A Systematic Investment Plan (SIP) is considered one of the best ways to invest in Mutual Funds, as it debits a predetermined amount from your bank account towards a Mutual Fund of your choice. SIPs provide investors with the benefit of Rupee Cost Averaging, allowing them to buy more units when the price is low and buy fewer units when the price climbs. SIPs also let investors get into a disciplined form of investing.

With a plethora of options when it comes to Mutual Funds, each carrying unique features and characteristics, it can become quite a task finding the right one for a SIP. Here is a list of the five best Mutual Funds for SIPs.

1. Mirae Asset Emerging Bluechip Fund

Minimum SIP Amount: Rs. 1,000

Minimum Lump Sum Amount: Rs. 5,000

Expense Ratio: 2.26 (As on 31/1/2019)

Net Asset Value (NAV): Rs. 6,386 crore (As on 31/1/2019)

Category: Multi-Cap Equity Fund (Mid-cap and Large-Cap)

The Mirae Asset Emerging Bluechip Fund is an open-ended, actively managed Multi-Cap Equity Mutual Fund that takes exposure to large-cap and mid-cap company stocks. It has provided an Average Compounded Annual Growth Rate (CAGR) of approximately 19.92%. The fund carries a high Alpha of 3.81 when compared to the category average of -1.64. The fund also carries a marginally higher Beta of 0.96 when compared to the category average of 0.94, this demonstrates the fund’s ability to provide substantially higher-than-expected returns while taking on marginally higher returns. The trailing returns of the fund against its category have been provided in the table below.

Trailing Returns (%) 3-M 6-M 1-Y 3-Y 5-Y
Fund -2.3 -7.47 -3.52 20.06 25.54
Category -4.32 -11.71 -9.49 13.04 15.95

 

2. HDFC Small Cap Fund

Minimum SIP Amount: Rs. 500

Minimum Lump Sum Amount: Rs. 5,000

Expense Ratio: 2.18% (As on 31/1/2019)

Net Asset Value (NAV): Rs. 6,164 crore (As on 31/1/2019)

Category: Multi-Cap Equity Fund (Small-Cap and Mid-Cap)

The HDFC Small Cap Fund is an open-ended, actively managed Small-Cap Equity Mutual Fund that takes large exposure to small-cap and mid-cap company stocks. As this fund operates in the small-cap and mid-cap segments of the market, it is exposed to a high level of volatility making this a risky proposition, but its ability to keep up and sometimes outperform its category during bullish runs and its ability to mitigate losses during bearish runs has made it one of our favorites. The fund carries a very high Alpha of 9.30 when compared to the category average of 2.27 and a lower than category average Beta of 0.75, this demonstrates the fund’s ability to mitigate risk while generating higher-than-expected-returns. The trailing returns of the fund against its category have been provided in the table below.

Trailing Returns (%) 3-M 6-M 1-Y 3-Y 5-Y
Fund -5.99 -12.16 -13.94 19.37 18.99
Category -7.63 -16.93 -22.21 11.62 19.94

 

3. Kotak Emerging Equity Scheme

Minimum SIP Amount: Rs. 1,000

Minimum Lump Sum Amount: Rs. 5,000

Expense Ratio: 2.16% (As on 31/1/2019)

Net Asset Value (NAV): Rs. 3,425 crore (As on 31/1/2019)

Category: Multi-Cap Equity Fund (Mid-Cap)

The Kotak Emerging Equity Scheme is an open-ended, actively managed Equity Mutual Fund that invests predominantly in mid-cap company stocks. This fund performs well in both bearish and bullish market cycles and, even though it operates in the highly volatile mid-cap segment of the market, it manages to mitigate losses well. The fund provides an average CAGR of 10.96% which is quite good considering the volatile cycles this segment has seen over the past few years. The fund carries an Alpha of -0.15 which is higher than the category average of -2.64 and a Beta of 0.87 which is the category average, demonstrating the fund’s ability to generate high-than-expected returns while taking on no extra risk. The trailing returns of the fund against its category have been provided in the table below.

Trailing Returns (%) 3-M 6-M 1-Y 3-Y 5-Y
Fund -4.37 -13.08 -12.87 13.94 22.38
Category -5.31 -14.19 -13.55 11.75 18.69

 

4. L&T Emerging Businesses Fund

Minimum SIP Amount: Rs. 500

Minimum Lump Sum Amount: Rs. 5,000

Expense Ratio: 2.17% (As on 31/1/2019)

Net Asset Value (NAV): Rs. 5,465 crore (As on 31/1/2019)

Category: Multi-Cap Equity Fund (Mid-Cap and Small-Cap)

The L&T Emerging Businesses Fund is an open-ended, actively managed Equity Mutual Fund that invests predominantly in the small-cap and mid-cap segments of the market. Even though this is a relatively new fund that was launched in May 2014 it has consistently outperformed its benchmark and category since its launch. The fund carries an extremely high Alpha of 8.50 when compared to the category average of 2.27 and a Beta of 0.84 which is marginally higher than the category average of 0.76, demonstrating the fund’s ability to provide considerably higher-than-category-average returns while taking on marginally higher risks. The trailing returns of the fund against its category have been provided in the table below.

Trailing Returns (%) 3-M 6-M 1-Y 3-Y
Fund -7.87 -16.65 -18.66 19.25
NIFTY Smallcap 250 TRI -9.31 -21.49 -29.75 9.29
Category -7.63 -16.93 -22.21 11.62

 

5. Mirae Asset India Equity Fund

Minimum SIP Amount: Rs. 1,000

Minimum Lump Sum Amount: Rs. 5,000

Expense Ratio: 2.05% (As on 31/1/2019)

Net Asset Value (NAV): Rs. 10,343 crore (As on 31/1/2019)

Category: Multi-Cap Equity Fund (Large-Cap)

The Mirae Asset India Equity Fund in an actively managed, open-ended Equity Mutual Fund that takes heavy exposure to large-cap and mid-cap company stocks. The fund has consistently outperformed its benchmark and category since its launch and has performed well in both bearish and bullish market cycles. The fund carries a higher than category average Alpha of 2.37 and a lower than category average Beta of 0.96, demonstrating the fund’s ability to provide high returns while mitigating risk. The trailing returns of the fund against its category have been provided in the table below.

Trailing Returns (%) 3-M 6-M 1-Y 3-Y 5-Y
Fund -1.6 -6.67 -0.4 17.85 18.27
NIFTY 200 TRI -2 -9.11 -1.43 15.21 14.13
Category -3 -10.73 -6.58 13.12 15.24

 

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