Top Mutual Funds for SIP in 2024

1. Quant Small Cap Fund

The Quant Small Cap Fund is a standout option for investors looking to capitalize on the growth potential of smaller companies. With an impressive track record, this fund has consistently delivered high returns. Managed by Quant Mutual Fund, it was launched in January 2013 and has grown to an AUM of ₹6,681 Crores. The fund requires a minimum SIP investment of ₹1000 and has an expense ratio of 0.77%, which is slightly higher than average.

Fund Overview

Performance Metrics

Investment Details

Risk Factors

2. Bank of India Small Cap Fund

Overview

The Bank of India Small Cap Fund is designed to provide significant returns by investing in small-cap companies with high growth potential. This fund is ideal for investors looking to diversify their portfolio with high-risk, high-reward investments.

Performance

The fund has shown impressive performance over the years, with returns of 30.71% over the past year and 49.35% over the past three years. Below is a table summarizing the fund’s performance:

Investment Strategy

The fund primarily invests in small-cap stocks that are undervalued but have strong growth potential. The investment strategy focuses on identifying companies with robust business models and sustainable competitive advantages.

Risk Factors

Investing in small-cap funds comes with its own set of risks, including market volatility and liquidity risks. It is advisable to consult with a financial advisor to understand the risk factors involved.

Conclusion

The Bank of India Small Cap Fund offers a compelling investment opportunity for those willing to take on higher risk for potentially higher returns. Its strong performance metrics make it a noteworthy option for SIP in 2024.

3. Nippon India Small Cap Fund

Nippon India Small Cap is one of the best performing small cap funds in the Indian mutual fund space. It has a 96.42% investment in equities of which 55.41% is in small cap stocks. The fund holds 9.86% shares in midcap stocks and 5.83% in large caps. This is a fund that is extremely risky, given its portfolio, but it also has the possibility of giving very high returns.

Fund Performance

The Nippon India Small Cap Fund has shown remarkable performance over the years, making it a popular choice among investors looking for high returns despite the associated risks.

Investment Strategy

The fund primarily focuses on small cap stocks, with a significant portion also invested in midcap and large cap stocks to balance the risk and return ratio.

4. Axis Bluechip Fund

Overview

Axis Bluechip Fund is a prominent player in the large-cap equity segment with an AUM of ₹33,352 Crs. The fund requires a minimum investment of ₹100 for SIP and ₹500 for lump sum investments. It has consistently delivered strong returns, making it a reliable choice for investors.

Performance

The fund has shown impressive performance over various time frames. For instance, it has delivered a return of +13.88% per annum, and over a longer period, it has achieved +273.04%. This consistent performance highlights its robust investment strategy.

Expense Ratio

The expense ratio of Axis Bluechip Fund stands at 0.64%, which is competitive within the large-cap category. A lower expense ratio ensures that a larger portion of the returns is passed on to the investors.

Rankings

Axis Bluechip Fund is ranked #14 out of 25 in the large-cap category by ETM. This ranking reflects its strong performance and reliability among its peers.

5. Mirae Asset Large Cap Fund

Overview

The Mirae Asset Large Cap Fund is a prominent choice for investors looking to invest in large-cap stocks. With an AUM of ₹38,060 Crs, it offers a robust portfolio that aims for steady growth. The fund requires a minimum investment of ₹1,000 for SIP and ₹5,000 for lump-sum investments.

Performance

The fund has shown impressive returns over various periods. For instance, it has delivered a return of +14.51% per annum, and a cumulative return of +96.89% over the past few years. The table below summarizes its performance:

Investment Strategy

The fund primarily invests in large-cap stocks, focusing on companies with strong fundamentals and growth potential. This strategy aims to provide long-term capital appreciation while mitigating risks associated with market volatility.

Fund Manager

The fund is managed by experienced professionals who bring a wealth of knowledge and expertise to the table. Their strategic approach and keen market insights have been instrumental in the fund’s consistent performance.

6. SBI Bluechip Fund

Overview

The SBI Bluechip Fund is a prominent player in the large-cap equity segment. It is designed for investors seeking long-term capital appreciation by investing in a diversified portfolio of large-cap stocks. The fund has consistently delivered robust returns over the years, making it a reliable choice for systematic investment plans (SIPs).

Performance

The fund has shown impressive performance metrics, with returns of 17.42% over the past year and 123.23% over the past five years. The table below provides a snapshot of its performance:

Investment Details

The minimum investment required for the SBI Bluechip Fund is ₹1,000, making it accessible for a wide range of investors. The expense ratio stands at 0.6%, which is competitive within the large-cap fund category.

Suitability

This fund is suitable for investors with a moderate to high-risk appetite who are looking to invest in equity for a period of five years or more. The fund’s diversified portfolio and strong track record make it a compelling option for long-term wealth creation.

7. HDFC Mid-Cap Opportunities Fund

HDFC Mid-Cap Opportunities Fund is a mid-cap fund that has 93.21% investment in Indian equities, of which 52.58% is in mid-cap stocks, 5.57% in large-cap stocks, and 18.09% in small-cap stocks. It is most suitable for people looking to stay invested for 3-4 years and high returns, but those that are not risk-averse as it is an extremely risky fund.

Performance

Investment Strategy

The fund primarily focuses on mid-cap stocks, making it a high-risk, high-reward investment option. It is ideal for investors with a higher risk tolerance looking for substantial returns over a medium-term period.

8. ICICI Prudential Bluechip Fund

Overview

ICICI Prudential Bluechip Fund is suitable for investors who want to remain invested in equity for the next five years but can take moderate to high risk. It has a 91.39% investment in Indian stocks, of which a majority 81.37% is in large caps, 4.85% in midcaps, and the remaining in small caps. Additionally, 0.47% of the investment is in debt, mostly in government securities.

Minimum Investment Amount

The minimum amount required to invest in ICICI Prudential Bluechip Fund via lump sum is ₹100 and via SIP is ₹100.

Fund Performance

The ICICI Prudential Bluechip Fund has given 20.36% annualized returns in the past three years and 18.42% in the last five years.

Asset Under Management (AUM)

The fund has an AUM of ₹54,904 Crores.

9. Kotak Standard Multicap Fund

Overview

The Kotak Standard Multicap Fund is a versatile mutual fund that offers a blend of large, mid, and small-cap stocks. This fund is managed by Kotak Mahindra Asset Management Company Ltd and aims to provide long-term capital appreciation.

Fund Details

Performance

The Kotak Standard Multicap Fund has shown impressive performance over the years. The 5-year returns stand at 20.25%, while the 10-year returns are 19.15%. This makes it a compelling choice for investors looking for robust long-term growth.

Investment Strategy

The fund follows a diversified investment strategy, investing across various sectors and market capitalizations. This approach helps in mitigating risks and capturing growth opportunities across the market spectrum.

10. Franklin India Prima Fund

Overview

Franklin India Prima Fund is a well-established mutual fund known for its consistent performance and robust portfolio management. It has been a preferred choice for investors looking for long-term capital appreciation.

Performance

The fund has shown impressive returns over the years, making it a reliable option for SIP investments. Historical data indicates strong performance metrics, which have contributed to its popularity among investors.

Investment Strategy

The fund primarily invests in mid-cap stocks, aiming to capture growth opportunities in this segment. The diversified portfolio helps in mitigating risks while maximizing returns.

Fund Manager

Managed by experienced professionals, the fund benefits from strategic decision-making and in-depth market analysis. The expertise of the fund managers plays a crucial role in its success.

Key Metrics

Conclusion

Franklin India Prima Fund stands out as a top choice for SIP in 2024 due to its strong track record, strategic investment approach, and experienced management team.

Conclusion

Investing in mutual funds through SIPs in 2024 offers a promising avenue for wealth creation and financial stability. By diversifying investments across various sectors and asset classes, investors can mitigate risks and enhance returns. The key to successful SIP investments lies in selecting the right mutual funds based on performance, flexibility, cost, and liquidity. As highlighted, the best mutual funds for SIPs cater to different risk profiles and investment capacities, ensuring that there is a suitable option for every investor. With careful planning and regular investments, SIPs can help achieve long-term financial goals and build a robust investment portfolio.

Frequently Asked Questions

What is a Systematic Investment Plan (SIP)?

A Systematic Investment Plan (SIP) allows investors to invest a fixed amount regularly in mutual funds, helping them accumulate wealth over time through disciplined investing.

Why should I consider investing in mutual funds via SIP?

Investing in mutual funds via SIP helps in averaging the cost of investment, provides the benefit of compounding, and allows for disciplined and regular investing, which can lead to significant wealth accumulation over time.

How were the top mutual funds for SIP in 2024 selected?

The top mutual funds for SIP in 2024 were selected based on their performance across equity, hybrid, debt, and commodities categories over the past year, taking into account factors such as returns, investment flexibility, cost, and liquidity.

What are the benefits of investing in small-cap mutual funds?

Small-cap mutual funds have the potential to offer higher returns compared to large-cap funds, as they invest in smaller companies with high growth potential. However, they also come with higher risk.

Can I change the frequency of my SIP investments?

Yes, investors can choose the frequency of their SIP investments, ranging from daily, monthly, to quarterly, depending on their financial situation and investment goals.

What factors should I consider before investing in mutual funds via SIP?

Before investing in mutual funds via SIP, consider factors such as your investment goals, risk tolerance, the fund’s past performance, expense ratio, and the flexibility of the SIP plan.