Top Mutual Funds For SIP: Did you know that about 27.6% of the adult population in India is financially literate? They are the folks who understand and effectively use financial skills to manage their money. Yeah, that lot that talks about terms like compounding, risk profile, returns, retirement planning, budgeting, Investing, and whatnot!
The one thing that these people are sure to talk about is the stock market. They’ll tell you how they’ve made a massive amount of wealth and the next investment opportunity that they’ve set their eyes on. However, these things just don’t resonate with some of us. But, the hard reality is that we’ll have to sort our finances for our own good.
Investing in the stock market requires basic knowledge, to start with. But some of us work for long hours. We’re looking for a solution to make regular investments that are taken care of by experts. This is where mutual funds enter through the SIP route. In this article, we’re going to take a look at the Top Mutual Funds For SIP in 2023. They are not the only investments that we should be making, but they’re good for a start, at least until we geek out.
What is SIP?
A Systematic Investment Plan (SIP) is an investment route offered by mutual funds, wherein multiple investors invest a fixed amount of money at regular intervals, say monthly or quarterly. The amount that is invested can be as low as ₹ 500 per month for a unit of the fund. Professionals (called fund managers) invest these funds and pass on the returns to investors. The asset management company charges a fee in the form of an expense ratio to compensate them.
Let’s take a look at the top mutual funds for SIP in 2023. To make this list, we have considered parameters like expense ratio, assets under management (AUM), trailing returns, the fund manager’s credentials, and so on.
Top Mutual Funds For SIP In 2023
Here are the top mutual funds for SIP that you can add to your watchlist
Top Mutual Funds For SIP #1 – PGIM India Midcap Opportunities Fund
| Fund Company | PGIM India Asset Management Pvt. Ltd | Size (AUM in Cr) | ₹ 7,617 Crs |
| 3-yr Returns (CAGR) | 31.65 | 1-yr Return | 0.14% |
| Expense Ratio | 0.44 | Inception Date | December 02, 2013 |
| Exit Load (0 to 90 days) | 0.5% | No. of Stocks Held | 45 |
PGIM India Midcap Opportunities Fund is a midcap mutual fund scheme from PGIM India Mutual Fund. It has been in existence for over nine years. This scheme aims to achieve long-term capital appreciation by predominantly investing in equity & equity-related instruments of mid-cap companies.
The fund tracks the benchmark NIFTY Midcap 150 TRI. It has an AUM of ₹ 7617 crores and does not have a lock-in period. However the fund has an exit load of 0.5% for redemption within 90 days, and nil after 90 days. It has an expense ratio of 0.44%. The minimum amount to be invested is ₹ 1,000 in the case of SIP.
Allocation
The fund has a majority of its money invested in financial, capital goods, healthcare, consumer discretionary, and service sectors. In terms of market capitalization, 13.59% of its funds are in large-cap stocks, 68.21% in mid-cap stocks, 10.1% in small-cap stocks, and 7.31% in debt instruments. Its top holdings are Federal Bank Ltd. (4.36%), Cummins India Ltd.(4.28%), Timken India Ltd. (3.84%), and Ashok Leyland Ltd. (3.79%).
Returns
PGIM India Midcap Opportunities Fund has given 3-year annualized returns of 31.65%, against 17.29% provided by the benchmark. It gave 5-year annualized returns of 19.26% against the 9.05% provided by the benchmark.
Fund managers
Annirudhha Naha is a senior fund manager. He manages equity for PGIM India Diversified Equity Fund and PGIM India Midcap Opportunities Fund. He did his masters in Finance and Control and has over 18 years of industry experience in the equity and debt market.
Mr. Puneet Pal is a B.com (H) and MBA from SIBM Pune and has over 21 years of experience in the debt market. Mr. Vivek Sharma is a PGDM Finance graduate and has over 16 years of experience in Indian financial markets, primarily in equity research.
Top Mutual Funds For SIP #2 – IDFC Tax Advantage (ELSS) Direct Plan-Growth
| Fund Company | IDFC Asset Management Company Ltd | Size (AUM in Cr) | 4,033 |
| 3-yr returns (CAGR) | 22.56 | 1-yr return | 2.5 |
| Expense ratio | 0.74% | Inception Date | January 01, 2013 |
| Exit Load | 0.00% | No. of Stocks Held | 48 |
IDFC Tax Advantage (ELSS) Fund is an equity-linked savings scheme from IDFC Mutual Fund. It has been in existence for over 10 years. It aims to generate long-term capital growth from a diversified portfolio of predominantly equity and equity-related securities.
The fund tracks the benchmark S&P BSE 500 TRI. It has an AUM of ₹ 4033 crores and has a lock-in period of 3 years. It has an exit load of 0% and an expense ratio of 0.74%. The minimum amount to be invested is ₹ 500 in the case of SIP.
Allocation
The fund has a majority of its money invested in the Financial, Automobile, Technology, Materials, and Healthcare sectors. In terms of market capitalization, 56.94% of its funds are in large-cap stocks, 18.29% in mid-cap stocks, 17.54% in small-cap stocks, and 0.04% in debt instruments. Its top holdings are ICICI Bank (7.84%), Infosys (5.13%), State Bank of India (4.80%) HDFC Bank (4.17%) and Reliance Industries (3.65%).
Returns
IDFC Tax Advantage (ELSS) Fund has given 3-year annualized returns of 22.56%, against 15.32% provided by the benchmark. It gave 5-year annualized returns of 12.99% against the 11.74% provided by the benchmark.
Fund manager
Daylynn Gerard Paul Pinto is a B.com (H) and PGDM. He was associated with UTI AMC (Jul 2006-Sep 2016) as a fund manager, prior to joining IDFC AMC.
Top Mutual Funds For SIP #3 – ICICI Prudential Value Discovery Direct-Growth
| Fund Company | ICICI Prudential Asset Management Company | Size (AUM in Cr) | 27,768 |
| 3-yr returns (CAGR) | 25.27 | 1-yr return | 7.84 |
| Expense ratio | 1.74% | Inception Date | August 16, 2004 |
| Exit Load (o to 12 months) | 1.00% | No. of Stocks Held | 76 |
ICICI Prudential Value Discovery Direct-Growth is a Value Oriented mutual fund scheme from ICICI Prudential Mutual Fund. It has been in existence since August 16, 2004. It aims to generate returns through a combination of dividend income and capital appreciation by investing primarily in a well-diversified portfolio of value stocks. Generally, investors invest in this fund for the long term.
The fund tracks the benchmark S&P BSE 500 India TRI. It has an AUM of ₹ 27,768 crores and does not have a lock-in period. It has an exit load of 1% if the withdrawal is made before 12 months and 0% if it is made after 12 months. The fund has an expense ratio of 1.74%. The minimum initial investment in the fund is ₹ 1,000.
Allocation
The fund has a majority of its money invested in the Financial, Energy, Healthcare, Technology, and Automobile sectors. In terms of market capitalization, 69.33% of its funds are in large-cap stocks, 9.94% in mid-cap stocks, 8.57% in small-cap stocks, and 4.5% in debt instruments. Its top holdings are Oil & Natural Gas Corporation (8.79%), Sun Pharmaceuticals(7.95%), NTPC (6.42%) ICICI Bank (4.48%), and Bharti Airtel (4.15%).
Returns
ICICI Prudential Value Discovery Direct-Growth Fund has given 3-year annualized returns of 25.27%, against 16.34% provided by the benchmark. It gave 5-year annualized returns of 13.93% against the 11.67% provided by the benchmark.
Fund managers
Sankaran Naren has a B.Tech from IIT Chennai and MBA (Finance)from IIM Kolkata. He has worked with Refco Sify Securities India Pvt. Ltd., HDFC Securities Ltd., and Yoha Securities. prior to joining ICICI Prudential Mutual Fund.
Dharmesh Kakkad has a B.com., CA & CFA qualification. He is associated with ICICI Prudential Asset Management Company Limited since June 2010. Prior to working in the dealing function, he was working in the Operations Department of ICICI Prudential AMC.
Top Mutual Funds For SIP #4 – HDFC Retirement Savings Fund Equity Plan Direct-Growth
| Fund Company | HDFC Asset Management Company | Size (AUM in Cr) | 2,659 |
| 3-yr returns (CAGR) | 23.41 | 1-yr return | 10.91 |
| Expense ratio | 0.83% | Inception Date | February 25, 2016 |
| Exit Load | 0.00% | No. of Stocks Held | 68 |
This is a retirement solution-oriented mutual fund scheme from HDFC Mutual Fund. It has an AUM of ₹ 2,659 crores and is a medium-sized fund in its category. The fund has been in existence for almost eight years. The scheme’s objective is to provide long-term capital appreciation/income by investing in a mix of equity and debt instruments to help investors meet their retirement goals.
The scheme follows the benchmark Nifty 500 TRI. It has an AUM of ₹ 2,659 crores and has a lock-in period of 5 years. It has an exit load of 0%. The fund has an expense ratio of 0.83%. The minimum initial investment in the fund is ₹ 300 for SIP.
Allocation
The fund has a majority of its money invested in the Financial, Capital Goods, Services, Consumer Staples, and Technology sectors. In terms of market capitalization, 48.31% of its funds are in large-cap stocks, 9.6% in mid-cap stocks, 29% in small-cap stocks, and 1.31% in debt instruments. Its top holdings include HDFC Bank (5.13%), ICICI Bank (4.85), Infosys (4.61%), Reliance Industries (3.13%), and Housing Development Finance Corporation (2.89%).
Returns
HDFC Retirement Savings Fund has given 3-year annualized returns of 23.41% and 5-year annualized returns of 14.75%.
Fund managers
Shobhit Mehrotra is an MBA from Clemson University, USA. Prior to joining HDFC AMC, he worked with Franklin Templeton AMC, and ICRA.
Amar Kalkundrikar has done B.Com, CA, CFA, and MBA from Columbia Business School. He has handled multiple roles such as Portfolio Management for PMS business, & performing Equity research in various sectors such as Consumer Staples, Consumer Discretionary, Retail, and Construction Materials.
Srinivasan Ramamurthy is an engineer by qualification from Jadavpur University and has done his MBA from IIM – Calcutta. He has worked with Mahindra Mutual Fund, IDBI Federal Life Insurance, IIFL Capital Limited, Maybank Kim Eng, Credit Suisse, and KPMG Advisory.
Top Mutual Funds For SIP #5 – DSP Nifty 50 Equal Weight Index Fund Direct-Growth
| Fund Company | DSP Investment Managers Pvt. Ltd | Size (AUM in Cr) | 503 |
| 3-yr returns (CAGR) | 18.73 | 1-yr return | 2.7 |
| Expense ratio | 0.40% | Inception Date | October 23, 2017 |
| Exit Load | 0.00% | No. of Stocks Held | 50 |
DSP Nifty 50 Equal Weight Index Fund is a Large Cap Index mutual fund scheme from DSP Mutual Fund. It has been in existence for more than five years. The scheme invests in the constituents of the Nifty 50 Equal Weight Index (underlying Index) in the same proportion as in the index and seeks to generate returns that are commensurate (before fees and expenses) with the performance of the underlying Index, subject to tracking error.
The fund has an AUM of ₹ 503 crores and does not have a lock-in period. It does not have an has an exit load and has an expense ratio of 0.40%. The minimum initial investment in the fund is ₹ 500 for SIP.
Allocation
The fund has all of its investment in large-cap stocks. Its top holdings are Tata Motors (2.34%), Mahindra & Mahindra (2.28%), HCL Technologies (2.21%) Tata Steel (2.20%), and Maruti Suzuki India (2.18%).
Returns
DSP Nifty 50 Equal Weight Index Fund has given 3-year annualized returns of 18.73% and 5-year annualized returns of 10.59%.
Fund managers
Anil Ghelani has done B. Com., CFA & CA. He has worked with IL&FS, S. R. Batliboi, V. C. Shah & Co. before joining DSP Mutual Fund.
Diipesh Shah is a B Com, ACA, Candidate of the CFA Program, CFA Institute USA, Level I Cleared. He has worked with JM Financial, Centrum Broking, IDFC Securities, ICICI Securities, and IIFL Capital Pte Ltd Singapore before joining DSP Mutual Fund.
In Closing
In this article, we took a look at some of the top mutual funds for SIP in 2023. These funds include a large-cap fund, an index fund, a fund that invest in value stocks, a midcap fund, and a fund that has the objective to accumulate a corpus for retirement. Keep in mind that mutual funds are subject to market risk and past performance is not an indication of the future performance of a fund. That’s all for this article folks. We hope to see you around and happy investing until next time.
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