Best Mutual Funds for SIP to Invest in 2024

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A mutual fund is an investment option where money from many investors is pooled together to buy a mix of stocks, bonds, and other securities. The goal is to earn good returns for the investors while minimizing various risks, such as market risks, volatility, and macroeconomic risks.

It's easy to invest when someone gives you the best funds from a pool of 3,000 Mutual Funds. So we are here to provide you with the Best mutual fund for SIP in 2024. Just stay till the last to take advantage of free expert advice.

Overview of Top 10 Mutual Funds

1. Nippon India Small Cap Fund

Launched in September 2010, the Nippon India Small Cap Fund has grown to manage a corpus of Rs 51,566 crore, making it the largest in its category. Over the past five years, it has delivered a rolling return of 21.5%, outperforming its benchmark's 13.25%, and this fund well performed with an 85.25% consistency rate.

If an investor had invested Rs. 3,000 monthly through SIP over the past 10 years, the total investment of Rs. 3,60,000 would now be worth Rs. 15,55,347, with SIP returns of 24.98%, outperforming the benchmark of 17.70%.

The fund's success comes from owning a mix of over 150 different stocks, which reduces the risk of any one stock. It aims to invest in strong companies at fair prices to lower losses when the market is down and to select high-growth stocks for strong performance when the market is up. This approach has firmly positioned the fund as a leading player in the small-cap sector.

2. Edelweiss Mid Cap Fund

The Edelweiss Mid Cap Fund focuses on undervalued mid-cap stocks with high growth potential. Over the past five years, it has achieved a rolling return of 18.28%, outperforming its benchmark of 16.92%, with an 82.02% consistency rate.

Over 10 years, an investor who invested Rs. 3,000 per month would see a total investment of Rs. 3,60,000 grow to a current value of Rs. 11,80,203, yielding a SIP return of 20.88%, surpassing the benchmark of 20.73%. Using a diversified portfolio and a bottom-up strategy examining financials, governance, and competitive advantage, fund managers aim for stable, consistent performance. This makes it a reliable choice for mid-cap growth.

3. ICICI Prudential Blue Chip Fund

The ICICI Prudential Blue Chip Fund has been a standout performer in the large-cap fund category, applying its consistent focus on equities of the top 100 businesses listed on the NSE. Over the past 3 years, the fund's SIP returns have reached an impressive 22.26%, outstripping the benchmark's 18.08%.

But the fund's excellence extends beyond history, its 5-year rolling returns have averaged 14.56%, outperforming the benchmark's 13.7% with a commendable consistency of 77.45%.

Since its inception in May 2008, it consistently surpasses benchmarks. Over the last 5 years, the fund has delivered a CAGR of 14.56%, emphasizing high growth potential stocks at reasonable valuations. It aims to protect investors from downside risk during volatile market conditions while providing above-average returns during market rallies. The fund follows a buy-and-hold strategy, maintaining a diversified portfolio without sector bias.

4. Parag Parikh Flexi Cap Fund

The Parag Parikh Flexi Cap Fund has quickly established a strong track record, performing well among its peers. Its 3-year and 5-year rolling returns are impressive at 20.71% and 18.37%, respectively, outperforming its benchmark, which stands at 17.24% and 13.84%. Notably, the fund has maintained a consistency rate of 100%.

If you had invested Rs. 3000 monthly over the past 10 years, the total invested amount of Rs. 3,60,000 would now be worth Rs. 9,93,865, reflecting an 18.09% return, surpassing its benchmark's 15.36%.

The Parag Parikh Flexi Cap Fund focuses on buying undervalued stocks and also invests in foreign stocks. Launched in May 2013, it can invest in companies of all sizes, including large, medium, and small-cap stocks. The fund prefers high quality, reasonably priced stocks and prioritizes safety over high returns. It maintains a diversified portfolio of fundamentally sound, undervalued stocks to ensure safety for investors.

With a strong focus on risk management, the fund benefits from a long-term investing strategy, especially in volatile markets.

5. Nippon India Multi Cap Fund

The Nippon India Multi Cap Fund has a strong track record, with a 5-year rolling return of 15.06% and a 3-year SIP return of 32.29%, both outperforming their benchmarks of 13.84% and 23.16%, respectively. If you had invested Rs. 3000 monthly over the past 5 years, your total investment of Rs. 1,80,000 would now be worth Rs. 3,48,138.

The fund maintains a balanced allocation across large-cap, mid-cap, and small-cap stocks, aiming to perform well over complete market cycles through sound fundamental selections. It generates strong risk-adjusted returns despite slightly higher volatility by using a 'top-down' and 'bottom-up' approach to select high-conviction stocks. This fund is best suited for investors with a long-term horizon of 5-7 years.

6. Franklin India Technology Fund

The Franklin India Technology Fund has firmly established itself as a standout performer, delivering impressive results that have consistently outpaced its benchmark.

Over the past 5 years, the fund's rolling return stood at 17.89%, outperforming its benchmark of 13.84% with a commendable consistency of 78.51%.

Looking at the fund's SIP performance, it has showcased exceptional results across various timeframes. The 10-year, 5-year, and 3-year SIP returns stand at 18.18%, 26.29%, and 18.09%, respectively, outpacing the benchmark returns of 12.94%, 18.81%, and 10.40% over the same periods.

For investors who have trusted the fund over the past 10 years, the rewards have been substantial, with the current value of their investment reaching an impressive ₹10,00,128.

This fund invests in innovative, new-age companies across various technology sectors. It follows both top-down and bottom-up approaches to identify high-growth potential companies with a strong track record of innovation and execution.

7. ICICI Prudential Manufacturing Fund

The ICICI Prudential Manufacturing Fund has delivered standout performance, with a 70% return in the past year, far exceeding the 36% of Nifty 500.

The fund's impressive track record extends to its SIP performance as well, with a 5-year SIP return of 28.89% - outperforming its benchmark of 20.83%. Notably, the fund has maintained a consistency of 100%, showcasing its ability to deliver consistent, high-quality returns.

The ICICI Prudential Manufacturing Fund buy-and-hold strategy, quality stock picking, and timely sector analysis have been key drivers of its success. Its diversified portfolio across large-caps and mid-caps in trending sectors makes it a compelling choice for consistent, high returns.

8. Invesco India Contra Fund

The Invesco India Contra Fund is an excellent choice for investors seeking lower risk during downturns and superior long-term returns. The fund's 5-year and 3-year rolling returns are 18.56% and 16.84%, respectively, outperforming its benchmark. Over the past 10 years, a ₹3,000 monthly investment would have grown to ₹9,87,647, delivering a 17.91% return, surpassing the benchmark's 14.03%.

Managed by Taher Badshah, with over 30 years of experience and seven years dedicated to this fund, it has a history of consistent, profitable returns. The fund's contrarian approach and diversified portfolio across market capitalizations make it ideal for investors with a 5- 7 year horizon seeking a contra-style fund.

9.ICICI Prudential Multi Asset Fund

The ICICI Prudential Multi Asset Fund is ideal for investors seeking low-risk and high-return opportunities. Over the past 5 years, the fund's SIP returns have been an impressive 25.86%, outperforming its benchmark of 20.67% and creating significant wealth for investors. In fact, a ₹3,000 investment made over the past 5 years would have grown to an astounding ₹3,40,416.

The fund has also delivered a 5-year return of 14.52%, significantly beating its benchmark of 8.34%. This success is due to the skilled management team's balanced approach, positioning the fund to prudently navigate high market valuations and seize opportunities during market corrections.

10 HDFC Balanced Advantage Fund

The HDFC Balanced Advantage Fund launched in 1994, has consistently delivered above-average returns, making it a compelling choice for investors.

Over the past 3 and 5 years, the fund's rolling returns have been an impressive 14.26% and 14.03%, respectively, outperforming its benchmark.

For investors who opted for a disciplined SIP approach, contributing ₹3,000 over the past 5 years, the current value of their investment has grown to a substantial ₹3,05,275.

The fund's dynamic asset allocation strategy, with a focus on equity and debt, has allowed it to maintain an equity-centric portfolio, benefiting from favourable taxation.

HDFC Balanced Advantage Fund is known for its high-conviction stock picks and strong capital growth, making it a well-rounded choice for investors seeking a blend of equity and debt exposure.

Final Note

While many investors believe that they need a large sum to start investing, the truth is you can begin with as little as ₹500 through SIP. Starting early allows you to see substantial growth over time, building your financial wealth. For personalized guidance on your investments, reach out to our experts today!