Monday, 30 May 2016

Top 3 Equity Mutual Funds for SIP To Invest In 2016

Mutual Funds investing via SIP is one the best wealth creation tool but only and if you remain invested during turbulent times of stock market. I am personally a big fan of mutual funds because it is has always given me superior returns. It is not just that i only give recommendation but i do remain invested in this scheme.

I have selected on 3 funds rather than 10 -15 funds which actually confuse the investor i mean lesser the better 

Below are the 3 best equity mutual funds (Large Cap) as on 30/05/2016 handpicked for you which are based on following parameters 
1-> Funds having CRISIL ratings of 4 Star & 5 Star
2-> Funds having Value Research Ratings of 4 Star & 5 Star 
3-> Superior returns compared to benchmark funds for last 10 years (where available) in SIP & Lump Sum investment (Proof below)
4-> Funds with positive Alpha
5-> Funds providing a return of more than 12% CAGR

Must Read : Why Real Estate is and always was a Dull Investment

#1 : SBI Bluechip Fund

Objective of the fund is to provide long term wealth while investing more than 80% in Equity & 20% in Debt related instruments 

Materials and Industrial are some places fund is currently overweight compared to index.Fund Manager has taken that little bit of a contra approach in the sense where the other fund would probably be more towards financial and technology companies

SBI Bluechip Fund has outperformed its benchmark index BSE 100 Indices from last 10 years 


Best-Equity-Mutual-Funds-for-SIP-in-India
Image Source : freefincalc.com



From the above screen we can analyze 
  • If you had invested Rs 1000 in SIP for last 10 years then you would have accumulated Rs 245940 for an investment of Rs 120000 with a Compounded Annual Growth Rate (CAGR) of 13.8% and absolute return of 104.5% double the amount with a mere Rs 1000 a Month 
  • Compared to Benchmark Index of BSE 100 your SIP invested value would be Rs 190269 vis a vis Rs 245940 generated from fund
  • Year after Year SBI Bluechip Fund has outperformed BSE 100 Benchmark 
Must Read : Best 3 Midcap Churning Money For Investors  

#2 : Birla Sun Life Frontline Equity


If I had to look at the consistency of returns; over the last 10 years it is been a quartile one or two performer throughout. So an investor like you getting into this fund would be very comfortable about the consistent track record of returns.

Let us take a closer look at the fund returns compared to Benchmark Index NIFTY 50
Best-Equity-Mutual-Funds-for-SIP-in-India
Image Source : freefincalc.com

  • If you had invested Rs 1000 in SIP for last 10 years then you accumulated wealth would Rs 253899 for an investment of Rs 120000 with a Compounded Annual Growth Rate (CAGR) of 14.4% and absolute return of 111.5825% infact double the amount with a mere Rs 1000 a Month 
  • Compared to Benchmark Index of Nifty 50 your SIP invested value would be Rs 189384 vis a vis Rs 253899 generated from fund
  • Year after Year Birla SL Frontline Equity Fund has outperformed Nifty 50 

#3 : ICICI Prudential Top 100 Fund 

ICICI Prudential Top 100 contains a slightly different large-cap strategy that is aggressive in comparison to different funds from the AMC’s however what i might call it a contra strategy on the large-cap side. Therefore where as the portfolio would be holding regular sectors, the fund manager is truly at now overweight in sectors like materials, industrial and energy, which is what this fund is making an attempt to derive value from.

Let us have a closer look at the returns from Top 100 Fund

Best-Equity-Mutual-Funds-for-SIP-in-India
Image Source : freefincalc.com

  • If you had invested Rs 1000 in SIP for last 10 years then you accumulated wealth would Rs 233661 for an investment of Rs 120000 with a Compounded Annual Growth Rate (CAGR) of 12.8% and absolute return of 94.7175% almost double the amount with a mere Rs 1000 a Month 
  • Compared to Benchmark Index of Nifty 50 your SIP invested value would be Rs 18984 vis a vis Rs 233661 generated from fund
  • Year after Year ICICI Top 100 Fund has outperformed Nifty 50
     except the current year but i truly believe it is a fund for long term investment


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In case of any further explanation you can reach me on vipuls1979@gmail.com or tweet me  @vipuls1979

Disclaimer  :-

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