PERSONAL FINANCE

Top 10 SIP Mutual Funds for 2022

Jul 08, 2022, 8 MINS READ


Last Updated on Jul 08, 2022, by Manish Thole

The term mutual funds echo the advertisement jingle “mutual funds Sahi hai”, which has attracted many investors to India’s massive mutual fund industry and has an AUM of Rs 38.04 tn as of 30 April 2022!

But who would you buy a mutual fund from? Where can you easily find the best-performing funds? Let us simplify these questions for you by discussing the top 10 SIP mutual funds to keep an eye on!

Why SIP mutual funds are the best to invest in?

Mutual funds pool money from multiple investors and invest in various securities like stocks, bonds, gold, or any other asset to generate higher returns. These are managed by professional fund managers. 

SIP in mutual funds allows you to begin your investment journey in a systematic manner by investing a fixed amount in a fund scheme on a weekly, monthly, or quarterly basis. You can also choose between a fixed-term SIP and a perpetual SIP.  A perpetual SIP has no fixed investment period and continues until you decide to invest.

Benefits of investing in SIP mutual funds

Apart from the ease and convenience SIP offers, here are the reasons why investing in mutual funds via this mode is a great choice:

  1. Limited capital: SIPs can start with as low as Rs 100. This enables investors with low capital to generate higher long-term returns over the tenure with their limited monthly savings.
  2. Rupee cost averaging: The Rupee cost averaging strategy entails investing a set amount of money regularly, irrespective of whether the markets are rising or falling. This means that you get to buy more units when the market is low and fewer units when the market is high, allowing you to average the cost of fund units over time.
  3. Diversification opportunity: By broadening your SIP investment portfolio across equity funds, debt funds, and hybrid funds, you may limit market risks and stand a chance to earn consistent returns during downtrends or periods of high market volatility. 
  4. Flexibility: The best SIP provides greater control over your investments, allowing you to start or stop them whenever you want. You can also pause a SIP and resume it afterward. No other investment method provides you with this level of flexibility.
  5. Compounding: SIP investments are meant to be long-term investments. Your SIP investments compound over time, resulting in significantly higher returns.
  6. Financial discipline: SIP teaches you financial discipline, which is critical for investing, especially when it comes to risky investments.

What are the best SIP mutual funds to invest in?

Note: The data discussed is as of 08 July 2022, and the parameters used to filter the following list of mutual funds are:

  • Large and mid-cap equity mutual funds
  • ‘Alpha’ is greater than zero to assess an investment’s risk-adjusted performance
  • 3-yr compound annual growth rate (CAGR) and 3-yr rolling returns to pick the top-performing funds
  • Expense ratio to evaluate the money you pay a fund as a percentage of your investment each year for managing it
  1. Axis Growth Opp Fund

Launched by Axis Asset Management Company Ltd, it is the mutual fund investment arm of Axis Bank – India’s third-largest private lender. Axis Bank owns about 74.99% of the AMC, while Schroder Singapore Holdings Private Limited owns 24%.

As of 08 July 2022, the fund’s AUM is Rs 7,249 cr, with a minimum SIP of Rs 1,000. The 3-yr rolling return is 32.93%, the 3-yr CAGR is 22.78%, and the expense ratio is 0.41%.

2. HSBC Large & Mid Cap Equity Fund

Launched by HSBC Global Asset Management (India) Private Ltd, it is one of the leading AMCs in the country’s investment market. It serves more than 1 mn customers through its 1,000-plus offices spread all over India. 

As per the recent data dated 18 May 2022, the fund sits on an AUM of ~Rs 493 cr with a starting SIP of Rs 500. Note that the 3-yr rolling return of this fund is 29.07%. Also, the 3-yr CAGR is 16.45%, and the expense ratio stands at 0.79%.

3. Quant Large & Mid Cap Fund

Quant Money Managers Limited “QMML” (AMC) was founded the company on 12 Dec 1995. It was approved by SEBI to act as an Asset Management Company for the Quant Mutual Fund on 30 Oct 2017.

This fund has nearly ~Rs 79 cr as AUM with a minimum SIP of Rs 1,000 as of 18 May 2022. With a 0.56% expense ratio, the 3-yr rolling return of this fund is recorded at 24.64%, and the 3-yr CAGR is marked at 24.55%.

4. Canara Rob Emerg Equities Fund

Launched by Canara Robeco – India’s second oldest asset manager. In 2007, Canara Bank partnered with Robeco group through a joint venture, and the mutual fund was named Canara Robeco Mutual Fund. It functions now under Canara Robeco Asset Management Company Ltd. (CRAMC). 

The fund has an AUM of Rs ~12,994 cr as of 18 May 2022, and a minimum SIP of Rs 1,000 is maintained. This fund’s 3-yr rolling return is 24.33%, its 3-yr CAGR is 18.84%, and its expense ratio stands at 0.61%.

5. Edelweiss Large & Mid Cap Fund

Launched under Edelweiss Asset Management Limited (EAML), part of the Investment & Advisory line of business of Edelweiss Group. It is one of the fastest-growing and young AMCs’ in India.

With an AUM of ~Rs 1,284 cr, the fund’s SIP starts at Rs 500. As of 18 May 2022, the 3-yr rolling return of this fund is 23.58%, with a 0.55% expense ratio. The 3-yr CAGR is marked at 17.99%.

6. SBI Large & Midcap Fund

SBI Funds Management Ltd. (SBIFML) launched this fund. SBIFML stands as a joint venture between SBI and AMUNDI (France), one of the world’s leading fund management companies. It is interesting to note that SBI currently owns 63% of SBIFMPL. 

With a 1.18% expense ratio and AUM of Rs ~6,598 cr, the fund’s minimum SIP is Rs 500. Also, the 3-yr rolling return of this fund is recorded at 22.89%, and 3-yr CAGR  stands at 17.86% as of 18 May 2022. 

7. Navi Large & Midcap Fund

Launched by Navi Mutual Fund on 07 Dec 2015. It’s an equity fund that invests in India’s top 200 companies.

As of 18 May 2022, this fund sits on an AUM of ~Rs 145 cr with a minimum SIP of Rs 500. The 3-yr rolling return of this fund is 22.85%, with a CAGR of 17.57%, and the expense ratio is 0.35%.

8. HDFC Large and Mid Cap Fund

Launched by HDFC Asset Management Company, the investment manager of HDFC Mutual Fund, it is one of the leading AMCs in the country. The company is a joint venture of Housing Development Finance Corporation (HDFC) and Standard Life Investments (SLI). 

AUM of this fund is ~Rs 5,944 cr with a minimum SIP of Rs 500. The 3-yr rolling return of this fund is 22.70%, the 3-yr CAGR is 17.61%, and the expense ratio is nearly 1.22%. 

9. Kotak Equity Opp Fund

Launched by Kotak Mahindra Asset Management Company Limited (KMAMC). It is a wholly-owned subsidiary of Kotak Mahindra Bank Limited (KMBL) and serves as the Asset Manager for the Kotak Mahindra Mutual Fund (KMMF). It has approximately 21 lakh investors in KMMF schemes.

As of 18 May 2022, this fund sits on an AUM of ~Rs 9,556 cr with a minimum SIP of Rs 1,000. The 3-yr rolling return of this fund is listed at 22.44%, 3-yr CAGR is 18.17%, and the expense ratio is 0.60%.

10. ICICI Pru Large & Mid Cap Fund

ICICI Prudential Asset Management Company Ltd. is the leading AMC in the country. It’s a joint venture between ICICI Bank and Prudential Plc – one of the UK’s largest players in the financial services sector. 

This fund has an AUM of ~Rs 4,703 cr with the lowest SIP of Rs 100. Please note that the 3-yr rolling return of this fund is listed at 22.48%. The expense ratio pertains to 1.30%, with a 3-yr CAGR marked at 18.56%.

It can be difficult to select a mutual fund that suits your requirements, but a little research can go a long way in your investment journey. It is worthwhile to seek the guidance of a financial advisor. When it comes to investments, tailoring them to your risk tolerance and financial situation gives you an advantage in dealing with market volatility. You can save your efforts and time by using Mutual Fund Screener From Various Platforms to find the best mutual fund based on your risk tolerance and investment preferences!

Frequently asked questions (FAQs)

  1. What are SIP mutual funds?

A Systematic Investment Plan (SIP), also known as SIP, is a method of investing in a mutual fund. It allows investors to invest in a disciplined manner. Through SIP, an investor can invest a predetermined sum in a mutual fund scheme at predetermined intervals. The investment amount can be as low as Rs 100, and SIP intervals can be weekly, monthly, quarterly, semi-annually, or annually. SIP investing allows the investor to invest in a time-bound manner without worrying about market dynamics and benefits in the long run due to average costing and the power of compounding.

  1. Which mutual funds are best for the long term?

Long-term investments in equity-oriented mutual funds are preferable, as can they help you achieve your long-term objectives in two ways. To begin with, it would outperform debt funds in terms of returns. Second, because you are investing for a longer period of time, the risk factor is reduced significantly.

  1. How to find the best mutual funds in India?

Tickertape’s Mutual Fund Screener is one of the most effective ways to find mutual funds. Equipped with over 50 filters, the Mutual Fund Screener allows you to find a suitable scheme based on your requirements in just a few clicks! You no longer need to spend long hours collating data from multiple platforms to compare various funds.





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