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.

Read More: 13 Things to Know About SIP.

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.

Here is the list of best 5 high growth SIPs for long-term investment horizon.

1. Mirae Asset India Equity Fund – Direct

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

Returns per annum over the years from this fund are:

Duration Returns
1 year  13.58%
3 years  15.02%
5 years  21.06%

Key information about this fund:

Rating by Groww 5 star
AUM (Fund Size) ₹6,123 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.

2. Motilal Oswal Midcap 30 Fund – Direct 

This is a Midcap Mutual Fund launched on 28 April 2014. It is a fund with high risk and has given a return of 26.58% since its launch.

Returns per annum from this fund are:

Duration Returns
1 year  13.30%
3 years  18.40%
5 years  NA

Key information about this fund:

Rating by Groww 5 star
AUM (Fund Size) ₹11,411 Cr
Minimum SIP ₹1,000
Minimum SWP ₹1,000
Performance w.r.t its Benchmark Has consistently outperformed its benchmark NIFTY Mid cap 100 TRI since its launch.
Age of the fund 4 years old
Expense Ratio 1.5%
Exit Load If redeemed bet. 0 Year to 1 Year; Exit Load is 1%;
Type  Open-ended

This scheme seeks to achieve long-term capital appreciation by investing in a maximum of 30 quality mid-cap companies which has long-term competitive advantages and potential for growth.

This mutual fund invests in stocks of mid-size companies. Mid-caps are compact companies of the equity market, falling somewhere between small and large cap companies and are ranked 100-250 by market capitalization.

3. 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.

Returns per annum over the years from this fund are:

Duration Returns
1 year  9.33%
3 years  20.40%
5 years  30.75%

Key information about this fund:

Rating by Groww 5 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.

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.

4. 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.

Returns per annum over the years from this fund are:

Duration Returns
1 year  27.66%
3 years  23.85%
5 years  25.16%

Key information about this fund:

Rating by Groww 5 star
AUM (Fund Size) ₹2,152 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 0.92%
Exit Load If redeemed bet. 0 Year to 1 Year; Exit Load is 1%;
Type  Open ended

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.

This mutual fund invests in stocks of small size companies. These companies give high returns but are highly risky stocks.

5. 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.

Returns per annum over the years from this fund are:

Duration Returns
1 year  20.22%
3 years  26.50%
5 years  NA

Key information about this fund:

Rating by Groww 5 star
AUM (Fund Size) ₹4,286 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 1.76%
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).

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.

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

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.
  4. Direct plan for mutual fund gives you higher returns as compared to a regular plan of mutual fund schemes.
  5. 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.
  6. 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.

Read More: 10 Secrets Only Successful Mutual Fund Investors Know

To know more about investing in a mutual fund, Read More: 10 Tips on investing in Mutual Funds

To look at some of the best performing funds from every category of mutual fund, check out Groww 30 Best Mutual Funds To Invest In 2018.

Happy Investing!