Top 15 Best Equity Mutual Fund SIPs for 2015

Mutual Funds are the best tools for long term wealth creation. But, the challenge is to identify good and top performing mutual funds that can help you in achieving your Financial Goals. There are hundreds of mutual fund schemes which are available in the market. Besides this, there are plethora of NFOs (New Fund Offers, new schemes) which keep hitting the market. Identifying good mutual fund for long term investment is not an easy task.

‘Wealth creation’ is like Test cricket where a quick fifty or hundred may not always win you a game. You need the solidity and consistency of a Rahul Dravid or a Laxman more often than the flamboyance of a Sehwag to be able to emerge victorious over the five days.

A ‘good mutual fund scheme’ is one that consistently manages to outperform the Category it belongs to and also its Benchmark. I have tried my best to identify top performing and best Equity Mutual Fund SIPs (Systematic Investment Plans) that you can choose to invest in 2015.

Kindly remember, you first need to identify your investment objective, time horizon of investment and risk appetite to arrive at your Investment Plan. Equity Mutual Funds are risk oriented products. Invest in these top performing mutual funds through SIPs (or lump sum) if your time horizon is atleast 5 or more years.

Methodology to select Top Equity MF for SIPs :

I have judiciously followed the below points to shortlist the best equity mutual funds :

  • Returns : I have shortlisted these top performing equity MFs based on SIP returns (using SIP Returns Calculator of Moneycontrol.com). I have considered monthly SIP.
  • Another factor is ‘the age of the fund’. How long has the mutual fund been in existence? That gives us a chance to look at its performance over long periods of time. Funds with a good track record for the last 5 to 10 years have been preferred.
  • Risk Vs Return : Some funds may generate very good returns but at the cost of very HIGH RISK. We need to look at risk-return trade off also. I have spent good amount of time on checking some of the important ratios to measure risks of mutual funds. These are like Standard Deviation, Alpha, Beta, Sharpe Ratio and overall Risk grades of the funds.

(What is Standard Deviation ? Standard deviation is a very important statistical measure to analyze the range of a fund’s performance. When a fund has a high standard deviation, its range of performance has been very wide, indicating that there is a greater potential for volatility.Higher the Standard Deviation higher the fluctuations/volatility in returns. A Fund which can generate high returns consistently with low SD is a good one)

(Ratios to measure risk of a mutual fund : A good Mutual Fund ideally should have Low Standard Deviation, High Alpha, Low Beta and High Sharpe Ratio)

  • I have also considered Expense Ratio (in % terms) as one of the factor. (What is Expense ratio? Expense ratio shows the amount that mutual funds charge for managing the investors’ money)
  • I have also checked the current investment portfolios of all these funds.
  • I have not considered the STAR ratings of funds provided by Ranking agencies. Usually these star ratings reflect the short term (1 or 2 year’s) performance of the funds.
  • The primary sources of information are valueresearchonline.com and Moneycontrol.com.
  • I have tried to identify top performing mutual funds based on the Fund Categories like Large cap, Diversified, Small & Mid-cap, Balanced and Tax saving (ELSS).

15 Top Performing Equity Mutual Fund SIPs in India

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Best Top Equity Mutual Fund SIPs in india

Let us now look at some more details of each of the fund categories.

Top 3 Best performing SIP Large Cap Equity Mutual Funds :

Best Large cap mutual funds for SIPs

There are roughly around 148 Large cap oriented Equity mutual fund schemes. The average returns of this fund category over a 5 year period is around 10.67% (as per valueresearchonline.com). UTI Equity Fund and ICICI Prudential Focused Bluechip funds have LOW risk grades. Also, the standard deviation for both of the funds are on the lower side.Both these funds have high Alpha (Alpha is a measure of performance on a risk-adjusted basis. The excess return of the fund relative to the return of the benchmark index is a fund’s alpha).

The other nearest competitors for these funds are HDFC Top 200 (lost due to high Standard Deviation), Franklin India Blue chip Fund, Birla Sunlife Frontline Equity Fund and ICICI Top 100 fund.

3 Top Performing Diversified Equity Mutual Funds for SIP :

Best Equity Diversified mutual funds for SIPs

This fund category can also be called as Multi-cap or Large & Mid-cap oriented. The average returns of this fund category is around 13% for the last 5 year period. There are around 183 schemes in this category. Most of these funds have a slightly higher exposure to mid-cap companies. ICICI Prudential Dynamic has lower Standard deviation when compared to other two funds. HDFC Capital Builder fund has high Alpha.

The other good performing funds in this category are Franklin India High Growth Companies Fund and Mirae Asset India Opportunities Fund. Both these funds are relatively new entrants but are worth to track.

Top 3 Best Small & Mid-cap Mutual Funds for SIP :

Best Small and Midcap mutual funds for SIPs

There are around 120 schemes in this fund category. The average category returns are around 18% in the last 5 years. HDFC Mid-cap opportunities fund has LOW risk grade. Franklin India Smaller Companies Fund has very high Aplha. It has generated 21.88% (CAGR) returns in the last 10 years.

The other good funds in this category are IDFC Premier Equity Fund (Regular Plan), ICICI Prudential Value Discovery Fund and DSP Blackrock Micro Fund.

Top 3 Best Balanced (Equity oriented) Mutual Funds for SIP :

Best Balanced mutual funds for SIPs

49 schemes are available in this category. The average category returns are around 12.75% in last 5 years. HDFC Balanced Fund has one of the lowest expense ratios. ICICI Prudential Balanced Fund (Regular Plan) has very low standard deviation, a very high Alpha & Sharpe ratio. The best alternate to HDFC balanced can be HDFC Children’s Gift Fund (Investment Plan).

(Visit my post for detailed analysis of ‘Top & Best Balanced Funds.”)

Top 3 Best Tax saving (ELSS) Mutual Funds for SIP :

Best ELSS tax saving mutual funds for SIPs

We have 90 schemes in ELSS Fund category. 13% is the average category returns in 5 years. Franklin’s and ICICI’s ELSS plans have been consistently performing well. Franklin India Tax shield fund has one of the lowest standard deviations and also a very low BETA. Axis long term equity fund though a new entrant, has LOW risk grade with a very high ALPHA. Off-late Reliance Tax Saver Fund has been performing well but it has a very high SD (infact the highest SD in ELSS category).

(You may like reading my article on ELSS Funds – “Top 5 Tax Saver ELSS Mutual Funds to invest in 2015.”)

Some Important Points to ponder about Mutual Fund (SIP) Investments :

  • I have tried to list some of the best performing equity mutual funds here. There is no necessity that you have to have a fund from each category to build a good investment portfolio. Kindly do not over clutter your portfolio. Select 2 to 3 good funds. That would be more beneficial
  • Invest in Equity mutual funds if your time horizon is atleast 10 years. You can opt for Balanced funds if you time horizon is between 5 to 10 years. Invest for long term goals.
  • Understand the risks associated with equity mutual funds. Kindly do not invest for quick gains or based on tips.
  • Continuously track and monitor your mutual fund portfolio. If possible invest through online platforms.
  • Do not time the market. Timing the market is almost impossible. Anytime is good time to invest in or to start SIPs.
  • If your funds are generating negative returns, do not panic. Do not redeem or stop SIPs based on short term market movements. Continue your SIPs as long as possible. You may also consider increasing your SIP contribution amount on yearly basis. Small investments made at regular intervals can yield much better returns over a long period of time.
  • It is advisable to build a mutual fund portfolio based on your Financial Goals. You may opt for variety of portfolios of mutual funds for different set of goals.
  • Opt for Growth option of mutual fund schemes.
  • If you are new to mutual fund investments then start with Balanced funds. (Visit my post on “Top Balanced Funds“)
  • Kindly do not churn your portfolio at regular intervals
  • Do not expect abnormal returns.
  • Say NO to New Fund Offers (NFOs).
  • Last but not the least, remember “Mutual Fund investments are subject to market risks. Past performance may or may not be sustained in future.”

You might have already invested in mutual funds. You may or may not find your funds in the above list of top performing Equity mutual fund SIPs. That does not mean your selection is wrong. Remember, we are selecting good funds out of hundreds of mutual funds schemes.

If you are a DIY (Do It Yourself) investor, trust your skills and conviction. Keep monitoring the performance of your investment portfolios. Please share your queries and comments. Cheers!

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(Image courtesy of Stuart Miles at FreeDigitalPhotos.net)

Latest article : “Best SIP Equity Mutual Funds to invest in 2016”

  • Yavika says:

    Hi Sreekanth,
    I was reading your article and you have suggested to have different portfolios for different goals. So, if i have goals like, vacation(3yrs), education(5yrs), higher education(8yrs), education for second chiled (12yrs), higher eduction for 2nd child(16yrs), home(10yrs), etc., does that mean I should have so many diffrents portfolios? Considering 2-3 funds per goal also, I may end up having more that 10 MFs.

    Is that the way to go? Can you please elaborate on this? thanks.

    As of now, I have just planned a SIP portfolio generalised one (with due consideration to immediate goal) and was planning to balance it as I near my goals. Please advice.

    • Dear Yavika,
      You can invest in same funds with different SIP amounts as per the expected Corpus.
      For example : Goals which are around 5 to 8 years can have similar portfolios and Goals that are 10+ years away can have same portfolio with different SIP amounts.
      Kindly read: My portfolio & my MF picks.

      • Yavika says:

        Thank you very much… Where can I find the list of all your articles? I have noted down few (7-8) links from your blog pages and reading them. is there a list of all of them?
        your articles are very informative and easy to understand!!! Thanks.

  • Dinesh says:

    Dear Sreekanth,
    My goal is to to have 1cr corpus till 2021~22.
    In that ref I’m investing @45K/ m in below SIP’s.
    Axis Midcap; HDFC Prudence; ICICI Pru. Value Discovery; SBI Pharma; SBI Magnum Midcap; SBI Magnum GlobalTata balanced fund
    Please advice.

    • Dear Dinesh,
      If you invest Rs 45k per month and assuming the expected return on investment is 12%, then the projected accumulated corpus can be around Rs 36 Lakh in next 5 years.
      If your investment horizon is around 5 years, you may re-consider your allocation of investible surplus to Mid-cap / sector based funds.
      Kindly read:
      Retirement planning goal calculator.
      Best Equity funds 2017.
      How to pick right mutual fund scheme?
      MF portfolio overlap analysis tools.

      • Dinesh says:

        Thanks Sreekanth,
        I’m investing since last 2.25yrs with current portfolio value of 9.6L
        In view of getting corpus of 1cr, please let me know.
        1. How much monthly savings should be planned (currently 45k/m). I can stretch till max 75K/m from 2019. Also can wait another 2yrs from 2022 till 2024.
        2. Can we expect better returns in upcoming year @15% in my portfolio funds.
        3. Any suggestions on my fund selections. Axis Midcap, SBI magnum global not doing well now as I expected.

        Can you please share your mail ID since I need some more suggestions from you as you are a experienced financial expert.

        Regards,

        • Dear Dinesh,
          Assuming monthly contribution of around Rs 75,000, at expected return of 10% in next 7 years, can get you a corpus of around Rs 1 Cr.
          HDFC Prudence, TATA balanced fund, ICICI Value discover – You may continue.
          Can consider Franklin Prima fund in place of the existing mid-cap funds.

  • Abhishek says:

    Hi Sreekanth,

    I am regular follower & reader of yours. Pls review my portfolio & advise if anything needs correction. I am 32 year. Investing in SIP for 20 years plan that is for long term (16000 per month). Started SIP since 1st April 2016.
    My portfolio is –
    ICICI Prudential Balanced Fund – Growth – 1000 /pm
    TATA Balanced — 2000/pm
    ICICI Prudential Value Discovery Fund – Growth– 2000/pm
    Franklin India Prima Plus — 2000/pm
    ICICI Prudential Dynamic Plan – Growth– 2000/pm
    ICICI Prudential Focused Bluechip Equity Fund – Growth– 3000 /pm
    Franklin India Smaller Companies–2000/pm
    SBI Magnum Mid cap– 2000/pm

    Abhishek

  • prashant says:

    Sir,
    I am 29 year. I want to invest in MF through SIP for 10 years (2000/month). This is totally new field for me. kindly suggest me good MF.

    Prashant

    • Sreekanth Reddy says:

      Dear prashant ..You may consider funds like – HDFC Balanced fund, Birla Sun Life Frontline equity, Franklin Prima plus & UTI mid-cap fund.

  • P. BAPAIAH says:

    ir,
    i want to invest in mip scheme under sip method for 3 years. i want to opt for growth. what is your advice. is mip scemes lumpsum investment is better than sip mrthod?
    pleaseadvice sir.

  • T Satyanarayana says:

    Dear Srikanth Reeddy nice information from you

    pl provide the information on TAX rates for short term / long term MF

  • Dhanrajsinh says:

    Hi Sreekanth,

    I am 25 year old and first time invest into SIP. I want to invest 7000/Month.

    My broker suggest me to invest in HDFC BALANCED FUND – REGULAR PLAN – GROWTH (2000 INR/Month) & ICICI PRUDENTIAL LONG TERM EQUITY FUND – TAX SAVING – REGULAR PLAN – GROWTH (5000 INR/Month for 3 year lock period).

    So please suggest me it is good investment plan or not ?

    Regards,
    Dhanraj

  • K.NIRMAL KUMAR says:

    Good Evening Sir,

    I am 41 yr of age . My portfolio is as under :

    Birla Sun Life Tax Relief 96 (G) : 2,500 Per Month SIP (Started One Year Back)
    HDFC Tax Saver Fund (G): 2,500 Per Month (Started One Year Back)
    Franklin India High Growth Companies Fund : 3,000 Per Month (Started This Month).

    As of now I am investing 8,000 p.m on SIP. I want to invest further amount on Mutual Funds and how much shall i invest on Mutual Funds Per Month and apart from that kindly suggest me any other Mutual Funds to invest which gives high returns in Future or shall i continue to invest in the above Mutual Funds itself only, apart from that i have One Son who is studying in 5th Class so that i can utilize the amount for his higher education in the Future.

    Sir also kindly let me know how is the Scope of these above Mutual Funds in Future.

    Regards

  • KUMAR says:

    Dear Sreekanth,
    I am 47 year old NRI recently started following SIP with the help of your blog. I wish to add more money in my portfolio depends upon market conditions to start SWP after 5years for getting monthly income. Please suggest whether I should opt one particular fund or equally distribute to all four.
    •Birla Sunlife Frontline Equity (Regular Growth) – 10000
    •Tata Balanced Fund (Regular Growth) – 10000
    •ICICI Pru Value Discovery (Regular Growth) – 15000
    •UTI Midcap Fund (Regular Growth) – 15000
    Regards,
    Kumar

    • Dear KUMAR ..Good portfolio. You may make additional investments in the same funds. You may gradually allocate lesser amount to mid-cap fund if you need the corpus in next 5 years.

  • Akshay says:

    Found your site while searching for investment alternatives for mid risk range.
    Stocks are high risk as I am not qualified and well informed at evaluating companies properly and systematically invest. FDs are safe but after TDS, barely earns enough to protect wealth against inflation. Other government schemes are process heavy and slow and also earns little more than direct FD.

    Planning to read through all your articles in hope to get some valuable information. You are good at using easier method/language to explain things. Keep it up. Thanks!

    What tool(site/portal) do you use to invest in MF? Do you do it on your own or through an agent?

    • Dear Akshay,
      I am sure you would have identified your Financial goals & time-frame to achieve them, so accordingly you can select the suitable investment avenues.
      Kindly read:
      How to create a SOLID investment plan?
      List of investment options!

      I invest in MFs through icicidirect.com, Directly by visiting fund house websites and also through Fundsindia (this is for information purposes only and not any recommendation).

      • A N says:

        Firstly thanks a lot for putting together a great site with useful information in simple easy to understand language and also taking out the time to respond to each comment.

        I just found out about mfuindia.com from your site and thought that would be the best way to invest, specially for a person who is well-versed with the various options and so doesn’t need any advice.
        Any reason why you haven’t made the switch yet?

        Thanks,
        Amit

        • Sreekanth Reddy says:

          Dear A N …May I know what ‘SWITCH’ are you referring to?
          Thank you for your appreciation!

          • A N says:

            Switch to using mfuindia.com for your transactions spread across “I invest in MFs through icicidirect.com, Directly by visiting fund house websites and also through Fundsindia ”

            Regards,
            Amit

          • Sreekanth Reddy says:

            Dear A N,
            No specific reason. I am comfortable investing through the said modes/platforms.
            MFU, particularly is a good platform, and they are coming out of initial set-up issues (teething problems). I have to look it very soon.

          • A N says:

            Cool, wanted to know if you’ve had or heard about any issues with it.
            I am looking for a good option to buy direct plans, will most probably go with it…thanks!

  • abhinav barsainya says:

    Dear Mr. Reddy
    I am a ardent follower of your blog.
    I want to invest 4 lacs lumpsum amount. please suggest where and in which way to invest ?
    It is better if i would invest in lumpsum amount in short term debt fund then in balanced fund through STP ?Please suggest. Wait for your prompt reply…

  • Abdul Raheem says:

    Sir good evening ,
    kindly suggest me to start new sip for the amount 15000/- per month .
    iam new in sip and shares.please suggest me where I invest . Shall I invest 15000/- one fund only or many funds . My age is 35 yrs . I want to invest 15 yrs long term .
    sir ,
    I want to invest lampsum amount 500000 lakhs also . So plz suggest where I invest .

  • Radhika says:

    Hi Sreekanth,

    Hope you are doing good.
    I am a regular reader of your blog and I have taken your suggestion many a times.

    I have a query regd 1 time SIP investment I am planning to make.

    I have been investing in the following SIPs since 3 months now:

    *ICICI Prudential Value Discovery Fund G 3000
    *HDFC balanced Fund G3000
    *UTI Mid cap Fund G- 2000
    *Franklin India Prima Plus G- 2000

    Now I want to make a 1 time investment of 25K in mutual funds. It will be a long term investment(15 years).
    Please suggest if I should invest in one of the funds I am already holding or invest in a new fund?

    If you suggest adding to one of the funds I am already holding, will UTI Mid cap Fund be a wise choice?

    Please suggest.

    Best Regards
    Radhika

    • Dear Radhika,..Why not in all the four funds 🙂 ?

      • Radhika says:

        Hi Sreekanth,
        Thanks for your response.

        Do you mean I should divide the 25K amongst all the 4 funds?
        Please let me know the procedure also for the same.

        Thanks in advance.

        Radhika

        • Dear Radhika ..Yes, Procedure?? You mean ratio of allocation?
          If so, may be you can allocate a higher % to Discovery fund & Mid-cap fund.

          • Radhika says:

            Thanks again Sreekanth!

            Say I have decided to invest as follows as per your suggestion:
            *ICICI Prudential Value Discovery Fund G – 8000
            *HDFC balanced Fund G-5000
            *UTI Mid cap Fund G- 8000
            *Franklin India Prima Plus G- 4000

            As I already have SIPs for the 4 funds, I wanted to know how to add additional amount to the existing funds. Is the procedure same as investing again afresh in the 4 MFs or is there any other way to add units to the accumulated units.

            Best Regards
            Radhika

          • Dear Radhika ..I am not sure which online platform you are using. You can select the existing Folio Numbers and make additional investments.

          • Radhika says:

            Hi Sreekanth,
            Thanks for the response. It was very helpful.

            Best Regards
            Radhika

  • Vivek says:

    Hi Sreekanth,
    Wondefully written blog!!
    I am 31 yr of age and new to MF investing. risk profile: moderate/aggressive.
    My portfolio is as under :
    Axis Long Term Equity-G: 45000 Rs. Lumpsum
    HDFC Balanced-G: 1,95,000 Lupsump
    UTI Transportation and Logistics-G: 2,60,000 Lumpsum
    HDFC Mid-Cap Opportunities- G: 5000 SIP
    ICICI Pru Focused Bluechip Equity-G: 3000 SIP
    DSPBR Micro Cap Reg-G: 5000 SIP
    Franklin India High Grth Companies-D: 2000 SIP
    I am investing 15000 p.m on SIP. I want to invest another 5000 p.m on equity MF kindly suggest suitable. Would you suggest any deletion in existing portfolio. (investment horizon7-10 yrs.)
    For all lump sump my investment horizon is 3 yrs. Is my choices for these investment are correct (specially UTI transportation and logisitics).

    looking forward for your suggestion.

  • satya says:

    Sir,

    I am new to SIP and shares. I want to invest 10000 rupees per month.Please tell me whether to invest in different funds ( around 10) or invest in 3 or 4 funds is better?. All funds are offering direct plans or not?. If i am checking top performers in internet, some funds are differing for one site to another site. Please suggest me correct website for checking top performers?

    Regards
    satya

  • Atul says:

    Sir,
    Kindly Suggest me start new sip
    we have already 1 sip idfc premiem equity growth fund last 5 years

  • sachiienjaain@gmail.com says:

    Hi Sir, i have a 10 month old daughter and worried about her education and marriage. where i should invest money to cater her education needs and marriage needs.

    my frnd suggest me to go with sukanya scheme for her marriage and SIP for her education need. if SIP is good then which fund should i take.

    please reply.

  • bhanudas gaonkar says:

    sir,
    Please give your advice on POSTAL LIFE INSURANCE [ PLI] MERITS AND DEMERITS is it a good option.

    bhanudas gaonkar

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