financial sector rocking the charts followed by energy, technology, construction, FMCG, etc.
• Mirae Asset Emerging Bluechip Fund : This Large & Midcap oriented scheme of Mirae Asset Mutual Fund is one of the top mutual funds in India for the investors who are willing to plough their money in a combination of large and midcap stocks. Mirae Asset Emerging Bluechip Fund is a good pick for generating high returns along with stability in the mutual fund market. The scheme parks the money safely in the growth stocks of 62 companies across market capitalization. As on 31st March, 2019 the AUM of the scheme is Rs. 7,162 Crore which is highest among all the funds within the same category. The minimum lumpsum investment required is Rs. 5000 whereas the minimum SIP investment required is Rs. 1000. The fund has been a consistent performer and have secured top rank on the basis of 3, 5, and 7-year annualized returns. Financial sector again is the top pick for the fund followed by healthcare, energy, automobile, etc.
• Axis Midcap Fund : The midcap fund of Axis Mutual Fund is one of best mutual funds for higher growth. Launched on 18th February, 2011 the scheme has an excellent track record and have provided 16.72% of the returns since the launch. Along with equities, the fund manager also diversify a considerable percentage of assets in the debt instruments. Rather than investing in large number of stocks, the scheme focuses on qualitative approach and invest in growth stocks of 36 companies only. Finance sector, which is the backbone of Indian Economy holds highest percentage of asset allocation followed by services, chemicals, healthcare, automobile, etc. The midcap fund of Axis Mutual Fund is known to provide excellent returns in the long run and the fund has achieved the same in the past where it surpassed the benchmark and category’s average by a huge margin.Rs. 5000 and Rs. 1000 is the minimum investment required for Lumpsum and SIP investment.
• HDFC Small Cap Fund : Searching for the best small cap fund in India? How about investing in HDFC Small Cap Fund which has been a top performing mutual funds over the years. The small cap fund of HDFC Mutual Fund diversify the assets predominantly in 70 stocks having higher growth potential in the future. The fund also parks significant amount of money in the debt & money market instruments for providing stability during market volatility. The scheme comes with an exit load of 1% which is applied when the redemption is made within 365 days. Moreover, the expense ratio of the mutual fund is 2.06% (as on 31st March, 2019) which is lowest among the peer competitors. The fund has managed to provide excellent returns in the long term which makes it one of the top ranked mutual funds in the small cap fund category.
• Kotak Standard Multicap Fund : For the investors who want to grab the market opportunities across the market caps, Kotak Standard Multicap Fund is a best performing mutual funds scheme for them. The scheme invests in a combination of large cap, midcap, and small cap stocks for generating consistent growth. According to the market trends, the multicap fund of Kotak Mutual Fund can increase/decrease the percentage of assets allocation in market caps. The minimum investment required for participation in this scheme is Rs. 5000 and Rs. 500 for Lumpsum and SIP investment, respectively. The AUM of the scheme (as on 31st March, 2019) is Rs. 23,881 Crore which indirectly reflects the trust of investors in this scheme. Over the past year, the scheme has emerged as the leading multicap fund in terms of growth and performance.

Wrapping up all, these were the top 5 performing mutual funds in India for new investors that can help an individual in achieving their financial goals early. Moreover, for investing wisely don’t forget to use the SIP Calculator for knowing your investment amount and time horizon to achieve your goals.