The best thing about mutual funds is that they enable you to invest with very small amounts via SIP ( Systematic Investment Plan).

When you set up an SIP with any mutual fund, your account is debited a fixed amount every month. This amount is invested in a mutual fund of your choice.

Over a period of time, your investments accumulate and they keep growing.

SIP Plans to Consider for High Growth in the Long Term - At a Glance
Fund Name 1Y 3Y 5Y Expense Ratio Turnover Ratio Category Risk
Mirae Asset Large Cap Fund - Direct - Growth 12.35% 18.63% 16.96% 0.65% 14% Equity
(Large Cap)
Moderately High
Mirae Asset Emerging Bluechip Fund - Direct - Growth 9.47% 20.34% 23.37% 0.8% 35% Equity
(Large & Mid Cap)
Moderately High
HDFC Small Cap Fund - Direct - Growth -5.66% 18.99% 18.05% 0.77% 37% Equity
(Small Cap)
Moderately High
L&T Emerging Businesses Fund - Direct - Growth -12.85% 18.14% 18.54% 0.82% 26% Equity
(Small Cap)
High

Best SIP Plans for High Growth in the Long Term – Details

1. Mirae Asset India Equity Fund – Direct

This is a multicap mutual fund launched on 1 January 2013. It is a fund with a moderately high risk and has given a return of 19.34% since its launch.

Key information about this fund:

Rating by Groww 5 star
AUM (Fund Size) ₹9,033 Cr
Minimum SIP ₹1,000
Minimum SWP ₹1,000
Performance w.r.t its Benchmark Has consistently outperformed its benchmark S&P BSE 200 since its launch.
Age of the fund 5 years old
Expense Ratio 1.32%
Exit Load If redeemed between 0 Year to 1 Year;
Exit Load is 1%;
Type  Open-ended

The investment objective of this scheme is to generate long-term capital appreciation by capitalizing on potential investment opportunities through predominantly investing in equities or equity-related securities.

This mutual fund invests in stocks of large size companies. Large sized companies are big, well established companies of the equity market.

These companies are strong, reputable, trustworthy, and they’re generally the top 100 companies in a market by market capital.

Holding

You can consider investing in this fund, if you want to attain decent returns and are willing to take a moderate amount of risk.

2. Mirae Asset Emerging Bluechip Fund – Direct – Growth

This is a large and midcap mutual fund launched on 1 January 2013. It is a fund with high risk and has given a return of 27.47% since its launch.

Key information about this fund:

Rating by Groww 4 star
AUM (Fund Size) ₹5,364 Cr
Minimum SIP ₹1,000
Minimum SWP ₹1,000
Performance w.r.t its Benchmark It has consistently outperformed its benchmark NIFTY Large Midcap 250 Index since its launch.
Age of the fund 5 years old
Expense Ratio 1.73%
Exit Load If redeemed bet. 0 Year to 1 Year; Exit Load is 1%;
Type  Open-ended

This scheme seeks to generate income and capital appreciation from a diversified portfolio predominantly investing in Indian equities and equity-related securities of companies, which are neither part of the top 100 stocks by market capitalization nor do they have market capitalization of ₹100 crores at the time of investment.

Holding

From time to time, the fund manager may also seek participation in other Indian equity and equity related securities to achieve optimal portfolio construction. The scheme does not guarantee or assure any returns.

The standout feature of this fund is its ability to hold onto its five-star ranking without even a small blip, since it made its debut in the ratings.

This fund also has the leeway to invest up to 35% of assets in the top 100 companies by market cap, with 65% parked in mid-cap stocks.

3. HDFC Small Cap Fund – Direct – Growth

This is a small cap Mutual Fund launched on 1 January 2013. It is a fund with high risk and has given a return of 23.14% since its launch.

Key information about this fund

Rating by Groww 5 star
AUM (Fund Size) ₹5,320 Cr
Minimum SIP ₹500
Minimum SWP ₹500
Performance w.r.t its Benchmark Has consistently outperformed its benchmark NIFTY Smallcap 100 TRI since its launch.
Age of the fund 5 years old
Expense Ratio 0.66%
Exit Load If redeemed bet. 0 Year to 1 Year; Exit Load is 1%;
Type  Open ended

Holding

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.

As the name suggests, this small-cap fund invests in stocks of small size companies. These companies give high returns but are highly risky stocks.

4. L&T Emerging Businesses Fund – Direct – Growth

This is a Small cap Mutual Fund launched on 12 May 2014. It is a fund with high risk and has given a return of 29.06% since its launch.

Key information about this fund

Rating by Groww 4 star
AUM (Fund Size) ₹5,163 Cr
Minimum SIP ₹500
Minimum SWP ₹500
Performance w.r.t its Benchmark Has consistently outperformed its benchmark S&P BSE Small Cap TRI since its launch.
Age of the fund 4 years old
Expense Ratio 1.57%
Exit Load If redeemed bet. 0 Year to 1 Year; Exit Load is 1%;
Type  Open-ended

This scheme seeks to generate long-term capital appreciation from a diversified portfolio of predominantly equity and equity related securities, including equity derivatives, in the Indian markets with key theme focus being emerging companies (small cap stocks).

Holding

The scheme could also additionally invest in foreign securities. Emerging companies are businesses which are typically in the early stage of development and have the potential to grow their revenues and profits at a higher rate as compared to the broader market.

5 Steps to Reduce Losses When Invested in Small Cap Funds

However, there is no assurance that the objective of the scheme will be realized and neither does the scheme assure or guarantee any returns.

5. Axis Midcap Fund – Direct – Growth

This is currently considered one of the best funds in the mid cap segment:

Key information

Launch Date 1 January 2013
NAV (14 Sep 2018) ₹39.4
Plan Type Direct
Rating by Groww 5 Star
AUM (Fund Size) ₹1,396 Cr
Riskometer Moderately High
Minimum SIP ₹1,000
Minimum SWP ₹500
Performance w.r.t its Benchmark Has consistently outperformed its benchmark S&P BSE Mid Cap TRI since its launch.
Age of the fund 5 years old
Expense Ratio 1.38%
Exit Load If redeemed bet. 0 Year to 1 Year; Exit Load is 1%;
Type  Open Ended

Holding Analysis

1.The top 5 portfolio holdings of the fund include GRUH Finance Ltd., Bajaj Finance Ltd., Page Industries Ltd., City Union Bank Ltd. and Supreme Industries Ltd.

2.The holdings are balanced across various sectors with maximum weightage given to financial services (32%) followed by consumer goods (18%).

6.L&T Midcap Fund

This is a mid cap mutual fund launched on August 09, 2004. It is a high-risk fund and has given a return of 21.75% since its launch.

Invest in L&T Midcap Fund Now

Rating by Groww 5 star
AUM (Fund Size) ₹ 1,323
Minimum SIP ₹ 500
Performance w.r.t its Benchmark Has consistently outperformed its benchmark Nifty Free Float Midcap 100 since its launch.
Age of the fund 13 years old
Expense Ratio 1.72%

The fund’s asset allocation reveals a 25-30% allocation to small-cap stocks, about 10-11% lower than the small-cap category, while mid-cap allocation is about 55%. The remaining is in large-cap category.

Holding

L&T mid cap fund

7.Aditya Birla Sun Life Equity Fund-Direct

The fund seeks long-term growth of capital and regular by investments 90% in equities and 10% in debt and money market securities.

The scheme adopts a top-down & bottom-up approach of investing & a portion of the fund will be invested in IPOs, emerging sectors & other primary market offerings.

Invest in 

Rating by Groww 5 star
AUM (Fund Size) ₹10,027 Cr
Minimum SIP ₹ 100
Performance w.r.t its Benchmark Has consistently outperformed its benchmark S&P BSE 200 TRI since its launch.
Age of the fund 25 years
Expense Ratio 1.07%

 

Holding Analysis

8. Axis Bluechip Fund

This is a Large Cap Equity Oriented Mutual Fund launched on January 1, 2013. It is a fund with moderately high risk and has given a return of 16.55% since its launch.

Invest in Axis Bluechip Fund

Rating by Groww 5 star
AUM (Fund Size) ₹2,927 Cr
Minimum SIP ₹1,000
Performance w.r.t its Benchmark NIFTY 50 Total Return
Age of the fund 10 years old
Expense Ratio 0.91%

The scheme aims to maximize long-term capital appreciation by finding investment opportunities resulting from the Indian economic growth and its structural shifts through investing in equity and equity-related securities.

Holding

Bonus List
Fund Name 1Y 3Y 5Y Expense Ratio Turnover Ratio Category Risk
SBI Bluechip Fund - Direct - Growth 6.09% 13.02% 15.18% 1.07% 73% Equity
(Large Cap)
Moderately High
HDFC Mid-Cap Opportunities Fund - Direct - Growth -5.61% 13.85% 16.9% 1.06% 58% Equity
(Mid Cap)
Moderately High
Kotak Standard Multi Cap Fund - Direct - Growth 11.35% 18.24% 17.64% 0.73% 14% Equity
(Multi Cap)
Moderately High
Aditya Birla Sun Life Focused Equity Fund - Direct - Growth 8.24% 14.47% 13.11% 1.11% 47% Equity
(Focused)
Moderately High
SBI Equity Hybrid Fund - Direct - Growth 9.37% 13.78% 15.14% 1.21% 252% Hybrid
(Aggressive)
Moderately High

What are SIPs?

SIPs are increasingly becoming a favorite of investors, as they tend to smoothen the anxiety related to market volatility. There are several investments where investors can invest a small sum of ₹500 – ₹1000 every month and build a solid mutual fund portfolio.

It has been more than a decade and a half since Franklin Templeton introduced the concept of SIPs in India.

Since then, SIPs trump most other mutual fund plans when it comes to wealth creation.

A mutual fund in itself has subsided other investment options as it gives an opportunity to beginners to enter the market with the desired level of risk.

Everyone has different financial priorities at different stages of life.

While you are busy planning your present financial needs, it is also important to plan your future financial requirements and it is a necessity to secure your family’s financial health at the onset of any unforeseen condition.

Mutual fund houses provide an additional facility of life insurance cover to their investors who invest via SIPs. This is known as different names, SIP Plus, Century SIP or SIP Insure, such schemes have been there in the market since long.

What are its Benefits?

1.Wealth creation

SIP helps you save and grow your money over a period of time.

Investing regularly for a long duration can help you accumulate a sizeable corpus through compounding effect.

2.Achieving your financial goals

SIP is a perfect tool for people who have a specific, future financial requirement.

By investing a specific amount every month; you can plan and may meet your financial goals, be it your child’s education, marriage or a comfortable post-retirement life.

3.Liquidity

Having an adequate corpus to invest is a good habit.

But what is the use of money if you can’t use it when needed? SIP is one of the most liquid forms of investments and it can save you from a financially sicky situation, when required

Things to Remember

There are a lot of factors you should look into before selecting a mutual fund scheme which will match your investment goals.

These are the few important things one must always remember before investing in mutual funds :

1.Higher rates: don’t blindly invest in the fund with the highest returns. Invest based on the duration you want to invest for.

2. Every person’s financial condition is different. Evaluate the funds you invest in yourself – don’t invest in a fund because of its popularity.

3. Systematic Investment Plan (SIP) is a much safer option for investing in equity oriented mutual funds.

3.Direct plan for mutual fund gives you higher returns as compared to a regular plan of mutual fund schemes.

4.STP route is best for all those investors who wish to invest a lump sum in mutual fund schemes because this way, they get the dual benefits of comparative risk investment.

5. Review your investment from time to time but not too often. Once in a few weeks is good enough.

Also, there are various myths and false beliefs about mutual funds which circulate the market. The most successful investors are the ones that ignore the myths and pay attention to only what needs their attention.

The best thing about mutual funds is that they enable you to invest with very small amounts. Many people ask what is the minimum amount to invest in mutual funds?

There is no other way you can invest with reasonable diversification with an amount as low as ₹ 100 and even ₹ 50. SIP ( Systematic Investment Plans) of a lot of mutual funds allow min investment with just ₹ 100 and ₹ 500.

Systematic Investment Plan (SIP) is an instrument which helps you avoid the risk of timing the markets and facilitate wealth creation in a disciplined manner by averaging cost of Investments. Small savings create the big corpus for future.

Happy Investing!

Disclaimer: The views expressed in this post are that of the author and not those of Groww