Systematic Investment Plans, more popularly known as SIPs have become extremely popular with investors. It's always a difficult proposition to select the best SIPs. We have taken into account ratings of Value Research Online, Plus Crisil apart from the portfolio and past track record to arrive at the same.
Here are some of the best SIPs to invest in with a 10-year perspective, after a little research.
1. Mirae Asset Large Cap Fund – Growth
If you had to invest Rs 10,000 every month in the Mirae Asset Large Cap Fund for the last three years, you would have build a corpus of close to Rs 4.1 lakhs.
This is a large cap fund that has a 5-star rating from Value Research Online. Those looking to invest in this fund for the next 10-years can build a good corpus. One needs to give a minimum of 6 and you can invest a minimum of Rs 1,000 every month, through this SIP.
The fund has very good quality stocks in its portfolio, including the likes of HDFC Bank, ICICI Bank and Reliance Industries. This is a largecap fund.
2. Axis Bluechip Fund – Growth
This is a rather popular fund and has large assets under management. The fund has generated a 1-year returns of a solid 19.37%.
If you had to invest through an SIP of Rs 10,000 each month for the last three years in this fund, it would have grown to Rs 4.4 lakhs, which is a phenomenal return.
The fund has 82 per cent invested in stocks and most of this is largecap stocks. You can start an SIP by investing a small sum of Rs 500 each month and thereafter you can invest a sum of Rs 500 each month by way of Systematic Investment Plans. The fund has sizeable assets under management of nearly of Rs 9,500 crores.
3. Canara Robeco Bluechip Equity Fund - Regular Plan - Growth
This is a fund that has a 5-star rating from Crisil. Again, this is a largecap fund, which has as much as 95 per cent invested in equities. Since it is a largecap fund, the risks are moderate. The fund has generated an annualized returns of 16.91 per cent over the last one year and the three year returns are 15.91 per cent on an annualized basis.
To start an SIP, the initial minimum investment should be Rs 5,000, while the investment each month could be as little as Rs 1,000.
The fund has a good portfolio that includes names like HDFC Bank, ICICI Bank and Reliance Industries.
4. Tata Midcap Growth fund – Regular Plan
We wish to inform readers that this is a midcap fund and hence the risks are far higher than a largecap fund. Tata Midcap Growth Fund Regular Plan has generated a 1-year returns of 10.16 per cent and is also well rated by Crisil as 5-star.
It's important to note that the fund almost 61% is in mid cap stocks and almost 18 per cent in small cap stocks.
One can start an SIP with a small sum of Rs 5,000 in the initial time of investment and can invest Rs 1,000 every month thereafter.
This is one of the good SIPs to generate good returns over the long to medium term.
5. Invesco India Midcap Fund
Rs 10,000 invested in this fund per month, three years ago would have fetched Rs 3.88 lakhs. The fund has been rated 4-star by Crisil and Value Research Online.
Investors have to invest a small minimum investment of Rs 1,000 each month after an initial investment of Rs 1,000.
The net asset value under the growth plan is Rs 50.60. The fund has holdings in Coromandal International, Whirlpool and ICICI Bank, which are its top three holdings.
The three year absolute returns from the fund has been 38 per cent. This is a good investment for those investors who are willing to take a risk.
6. BNP Paribas Large Cap Fund - Growth
This is a fund that has been rated as 5-star by Crisil. It is a largecap fund, which means the risks are very much moderate. The fund has generated an annualized returns of 15.5 per cent over the last three years.
Those with a long-term view can buy into the stock for decent returns. You can invest in the fund by way of an SIP of Rs 500. The fund has a good portfolio including shares like HDFC Bank, ICICI Bank and State Bank of India. The assets under management of the fund is to the tune of Rs 812 crores.
7. DSP Equity Fund – Direct plan – Growth
This is a multi-cap fund, which means it invests in largecap, small cap and midcap stocks. DSP Equity Fund - Direct plan - has been accorded a 5-star rating by Crisil, based on various parameters.
An amount of Rs 10,000 invested each month in the fund in the last three years translates to Rs 4.11 lakh in the portfolio today.
One of the best part of the fund is that you can invest a small sum of Rs 500 every month by way of SIP. The fund's portfolio includes names like Bajaj Finance, ICICI Bank and HDFC Bank. For those looking to invest for a period of 3-5 years, this is a good bet.
8. JM Multicap Fund - Growth
This fund has been rated as 5-star by Crisil. An intial investment of Rs 5,000 can be made by way of SIP under this plan and thereafter one can invest a sum of Rs 5,000 each month through Systematic Investment Plans.
JM Multicap Fund has given a 1-year returns of 17 per cent and a 3-year returns of 14 per cent. Buy into the fund if want to hold for the medium to long-term.
9. UTI Equity Fund - Growth
This too is a multi-cap fund, which enable investors to take a moderate risk when investing. This fund has given a 1-year retuns of 13.92 per cent. If you had to invest in this fund by way of SIP of Rs 1,000 each month, about 12-months ago, it would have grown to Rs 13,165.
The fund has a good portfolio that comprises names like Asian Paints, HDFC Bank, Bajaj Finance and ICICI Lombard. Crisil has accorded a 5-star rating to the fund.
10. Axis Small cap Fund – Growth
To begin with let us inform readers that small cap funds are extremely risky. However, if you are looking by way of SIP for 5 to 10 years, this is a good bet.
Crisil has accorded a 5-star rating to the fund. In the last 1-year, the fund has generated an absolute return of 23.14 per cent, which is no doubt solid. One can invest in the fund through a regularly monthly SIP of Rs 1,000.
The fund has holdings in City Union Bank, NIIT Technologies and MAS Financial Services.
11. HDFC Small Cap Fund
This is another small cap fund that has been well rated. You can invest in the fund with a small sum of Rs 1,000 each month. The fund has generated a three year returns of 9.94 per cent on an annualized basis.
If you are looking at a decent time frame of 5-10 years for SIPs, this would be a good bet. However, as mentioned earlier small cap stocks are risky and hence there is an element of risk with small cap funds as well. So, one needs to be cautious before investing.