Upwardly presents to you the best SIP plans in 2019-20
List updated on January 19, 2019
|Fund Name||Returns (5Yr)||Growth of Rs 1 lakh in 5 Yrs*||Category||Invest|
|Mirae Asset India Equity Fund||18.76%||₹ 2.36 lakh||Multicap||Invest|
|Reliance Large Cap Fund||17.55%||₹ 2.24 lakh||Large cap||Invest|
|Mirae Asset Emerging Bluechip Fund||27.09%||₹ 3.32 lakh||Large & Mid cap||Invest|
|L&T Midcap Fund||24.31%||₹ 2.97 lakh||Mid cap||Invest|
|Reliance Small Cap Fund||26.36%||₹ 3.22 lakh||Small cap||Invest|
|Aditya Birla Sun Life Tax Relief 96 Fund||18.91%||₹ 2.38 lakh||ELSS (Tax Saving)||Invest|
|ICICI Prudential Equity & Debt Fund||15.81%||₹ 2.08 lakh||Hybrid Equity (Balanced)||Invest|
Want to invest in the bests SIP plans but lost in the ocean of 8,000 mutual fund schemes in India? The financial wizards at the Upwardly Research Team have done the hard work on your behalf and prepared the best SIP to invest for highest growth. We present to you the best SIP for long term across different categories.
Best SIP Plan: Multi cap Fund
Multi-Cap or Flexicap or Diversified Equity funds invest in companies of all sizes. The allocation between large, mid and small cap stocks varies as per fund manager’s outlook of the market with an objective of making the best returns from equities at any given time.
Mirae Asset India Opportunities Fund was renamed to Mirae Asset India Equity Fund as per the new SEBI guidelines. The fund remains a multi-cap fund and other features of the scheme remain unchanged. With assets of ₹10,036 Cr, the fund is managed by the prolific fund manager, Neelesh Surana. In spite of being a multi-cap fund, it predominantly invests in Large-cap stocks. This fund is one of the most stable and consistently better performing schemes. Year-on-year the fund surpassed its benchmark. The fund combines consistency of large-caps with conviction ideas from midcaps. It focuses on companies with sustainable competitive advantage. The fund has beaten its category by 3-4 percentage points in the 3 and 5- year returns. It outperformed the benchmark by 2-5 percentage points. A SIP of Rs 5,000 started 5 years ago would’ve given Rs 4.27 lakh by now.
Best SIP Plan: Large cap Fund
Large-cap equity mutual funds invest in a chosen portfolio of large companies like HDFC Bank, Infosys, Indian Oil and so on. These companies have proven themselves over the years and reached the top spots of their industries. Profits of large Indian companies have started to improve in 2018 which should see the large-cap funds performing well in 2018.
It is one of the best SIP plans in the large cap category. A large-cap fund predominantly investing in stocks of top 100 companies by full market capitalization. The fund follows a fluid investment style. The fund manager ability to fundamentally sound stocks and understand long-term trends has benefitted the fund. With 3-year annualized returns of 15.4% and 5-year returns of 17.5%, these are 1 – 4 percentage points higher than the benchmark returns and 3 percentage points more than the category returns. A SIP worth ₹5,000 in this fund started 5 years ago is worth ₹4.16 lakhs now. Mr. Shailesh Raj Bhan is the fund manager.
Best SIP Plan: Large and Mid cap Fund
This fund invests a minimum of 35% in large-cap companies and 35% in mid-cap stocks of total assets. This new category is positioned between the two major categories, i.e., large-cap and mid-cap categories. This category is defined as an open-ended equity scheme investing in both large-cap and mid-cap stocks.
This fund lives up to the ‘blue-chip’ tag in its name. The fund invests 35% of its assets in large-caps and the rest 65% in mid-caps. The fund picks up companies for its portfolio with operating profits of Rs 100 Cr. It avoids investing in micro-caps. The fund has outperformed its category by 6-11 percentage points and the benchmark by 6-10 percentage points in the 3 and 5-year returns. The fund gave 20.80% (annualized) return since its inception in 2010. A SIP of ₹5,000 p.m. in this fund started 5 years ago is worth ₹4.76 lakhs now.
Best SIP Plan: Mid cap Fund
Mid Cap equity mutual funds primarily invest in medium-sized companies with high growth potential. While this fund category is inherently more risky than Large-cap and Flexicap, average returns in this category have been higher than Large-cap and Flexicap funds over the last 3 years.
This fund’s strategy is a blend of growth and value styles of investing. The focus is on owning fundamentally strong and scalable businesses with good management track record, at reasonable valuations. The fund’s asset allocation reveals a 15-20 percent allocation to small-cap stocks, while mid-cap allocation is about 80-85 percent, with the rest parked in large caps. This may result in a lower risk profile, while also moderating the returns from this fund. With 3-year and 5-year annualized returns of 15.7% and 24.3% respectively, the fund has outperformed its benchmark by 2-7 percentage points and peers by 3-4 percentage points. A SIP of ₹5,000 p.m. in this fund started 5 years ago is worth ₹4.37 lakhs now.
Best SIP Plan: Small cap Fund
Funds in this category primarily invest in small-sized companies. Shares of smaller companies can give multi-bagger returns but also carry a significant downside risk. Good funds in this category have outperformed funds from other categories in the last 5 years. While it is not recommended to do all your SIP in small-cap funds, they are a good addition to your SIP portfolio.
Reliance Small Cap fund is one of the best SIP plan to invest in. This is one of the rare funds in the equity space which has beaten its benchmark as well as the category across all the time frames: one year, three years, five years or even seven years. Managing solid performance, even in bear phases, without leaning on large-caps is credible. Over three and five years, the fund has been ahead of its benchmark by 4 percentage points. Compared to the category, it has managed 5 percentage points outperformance. A SIP of ₹5,000 p.m. in this fund started 5 years ago is worth ₹4.52 lakhs now.
Best SIP Plan: ELSS (tax saving)
Investments in ELSS mutual funds help you save taxes up to ₹46,350 per year as per Section 80C of Income Tax. Most individuals invest in ELSS mutual funds towards the end of a fiscal year between December and March as a one-time (lumpsum) investment. You can play it smart by doing a monthly SIP in ELSS mutual funds. Since the money gets invested throughout the year, it eliminates the pressure to source money for investments at one go and brings you superior returns at the same time.
One of the oldest ELSS funds, this fund has generated outperformance over the last 5 years. The fund follows a multi-cap strategy. It hunts for companies run by professional management, which have the predictability of earnings and strong moats. The three-year return is now over 1 percentage points more than the category returns. The five-year record over 5 percentage points ahead of the benchmark returns and 2 percentage points more than the category returns. The management team has remained very stable since 2006, with Ajay Garg at the helm. A SIP of ₹5,000 p.m. in this fund started 5 years ago is worth ₹4.20 lakhs now.
Best SIP Plan: Hybrid (Balanced)
Balanced funds invest in a mix of equity and debt to reduce the risk from equity investing while still generating good returns. They are a great choice for investors who want to invest in equities but have do not have the ability to digest fluctuations (volatility) associated with equity returns.
With assets of ₹26,000 crore, ICICI Prudential Equity is the second largest equity oriented mutual fund in India. Earlier known as ICICI Prudential Balanced Fund, it is managed by ICICI Pru CIO S. Naren with others. The fund follows a rather conservative investment strategy in both equity and debt. On the equity side, the fund predominantly invests in large-cap stocks following value investing style. The fund is very conservative about taking on credit risks. Hence, the fund maintains a low profile with the debt portion. ICICI Prudential Equity and Debt fund has outperformed its category by 2% in 3 and 5-year returns. The fund gave 14.22% p.a. returns since its inception in 1999. A SIP of ₹5,000 p.m. in this fund started 5 years ago is worth ₹4.01 lakh now.
Upwardly has the best SIP plan for 5 years and longer. Invest in the best SIP plans at www.Upwardly.in.
Updated on: January 19, 2019