10 Best Mutual Funds for SIP to Invest in 2025
20 November 2024
14 min read
00:00 / 00:00
To secure your future, it is important to have proper financial planning. Every stage is quite important, from planning your savings to your investments. Mutual funds are one such investment that helps you generate wealth in the long run while minimizing risk.
Allowing you to invest in lumpsum or even in parts monthly in the form of Systematic Investment Plans (SIPs), mutual funds are a great choice. There are various types of SIPs that you can select from based on your financial goals. But the question is, which are the best mutual funds for SIP?
Well, if you are also looking for the best mutual funds to invest in 2025 for SIP, then read this guide. From the long-term investment options to the short-term, this guide showcases the best SIP funds that you can opt for today. So, let us start exploring the details without any further ado. Additionally, we will also explore the brief on how to invest in SIP for beginners.
Best Mutual Funds to Invest in 2025 for SIP
Investing in mutual funds via a SIP is a smart strategy for building wealth over time. However, selecting the best mutual funds for SIP in 2025 is crucial for maximizing returns while managing risks effectively.
So, if you are looking for the best funds for SIP, you must consider the following points:
Assess consistent performance against benchmarks and averages.
Choose funds with experienced, proven fund managers.
Match the ability to take risks with your investment plan.
Prefer funds with lower expense ratios for better returns.
Match the fund's asset allocation with your diversification needs.
Evaluate the fund’s risk level to fit your investment profile.
Check for exit loads that may affect early withdrawals.
Consider fund size; avoid extremes for optimal performance.
Based on the same, the top best mutual funds for SIP as of November 2024 that you can start with as low as SIP plans for 1,000 per month are listed below:
Fund Name | Category | AUM (Crs) | Annual Return (%) | Expense Ratio (%) |
Mid Cap | 20,055.70 | 58.11% | 0.57% | |
Mid Cap | 75,037.40 | 34.64% | 0.72% | |
Mid Cap | 30,008.10 | 36.03% | 0.53% | |
Large & MidCap | 3,709 | 27.41% | 0.61% | |
Multi Cap | 10,531 | 26.83% | 0.58% | |
Flexi Cap | 81,919 | 25.51% | 0.63% | |
Large & MidCap | 3,645 | 24.89% | 0.44% | |
Large & MidCap | 25,034 | 24.77% | 0.48% | |
Flexi Cap | 11,789 | 21.93% | 0.71% | |
Flexi Cap | 6,338 | 19.46% | 0.42% |
Now let us explore the brief details of the best mutual funds in India for SIP:
1. Motilal Oswal Midcap Fund
If you are looking for the best SIP mutual funds, this is one to go for. This open-ended equity scheme fund is perfect if you are looking forward to creating wealth in the long run. Following the benchmark of Nifty Midcap 150 TRI and an exit loaf of 1% if withdrawn before a year, this fund has a proven record of offering high returns to investors. So, if you are ready to take high risks for high returns, this is the one you should go for.
2. HDFC Mid-Cap Opportunities Fund
With 65% exposure in mid-cap stocks, this is the best mutual fund to invest in SIP. The fund mainly invests in equity and equity-linked securities to generate higher returns for the investors. With no entry load or lock-in period, this is a great choice for beginners. The fund benchmark is the NIFTY Midcap 150 Index, making this a great addition to your investment portfolio.
3. Axis Midcap Fund
A fund offered by one of the country's most prominent private sector banks, this is one the best mutual funds SIP to invest in 2024. With a well-managed risk strategy, this mainly invests in innovative mid-cap companies that have a high potential for expansion and growth. With around 65% investment in such companies, this fund follows the benchmark of BSE Midcap 150 TRI. There is no lock-in period, and you can start with as low as Rs.100 per month.
4. Quant Large and Mid Cap Fund
This is not just one of the best mutual funds for SIP but also a fund that manages the risk and return ratio balanced, making it suited for investors of all categories. This fund invests in large-cap companies for value appreciation and mid-cap companies for stability. The benchmark index set for this is Nifty Large Midcap 250 TRI. The fund has no entry load and an exit load of 1% for 15 days only, making it a great investment scheme.
5. Quant Active Fund
Following the benchmark index of NIFTY 500 Mullticap 50:25:25, this is one of the best funds for SIP that you can opt for in 2024. Following a systematic plan of investing in small, mid, and large-cap companies, this fund strategically distributes the risks and increases the potential returns for the investors. This open-ended equity-based fund is designed to suit both risk-averse and high-risk investors, making it a top choice.
6. Parag Parikh Flexi Cap Fund
A diversified equity scheme, this fund mainly focuses on capital appreciation and generating wealth in the long run. This fund is evaluated against the NIFTY 500 TRI performance benchmark. Though this is an open ended mutual fund, there are a few charges that you must check for this while withdrawing. Any withdrawal from this fund made before 730 days will incur charges. So, if you are investing in this fund, ensure you are planning to invest for the long run.
7. Edelweiss Large & Mid Cap Fund
This mutual fund is a good option if you are planning for an investment beyond 5 years. One of the main aspects of this fund that one should consider while investing is to avoid short-term falls. The fund comes with a 1% exit load if withdrawn within 90 days of investment. This fund gains stability from the large-cap companies and growth from mid-cap companies, making this a unique option.
8. Kotak Equity Opportunities Fund
Based on the theme of investing in large and mid-cap funds, this fund mixes the top-performing companies across varied sectors. With the highest allocation in the banking sector, followed by IT and pharma, this fund ensures that the investment grows in sync with the market trends. Set against the benchmark of Nifty LargeMidcap 250 TRI, this is a good choice for SIP, which is constantly growing and offering incremental returns.
9. DSP Flexi Cap Fund
As an equity-diversified fund, this flexi mutual fund has been at the top of the charts for quite a while. The benchmark fund to evaluate the performance is NIFTY 500 TRI. This fund also has a major investment in the banking and finance sector, which contributes greatly to its long-term stability and better performance. Though this is a high-risk fund, it can be a suitable choice if you are looking for long-term mutual funds for SIP.
10. PGIM India Flexi Cap Fund
An equity growth fund offering stable returns while managing high risk, this is worth considering for SIP investments. Set against the NIFTY 500 - TRI for evaluating benchmark performance, this fund is one with a low exit load of just 0.50% if withdrawn within 90 days of investment. Offering a stable return by investing in high-performing sectors with constant market evaluation, this fund has offered positive outcomes over time.
With this, you know which is the best mutual fund for SIP. But there is more to it. You need to consider the time horizon and category as well. So, let us explore the top ones concerning these here.
Best SIP Mutual Funds for Different Time Horizons
While investing in SIP, you need to consider your time horizon for investment as well. It is mainly based on your ultimate financial goal. Say if you have a goal to buy a car or a house, the investment would be for the medium to long term. But if you are planning SIP to pay off for some vacation, a short-term SIP will be great as well.
This is why you must identify the best funds to invest in SIP as per time horizon as well. To help you out, we have listed here the top 5 funds that are best if you are looking to invest for 3 years and 5 years.
Top 5 Mutual Funds for 3 Year SIP
Investment in SIP for 3 years is considered to be a short to medium-term investment. For such a timeframe, selecting mutual funds that balance growth with risk management is crucial. It's advisable to choose funds that have shown resilience and consistent performance over shorter periods.
Some of the things that you must consider while selecting the best mutual funds for SIP for 3 years are as follows:
Look for a fund that has lower volatility like hybrid funds.
Try to go for the balanced advantage funds or even debt funds, as these are more stable.
Ensure that the 1 to 3-year performance is evaluated to get an idea of the historical returns.
Avoid funds that have a lock-in period or high exit load.
Now, based on these, the best mutual funds for 3 years of SIP as of November 2024 are as follows:
Fund Name | AUM (Crs) | 1-Year Return (%) | 3-Year Return (%) | Expense Ratio (%) |
JM Aggressive Hybrid Fund | 642.94 | 33.9 | 21.8 | 0.58 |
Edelweiss Aggressive Hybrid Fund | 2191 | 26.2 | 17.7 | 1.98 |
ICICI Prudential Retirement Fund - Hybrid Aggressive Plan | 690.95 | 31.60 | 16.02 | 2.27 |
SBI Equity Hybrid Fund - Direct Plan - Growth | 74,852.31 | 18.5 | 10.3 | 0.72 |
Franklin India Equity Hybrid Fund - Direct - Growth | 2065.63 | 24.2 | 14.1 | 1.02 |
Top 5 Mutual Funds for 5 Year SIP
The 5-year term of SIP investment is considered to be a mid-term investment. This timeframe allows for exploring diversified equity funds or balanced funds, which can capitalize on market growth while mitigating sharp downturns. When selecting mutual funds for a 5-year SIP, consider these points:
Select moderate volatile funds to maximize growth while managing risks.
Hybrid, indexed, and diversified funds are a great option for this time horizon.
Look for the fund that has offered consistent returns for the past 3-5 years.
You can also go for 3-year lock-in funds when investing for 5-years.
Check for the exit load, which is NIL, as the investment is for the long run.
Now, based on this, here are top 10 SIP mutual funds for 5 years
Fund Name | AUM (Crs) | 1-Year Return (%) | 5-Year Return (%) | Expense Ratio (%) |
Quant Small Cap Fund Direct-Growth | 26330.82 | 39.53% | 46.81% | 0.64% |
Bank of India Small Cap Fund Direct-Growth | 1537.17 | 32.07% | 37.87% | 0.48% |
Nippon India Small Cap Fund Direct-Growth | 61027.03 | 34.49% | 35.57% | 0.66% |
Tata Small Cap Fund Direct-Growth | 9463.78 | 40.20% | 33.76% | 0.29% |
DSP Healthcare Fund Direct-Growth | 3138.46 | 50.84% | 32.76% | 1.93% |
While these are the best mutual funds to invest in 2025 for SIP, it is still important to keep an eye on the performance to ensure you invest in the right funds. This way, you can change your investment plan to ensure your financial targets are met.
Best SIP Mutual Funds for 2025 by Category
Knowing the highest-return mutual funds is not enough. You need to understand their category as well. This will help you to get an idea of the expected returns and stability. So, here, let us explore the best mutual funds for long-term SIP based on their category.
Large Cap Funds for SIP Investment
The large cap funds are the ones that invest in companies with large market capitalization. These funds are considered stable and safe. These are the best SIP funds for conservative investors seeking steady returns and lower volatility over a medium to long-term period. The top ones to invest as of November 2024 are:
Fund Name | AUM (Crs) | 1-Year Return (%) | 5-Year Return (%) | Expense Ratio (%) |
Nippon India Large Cap Fund Direct-Growth | 34,105 | 29.69% | 20.55% | 0.67% |
ICICI Prudential Bluechip Fund Direct-Growth | 63,670 | 29.11% | 19.62% | 0.86% |
HDFC Top 100 Fund Direct Plan-Growth | 36,467 | 24.02% | 17.85% | 0.99% |
Invesco India Largecap Fund Direct-Growth | 1,255 | 32.05% | 19.00% | 0.72% |
Baroda BNP Paribas Large Cap Fund Direct-Growth | 2,349 | 32.29% | 18.67% | 0.82% |
Mid Cap Funds for SIP Investment
The mid cap funds are those that invest in medium-sized companies. These funds have a high growth capacity. These funds carry higher risk and have the potential to deliver significant returns. These are the best mutual funds for SIP for moderately aggressive investors.
Fund Name | AUM (Crs) | 1-Year Return (%) | 5-Year Return (%) | Expense Ratio (%) |
Motilal Oswal Midcap Fund Direct-Growth | 20,056 | 57.97% | 32.41% | 0.58% |
Edelweiss Mid Cap Direct Plan-Growth | 7,677 | 45.01% | 30.87% | 0.40% |
Quant Mid Cap Fund Direct-Growth | 8,941 | 29.05% | 33.51% | 0.58% |
Nippon India Growth Fund Direct- Growth | 33,922 | 37.42% | 29.66% | 0.77% |
HDFC Mid-Cap Opportunities Direct Plan-Growth | 75,037 | 34.38% | 28.98% | 0.72% |
Small Cap Funds for SIP Investment
Small cap funds are invested in small market capitalization companies with high growth prospects. These funds are highly volatile. Since these companies have innovative strategies, they yield substantial returns. Hence, these are the best funds for SIP for aggressive investors with a long-term horizon.
Fund Name | AUM (Crs) | 1-Year Return (%) | 5-Year Return (%) | Expense Ratio (%) |
Quant Small Cap Fund Direct Plan-Growth | 26,331 | 38.62% | 46.82% | 0.64% |
Nippon India Small Cap Fund Direct-Growth | 61,027 | 33.56% | 35.62% | 0.66% |
Tata Small Cap Fund Direct-Growth | 9,464 | 39.55% | 33.80% | 0.29% |
Bank of India Small Cap Fund Direct-Growth | 1,537 | 31.71% | 37.89% | 0.47% |
HSBC Small Cap Fund Direct-Growth | 16,920 | 29.86% | 31.24% | 0.67% |
ELSS Funds for SIP Investment
Equity Linked Savings Schemes are known as ELSS. Under the Income Tax Act, you can get benefits under the Section 80C. These funds invest in equities. These are the best funds for SIP, providing high return potential with a lock-in period of 3 years. If you are looking for high returns with savings on taxes, then this is a great choice.
Fund Name | AUM (Crs) | 1-Year Return (%) | 5-Year Return (%) | Expense Ratio (%) |
Quant ELSS Tax Saver Fund Direct-Growth | 10,980 | 28.36% | 32.37% | 0.65% |
Motilal Oswal ELSS Tax Saver Fund Direct-Growth | 4,074 | 49.68% | 23.69% | 0.64% |
HDFC ELSS Tax Saver Direct Plan-Growth | 15,935 | 35.36% | 21.49% | 1.08% |
Bank of India ELSS Tax Saver Direct-Growth | 1,436 | 33.17% | 25.73% | 0.84% |
DSP ELSS Tax Saver Direct Plan-Growth | 16,841 | 37.08% | 22.35% | 0.74% |
Hybrid Funds for SIP Investment
For investors who are looking for a balanced portfolio, hybrid funds are perfect. These funds combine equity and debt investments. These are ideal for investors looking for moderate growth with reduced risk, adjusting the asset mix according to market conditions. These are the best mutual funds for SIP for all categories of investors.
Fund Name | AUM (Crs) | 1-Year Return (%) | 5-Year Return (%) | Expense Ratio (%) |
Quant Multi Asset Fund Direct-Growth | 3,026 | 36.97% | 28.39% | 0.62% |
JM Aggressive Hybrid Fund Direct-Growth | 679 | 35.1% | 25.96% | 0.53% |
HDFC Balanced Advantage Fund Direct Plan-Growth | 94,866 | 26.05% | 20.73% | 0.72% |
ICICI Prudential Multi-Asset Fund Direct-Growth | 50,648 | 24.48% | 21.58% | 0.70% |
Kotak Multi-Asset Allocator Fund of Fund (FoF) - Dynamic -Growth | 1,598 | 25.36% | 21.28% | 0.33% |
While investing in these best funds for SIP will offer you great outcomes, it is important that you consider the charges as well. Evaluating the Total Expense Ratio (TER) is important to evaluate the net returns of your investment. Lower TER means more of your money stays invested and potentially grows, contributing to better overall returns. This is important to maximize your investment benefits.
How to Start Investment in the Best SIP Funds?
Whether you plan to invest in equity or debt funds, you must know the right steps to follow. This will ensure that not only is your investment process done in time, but you also gain the benefit of growth from the beginning.
The steps to invest in the best mutual funds for SIP are as follows:
Step 1: Define Your Goal
Start by defining your financial goals. Define your goal term. Identify for how long you can invest the funds with ease. This will help you to identify the best mutual funds for the SIP investment.
Step 2: Download the App
The next stage is to download the app for mutual fund investment. Opt for the best app, like the Rupeezy app from App Store or Google Play. Once downloaded, complete the registration process. Follow the instructions shared on the screen.
Step 3: Complete KYC
Once the app is downloaded, you will need to complete the KYC. Add your PAN and Aadhar details to start with KYC verification. Ensure that your details, mobile number, and rest are correct to avoid any hassle.
Step 4: Compare the Schemes
Now, based on your goal, identify the mutual funds that you can invest in. This will help you identify the best funds for SIP. Once done, rank them in a proper order, which will facilitate quicker decision-making.
Step 5: Register for SIP
Once you have selected the best mutual fund for SIP, start the registration process. Mention the amount and tenure for your SIP. Link your bank account for an auto-debit facility.
Step 6: Define the SIP Frequency
Your first installment is booked already. Now, you need to define the SIP frequency. With Rupeezy, you can make the SIP payments either monthly, quarterly, or weekly too. Additionally, it is best to select the frequency which perfectly matches your financial budgeting schedule.
Step 7: Complete Payment and Submit SIP Application
This is the last stage. You would now need to finalize the application. Check all the details properly. Once checked, hit the submit button. You can make the payment for the first installment using netbanking or UPI. Your application has been submitted, and your SIP is now in force.
Thats it! With these simple and easy steps, you can easily start your SIP investment and grow your wealth overtime.
Conclusion
Securing your financial future is quite important to meet any urgent needs. This is where investing in SIPs can act as a wise decision. Allowing you to manage your budget effectively while growing your invested amount, SIP offers multiple benefits.
Additionally, properly evaluating the best mutual funds for SIP will help you in aligning your investment with your financial goals. So, if you are a beginner looking to invest in SIP or are looking for some great options, download the Rupeezy app. Simple to use and friendly, this is a perfect destination for anyone looking to invest. So, make the right choice for your effective financial future today!
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