Top 10 Best Performing SIP mutual funds to invest for 2014

When I have written article last year on Top-10 SIP mutual funds to invest. there was good response from readers. However, those 10 mutual fund schemes were only among a bunch of the best performing mutual funds. In this year too, I have analyzed best and top performing SIP mutual funds invest in 2014 and providing our analysis here. In case you have already invested in those top-10 funds recommended by me earlier, you can stay invested, but if you want to add some more funds to your portfolio or if you are a new investor in mutual fund world, then you can consider these top funds to invest for 2014. These are some of the best mutual funds in India

Also Read: T op 10 Best Performing Mutual Funds to invest in India for 2015

What is the criteria I used for choosing best and top SIP funds?

I have used the following criteria for choosing the top funds.

• Mutual funds across various sectors are considered
• Mutual funds from various segments (large cap, mid cap, balanced, debt, international fund)
• Mutual funds where Assets Under Management (AUM) > Rs 100 Crores
• Consistent performers in the last 5 years, 3 years and 1 year.
• Crisil Rank-1 and Rank-2 funds for equity and hybrid funds. However, for sector funds these are not ranked by Crisil.
• Value research rating of 5-Star, 4-Star funds. However sector funds are not ranked by Value Research.
• Portfolio diversified more into equity and hybrid funds and ignored debt mutual funds. You should invest for long term of 8 to 10 years to get good returns.
• While I was doing this analysis I found that Mutual fund annualized returns may or may not make sense sometimes when you do SIP. Some SIP schemes provide good returns of more than 12%, even though the annualized returns are only 9%. This indicate that investment through SIP would provide good scope to maximize the returns.

Top 10 Best Performing SIP mutual funds to invest for 2014

We have analyzed top and the best mutual funds to invest and below is the analysis.

1) ICICI Pru Tech Fund

Overview: The scheme invests in Information Technology and IT dependent companies. Since IT companies are more dependent on exports of software to US and European countries, the performance of these funds would dependent on US, Europe and other countries spending on IT across the globe. US economy has grown in the last 2-3 years and expected to continue to grow for the next couple of years. This would give an enormous amount of opportunities for IT / Software companies in India.

Performance of the fund: This is 1 st top performing mutual fund as per our analysis and its 5 year returns are 38% per annum which has beaten even equity mutual fund returns. This fund gave 20% annualized returns in last 3 year. This fund is expected to perform well in the future. If you have invested Rs 1,000 in SIP in last 3 years, your invested amount would be Rs 36,000 and investment value would have been Rs 60,000 now.

Suitable for: Since this invests only in one sector, i.e. IT, it is high risk high return scheme. Investors with high risk appetite can invest in these funds.

Also Read: How to Maximise returns from SIP Mutual funds?

2) SBI Pharma Fund

Overview: The scheme looks for growth opportunities in various Pharma stocks.

Performance of the fund: As per our analysis, this is 2 nd top performing mutual fund in India. Its 5 year annualized returns are 35% per annum, which has beaten even equity mutual fund returns. It gave 24% annualized returns in last 3 year. If you have invested Rs 1,000 in SIP in last 3 years, your invested amount would be Rs 36,000 and investment value would have been Rs 53,000 now.

Suitable for: This sector has been performing well in the last 5 years. However, since this is a sector based fund and invests only in the Pharma industry, it is high risk, high return investment. Investors with high risk appetite can invest in these funds. This is one of the best mutual funds in India.

3) FT Feeder Franklin US Opps fund

Overview. The Fund seeks to provide capital appreciation by investing predominantly in units of Franklin U. S. Opportunities Fund, an overseas Franklin Templeton mutual fund, which primarily invests in securities in the United States of America. This is one of the top mutual funds in the International fund category.

Performance of the fund : This is the 3 rd best SIP mutual fund as per our analysis. Last 1 year returns are 46% and last 2 years annualized returns are 29%. If you have invested Rs 1,000 in SIP in the last 3 years (extrapolated 2 years returns for 3 years), your invested amount would be Rs 36,000 and investment value would have been Rs 49,500 now.

Suitable for: This fund invests in FT US Opportunities fund which invests in top US Stocks. This is purely based on US economic growth. US economy is expected to grow at a higher pace even in next 2-3 years. However, this is high risk, high return fund. One should consider this risk before investing in this.

4) SBI Magnum Mid-cap mutual fund

Overview. The scheme objective is to invest at least 65 per cent in mid cap stocks. Mid-cap stocks are those which have high potential to grow in the long run. These can create good wealth for investors. s

Performance of the fund: This is 4 th top performing mutual fund in India and its 5 year returns are 26% per annum which has beaten even equity mutual fund returns. It gave 14 annualized % returns in last 3 year. If you have invested Rs 1,000 in SIP in last 3 years, your invested amount would be Rs 36,000 and investment value would have been Rs 47,000.

Suitable for: Since this invests in mid-cap, this carries a high risk. Investors with high risk appetite looking for high returns can invest in these funds.

5) Franklin India Smaller Companies fund

Overvview: This fund aims for long term capital appreciation by investing in Midcap and small cap companies. This fund invests 75% in smaller companies.

Performance of the fund: This is 5 th top performing mutual fund and its 5 year returns are 27% per. It gave 13% annualized returns in last 3 years. If you have invested Rs 1,000 in SIP in last 3 years, your invested amount would be Rs 36,000 and investment value would have been Rs 46,500.

Suitable for: Since this invests in mid-cap, this carries a high risk. Investors with high risk appetite looking for high returns can invest in these funds.

6) ICICI Pru balanced Adv fund

Overview: The scheme seeks to provide an appreciation of your capital by using equity derivatives strategies, arbitrage opportunities and pure equity investments.

Performance of the fund: This is 6 th best performing mutual fund as per our analysis. Its 5 year returns are 18% per annum. It gave 12% annualized returns in last 3 year. If you have invested Rs 1,000 in SIP in last 3 years, your invested amount would be Rs 36,000 and investment value would have been Rs 44,000 now.

Suitable for: Investors with medium risk, and looking for high returns can invest in these funds.

7) ICICI Pru Dynamic Plan

Overview: The scheme invests in equities and for defensive consideration in fixed income securities, including money market instruments with the aim of generating capital appreciation. The actual percentage of investments will be decided after considering the prevailing market and economic conditions.

Performance of the fund: Its 5 year returns are 22% per annum. It gave 9% annualized returns in last 3 years. If you have invested Rs 1,000 in SIP in last 3 years, your invested amount would be Rs 36,000 and investment value would have been Rs 44,000.

Suitable for: The fund is known as defensive fund. Its agility and composition changes according to the market volatility. It would help in falling less during downturns and post good gains during upturns. Investors with medium risk, but looking for high returns can invest in these funds.

8) UTI MNC Mutual Fund

Overview: The objective of this fund is to invest predominantly in the equity shares of multinational companies (MNC) in diversified sectors such as FMCG, Pharma, Engineering etc.

Performance of the fund: This is one of the best performing mutual fund in India and its 5 year returns are 24% per annum which has beaten even equity mutual fund returns. It gave 12% annualized returns in last 3 year. If you have invested Rs 1,000 in SIP in last 3 years, your invested amount would be Rs 36,000 and investment value would have been Rs 43,000 now.

Suitable for: Investors looking for medium risk, but looking for high returns can invest in these funds.

9) ICICI Top-100 mutual Fund

Overview: The scheme invests 95% in equities and balance in debt funds. This fund consistently invests in quality stocks like SBI, BHEL, L&T, ITC, ONGC and ICICI Bank, with the top-5 holdings accounting for around 40 per cent of the portfolio. Financial, technology, energy and FMCG are the sectors that have dominated the portfolio over the past 4 years, which has aided performance.

Performance of the fund: Its 5 year returns are 18% per annum. It gave 9% annualized returns in last 3 years. If you have invested Rs 1,000 in SIP in last 3 years, your invested amount would be Rs 36,000 and investment value would have been Rs 42,000 now.

Suitable for: Medium risk investors expecting high returns can invest in these funds.

Also read: Mutual fund SIP Investment- Success or failure depends on you

10) Quantum Long Term Equity Fund

Overview: The scheme invests primarily in shares of companies that are included in the BSE 200 Index.

Performance of the fund: Its 5 year returns are 24% per annum. It gave 8% annualized returns in last 3 years. If you have invested Rs 1,000 in SIP in last 3 years, your invested amount would be Rs 36,000 and investment value would have been Rs 42,000.

Suitable for: This is a good fund for those with a medium risk appetite, but looking for good returns.

Below is the quick summary of what we discussed.

Conclusion. The above top SIP mutual funds are categorized from various sectors and for various risk appetite investors. Pick-up the best performing mutual funds which are suitable to you and invest them for the long term. If you can invest for say 8 to 10 years, I am sure you can create good wealth.

Readers, have you invested in these best funds? What other funds have you invested where you have gained high returns?

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Suresh

Best and Top Performing SIP mutual funds to invest for 2014