Top 10 Best SIP Mutual Funds to invest in 2019

Top 10 Best SIP Mutual Funds to invest in India in 2019 – Choose the one for you today.

Top 10 Best SIP Mutual Funds to invest in 2019

From the Present situation of mutual funds in India, it’s indeed becoming a difficult job for mutual fund consultants, financial specialists, as well as AMCs, to continue with the speed in which investors were starting fresh SIPs for last couple quarters. Bearing this in mind now I have chosen to write a blog article on Top 10 Best SIP Mutual Funds to invest in 2019.

We, the Bloggers also do have some responsibility to restore the trust of the investors in the mutual fund industry during this volatile market. Most of the investors are lacking financial awareness and as a result, during the market downturn, they just forget about their financial goal and the reasons for investing in mutual funds and simply keep on checking their fund values on a daily basis.
This leads to a fear of losing their capital and just start withdrawing their investments when they are in red.
But I just want to reiterate that this the stock market down side risk which mutual fund schemes have to go through over a period of time. Also, investors must keep in mind that they just invest in equity mutual fund portfolio with high risk and higher SIP returns. Then why to worry if you are a long term investor.
Top 10 Best SIP Mutual Funds to invest in 2019

Top 10 Best SIP Mutual Funds to invest in 2019- How I selected these funds?

SIP or systematic investment plan investment method has been designed in such a way that it helps in reducing rupee cost averaging. This means more units are acquired when the market is down and vice versa. There are various factors or ratios that I have used in selecting the Top 10 Best SIP Mutual Funds to invest in 2019 such as Alpha, Beta, Standard Deviation, Sharpe Ratio, TER or Total Expense Ratio. I am also very much sure that if one identifies all the factors or ratios as written here and invest in line with his financial goals or plans, he will be in a position to identify best sip mutual funds to invest in 2019. Also, I would recommend that one should take the help of a personal financial planner since he might help you in selecting and quantifying your financial goals.

Alpha :

Alpha is a measure of determining the excess return generated by a fund over and above the average return or the benchmark return. This is also seen as a performance measuring tool of a fund manager.  Alpha can be positive or negative.

Why should I see Alpha value in a mutual fund scheme? What does Alpha denote?

This is one of the most crucial factors for selecting outperformers. Alpha tells us how a fund has performed in comparison to its benchmark or industry average. The higher is the Alpha, the fund is the outperformer. Also Alpha denotes the risk adjusted return generated by the fund.

For example, if a mutual fund scheme has an Alpha of 4, it primarily means that the fund has outperformed its benchmark index by 4%. If the benchmark return is 10%, this fund has generated a return of 14%.

A positive Alpha means that the fund manager has been able to generate a return over the expected return and it has performed better as compared to its risk profile. Obviously, the fund manager must be given credit for the same. On the other hand, a negative Alpha means that the fund has not been able to generate sufficient return in comparison to its risk profile.

Thus, one should predominantly choose high alpha value mutual fund scheme since a high alpha value fund has the ability to generate returns over and above the benchmark return has also the potential to come back after the market fall.

Beta:

Beta denotes the volatility or the systematic risk of an underlying mutual fund scheme. It also denotes the sensitivity of a mutual fund scheme towards the market movements. This means how a particular fund moves in tandem with the market movements or swings. Thus, it can be said that beta measures the periodic fluctuations(rise or fall) of a scheme in comparison to the periodic fluctuations(rise or fall) of the index for a particular period.

Why should I see Beta value in a mutual fund scheme? What does Beta denote?

Beta measures the extent of the underlying fund’s movement in line with the benchmark index. This factor is also very much crucial after Alpha in selecting the best performing fund. It always signifies the systematic risk that a fund bears and how sensitive it is towards the market movements.

The beta of the market or benchmark index is always considered as 1. similarly any fund’s beta value less than 1 signifies lower volatility and higher than 1 signifies higher volatility as compared to the market or benchmark index.

For example, if a mutual fund scheme  has a beta value of 0.90, it basically denotes the price swing i.e. for every rise or fall of 1 in the market or benchmark index, the value of would also rise or fall by 0.90. Thus, if market returns or rise or fall by 10%, the mutual fund return would also rise or fall by 9%. This suggests that how a mutual fund scheme’s NAV would move in line with the market or benchmark index. However, finding the Beta value will be of no use if the portfolio doesn’t closely follow the benchmark.

What is an ideal Beta Value?

  • An ideal beta value should be 1. This means the fund’s NAV value is likely to replicate the exact market swing.
  • If the beta value is less than 1, this means the NAV of the fund would swing slower than the benchmark.
  • If a mutual fund’s beta is more than 1, this means its NAV is likely to swing more than the benchmark.

Thus, the beta value indicates the rise or fall of NAV value of a mutual fund in comparison to its benchmark index like for example Reliance Small Cap funds performance in comparison to NIFTY Small Cap 100 benchmark.

You may want to read the following:

Standard Deviation:

Standard deviation is a statistical tool to measure the extent of deviation of returns from the average value of returns. In statistical technical terms, the Standard deviation measures the dispersion of a set of data from its mean. When we invest in any instruments expecting some returns from it, and if there is any variation of actual return from the anticipated return, standard deviation measures the risk of those instruments.

Why should I see Standard Deviation in a mutual fund scheme? What does Standard Deviation denote?

In finance, the standard deviation is applied to the annual rate of return of an investment to measure the volatility of that investment. This is also known as the historical volatility and is used by the investors to measure the amount of expected volatility. Standard deviation is calculated as the Square root of variance.

The larger the standard deviation, the lower the probability that actual return would be close to the expected return.

For example, if a mutual fund  Z has a standard deviation of 5% and an average return of 12%, it means that Z has a tendency of deviating by 5% from its expected average return and may deliver returns between 7% to 17%. Therefore, the standard deviation is directly proportional to the volatility of the portfolio. 

Sharpe’s Ratio

Sharpe ratio= (Return of the fund-Risk fee rate)/Standard Deviation of the fund

The Sharpe ratio compares the excess return delivered by the fund over and above the risk-free return rate with its risk measured by Standard Deviation. Higher the ratio, the better it is when similar funds are compared for the same period. This ratio is used to rank funds within the same category. Therefore, this ratio plays a significant role in order to compare mutual funds. This helps an investor to evaluate, analyze the performance of a particular fund as compared to other similar types of fund and helps them to take an informed decision regarding investment in the fund. Higher the Sharpe’s ratio, better the risk-adjusted return of a mutual fund portfolio.

Expense ratio:

I have considered the funds which have an expense ratio is equal to or below 2.50%. A lower expense ratio helps in generating high fund return over a long term period of investment. Though it keeps on changing on a quarterly basis by the fund houses. Therefore by using the above tools or ratios, one can identify the Top 10 Best SIP Mutual Funds to invest in 2019.

In this section, you can check the Top 10 Best SIP Mutual Funds to invest in 2019 below. Here I have selected Top 10 Best SIP in India in 2019 consisting of 2 funds from each fund category such as Large Cap, Mid Cap, Multi Cap, Small Cap & ELSS funds.

Now, let’s have a look at the summary of the best sip to invest.

Top 10 Best SIP Mutual Funds to invest in 2019Data source: Valueresearchonline, Moneycontrol & CRISIL

Download the list from here Top 10 Best SIP Mutual Funds to invest in 2019

Top 10 Best SIP Mutual Funds to invest in 2019. Now let’s see in detail the following fund’s performance.

Top 1 ⇒ Reliance Large Cap Fund
Top 10 Best SIP Mutual Funds to invest in 2019 1

Fund Objective & Strategy:

The scheme seeks to generate long term capital appreciation by investing predominantly into equity and equity related instruments of large cap companies.

Fund Performance:

Reliance LArge Cap Fund

 

 

 

 

 

 

 

From the above chart, you can see that this fund has delivered some magnificent return for last couple of years. It delivered 16.72% and 18.63% annualized return for last 5 and 10 years respectively. So, this fund is a good performer for a long term scenario and ensures in long term wealth creation. This fund is indeed of top class.

Top 2 ⇒ Aditya Birla Sun Life Frontline Equity FundAditya Birla Sun Life Frontline Equity Fund

Fund Objective & Strategy:

The scheme seeks long term growth of capital, through a portfolio with a target allocation of 100% equity by aiming at being as diversified across various industries and/ or sectors as its chosen benchmark index, Nifty 50. The secondary objective.

Fund Performance:

Aditya Birla Sun Life Frontline Equity Fund

 

 

From the above chart, you can see that this fund has delivered some magnificent return for last couple of years. It delivered 13.89% and 16.28% annualized return for last 5 and 10 years respectively. So, this fund is a good performer for a long term scenario and helps in long term wealth creation. This fund is indeed of top class and an industry veteran.

Top 3 ⇒ Mirae Asset Emerging Bluechip Fund
Mirae Asset Emerging Bluechip Fund

Fund Objective & Strategy:

To generate income and capital appreciation from a diversified portfolio predominantly investing in Indian equities and equity-related securities of large-cap and mid cap companies at the time of investment.

Fund Performance:
Mirae Asset Emerging Bluechip Fund
From the above chart, you can see that this fund has delivered some magnificent return for last couple of years. It delivered 25.48% and 24.06% annualized return for last 5 and 7 years respectively. So, this fund is a good performer for a long term scenario and helps in long term wealth creation. This fund is indeed of top class.

Top 4 ⇒ Kotak Emerging Equity
Top 10 Best SIP Mutual Funds to invest in 2019 2Fund Objective & Strategy:

The scheme seeks to generate long-term capital appreciation from a portfolio of equity and equity related securities, by investing predominantly in mid companies.

Fund Performance:
Kotak Emerging Equity
From the above chart, you can see that this fund has delivered some magnificent return for last couple of years. It delivered 22.96% and 22.39% annualized return for last 5 and 10 years respectively. So, this fund is a good performer for a long term scenario and helps in long term wealth creation. This fund is indeed of top class.

Top 5 ⇒ Mirae Asset India Equity Fund
Top 10 Best SIP Mutual Funds to invest in 2019 3Fund Objective & Strategy:

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

Fund Performance:
Mirae Asset India Equity Fund

From the above chart you can see that this fund has delivered some magnificent return for last couple of years. It delivered 18.24% and 24.30% annualized return for last 5 and 10 years respectively. So, this fund is a good performer for a long term scenario and helps in long term wealth creation. This fund is indeed of top class.

Top 6 ⇒ Kotak Standard Multicap Fund
Top 10 Best SIP Mutual Funds to invest in 2019 4

Fund Objective & Strategy:

The scheme seeks to generate long term capital appreciation from a portfolio of equity and equity-related securities, generally focused on a few selected sectors.

Fund Performance:
Kotak Standard Multicap Fund

 

 

 

 

 

 

 

From the above chart, you can see that this fund has delivered some magnificent return for last couple of years. It delivered 18.16% and 17.42% annualized return for last 5 and 7 years respectively. So, this fund is a good performer for a long term scenario and helps in long term wealth creation. This fund is indeed of top class.

Top 7 ⇒ Reliance Small Cap FundTop 10 Best SIP Mutual Funds to invest in 2019 5Fund Objective & Strategy:

The scheme seeks to generate long term capital appreciation by investing predominantly in equity and equity related instruments of small cap companies.

Fund Performance:
Reliance Small Cap Fund
From the above chart, you can see that this fund has delivered some magnificent return for last couple of years. It delivered 26.13% and 23.81% annualized return for last 5 and 7 years respectively. So, this fund is a good performer for a long term scenario and helps in long term wealth creation. This fund is indeed of top class.

Top 8 ⇒ SBI Small Cap FundTop 10 Best SIP Mutual Funds to invest in 2019 6

Fund Objective & Strategy:

The scheme seeks to provide investors with opportunities for long-term growth in capital along with the liquidity of an open-ended scheme by investing predominantly in a well-diversified basket of equity stocks of small cap
companies.

Fund Performance:
SBI Small Cap Fund

 

 

 

 

 

 

From the above chart, you can see that this fund has delivered some magnificent return for last couple of years. It delivered 28.31% and 24.66% annualized return for last 5 and 7 years respectively. So, this fund is a good performer for a long term scenario and helps in long term wealth creation. This fund is indeed of top class for tax saving purposes.

Top 9 ⇒ Axis Long Term Equity FundTop 10 Best SIP Mutual Funds to invest in 2019 7Fund Objective & Strategy:

The scheme aims to generate regular long term capital growth from a diversified portfolio of equity and equity-related securities. The Scheme Will invest in companies with strong growth and a sustainable business model.

Fund Performance:
Axis Long Term Equity Fund

 

 

 

 

 

 

 

From the above chart, you can see that this fund has delivered some magnificent return for last couple of years. It delivered 18.19% and 19.29% annualized return for last 5 and 7 years respectively. So, this fund is a good performer for a long term scenario and helps in long term wealth creation. This fund is indeed of top class for tax saving purposes.

Top 10 ⇒ Aditya Birla Sun Life Tax Relief 96Top 10 Best SIP Mutual Funds to invest in 2019 8

Fund Objective & Strategy:

The scheme seeks long-term capital growth and will invest approximately 80% of its assets in equity, while the
balance would be invested in debt and money market instrument. It was converted to an open-ended scheme with effect from July 1999. A combination of top-down & bottom-up approach will be followed in the stock selection process.

Fund Performance:

Aditya Birla Sun Life Tax Relief 96

From the above chart, you can see that this fund has delivered some magnificent return for last couple of years. It delivered 18.28% and 21.06% annualized return for last 5 and 10 years respectively. So, this fund is a good performer for a long term scenario and helps in long term wealth creation. This fund is one of the industry veteran of ELSS category.This fund is indeed of top class for tax saving purposes.
Top 10 Best SIP Mutual Funds to invest in 2019
Top 10 Best SIP Mutual Funds to invest in 2019 Ranking Factors Financial Ratios Annualized Return
Category of Fund Fund Name Inception Date Total Expense Ratio (TER) Crisil Ranking(Low better) Value Research Online Ranking(High better) Alpha Beta Standard Deviation Sharpe Ratio 1 Year 3 Years 5 Years 10 Years
Large Cap
Reliance Large Cap Fund 08-08-2007 2.2 1 ***** 0.9 0.97 13.66 0.82 5.73% 16.32% 16.72% 18.63%
Aditya Birla Sun Life Frontline Equity Fund 30-08-2002 1.97 3 **** -1.84 0.94 12.84 0.63 -0.81% 13.52% 13.89% 16.28%
Mid Cap
Mirae Asset Emerging Bluechip Fund 09-07-2010 2.26 1 ***** 3.85 0.96 14.6 1 4.31% 20.47% 25.48% 24.06%(7 Yr)
Kotak Emerging Equity 30-03-2007 2.14 3 ***** 0.29 0.87 15.65 0.67 -5.01% 15.93% 22.96% 22.39%
Multi Cap
Mirae Asset India Equity Fund 04-04-2008 1.93 1 ***** 2.67 0.95 13.27 0.94 6.84% 17.79% 18.24% 24.30%
Kotak Standard Multicap Fund 11-09-2009 1.93 2 **** 1.37 0.94 13.22 0.84 6.50% 16.74% 18.16% 17.42%(7 Yr)
Small Cap
Reliance Small Cap Fund 16-09-2010 2.29 3 **** 6.73 0.86 18.53 0.71 -10.73% 18.74% 26.13% 23.81%(7 Yr)
SBI Small Cap Fund 09-09-2009 2.44 2 ***** 6.19 0.82 18.99 0.65 -11.30% 18.52% 28.31% 24.66%(7 Yr)
ELSS
Axis Long Term Equity Fund 29-12-2009 2.08 1 ***** -0.64 0.92 13.82 0.65 5.40% 13.94% 18.19% 19.29%(7 Yr)
Aditya Birla Sun Life Tax Relief 96 29-03-1996 1.91 2 ***** 0.51 0.91 13.6 0.73 0.89% 14.99% 18.28% 21.06%
Disclaimer:  ArthikDisha is neither directly or indirectly associated with any of the AMC or institution for selling mutual funds. Investors are advised to take the expert advice of financial advisors before investing.

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