What is the rate of return for top 10 SIPs in India?

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SIP stands for systematic investment plan and this particular type of mutual fund works on the principle of regular investments. This investment is just like the recurring deposit where the investor puts in a small amount after every particular interval. The SIPs allow the investor to invest in a mutual fund by means of smaller periodic investments (which may be monthly or quarterly) rather than a heavy one-time investment i.e. an systematic investment plan allows the investor to pay 10 periodic investments of let’s say Rs 500 each instead of a one-time investment of Rs 5,000 in an mutual fund. Thus, an investor can invest in a mutual fund without altering the other financial liabilities that he/she may have. It is important for the investor to understand the concepts of rupee cost averaging and the power of compounding to better understand the working of Systematic Investment Plans or SIPs.

SIP has made the investment in mutual funds easy and within the reach of any regular person as it enables even those with very low budgets to invest a minimal amount of Rs 500 or Rs 1,000 on a regular periodic basis in place of making a heavy, one-time investment in mutual fund.

The rate of returns for the top 10 SIPs are given below:

  • ICICI Pru Top 100 Mutual Fund: The funds are a large cap funds and have assets costing 1,457 cr under their management and offer a return of 23.8%, 21.9%, and 17.0% in 1, 3 and 5 years.
  • Birla Sun Life Frontline Equity Fund: The funds come in the category of large caps and have assets costing 13,634 cr INR under their management and offer a return of 19.3%, 19.7%, 18.0% in 1, 3,and 5 years
  • ICICI Pru Focussed Blue Chip Funds: The funds come in the category of large caps and have assets costing 11,868 cr INR under their management and offer a return of 17.5%, 22.2%, 16.3% in 1, 3,and 5 years
  • Mirae Emerging Blue Chip Fund: This lies in the mid cap category with assets of 2,122 cr INR under management, they give a return of 25.5%, 46.4% and 28.0% in 1, 3 and 5 years.
  • Franklin India Smaller Companies Fund: This lies in the mid cap category with assets of 3,494 cr INR under management, they give a return of 26.4%, 46.8% and 29.0% in 1, 3 and 5 years.
  • DSP Blackrock Micro Cap Mutual Fund: This lies in the mid cap category with assets of 3,399 cr INR under management, they give a return of 26.6%, 54.4% and 28.0% in 1, 3 and 5 years.
  • Principal Emerging Blue Chip Fund: This fund lies in the multi cap or diversified category with assets of 586 cr INR under management, they give a return of 23.0%, 42.4% and 26.0% in 1, 3 and 5 years.
  • Kotak Select Focus Fund: This fund lies in the multi cap or diversified category with assets of 5,481 cr INR under management, they give a return of 19.6%, 29.7% and 19.7% in 1, 3 and 5 years.
  • HDFC Balanced Fund: The fund is of the hybrid or balanced category with assets of 6,657 cr INR under management, they give a return of 15.5%, 27.8% and 17.0% in 1, 3 and 5 years.
  • ICICI Balanced Mutual Fund: The fund is of the hybrid or balanced category with assets of 3,477 cr INR under management, they give a return of 18.0%, 25.0% and 17.8% in 1, 3 and 5 years.

** These are the top performing SIPs from their respective category as of the data of 2017.