Wednesday, 26 December 2018

Best Mutual Funds to Invest Through Systematic Investment Plan / SIP in 2019

Posted by MyInvestmentsPub
(Published on 26-Dec-2018)

We are just entering into 2019 with lots of hopes and promises. As the new year going to start, we also need to start a new roadmap to our financial planning. Need to take a look on our existing Portfolios and to  reshuffle. The year 2018 gave an average returns to the investors. Most of the Mutual funds gave negative returns in 2018. Particularly, the last 3 months were very tough and and most of the losses occurred in these 3 months. Many of the Market experts expecting this bear period will be short lived and the year 2019 will yields good returns to the Investors. As I mentioned in my earlier posts, Systematic Investment Plan into Diversified Mutual funds for a long-term is the best approach. Hence, I suggest to continue the SIP approach in Mutual funds in the coming years irrespective of Market turbulances.

Best Mutual Funds to Invest Through Systematic Investment Plan / SIP in 2019 for a Long Term Portfolio:

In the last quarter of 2018, market has crashed and is continuing the falling. No one can expect when this bearish period going to end. But, I bet, those who are continuing their SIPs through Mutual funds would definitely benefit the most from these Market falls. Based on my analysis, the following Mutual funds are most suitable Mutual funds for SIP investments in the year 2019 on wards. For the sake of new Investors, I am providing the Mutual funds on sector-wise. I am considering Large-cap, Multi-cap, Balanced Sectors and Tax Saving Mutual funds for a long-term Portfolio.

1. Large-Cap Mutual Funds:

As the name indicating, Large-cap Mutual funds invest in Large companies in terms of Market capitalization. As these companies are well established, strong and well-managed, they will provide good returns in the long-term. Hence, these Mutual funds are ideal for conservative investors with low-risk appetite. Every Investors should include this sector Mutual fund into their Portfolio. According to SEBI's new categorization norms, Large-cap Mutual funds should invest a minimum of 80% of the corpus into Top-100 companies by market capitalization. Hence, these Large cap Mutual funds are becoming attractive for Conservative investors. Based on my analysis, the following 3 Mutual funds are best Large-cap Mutual funds to invest for long-term perspective.

2. Multi-Cap Mutual Funds:

As the name indicates, Multi cap Mutual funds invest in companies of all caps, i.e., instead of sticking to a particular capitalization, these funds invest in Large-cap, Mid-cap and Small-cap stocks. Because of this diversification, these Mutual funds are lesser risky than Mid-cap/small-cap funds and hence these funds are popular among all kind of Investors who are looking decent returns in the long term. However, these funds are more risky than Large-cap Mutual funds, but in long term, these funds gave higher returns.During bull-run, these Mutual funds gave better performance than Mid-cap funds. The following 3 funds are best Multi-cap Mutual funds to invest for long term. You can choose any one fund and include into your portfolio.

3. Balanced Mutual Funds:

Balanced Mutual funds invest both in Equity and Debt products. The equity part will provide higher returns and the Debt part will insulate the Market oscillations. Hence, an Investor can expect better returns than any Debt products like FDs etc. in the long term. Some Balanced funds are aggressive and some are conservative in nature based on the ratio of Equity and Debt. I have suggested 3 Best Balanced Mutual funds where in SBI Hybrid and Principal Hybrid are Aggressive and ICICI Pru Regular Saving fund is Conservative Balanced funds.

4. ELSS / Tax Saving Mutual Funds:

These are popular Mutual funds for Tax saving purpose. Basically these are having 3+ lock-in period and offer Tax benefits under Section 80C. Because of the lesser Lock-in period and better returns when compared to other Tax saving products (like PPF, Insurance plans etc.), these are attractive Tax saving products among all other Tax saving products. Some times, the performance levels of a good ELSS Mutual fund can be compared to any other Diversified Equity Mutual funds. I am expecting the following ELSS Mutual funds / Tax Saving Mutual funds are best suitable to invest from 2019 onwards.

Selection Criteria:

  1. Mutual Funds which are from Big Fund houses
  2. Only Diversified Equity Mutual Funds
  3. Mutual Funds which are having track record from the last 5+ years
  4. Mutual Funds which are having consistence performance
  5. Mutual Funds which are having 4-star / 5-star given by Value Research from the last 5+ years
  6. Fund Houses which are having STP facility to switch to other sector Mutual funds in some specific scenarios


Investing into a Diversified Equity Mutual fund through SIP approach for a long term is the best proven Investment method. I suggest all new readers to start your Investment considering the above sector Mutual funds in a long term perspective.


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