Top 10 Best SIP Mutual Funds to Invest in India in 2018

By | December 19, 2017


In this article, we will discuss the 10 best SIP mutual funds to have as an option, to invest in India in 2018. Before going further, we will first analyze and have a look at the Mutual Funds of 2017. One should remember that due to an uptrend in the market, almost all the equity funds have performed well and have given good results.

However, we will always try to select a fund which is old and has gone through all the market cycle and still has given a consistent performance. These funds should also have shown the downside protection.

In the best SIP MFs for 2017, we have seen that many funds are not able to beat the benchmark index in a year, but if we take a long term view of 3yrs, 5yrs or 10 yrs, they have easily crossed the benchmark figures. Hence one need not worry on this particular front.

Before investing in the Mutual Funds SIP one should  ask himself the following questions and should try to find the satisfactory answers for these:

Why I am Investing?

One should never make a blind investment. Instead, one should try to find the reason for why he/she is investing. In fact, one should have a proper financial goal. We have noticed that many of the investors, just invest their money in mutual funds, as they have excess money. The other reason of the investment can be that someone may have guided them that Mutual funds are the best long term investment as compared to other options like Bank’s FDs, PPF, Rds or LIC plans.

Important: SIP Calculator – Calculate your Mutual fund return

One should try to identify one’s financial goals. If one is clear as to why he is investing, how much money  he will need after how much time, he will be in a better situation to select the product.

In order to select the product, you must know the current cost of your goal. Along with the current cost, you must also know the inflation rate associated with the goal. The different financial goals will have a different inflation rate associated with it. For example the inflation rate of household expanses is different from the inflation rate of a child’s education or child’s marriage.

By assessing the current cost, time estimated and inflation rate, one will be in a position to estimate the future cost of the goal. The future cost of the goal will be your target amount.

Asset Allocation

The next step after the financial planning is asset allocation. There should be a proper asset allocation between the debt and equity. Thus, for both the long term or short term goals, there should be a proper asset allocation. The prime idea behind the asset allocation is to protect one’s money as well as smoothly reach to the financial goal.

The following guidelines can be followed while deciding the ratio of debt to the equity:

If the goal decided is with the timeframe less than 5 years, one should not include the equity product in his/her portfolio. One can then choose the debt fund products like FDs, RDs, etc.

If the financial goal’s timeframe is between 5 to 10 years, then one can allocate the debt to equity ratio as 40:60.

If the financial goal has a time period of more than 10 years than one can use the debt to equity ration as 30:70.

One should take care that the debt period should be chosen in a way that the maturity period of the debt product matches with the term of the financial goal.

Expected Return

The final step is the return expectation for the two asset classes. One can expect around 10 to 12 % return on the equity and around 7 % return on the debt product.

Important: Top 10 Mutual Funds 2018

Based on the above ideas, we have decided the list of best  10 mutual funds for 2018.

Large Cap MF

  • HDFC Balanced Fund 11th Sep 200                 21.67      12.24     18.62        14.46
  • ICICI Pru Balanced Fund 3rd Nov 1999                 20.83      12.49     18.34        11.03

Multi Cap MF

  • Franklin India Prima plus 29th Sep  1994              24             11.43     18.16       11.23
  • ICICI PRU Value Discovery 16th Aug, 2004            16.45         9.88      20.49       15.99

Mid Cap MF

  • HDFC Midcap OPP Fund 25th June, 2007            31.00        17.64    25.78      16.93
  • Franklin India Prima Fund 1st Dec 1993               30.59         16.78   25.13       13.36

Small Cap MF

  • DSPBR Micro cap Fund 14th June 2007            32.02          23.62     30.39     17.47  
  • Franklin India Smaller Comp 13th Jan 2006             35.42          19.94      29.98    15.37  

Equity-Oriented balanced Funds

  • HDFC balanced Fund 11 Sep 2000              21.67          12.24        18.62    14.46
  • ICICI Pru Balanced Fund    3rd Nov 1999              20.83          12.49       18.34    11.03 

Lets have a look at the summary table of the best mutual finds SIP for 2018.

Summary Table for Best Mutual Funds for 2018

               Fund Name                        Launch Date             1yr        3yr           5yr           10yr 

 HDFC Balanced Fund            11th Sep 200                 21.67      12.24     18.62        14.46

ICICI Pru Balanced Fund       3rd Nov 1999                 20.83      12.49     18.34        11.03

Franklin India Prima plus     29th Sep  1994              24             11.43     18.16       11.23

ICICI PRU Value Discovery   16th Aug, 2004            16.45         9.88      20.49       15.99

HDFC Midcap OPP Fund        25th June, 2007            31.00        17.64    25.78      16.93

Franklin India Prima Fund      1st Dec 1993               30.59         16.78   25.13       13.36

DSPBR Micro cap Fund          14th June 2007            32.02          23.62     30.39     17.47  

Franklin India Smaller Comp  13th Jan 2006             35.42          19.94      29.98    15.37  

HDFC balanced Fund               11 Sep 2000              21.67          12.24        18.62    14.46

ICICI Pru Balanced Fund         3rd Nov 1999              20.83          12.49       18.34    11.03

Thus, these are the top ten SIP based Mutual funds in India to invest in 2018. One can take benefit of the information given in this article and can invest in best Mutual funds. However, one is advised to follow the procedure given in this article to select the best mutual funds, out of these.

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