Which are best mutual fund schemes for SIP for long term

In investments, there is a direct relationship between risk and return. So it is difficult to say, if one investment type is better than another, because if the returns are higher the risk will also be higher. Diversified equity funds invest in shares of companies across different sectors and market capitalization segments (e.g. large cap, midcap, small cap etc.). These funds have lower risk than midcap funds, but higher risk than large cap funds. Similarly these funds usually give higher returns than large cap funds but lower returns than midcap funds.

The first observation I have about your SIP portfolio that, you are investing relatively small amounts in too many schemes. By investing in a large number of schemes, you are not achieving any incremental diversification; on the other hand, you may be compromising somewhat on the performance. You should try to rationalize your portfolio and reduce the number of schemes. Correspondingly, you should increase the SIP amounts in the schemes you want to retain.

You have selected mostly good funds in your portfolio. However, HDFC Equity Fund is an under performer. HDFC Top 200 was also an under performer for some time. In the recent past, its performance has picked up, but it is an average performer at best. You can think of rationalizing the under performers and retain the most consistent performers. As regards your lump sum investment, you do not need to look far. You already have many good funds in your SIP portfolio. You can select one or two funds and invest lump sum in them.

At any point in time to select top performing funds, please use this tool top consistent performing funds on our website.

Hope you find our suggestions useful.