Investing in mutual funds via Systematic Investment Plan (SIP) is one the best ways of earning wealth and achieving long-term financial growth. SIP Investments are the best way of investing a fixed amount regularly in mutual fund investments. With SIPs, investors can avail the benefit of rupee cost averaging, compounding, and disciplined investing.
Moreover, the SIP amount is conveniently auto-debited from the investor’s bank accounts, which provides them the flexibility to increase, decrease or halt the SIP amount anytime. Investors also have the liberty of investing as little as Rs.500 in a mutual fund investment per month. Many retail investors are expressing interest in Systematic Investment Plan as they get the opportunity of earning wealth in the long term. But, many retail investors are unaware of the best SIP plans to fulfill their goals. Following are the top SIP plans to help these investors with their mutual fund investments. But, before discussing more about the best SIP plans, let’s understand what Systematic Investment Plan is all about.
What is SIP (Systematic Investment Plan)?
SIP or Systematic Investment Plan is a mutual fund investment plan with which any investor can invest a certain amount of money at regular intervals like weekly, monthly or quarterly. It is one of the most advanced and convenient ways of making investments in mutual funds. With SIP, a fixed amount of money gets auto-debited from the investor’s bank account, which develops a habit of saving money among investors to achieve their financial goals in a specified period of time. Systematic Investment Plan is one of the most flexible strategies which allows investors to decrease or increase the amount of investment, or stop investing in mutual fund plan at their convenience.
Best SIP Plans 2018
Investing in mutual funds through SIP helps you to manage your personal finances and that too without any hassles. However, the returns depend on the fund of your choice. Following is a list of top 5 equity mutual funds for SIP investments in 2018. We have listed below a mix of large cap, small cap, multi cap and ELSS funds to help diverse individuals reach their financial goals and cater to different requirements.
Aditya Birla Sun Life Frontline Equity Fund
One of the best SIP plans, Aditya Birla SF Equity Fund aims to provide long term growth of investment by targeting 100% equity stock allocation through various industries. This fund was able to beat all its peers as it provided 16.8% returns in the last 5 years. This mutual fund scheme has provided 21.32% annualized returns since its launch. This is one of the best mutual funds to invest in 2018 for SIP for a long term of 10-20 years. If you are planning to invest in multiple SIP plans 2018, this fund should be a part of your portfolio.
Aditya Birla SL Frontline Equity Fund comes with an exit load of 1% for redemption within 365 days. But, with 16.8% return in the last 5 years, it is one of the top performing mutual fund schemes available in 2018.
Kotak Standard Multicap Fund Regular Plan
Kotak Standard Multicap Fund Regular Plan focuses on several selected sectors and targets capital appreciation from equity and equity related instruments. This fund has provided 21.33% returns in last 5 years. Since its launch, the Multicap Fund from Kotak Mahindra was able to yield 14.66% returns. Similar to Aditya Birla Sun Life Frontline Equity Fund, this fund also come with an exit load of 1% for redemption within 365 days. This is one of the most well-diversified funds among the top 5 Mutual Funds for SIP to invest in 2018 for long term of 10-20 years.
Axis Long Term Equity Fund
Axis Long Term Equity Fund is an ELSS (Equity Linked Savings Scheme) fund which is managed by the AMC Axis Mutual Funds. It invests in equity and equity linked instruments and focuses on providing tax saving benefits under Section 80C of the Income Tax Act, 1961. Axis Long Term Equity Fund provides high returns with tax deduction benefits under Section 80C. It is however important to note that this mutual fund comes with a mandatory 3 year lock-in requirement. Since its launch, Axis Long Term Equity Fund was able to yield 19.06% return. Investors can choose this SIP investment to generate income, earn returns and enjoy tax benefits as well.
Reliance Small Cap
Reliance Small Cap is one of the best SIPs which builds long term capital gains by making investments in equity and equity linked instruments of small cap companies. Reliance Small Cap fund was able to provide a 33.56% return in last 5 years. Since its launch, this fund was able to earn 19.24% annualized returns. Reliance Small Cap fund comes with an exit load of 1% for redemption within 365 days. It is one of the best SIP funds available in India which was able to beat all its peers. Also, this is one of the Top 5 Mutual Funds for SIP investments in 2018 for medium to long term of 5-10 years.
Motilal Oswal Focused 25 Fund
Motilal Oswal Focused 25 Fund focuses on achieving long term capital appreciation by investing in upto 25 companies. It invests in multiple companies with an objective of long term sustainable competitive advantage and growth potential. This fund also comes with an exit load of 1% for redemption within 365 days. Since its launch, Focused 25 Fund from Motilal Oswal was able to earn 16.39%. Not only this, in the last 5 years Focused 25 was able to provide as high as 17.57% returns on investments made.
Comparison of Top 5 Equity Mutual Funds for SIP Investments 2018
Following is a list of top 5 equity mutual funds for SIP investments in 2018, which can help you add more funds to your portfolio and diversify your portfolio to maximize returns. However, returns vary based on several factors, below is a comparison table of top performing SIP equity mutual funds:
List of Best 5 Mutual Fund for SIP Investments 2018
| Top Equity Mutual Fund Scheme | Category | 1 Year | 3 Year | 5 Year | Asset Under Management |
| Aditya Birla Sun Life Frontline Equity Fund | Equity: Large Cap | 3.79 | 8.50 | 16.80 | Rs. 20,203 Crore |
| Kotak Standard Multicap Fund Regular Plan | Equity: Multi Cap | 7.49 | 12.04 | 21.33 | Rs. 19,827 Crore |
| Axis Long Term Equity Fund | Equity: ELSS | 18.12 | 11.88 | 23.88 | Rs. 17,299 Crore |
| Reliance Small Cap | Equity: Small Cap | 1.40 | 15.58 | 33.56 | Rs. 6,696 Crore |
| Motilal Oswal Focused 25 | Equity: Large Cap | 8.19 | 8.77 | 17.57 | Rs. 1,112 Crore |
Conclusion
The funds mentioned above are the Best SIP plans in 2018 to earn high returns in medium and long term. This is a portfolio which is designed for all kinds of investors to earn the best returns currently possible. If you are a high risk investor and want to earn higher returns, you can invest more funds to mid-cap/small-cap segment. If you are a moderate risk investor, you can invest funds in the balanced mutual fund category. If you desire to have a diversified portfolio, invest in the top 5 mutual funds to earn higher returns in the coming years.