5 Best SIP Plans (Systematic Investment Plan)
The process of finding the best SIP Plans is like finding a fish in the lake for the peoples how looking for the best SIP Plan Investment to invest their money for a short or long time maybe for the year. There are different factors on which SIP Plan depends such as Value Research Rating, Assets Under Management (AUM), Crisil Rank and some other factors.
What Is SIP (Systematic Investment Plan)
The SIP Plan offered by Mutual Fund companies that offer SIP Plans to investors allowing them to invest their money weekly, monthly or quarterly. Basically, the fixed amount of money is debited by an investor in a bank account periodically and invested in specific mutual funds.
In this, the investor is allocated the number of units according to the current value of net assets. The investor gets more units when the price of net assets is low and fewer units when the price is low but in the long-time mutual fund, the average cost per unit is lower.
How Does SIP Work?
The basic question that every investor has in their mind “how a sip works”. In simple words, the SIP is a fixable investment plan. In which your money is auto-debited by a bank and invested in specific mutual funds schemes. The rule for compounding money is simple the sooner you start investing, the more time your money has to grow.
Top 5 Mutual Funds Plans To Invest In 2017
1 # ICICI Prudential Top 100 Funds
| Category | Crisil Rank | VRR (out of 5) | AUM (In Rs.Crores) | 3 month | 1 Year | 3 Year | 5 Year |
| Large Cap | 2 | 3 | 1,457 | 13.6 % | 23.8% | 21.9 % | 17.0% |
The main objective of fund of this mutual fund scheme is long-term capital appreciation. According to the company statement, 95 % of the money is invested in equities and the rest of the money invested in debt and some money market investments.
In the 5 Year Plan, this mutual fund has beaten its peers and provided a 17% annualized return. Even in short team plans of 1 to 3 years its gives 22 % returns which proved its good short team fund.
So if you’ve invested around Rs. 2000 per month through SIP for 5 years your total money could be Rs.120,000 and your investment could grow up to 240,000 in 10 years plan.
2 # Birla Sun Life Frontline Equity Fund
| Category | Crisil Rank | VRR (out of 5) | AUM (In Rs.Crores) | 3 month | 1 Year | 3 Year | 5 Year |
| Large Cap | 1 | 5 | 13,634 | 10.6 % | 19.3% | 19.7 % | 18.0% |
Well, the Birla Sun Life Mutual Fund aims to generate long-term growth of investment, through stocks, the portfolio with targeted locations of 100 % equity that invested into various departments such as Sunlife life insurance and some other sectors.
The fund has beaten its peers from 18% annualized return in 5 years investment and short term investment plans of 1 to 3 years give almost 19 to 20 percent return. The good performance of the fund has to lead to asset size rise up to Rs.12,000 crores the fund performed well in the bull market and reduced loss in the bear market.
3 # Franklin India Smaller Companies Fund
| Category | Crisil Rank | VRR (out of 5) | AUM (In Rs.Crores) | 3 month | 1 Year | 3 Year | 5 Year |
| Mid / Small Cap | 1 | 5 | 3,494 | 12.9 % | 26.4% | 46.8 % | 29.0% |
The Franklin India fund also gaining value in mutual funds. Basically, this fund aims for long-term capital investment from the portfolio of mid-cap and small-cap companies.
The fund gives 29 % annualized return in the last 5 years investment and in the last 3 years, its annualized return is almost 46%. This is one of the best small-cap funds to invest in for the long-term of 10 to 20 years.
4 # Kotak Select Focus Fund
| Category | Crisil Rank | VRR (out of 5) | AUM (In Rs. Crores) | 3 month | 1 Year | 3 Year | 5 Year |
| Multi-Cap | 1 | 4 | 54,81 | 13.2 % | 19.6% | 29.7 % | 19.7% |
The Kotak Mutual Fund mainly aims for multiple capitals and diversified capital the portfolio of equity and equity-related to the instrument and its focus on selected sectors.
The fund performance has beaten its competition and gives 19.7% annualized return in 5 years and in which 1 to 3 years funds gives 19 to 29% returns. which shows that this mutual fund is best for investment for the long-term for 10 to 20 years.
5 # HDFC Balanced Fund
| Category | Crisil Rank | VRR (out of 5) | AUM (In Rs.Crores) | 3 month | 1 Year | 3 Year | 5 Year |
| Hybrid / Balanced | 2 | 4 | 6,657 | 8.6 % | 15.5% | 27 % | 17% |
The HDFC mutual fund is generating capital with a combined portfolio of equity and debt. This fund gives 17% of annualized return in the last five years and 1 to 3 years funds give 15 % to 27 % returns.
The Bottom Line
These above-given Mutual funds are best for long-term investments. This portfolio is basically designed for all kinds of investors who looking to invest their money for the long term in mutual funds. However, before investing any of these funds must read the complete term and condition along with policies.