What is the best part about investing in a mutual fund? Well, it comes with a team of professional money managers who provide expert advice when it comes to managing the fund on your behalf. This relieves you off the stress and tension of managing your money. With professionals at hand, you will no longer be under the umbrella of constant worry about the safety of your money. Not only do professional money managers offer advice, but they also carefully allocate and restructure funds on a regular basis in order to maximize returns and stay aligned with the investment goals. Overall, this saves time and money.
If you do not have the technical know-how of how the share markets work, going for a mutual fund investment is an excellent option.
So how do you begin your very first mutual fund investment? Well you do so easily with the simplest platform - a systematic investment plan (SIP). A SIP is where you invest money in small amounts on a regular basis. It can be subscribed on a monthly basis with an amount as low as ₹500. This saves you from the financial burden of a lump sum investment which is not possible for everyone. Additionally, a SIP entitles you the benefit of rupee cost averaging. The entire process of SIP can be undertaken online within a few minutes. Once you have selected the date to begin your SIP, you have successfully become investment ready.
Now that you are aware of the basics, let us read about the best mutual funds available in India.
This is one of the best fund houses of India. You can begin with a minimum investment of ₹5000 in the SBI Blue Chip Fund - Reg - G. Ranked by CRISIL as no 1 in the large cap category, this fund is primarily invested in equities and other money market related instruments.
| Type | Equity/Large Cap |
| Benchmark | S & P BSE 100 TRI |
| Returns % 1yr | -2.81 |
| Returns % 3yrs | 8.74 |
| Returns % 5yrs | 15.51 |
| Fund Manager | Sohini Andani |
| Asset Size (Crores) | ₹19906 |
Previously known as Franklin India Prima Plus
Franklin Templeton Mutual Funds are one of the oldest mutual fund providers in India. The Franklin India Equity Fund is composed of a diversified equity portfolio of small-cap, large and mid-cap stocks. The fund has declared a dividend every year (for the last 20 years) and is highly suited for long term capital appreciation.
| Type | Equity/Multi Cap |
| Benchmark | Nifty 50 Nifty 500 |
| Returns % 1yr | -3.10 |
| Returns % 3yrs | 8.39 |
| Returns % 5yrs | 16.02 |
| Fund Manager | Anand Radhakrishnan, Janakiraman Rengaraju & Srikesh Karunakaran Nair |
| Asset Size (Crores) | ₹10956 |
Previously known as Mirae Asset India Opportunities Fund
This is a diversified fund which entitles an investor flexibility to invest across market sectors, investment styles and themes. The investment objective of the fund is to generate long term capital gains by capitalizing on potential investment opportunities by investing in equities and equity related securities.
| Type | Equity/Multi Cap |
| Benchmark | S & P BSE 200 TRI |
| Returns % 1yr | 1.96 |
| Returns % 3yrs | 13.92 |
| Returns % 5yrs | 18.64 |
| Fund Manager | Neelesh Surana |
| Asset Size (Crores) | ₹9033 |
With a 94.09% of primary investment in equities, the investment objective of this fund is to provide long term capital gains by investing in mid-cap companies. It is ideal for a long term investment horizon.
| Type | Equity/Mid Cap |
| Benchmark | NIFTY Midcap 100 TRI |
| Returns % 1yr | -9.59 |
| Returns % 3yrs | 10.92 |
| Returns % 5yrs | 21.18 |
| Fund Manager | Chirag Setalvad |
| Asset Size (Crores) | ₹19702 |
ICICI Prudential Bluechip Fund is an open-ended equity scheme focusing on investing in large capital stocks. If you are looking for growth and stability, this is an ideal fund to add to your investment portfolio. This fund also provides diversification across investment themes and various sectors.
| Type | Equity/Large Cap |
| Benchmark | NIFTY Midcap 100 TRI |
| Returns % 1yr | 0.51 |
| Returns % 3yrs | 11.41 |
| Returns % 5yrs | 14.23 |
| Fund Manager | Mr. Anish Tawakley and Mr. Rajat Chandak |
| Asset Size (Crores) | ₹18870 |
This is an open ended scheme with an objective of long term capital growth by investing in a portfolio of 100% equity across different sectors or industries in order to generate income and dividend distribution. Whether you are new to equity investments or are a seasoned investor looking for growth of your investment, Aditya Birla Sun life Frontline Equity Fund is a great choice for you.
| Type | Equity/Large Cap |
| Benchmark | NIFTY Midcap 100 TRI |
| Returns % 1yr | 0.51 |
| Returns % 3yrs | 11.41 |
| Returns % 5yrs | 14.23 |
| Fund Manager | Mr. Anish Tawakley and Mr. Rajat Chandak |
| Asset Size (Crores) | ₹18870 |
This is one of the best schemes offered by Franklin Templeton Mutual Fund India as it comes with low risk and generates average returns for investors. Being an open-ended scheme, it has been ranked no 2 by CRISIL in the small cap category. This fund comprises of a diversified equity portfolio focusing primarily in the stock of early stage companies with a high growth potential.
| Type | Equity/Mid Cap |
| Benchmark | NIFTY Midcap 150 TRI |
| Returns % 1yr | -7.14 |
| Returns % 3yrs | 10.43 |
| Returns % 5yrs | 20.87 |
| Fund Manager | R. Janakiraman / Hari Shyamsunder |
| Asset Size (Crores) | ₹6127 |
L & T Mutual Fund is home to multiple top performing funds in India. The L & T Midcap Fund is an open ended low risk scheme but the returns are high. It primarily invests in mid cap stocks. This fund is suitable for investors looking for long term capital gains by investing in midcap equities and securities.
| Type | Equity/Mid Cap |
| Benchmark | NIFTY Midcap 100 TRI |
| Returns % 1yr | -10.31 |
| Returns % 3yrs | 12.67 |
| Returns % 5yrs | 24.75 |
| Fund Manager | S. N. Lahiri / Vihang Naik |
| Asset Size (Crores) | ₹3438 |
Which is the best SIP to invest in 2018?
The following is a list of top 10 SIP mutual funds for 2018 - ICICI Prudential Equity & Debt Fund, Motilal Oswal Multicap 35 Fund, L&T Tax Advantage Fund, ICICI Prudential Bluechip Fund, SBI Magnum MultiCap Fund, Aditya Birla Sun Life Tax Relief 96, L&T India Value Fund and SBI Bluechip Fund. You can select any one of these or more.
Is SIP a good investment option?
Yes, the SIP system of investment is a good option. It is pocket friendly as you can start with a minimum amount of ₹500. It inculcates the habit of savings via systematic and regular investment and you can enjoy the benefit of rupee cost averaging.
How can I start investing in SIP mutual funds?
You can start investing in SIP mutual funds of any fund house by visiting the official website. Here, you can apply online by creating an account and adding your bank details. Post account creation, you can simply select the date and time of your SIP and then it will begin automatically on a monthly basis.
Which bank provides best SIP?
All banks provide the facility of a SIP. What is best is the mutual fund. You can select the fund on the basis of your risk appetite and income in hand.
Is SIP tax free?
A SIP is just a mode of investment. The tax free component is applicable to an ELSS mutual fund. An ELSS plan entitles you a tax deduction up to ₹1.5 lakh under Sec 80C of the IT Act, 1961.
