The Systematic Investment Plan (SIP) is a way to invest in mutual funds in a disciplined manner for a fixed amount and for a specific period to enjoy greater returns. Each SIP is a kind of additional unit purchased as a part of a mutual funds portfolio of an investor’s account and profile.
Age is no bar to make investments in SIPs. And the same applies to long term or short term financial goals. Investments in mutual funds are subject to market risks. So, careful consideration is needed before making such an investment. We recommend you skim through our list of the 10 best SIP mutual funds of 2021:
|Sr.||List of top 10 Mutual Funds||Category/ Sector||Assets under Management||Returns in 5-10 years||Return in 10 Years|
|1.||Canara Robeco Emerging Equities – Growth||Large and Mid-Cap Funds||6879.55||14%||18%|
|2.||Nippon India Small Cap Fund – Growth||Small Cap Fund||10,397||12%||17%|
|3.||SBI Healthcare Opportunities Fund – Growth||Sectorial or Thematic||1511.66||5%||16%|
|4.||ICICI Prudential FMCG Fund – Growth||Sectorial or Thematic||545.84||11%||15%|
|5||Aditya Birla Sun Life India GenNext Fund – Growth||Sectorial or Thematic||1739.34||14%||15%|
|6||Aditya Birla Sun Life MNC Fund – Growth||Sectorial or Thematic||3935.57||8%||15%|
|7.||UTI Mid Cap Fund – Growth||Mid Cap Fund||4491.13||10%||15%|
|8.||Principal Emerging Blue-chip Fund – Growth||Large and Mid-Cap fund||2324.21||14%||15%|
|9.||Kotak Emerging Equity – Growth||Mid Cap Fund||8654.14||13%||15%|
|10.||Franklin India Prima Fund – Growth||Mid Cap Fund||7026.09||11%||14%|
Let’s look at each of the mentioned funds closely:
- Canara Robeco Emerging Equities – Growth
It is one of the top-ranking SIP mutual funds of 2021. The scheme was closed at 51% of its money in large-size and Blue Chip companies. Almost 44% of the scheme money was invested in mid-sized companies.
- Nippon India Small Cap Fund – Growth
If you are looking for long-term capital investment appreciation, invest in Nippon India Small Cap Fund. Investing in this SIP mutual fund is related to buying equity-related and equity instruments of small-cap companies. The secondary objective of this scheme is to generate consistency in the returns of the investment made in the money market and debt securities.
- SBI Healthcare Opportunities Fund – Growth
It has a diversified portfolio of equity-related and equity securities in the healthcare space. It follows the bottom-up approach. Almost 80% of the investment belongs to the healthcare space since investors get the flexibility of 20% to invest outside the healthcare sector.
- ICICI Prudential FMCG Fund – Growth
It proves to be a good investment for all those who possess advanced knowledge about macro trends. They can make selective bets for higher returns as compared to investing in equity funds. At the same time, investors also need to make up their mind for moderate or high losses based on market performance. At present, 96.97% of investment is in Indian stocks out of which 74.76% belongs to large-cap stocks, 12.5% belongs to mid-cap stocks and 9.62% belongs to small-cap stocks.
- Aditya Birla Sun Life India GenNext Fund – Growth
The aim of this scheme is to target the growth in the investments made in equity-related instruments or equities. This SIP mutual fund follows the rising consumption pattern, which means that capital gets fueled up when the disposable income is high for the young generation.
- Aditya Birla Sun Life MNC Fund – Growth
It is one of the most popular SIP mutual funds of 2021 to provide long-term capital growth to investors in approximately 3 years or above. It comes with a moderate level of risk. Here, one is investing in the securities of MNCs.
- UTI Mid Cap Fund – Growth
It has a portfolio related to mid-cap stocks. It has a higher growth potential and follows the bottom-up approach for choosing stocks and a patient approach for the companies who are a part of the portfolio. It records the strong growth of investors in the market.
- Principal Emerging Blue-chip Fund – Growth
This scheme is also known for giving long-term capital appreciation on the invested funds. It is launched by Principal Mutual Funds and is a moderately high-risk form of investment.
- Kotak Emerging Equity – Growth
The objective of this scheme is also the same as the above–long term capital appreciation from a portfolio of equity or equity-related securities.
- Franklin India Prima Fund – Growth
Its focus is mainly on mid-cap companies. It is also counted as the best SIP mutual fund for all those willing to wait 10-15 years to get an appreciation on the capital invested.
The final word
Hope that the above information will help you in selecting the best SIP mutual funds and bring diversity to your portfolio.