SIP is one of the best ways to invest in a mutual fund. Here are the top 10 SIP plans you can invest in 2018. With SIP, you do not need to time the market. You can start investing anytime you wish to and you can stop an SIP anytime too. 

Before you start investing, you need to consider two questions:

  1. What is the duration of investment?
  2. What is my risk appetite?

Read more: 13 Things to Know About SIP

10 SIP Plans to Invest in 2018

None of these best funds for SIP have any lock-in period. So you can easily take your money out of these funds any time you wish to. However, there are recommended periods for which you must invest.

If you want to know more about SIP, read : 13 things to know about SIP plans.

The following funds are also the top 10 mutual funds for SIP to invest in 2018.

1. L&T Emerging Businesses Fund

L&T Emerging Businesses Fund Details

1 Year Returns  66.85%
3 Year Returns  28.43%
Min SIP Amount  Rs 500

This is a relatively new fund. However, in the few year, it has been since its launch, it has provided excellent returns.

As visible from the above table – nearly 67% per annum in the last year is a very good rate of return.

If you start an SIP in this fund, make sure you invest for more than 6 years to avoid volatility and get high returns.

2. HDFC Small Cap Fund

hdfc small cap fundHDFC Small Cap Fund Details

1 Year Returns  61.52%
3 Year Returns  23.28%
Min SIP Amount  Rs 500

This fund is also a small cap fund that is giving really good returns. In the last 1 year, this fund has given an unbelievable 61.52% returns.

Again, since this is a small cap fund, ideal investment duration would be more than 6 years.

3. Aditya Birla Sun Life Small & Midcap Fund

aditya birla sun life small & midcap fundAditya Birla SL Small & Midcap Fund Facts

1 Year Returns  55.29%
5 Year Returns  27.77%
Min SIP Amount  Rs 1000

Although the name of this fund includes ‘small’ and ‘midcap’, this fund is essentially a midcap fund. It holds mostly midcap companies.

This is one of the best midcap funds for SIP. It is about 10 years old and has since returned around 15% per annum. This is a very good return considering there was a market crash in 2008.

Aim to start SIP in Aditya Birla Sun Life Small & Midcap Fund, do so for at least 5 years for best returns.

4. SBI Bluechip Fund 

sbi bluechip fund

SBI Bluechip Fund Details

1 Year Returns  30.21%
5 Year Returns  18.51%
Min SIP Amount  Rs 500

This is easily one of the best SIP plans in SBI.

SIP in SBI Bluechip Fund starts with Rs 500 and is one of the most popular SIP funds in India.

It has given very consistent returns over the years. 18.51% per annum in the last 5 years is a very good rate of return.

If you are starting SIP in SBI Bluechip Fund in 2018, then make sure to hold it for 4 years at least.

5. Mirae Asset India Opportunities Fund

mirae asset india opportunities fund

Mirae Asset India Opportunities Fund Details

1 Year Returns  38.27%
5 Year Returns  20.91%
Min SIP Amount  Rs 1000

Mirae Asset India Opportunities Fund is not as old as SBI Bluechip Fund. But it is still one of the best large cap funds in the market today.

As you can see from the table, starting SIP in Mirae Asset India Opportunities Fund will fetch very high returns. 20.91% returns over a period of 5 years is a very good return.

If you start SIP in this fund, make sure to invest for more than 4 years.

6. Motilal Oswal MOSt Focused Multicap 35 Fund

motilal oswal most focused multicap 35 fundMotilal Oswal MOSt Focused Multicap 35 Fund

1 Year Returns  42.26%
5 Year Returns  21.76%
Min SIP Amount  Rs 1000

This fund is another relatively new multi-cap fund. However, because of its consistent returns, it has earned the respect of many investors.

In the last 5 years, it has given returns of 21.76% per annum which is very good. And in the last 1 year, the returns have been very high at 42.26%.

You can start an SIP in Motilal Oswal MOSt Focused Multicap 35 Fund with a minimum of Rs 1000.

Invest in this Motilal SIP for at least 6 years.

7. ICICI Prudential Balanced Advantage Fund 

icici prudential balanced advantage fundICICI Prudential Balanced Advantage Fund

1 Year Returns  18.69%
5 Year Returns  14.10%
Min SIP Amount  Rs 1000

This is a balanced advantage fund. This is one of the best SIP plans to invest for 2-3 years.

For a balanced fund, this fund is performing very well.  A return of 14.10% over the last 5 years is much higher than funds of the same category.

If you start SIP in ICICI Balanced Advantage Fund, invest for about 2-3 years although you can invest for more too.

8. Tata Retirement Savings Fund – Moderate Plan

tata retirement savings fund moderate planTata Retirement Savings Fund Details

1 Year Returns  38.02%
5 Year Returns  20.43%
Min SIP Amount  Rs 500

In the balanced category, this fund is easily one of the top performing funds.

38.02% per annum in the last 1 year is a very good return. Over a period of 5 years, this fund has given a return of 20.43% per annum which is very high for a balanced fund.

Again, invest in Tata Retirement Savings Fund for 2-3 years.

9. Franklin India Low Duration Fund

franklin india low duration fundFranklin India Low Duration Fund

1 Year Returns  8.17%
5 Year Returns  9.28%
Min SIP Amount  Rs 500

Franklin India Low Duration Fund is a debt fund and therefore is ideal for investing for up to 2 years.

This fund is not easily affected by market returns and therefore is a low risk mutual fund.

Starting an SIP in Franklin India Low Duration Fund is a good alternative to starting a recurring deposit (RD) as the rate earned in a debt fund is higher than the interest given in RD.

10. Axis Liquid Fund

axis liquid fundAxis Liquid Fund Details

1 Year Returns  6.7%
5 Year Returns  8.19%
Min SIP Amount  Rs 1000

This fund is an excellent liquid fund to start SIP in 2018.

Liquid funds give returns slightly higher than the interest you earn in a savings bank account. And money can be taken in and out of a liquid fund very quickly.

This is why liquid funds are considered a very good alternative to keeping money in a savings bank account.

Axis Liquid Fund has given returns higher than 8% in the last five year which is double of what you’d earn in a savings bank account.

These 10 are the top SIP for 2018 depending on how long you want to invest for.

If you want to explore more mutual funds to invest in from every category, you can have a look at the Best Funds to Invest in 2018. All the above-mentioned funds are a part of this list.

Happy investing!

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