An SIP (Systematic Investment Plan) is a smart, hassle-free method of investing a fixed sum in a mutual fund scheme. It permits one to purchase units on a particular date every month in order to implement a saving plan.

Check FREE Credit Score

One can invest a particular prearranged amount at regular intervals that are chosen beforehand (quarterly, monthly, weekly, etc.). One of the biggest advantages of this plan is that it inculcates the habit of saving in the user so that they can start to build a respectable fund for the future.

1. The saying ‘the early bird catches the worm’ holds true for an SIP, as you can benefit greatly from starting early.
2. An important aspect of an SIP is the fact that maintaining it is hassle-free; your money will be auto-debited from your bank account each month.

Check FREE Credit Score

Latest Best Performing SIP Mutual Funds in 2025

Based on the above criteria, we have made a list of the best performing mutual funds that can be invested through an Systematic Investment Plan (SIP). Some of the best SIP plans (3 and 5 year returns) are mentioned in the table below:

Check FREE Credit Score

HDFC Mid-Cap Opportunities Fund

The HDFC Mid-Cap Opportunities Fund focuses primarily on mid-cap equities, with 93.21% invested in Indian stocks—52.58% in mid-cap, 5.57% in large-cap, and 18.09% in small-cap stocks. This fund is ideal for investors aiming for high returns with a 3 to 4 years plan but may not be suitable for those who are risk-averse, as it carries a high level of risk.

1. Risk: Very High
2. Lock-In: No
3. Minimum SIP Amount: Rs.100
4. Fund Age: 11 Years
5. Fund Size: Rs.77,683 crores
6. Expense Ratio: 0.72%

Parag Parikh Flexi Cap FundParag Parikh Flexi Cap Fund allocates 70.63% to domestic equities, with 48.07% in large-cap, 5.8% in mid-cap, and 7.03% in small-cap stocks. Additionally, it holds 0.31% in debt investments, split between 0.01% in government bonds and 0.3% in low-risk securities.

1. Risk: Very High
2. Lock-In: No
3. Minimum SIP Amount: Rs.1000
4. Fund Age: 11 Years
5. Fund Size: Rs.82,441 crores
6. Expense Ratio: 0.63%

ICICI Pru Blue Chip Fund

ICICI Pru Bluechip is well-suited for investors aiming to stay invested in equities for five years and willing to accept moderate to high risk. The fund allocates 91.39% to Indian equities, primarily with 81.37% in large-cap stocks, 4.85% in mid-cap, and a smaller portion in small-cap stocks. Additionally, 0.47% of assets are invested in debt, mainly in government securities.

1. Risk: Moderate to high risk
2. Lock-In: No
3. Minimum SIP Amount: Rs.100
4. Fund Age: 11 Years
5. Fund Size: Rs.66,207 crores
6. Expense Ratio: 0.87%

HDFC Flexi Cap Fund

HDFC Flexi Cap is a flexicap fund with 88.67% of its assets invested in Indian equities, allocating 62.54% to large-cap stocks, around 6.2% to midcaps, and 3.65% to small caps. It is a high-risk fund, suitable for investors seeking potential high returns over a five-year period.

1. Risk: High risk
2. Lock-In: No
3. Minimum SIP Amount: Rs.100
4. Fund Age: 11 Years
5. Fund Size: Rs.66,225 crores
6. Expense Ratio: 0.76%

Nippon India Small Cap Fund

Nippon India Small Cap is a top-performing small-cap fund in India’s mutual fund market, with 96.42% of its assets in equities, including 55.41% in small-cap stocks, 9.86% in midcaps, and 5.83% in large caps. This high-risk fund is geared toward investors willing to take on substantial risk in exchange for the potential of high returns.

1. Risk: High risk
2. Lock-In: No
3. Minimum SIP Amount: Rs.100
4. Fund Age: 11 Years
5. Fund Size: Rs.62,260 crores
6. Expense Ratio: 0.65%

HDFC Balanced Advantage Fund

The HDFC Balanced Advantage Fund is a well-performing hybrid mutual fund, with 68.28% allocated to equities, mainly 42.28% in large-cap stocks, 8.27% in small caps, and the rest in midcaps. It also holds 28.63% in debt, predominantly government securities, and 11.79% in low-risk assets.

1. Risk: Low risk
2. Lock-In: No
3. Minimum SIP Amount: Rs.100
4. Fund Age: 11 Years
5. Fund Size: Rs.96,536 crores
6. Expense Ratio: 0.72%

ICICI Prudential Equity and Debt FundThe ICICI Prudential Equity & Debt Fund allocates 71.65% to equities, primarily in large caps (53.74%), with additional investments in midcaps (8.07%) and a smaller portion in small caps. Approximately 17.92% of the fund is held in debt, mostly concentrated in government securities.

1. Risk: High risk
2. Lock-In: No
3. Minimum SIP Amount: Rs.100
4. Fund Age: 11 Years
5. Fund Size: Rs.41,396 crores
6. Expense Ratio: 0.99%

ICICI Prudential Corporate Bond Fund: The ICICI Prudential Corporate Bond Fund is a debt-focused fund, with 94.29% of its investments in debt assets. Of this, 71.85% is allocated to low-risk securities, while the remainder is in government bonds. This fund is ideal for investors seeking stable, long-term returns.

1. Risk: Moderate risk
2. Lock-In: No
3. Minimum SIP Amount: Rs.100
4. Fund Age: 11 Years
5. Fund Size: Rs.26,854 crores
6. Expense Ratio: 0.35%

ICICI Prudential Short Term Fund

The ICICI Prudential Short Term Fund allocates 88.95% of its assets to debt, with 54% in low-risk securities and the remainder in government bonds. It’s a suitable option for those looking to invest for up to three years, providing a stable alternative to fixed deposits.

1. Risk: Moderate risk
2. Lock-In: No
3. Minimum SIP Amount: Rs.100
4. Fund Age: 11 Years
5. Fund Size: Rs.19,746 crores
6. Expense Ratio: 0.45%

LIC MF Gold ETF FoF: LIC MF Gold ETF FoF manages assets exceeding Rs. 27,400 crore and is classified as a high-risk gold fund. Over the past year, it has delivered returns of over 8.3%.

1. Risk: Low risk
2. Minimum SIP Amount: Rs.100

How to Choose the Best Mutual Fund to SIP?

With more than 5,500 mutual fund schemes available in India, choosing the right one to invest through an SIP is no easy task. Though finding the right mutual fund is not easy, below are some pointers that can help you navigate through the various options and choose the ideal one.

1. Objective of investment

All investments have an objective. It could be for buying a house, saving up for a marriage, going for a vacation, children’s education, etc. Depending on the goal, the investment can be for short-term or long-term.

If you are saving for your children’s education or for your retirement, it will be a long-term goal but if you are saving up for buying a car, for example, it will be a short-term goal.

If you’re looking at achieving your long-term goal, investing in equity funds can be a good option. For achieving short-term goals, you can invest in debt funds and money market funds. Before investing, ensure that you assess your objectives and align it with your risk appetite.

1. Knowledge about the fund house

The fund house is responsible for managing your money and you expect them to take care of your investments. While choosing a fund house, see to it that you have thorough knowledge about them because they are the ones who will take investment decisions on your behalf.

Research about the fund house before investing through them by asking relevant questions like how many schemes they offer, what is the approach they follow while investing, does it offer innovative products, etc.

1. Performance of the fund

Fetching good returns is the ultimate objective of any investor. Therefore, before investing it is imperative that you research about the returns the fund has given over different periods and make a comparison of it with the benchmark index. You can find the information about how a fund has performed by doing a web search.

1. Expense ratios and loads

Though these costs are relatively small, they can make a huge difference in the returns when considered for a long term. Look for funds that are without or lower load prices and with low expense ratios. The information about load and expense ratios can be found in the scheme documents or fund fact sheets.

1. Experience of the fund manager

Apart from knowing about the fund house, it is also important that you do some research about the fund manager. Analyse how funds managed by him/her have performed especially when the markets encountered hard times.

A good fund manager will manage your investments efficiently to help you achieve greater returns and hence, it is vital that the fund manager has expertise in a wide variety of investment categories.

Check FREE Credit Score

Why should you invest in an SIP?

One of the prime reasons why you should invest in an SIP is because it brings a sense of discipline in your investments and cultivates regular saving habits. Saving small and regularly is the philosophy that an SIP revolves around. It enables the investor to build wealth over a long-term. Besides this, an SIP offers many other benefits. We’ve listed the most important ones, below:

1. Rupee Cost Averaging – SIPs can aid in averaging the cost return ratio. The equity market being volatile in nature will enable the investor to purchase more units when the price of shares are low and lesser units when the shares are priced higher. SIPs give regular investors the chance to garner more shares at low prices than investors who invest a large sum of money at once.
2. Power of Compounding – According to the principle of compound interest, any small amount of money when invested for a longer period of time can get compounded and fetch you good returns. As a result, the investor will be able to accumulate a large corpus and achieve long-term financial goals by investing small but at regular intervals.
3. Is not heavy on the wallet – Investment made through an SIP can be as low as Rs.500. Such a low amount will not burden your budget and over a period of time, this amount will grow to fetch you substantial returns.
4. Automated Payments – Even if you are someone who is regular when it comes to making investments, you may sometimes miss out on making the payments. An SIP eliminates this by automating the payments which means that every month, a predetermined amount will automatically be deducted from your bank account. So, there is no way that you would miss out on making the payments.
5. Funds can be used for emergencies – An SIP offers a one-click withdrawal option where you can withdraw the amount anytime you want. This fund can be used to meet any contingencies such as job loss, accidents, illnesses, etc.
6. Eliminates the need for timing the market – Since SIPs are regular investments, you do not have to worry about if the market is performing good or bad. Over time, even if there have been highs and lows, the performance of the fund will even out. This will ensure that irrespective of the market volatility, you will be able to enjoy good returns.

Check FREE Credit Score

How to Achieve more with SIP?

To derive maximum benefits from an SIP, ensure that you do the following:

1. Make a list of your goals and calculate the amount of saving you need to do to achieve your goals.
2. Determine how much amount you wish to invest monthly/quarterly through SIP in order to fulfill your goals.
3. Research the mutual fund market and check which funds have performed well over the past years. Once you have done that, you will be able to figure out which plan to invest in through an SIP.
4. All mutual fund investments require investors to complete the KYC documentation process along with other formalities like submission of cheques and forms. Complete the process and start investing.
5. To reap good returns on your investments, choose a plan on a long-term basis.
6. You can invest in multiple SIPs to diversify your investments and optimise the returns.

Check FREE Credit Score

Courtsey To : Bankbazaar

About Post Author

Maria Stanly

aware@srvibes.com

http://www.srvibes.com

Happy

0 0 %

Sad

0 0 %

Excited

0 0 %

Sleepy

0 0 %

Angry

0 0 %

Surprise

0 0 %