HomeMutual Fund5 Best SIP Equity Mutual Funds to Invest in 2024

5 Best SIP Equity Mutual Funds to Invest in 2024

Systematic Investment Plan also known as SIP investment is a fragmented investment offered by ‘mutual funds’ to the investor. It allows the investor to invest in a small fraction of the amount instead of a bulk depository amount. The number of times the investments occur may be weekly, monthly, or quarterly.

A certain amount is deposited by the investors in their accounts sporadically. These amounts will be invested in mutual funds. The investor is provided with a certain number of units as per the net set value (NSV). Every time a certain amount is invested, the units are multiplied by the investor’s bank account.

SIP investment is proven to be disciplined, flexible, and systematic. The investors may choose to stop investing at any point in time. They are also free to increase and decrease their periodic payable amount. SIP can be sought by those investors who do not have active financial resources.

5 Best SIP Equity Mutual Funds In India

Fund Type Names Of Funds
Large-Cap Funds Franklin India Bluechip Fund
S&P BSE Sensex
ICICI Pru. Focussed Bluechip Fund
CNX Nifty
Multi-Cap Fund Franklin India Prima Plus Fund
Nifty 500
ICICI Pru. Value Discovery Fund
S&P BSE 500
Mid-Cap Fund HDFC Mid Cap Opp Fund
CNX Free Float Midcap 100
Franklin India Prima Fund
Nifty 500
Small-Cap Fund DSPBR Micro Cap Fund
S&P BSE Small Cap Fund
Franklin India Smaller Company Fund
Nifty Free Float Midcap 100
Balanced Fund HDFC Balanced Fund
Value Research Balance
ICICI Pru. Balanced Fund
Value Research Balanced

To understand how to allot funds for investing in equities, it is vital to understand the return, expectation, and risk in the investments. On studying how to allot funds, it becomes clear where to allocate the amount in differing categories of funds. SIP investment is based on the type of funds one chooses to invest in. It may be a large-cap fund, small-cap fund, multi-cap fund, mid-cap fund, or balanced fund.

1. Large-Cap Funds

Large-cap funds are generally companies that acquire strong markets and are usually ratified as safe for investors. A vital fact about large-cap funds is that they are always ready with information regarding differing categories of companies, magazines, and newspapers. These large-cap fund companies maintain transparency providing proper information to their investors. Wipro, Infosys, and TCS (Tata Consultancy Solutions) are categorized as large-cap fund companies.

2. Multi-Cap Funds

Funds for multicap equity engage in businesses of different sizes and many industries. They have more discretion over the distribution of funds across large, mid-sized, and small businesses than do large or mid-cap funds. They can also adjust the portfolio due to this flexibility as the market conditions alter.

2. Mid-Cap Funds

Mid-Cap Funds are wedged between large-cap and small-cap funds. It funds are found in medium-sized companies that may have more risk-related factors than a large-cap fund company. They are placed in between the two extremes of funds in every parameter whether it is based on size, employee, or clientele. Investing in mid-cap funds may generally bring about high returns within 3 or 5 years. An interesting fact, an investor in a mid-cap fund could harness a higher return than a large-cap fund, which brings about a moderate return yet a safer one.

A mid-cap fund investor may generally be one of those companies with success stories.

3. Small-Cap Funds

The small-cap funds usually come in smaller gratuities and have a smaller client base. Small-cap funds are great for start-up companies and beginners. Small-cap funds have the potential for huge returns and may show growth in huge numbers once applied in the capital market. But one should go through a proper investigation before appliance to avoid any kind of problems. Research should be specifically focused on credentials, track record, management strength, and long-term and short-term plans of the said company before investing in it.

Small-cap funds may provide huge returns in a short period. Sometimes, small-cap funds may prove to be a good long-term investment if it is wisely managed and administered. Being in the lowest place in the capital market, small-cap funds are often misconceived as hazardous. This view is however not quite true.

The other two SIP investment funds are Multi-cap funds and Balanced funds. These two funds subsist between the other three funds.

5. Balanced Funds

In a single portfolio, a balanced fund mixes bonds, equities shares, and occasionally money market components. These hybrid funds typically adhere to a relatively set portfolio composition of stocks and bonds that represents either a conservative, or more fixed-income, component orientation, or a moderate, or higher equity, component orientation.

By combining debt and equity investments, these funds offer investors the best of both worlds. A robust dosage of equity helps balanced funds grow, but the debt component protects them against market downturns.

Planning for an SIP Investment Is Easy and Approachable

1. Resource Allocation

Resource allocation is the amount one would invest monthly on a specific investment of mutual funds. A common resource allocation would be 50% large-cap funds, 30% small-cap funds, and the remaining amount in debt funds.

2. Number of Schemes

One may have at least 3 schemes in their portfolio. On the other hand, one may not acquire more than 78 schemes. In case it exceeds 78 schemes the portfolio of the investor becomes complex and laborious to manage and track. Retaining 5 schemes would be an ideal number. One debt scheme and four equity schemes.

3. Mutual Fund Schemes

Good research for the best mutual funds can be an ideal way to curate a SIP investment plan and build up wealth. This is the final step in planning an SIP investment.


While these funds have performed well historically, remember that past performance doesn’t guarantee future results. Carefully consider your investment goals, risk tolerance, and investment horizon before choosing a fund. Diversification is key, so don’t limit yourself to just one SIP. Consult a financial advisor for personalized recommendations. By starting a SIP and investing regularly, you can benefit from rupee-cost averaging and potentially grow your wealth over the long term.

Ajeet Sharma, the founder of Financegab and a well-known name in the field of financial blogging. Blogging since 2017, he has the expertise and excellent knowledge about personal finance. Financegab is all about personal finance which aims to create awareness among people about personal finance and help them to make smart, well-informed financial decisions.


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