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SIP plans have many benefits. The above are only 3. There are many more.

In this article, we bring to you the best Systematic Investment Plans (SIP) plans that investors could opt for in order to earn high returns.

The key principle to achieve our goal is disciplined investing on a regular basis.

Now the important question is, which mutual funds SIP schemes should investors select in order to earn high returns?

In this article, we answer this question by analyzing 8 SIP plans across 4 different categories of mutual funds.

The 4 categories are large-cap, mid-cap, small-cap and multi-cap funds. These different categories of mutual funds cater to the needs of different type of investors according to their risk-return appetite.

Read more about different categories of mutual funds: here.

Large-cap funds

Mirae Asset India Equity Fund

Facts:

AUM/ Fund size₹7,945 Cr
NAV₹50.1 (25-Jul-2018)
Fund started on01-Jan-2013
Expense Ratio1.32%
Minimum SIP₹1,000
Minimum Lump sum amount₹5,000
Risk levelModerately High
Return 1Y9.0%
Return 3Y13.6%
Return 5Y22.7%
Fund managersNeelesh Surana, Harshad Borawake

This large-cap mutual fund plan by Mirae Asset Mutual Fund is one of the best performing large-cap category funds.

It is, therefore, suitable to opt for an SIP option of this plan to earn high and stable returns in the long-term.

This fund has not only delivered exceptional 5-year returns of about 23% but also provided considerably stable returns in the short-term periods of 1 and 3 years as well.

Moreover this fund has outperformed the industry benchmark.

The fund has a comparatively low expense ratio of 1.32% only. In consideration with all the factors, Groww has rated this fund with 5 stars in the large-cap equity category.

The total Assets under Management (₹7945 crore) of this scheme is primarily equity (95% approximately) and the balance is invested in debt and held as cash.

It holds a total of 64 securities, with the top 5 securities comprising of 27% of the total Assets under Management and the top 20 comprising 65% of the total Assets under Management respectively.

Belonging to the large-cap category, Mirae Asset India Equity fund invests approximately 82% of its Assets in large-cap equity stocks. The remaining funds are invested in mid-cap stocks.

Mirae Asset India Equity fund boasts of a diverse portfolio across different sectors.

However, the fund is overweight in the financial services sector. Some of the other sectors where this fund invests in are consumer goods, IT, construction and energy.

Some of the top holdings for Mirae Asset India Equity fund are- HDFC Bank Limited, Infosys Limited, ICICI Bank Limited, Housing Development Finance Corporation Limited, L&T Limited and Reliance Industries Limited.

SBI Bluechip Fund

Facts:

AUM/ Fund size₹19,064 Cr
NAV₹40.4 (25-Jul-2018)
Fund started on01-Jan-2013
Expense Ratio1.15%
Minimum SIP₹500
Minimum Lump sum amount₹5,000
Risk levelModerately High
Return 1Y7.2%
Return 3Y11.0%
Return 5Y19.9%
Fund managerSohini Andani

SBI Bluechip fund is one of the top performing large-cap category funds. It has been given a 5-star rating by Groww on account of his good track record.

This fund has delivered high 5-year returns of approximately 20%.

SBI Bluechip fund has outperformed its benchmark index in both 3-year as well as 5-year returns.

The fund has one of the lowest expense ratios.

The total Assets Under Management of SBI Bluechip fund to the tune of ₹19,064 crore is primarily invested in equity and the balance is invested in debt and held as cash.

SBI Bluechip Fund has equity investments in 65 securities, with the top 5 securities comprising of 26% of the total Assets Under Management and the top 20 comprising 60% of the total Assets Under Management respectively.

Approximately 80% of its Assets Under Management are invested in large-cap equity stocks. The remaining portion of the equity investments is invested in mid-cap stocks.

SBI Bluechip Fund is overweight on the financial services sector with a 34.3% equity allocation. The other prominent sectors where this fund has exposure are- automobile, energy, pharmaceuticals and consumer goods.

Some of the top holdings for this are- HDFC Bank Limited, L&T Limited, Mahindra & Mahindra Limited, ITC Limited, Nestle India Limited, Hero MotorCorp Limited, Kotak Mahindra Bank Limited and Cholamandalam Investment and Finance Company Limited.

Mid-cap funds

L&T Midcap Fund

Facts:

AUM/ Fund size₹2,808 Cr
NAV₹144.7 (25-Jul-2018)
Fund started on01-Jan-2013
Expense Ratio1.40%
Minimum SIP₹1,000
Minimum Lump sum amount₹5,000
Risk levelHigh
Return 1Y3.8%
Return 3Y16.5%
Return 5Y30.6%
Fund managersSoumendra Nath Lahiri, Vihang Naik

This mid-cap mutual fund plan by L&T Mutual Fund is one of the best performing mid-cap category funds. It has regularly delivered high returns.

L&T Midcap fund has delivered exceptional 5-year returns of 30%.

The fund has a comparatively low expense ratio of 1.40%.

The total investment in equity asset class is made in 84 securities.

Among these, the top 5 securities comprise of 20% of the total Assets under Management and the top 20 comprising 47% of the total Assets under Management respectively.

L&T Midcap fund boasts of a diverse portfolio across different sectors. The fund is well positioned in the following sectors- financial services, construction, industrial manufacturing and consumer goods.

Some of the top holdings for L&T Midcap fund are- Cholamandalam Investment and Finance Company Limited, Mindtree Limited, Ramco Cements Limited, Emami Limited and Berger Paints Limited.

Kotak Emerging Equity Scheme

Facts:

AUM/ Fund size₹3,613 Cr
NAV₹40.8 (25-Jul-2018)
Fund started on01-Jan-2013
Expense Ratio1.09%
Minimum SIP₹1,000
Minimum Lump sum amount₹5,000
Risk levelHigh
Return 1Y4.4%
Return 3Y14.3%
Return 5Y29.3%
Fund managersPankaj Tibrewal

This mid-cap mutual fund plan by Kotak Mahindra Mutual Fund is one of investor’s favorite mid-cap category funds. It has regularly delivered high returns.

The investment objective of the scheme is to generate long-term capital appreciation from a portfolio of equity and equity-related securities, by investing predominantly in mid and small cap companies.

Kotak Emerging Equity Scheme has delivered exceptional 5-year returns of approximately 30%.

Its 3-year returns are at 15%.

The fund has a comparatively low expense ratio of 1.09% only.

The total investment in equity asset class is made in 69 securities.

Among these, the top 5 securities comprise 16% of the total Assets Under Management and the top 20 comprising 50% of the total Assets Under Management respectively.

Belonging to the mid-cap category, Kotak Emerging Equity fund invests approximately 73% of its Assets under Management in large-cap equity stocks. The remaining funds are invested in large-cap and mid-cap stocks.

L&T Midcap Fund boasts of a diverse portfolio across different sectors. The fund is well positioned in the following sectors- financial services, industrial manufacturing and consumer goods.

Some of the top holdings for Kotak Emerging Equity Scheme are- Indusind Bank, Atul Auto, RBL Bank Limited, Ramco Cements, Bata India Limited and Finolex Cables Limited among others.

Small-cap funds

HDFC Small-Cap Fund

Facts:

AUM/ Fund size₹4,143 Cr
NAV₹47.5 (30-Jul-2018)
Fund started on01-Jan-2013
Expense Ratio0.68%
Minimum SIP₹500
Minimum Lump sum amount₹5,000
Risk levelHigh
Return 1Y19.4%
Return 3Y20.3%
Return 5YNA
Fund managersChirag Setalvad

HDFC Small-cap Fund by HDFC Mutual Fund is one of the best performing small-cap category funds.

For investors ready to take a high risk to earn a high return, this scheme is a good bet.

The investment objective of the scheme is to generate long-term capital growth from an actively managed portfolio of equity and equity-related securities including equity derivatives.

HDFC Small-cap Fund is attractive for the investors because it charges one of the lowest expense ratios, as compared to its peers. This significantly reduces the costs for investors, thereby increasing the total returns at their disposal.

The fund has generated commendable returns of approximately 20% for 1-year as well as 3-year time horizon.

HDFC Small-cap mutual fund holds a total of 70 securities.

Amongst these 70 securities, the top 5 securities comprise of 28% of the total Assets under Management and the top 20 securities comprise almost 57% of the total Assets Under Management respectively.

This fund invests approximately 30% of its Assets Under Management in high-risk high-return small-cap equity stocks. The remaining portion of the investment in equity asset class is invested in mid-cap stocks.

HDFC Small-cap mutual fund boasts of a portfolio well-diversified across different sectors. Some of these sectors where this fund invests are automobile, industrial manufacturing, consumer goods, IT, construction and energy.

Some of the top holdings for HDFC Small-cap mutual fund are- Sonata Software Limited, Redington India Limited, Aarti Industries Limited, KEC International Limited, Dilip Buildcon Limited and TV Today Network Limited.

SBI Small-Cap Fund

Facts:

AUM/ Fund size₹792 Cr
NAV₹56.3 (30-Jul-2018)
Fund started on02-Jan-2013
Expense Ratio1.25%
Minimum SIP₹500
Minimum Lump sum amountNA
Risk levelHigh
Return 1Y15.7%
Return 3Y19.2%
Return 5YNA
Fund managersRama Iyer Srinivasan

SBI Small-cap mutual fund scheme by SBI Mutual Fund house is a stellar performer in small-cap category funds.

For investors ready to take a high risk to earn a high return, this scheme is a good bet for a long-term investment horizon.

The investment objective of the scheme is to generate income and long-term capital appreciation by investing in a diversified portfolio of predominantly equity and equity-related securities of companies identified as industry leaders.

The fund has delivered returns of approximately 20% for 3-year time horizon.

The total Assets Under Management (₹792 crore) of this scheme is primarily invested in the equity asset class (93% approximately). The balance is held as cash (7% approximately).

SBI Small-cap mutual fund holds a total of 30 securities only.

Amongst these, the top 5 securities comprise 25% of the total Assets under Management and the top 20 securities comprise almost 78% of the total Assets Under Management respectively.

SBI Small-cap Fund boasts of a portfolio well-diversified across different sectors.

Some of these sectors where this fund invests are services, industrial manufacturing, consumer goods, chemicals, construction, and energy.

Some of the top holdings for SBI Small-cap mutual fund are- Westlife Development Limited, Kirloskar Oil Engines Limited, LT Foods Limited, Hawkins Cooker Limited, Disa India Limited and Power Mech Projects India Limited.

This fund is a good option to subscribe in SIP mode to generate high returns in long-term.

Multi-cap funds

SBI Magnum Multi-Cap Fund

Facts:

AUM/ Fund size₹4,086 Cr
NAV₹50.6 (30-Jul-2018)
Fund started on04-Jan-2013
Expense Ratio1.15%
Minimum SIP₹1,000
Minimum Lump sum amount₹1,000
Risk levelModerately High
Return 1Y10.5%
Return 3Y14.0%
Return 5Y24.1%
Fund managersAnup Upadhyay

SBI Magnum Multi-cap mutual fund scheme by SBI Mutual Fund house is one of the best mutual fund schemes in the multi-cap segment.

The fund has delivered exceptional returns of approximately 25% for 5-year time horizon.

The total Assets Under Management (₹4,532 crore) of this scheme is primarily invested in the equity asset class (97% approximately). The balance is invested in held as cash (3% approximately).

SBI Magnum Multi-cap mutual fund holds a total of 77 securities.

Amongst these, the top 5 securities comprise 21% of the total Assets under Management and the top 20 securities comprise almost 51% of the total Assets under Management respectively.

This fund invests approximately 65% of its Assets Under Management in stable large-cap equity stocks. The remaining portion of the investment in equity asset class is invested in mid-cap and small-cap stocks respectively.

SBI Magnum Multi-cap Fund boasts of a portfolio well-diversified across different sectors. Some of these sectors where this fund invests are financial services, consumer goods, IT and energy.

Some of the top holdings for this mutual fund scheme are- Infosys Limited, Indian Oil Corporation Limited, ICICI Bank Limited, Bharti Airtel Limited, Tech Mahindra Limited and Colgate Palmolive Limited.

Motilal Oswal Multicap 35

Facts:

AUM/ Fund size₹13,016 Cr
NAV₹28.2 (30-Jul-2018)
Fund started on28-Apr-2014
Expense Ratio1.32%
Minimum SIP₹1,000
Minimum Lump sum amount₹5,000
Risk levelModerately High
Return 1Y9.4%
Return 3Y15.1%
Return 5YNA
Fund managersAbhiroop Mukherjee, Gautam Sinha Roy, Siddharth Bothra, Swapnil P Mayekar

Motilal Oswal Multicap 35 scheme by Motilal Oswal Mutual Fund house is one of the best performing mutual fund schemes in the multi-cap segment.

The fund has delivered returns of approximately 15% for 3-year time horizon.

The total Assets Under Management (₹13,016 crore) of this scheme is primarily invested in the equity asset class (98% approximately). The balance is invested in held as cash (2% approximately).

Motilal Oswal Multicap 35 mutual fund holds a total of 28 securities. Amongst these, the top 5 securities comprise of 35% of the total Assets under Management and the top 20 securities comprise of almost 89% of the total Assets under Management respectively.

This fund invests approximately 78% of its Assets Under Management in stable large-cap equity stocks.

The remaining portion of the investment in equity asset class is invested in mid-cap stocks.

Motilal Oswal Multicap 35 mutual fund boasts of a portfolio well-diversified across different sectors.

The fund is overweight in the financial services sector. Some of these sectors where this fund invests are automobile, consumer goods, pharmaceuticals and energy.

Some of the top holdings for this mutual fund scheme are- HDFC Bank Limited, Maruti Suzuki India Limited, Hindustan Petroleum Corporation Limited, Interglobe Aviation Limited, IndusInd Bank Limited and Eicher Motors Limited.

Conclusion

Systematic Investment Plans help generate high returns for investors over a long period of time. One must choose the plan carefully after duly evaluating the risk and returns of the scheme.

It is advisable to assess one’s risks capacity and return expectation before choosing a particular scheme.

Investing regularly via SIP mode enables the investors to beat market volatility and uncertainty. Moreover, buying mutual fund units periodically (usually monthly) helps average out high and low prices over a period of time.

Happy investing!

Disclaimer: the views expressed here are of the author and do not reflect those of Groww.