Best equity mutual fund SIP portfolios to invest in 2019


Are you looking for an equity mutual fund portfolio to achieve your long-term financial goals? You are at the right place. We have put together some equity mutual fund portfolios that investors can choose based on their risk profile and SIP amount. 

Etmutualfunds.com launched its recommended equity mutual fund portfolios to invest through SIPs in October 2016. Since then, we have been closely monitoring the schemes in the portfolios and coming out with an update in the first week of every month. 

Our reason to launch these portfolios was simple. We have observed that many mutual fund investors find it extremely difficult to stitch together to a few schemes (or create a mutual fund portfolio, in technical parlance) that would help them to meet their various long-term financial goals. This is especially true for new investors. 

Indeed, creating a mutual fund portfolio involves several complicated steps. To begin with, you should shortlist some schemes with a consistent long-term performance record. Next, you should pick the schemes that are in line with your risk profile and investment goals. 

Then you would hit the next roadblock: how to fix the composition of the portfolio? The task is not finished yet. You should also need to monitor and review the performance of the portfolio regularly and take remedial steps if needed. Too much to handle? 

Well, do not worry. That is why we are here for. Etmutualfunds.com has created equity mutual fund SIP portfolios for three different individual risk profiles: conservative, moderate and aggressive. We have also considered three SIP baskets – between Rs 2,000-5,000, between Rs 5,000-10,000 and above Rs 10,000 – while creating these portfolios. These are the schemes that made it into our recommendation list:



Recommended portfolio for conservative investors 
SIP amountScheme namePercentage (%)
Rs 2,000 to 5,000Axis Bluechip Fund - G50
ICICI Prudential Regular Savings - G50
Rs 5,000 to 10,000Axis Bluechip Fund - G30
ICICI Prudential Bluechip Fund - G20
UTI Regular Savings Fund - G50
Above Rs 10,000Axis Bluechip Fund - G25
ICICI Prudential Bluechip Fund - G15
Motilal Oswal Multicap 35 Fund - G10
UTI Regular Savings Fund - G50


Recommended portfolios for moderate investors 

SIP amountScheme namePercentage (%)
Rs 2,000 to 5,000SBI Bluechip Fund - G65
ICICI Prudential Regular Savings - G35
Rs 5,000 to 10,000SBI Bluechip Fund - G40
Motilal Oswal Multicap 35 Fund - G25
ICICI Prudential Regular Savings - G35
Above Rs 10,000ICICI Prudential Bluechip Fund - G30
SBI Bluechip Fund - G15
Motilal Oswal Multicap 35 Fund - G20
UTI Regular Savings - G35


Recommended portfolios for aggressive investors 

SIP amountScheme namePercentage (%)
Rs 2,000 to 5,000SBI Magnum Multicap - G50
ICICI Prudential Bluechip Fund - G50
Rs 5,000 to 10,000Motilal Oswal Multicap 35 Fund - G30
SBI Bluechip Fund - G20
ICICI Prudential Equity and Debt Fund - G15
Mirae Asset Emerging Bluechip Fund- Regular Plan -G35
Above Rs 10,000ICICI Prudential Bluechip Fund - G35
SBI Magnum Multicap - G10
Mirae Asset Emerging Bluechip Fund- Regular Plan -G30
ICICI Prudential Equity and Debt Fund - G10
TATA Equity PE Fund - G15

Note, we have assumed that the investor is investing with an investment horizon of at least five years. 

Here is our methodology: 
Methodology for equity funds: 
ET.com Mutual Funds has employed the following parameters for shortlisting the equity mutual fund schemes. 
1. Mean rolling returns: Rolled daily for the last three years. 
2. Consistency in the last three years: Hurst Exponent, H is used for computing the consistency of a fund. The H exponent is a measure of randomness of NAV series of a fund. Funds with high H tend to exhibit low volatility compared to funds with low H. 
i) When H = 0.5, the series of return is said to be a geometric Brownian time series. These type of time series is difficult to forecast. 
ii) When H is less than 0.5, the series is said to be mean reverting. 
iii) When H is greater than 0.5, the series is said to be persistent. The larger the value of H, the stronger is the trend of the series 
3. Downside risk: We have considered only the negative returns given by the mutual fund scheme for this measure. 
X =Returns below zero 
Y = Sum of all squares of X 
Z = Y/number of days taken for computing the ratio 
Downside risk = Square root of Z 
4. Outperformance: It is measured by Jensen's Alpha for the last three years. Jensen's Alpha shows the risk-adjusted return generated by a mutual fund scheme relative to the expected market return predicted by the Capital Asset Pricing Model (CAPM). Higher Alpha indicates that the portfolio performance has outstripped the returns predicted by the market. 
Average returns generated by the MF Scheme = 
[Risk Free Rate + Beta of the MF Scheme * {(Average return of the index - Risk Free Rate}
5. Asset size: For Equity funds, the threshold asset size is Rs 50 crore 

Methodology for debt funds: 
ET.com Mutual Funds has employed the following parameters for shortlisting the debt mutual fund schemes. 
1. Mean rolling returns: Rolled daily for the last three years. 
2. Consistency in the last three years: Hurst Exponent, H is used for computing the consistency of a fund. The H exponent is a measure of randomness of NAV series of a fund. Funds with high H tend to exhibit low volatility compared to funds with low H. 
i) When H = 0.5, the series of return is said to be a geometric Brownian time series. These type of time series is difficult to forecast. 
ii) When H is less than 0.5, the series is said to be mean reverting. 
iii) When H is greater than 0.5, the series is said to be persistent. The larger the value of H, the stronger is the trend of the series 
3. Downside risk: We have considered only the negative returns given by the mutual fund scheme for this measure. 
X =Returns below zero 
Y = Sum of all squares of X 
Z = Y/number of days taken for computing the ratio 
Downside risk = Square root of Z 
4. Outperformance: Fund Return – Benchmark return. Rolling returns rolled daily is used for computing the return of the fund and the benchmark and subsequently the Active return of the fund. 
Asset size: For Debt funds, the threshold asset size is Rs 50 crore 

Methodology for hybrid funds: 
ET.com Mutual Funds has employed the following parameters for shortlisting the hybrid mutual fund schemes. 
1. Mean rolling returns: Rolled daily for the last three years. 
2. Consistency in the last three years: Hurst Exponent, H is used for computing the consistency of a fund. The H exponent is a measure of randomness of NAV series of a fund. Funds with high H tend to exhibit low volatility compared to funds with low H. 
i) When H = 0.5, the series of return is said to be a geometric Brownian time series. These type of time series is difficult to forecast. 
ii) When H <0.5, the series is said to be mean reverting. 
iii) When H>0.5, the series is said to be persistent. The larger the value of H, the stronger is the trend of the series 
3. Downside risk: We have considered only the negative returns given by the mutual fund scheme for this measure. 
X = Returns below zero 
Y = Sum of all squares of X 
Z = Y/number of days taken for computing the ratio 
Downside risk = Square root of Z 
4. Outperformance 
i) Equity portion: It is measured by Jensen's Alpha for the last three years. Jensen's Alpha shows the risk-adjusted return generated by a mutual fund scheme relative to the expected market return predicted by the Capital Asset Pricing Model (CAPM). Higher Alpha indicates that the portfolio performance has outstripped the returns predicted by the market. 
Average returns generated by the MF Scheme = 
[Risk Free Rate + Beta of the MF Scheme * {(Average return of the index - Risk Free Rate}
ii) Debt portion: Fund Return – Benchmark return. Rolling returns rolled daily is used for computing the return of the fund and the benchmark and subsequently the Active return of the fund. 
5. Asset size: For Hybrid funds, the threshold asset size is Rs 50 crore