For most people, investing does not start with big amounts or perfect timing. It starts with small, regular steps, and that is where SIPs kick in. With a Systematic Investment Plan, you can invest regularly, no matter what the market goes through, and then gradually build up your wealth over time.
There are so many mutual funds to choose from these days that it can be hard to know which SIP is right for you. Large cap, mid cap, small cap, sectoral, flexi cap, each serves a different purpose.
In this blog, we will break down some of the best SIP mutual funds and explain how to choose the right one based on your goals, risk appetite, and investment horizon.
How to Choose the Best SIP Mutual Funds
Choosing the right SIP mutual fund doesn’t have to be complicated. It is not about chasing the highest returns or picking the most commonly discussed fund. Instead, it is about finding a fund that meets your needs, your time frame, and how prepared you are to face ups and downs.
We have mentioned below some points that an investor can consider before starting their SIP.
1. Be Specific About Why You are Investing- Before picking any fund, ask yourself one basic question: What am I investing for?
It could be for long-term wealth, retirement, your child’s education, or even just building a financial cushion. Choosing the right fund is much easier once you know what you want to do.
2. Consider how long you can keep your money invested- Time is one of the biggest advantages in SIP investing. If you’re investing for the long term, temporary market swings won’t matter much. The more time you have to handle volatility, the better it is.
3. Be Truthful About How Comfortable You Are with Risk- Some people are comfortable seeing their investments fluctuate. Others get stressed the moment markets fall. There is no right or wrong here. What matters is choosing a fund that lets you stay invested without panic.
4. Look for Consistency, Not Just Big Returns- Instead of looking at how a fund did last year, look at how it has done over the years. A good SIP fund should do well in all kinds of market conditions. Consistency over time is far more valuable than occasional spikes in returns.
5. Understand How the Fund Is Managed- There is a certain style that each fund follows. Some focus on stable companies, some chase growth, and others look for undervalued opportunities. The stability of a fund manager in decision-making often leads to better long-term results.
6. Keep an Eye on Costs, But Do not Obsess- Expense ratio is important because it affects how much money you make over time. Lower costs are usually better, but they shouldn’t be the only thing you think about. If a fund has consistently done well, it may still be worth it to pay a little more.
7. Check What the Fund Actually Invests In- Take a quick look at the fund’s top holdings and sector exposure. A well-diversified portfolio lowers risk and keeps you from relying too much on one stock or sector.
Read Also: Best SIP Apps in India for Investment
List of Top 10 SIP Mutual Funds
| S. No | Fund Name | Category | Launch Date | Min SIP | AUM (₹ Cr) | NAV (₹) | 3 Yr SIP Ret (%) | 5 Yr SIP Ret (%) |
|---|---|---|---|---|---|---|---|---|
| 1 | ICICI Prudential Infrastructure Fund | Equity – Infrastructure | 31 Aug 2005 | ₹100 | 8,160 | 194.78 | 17.88 | 24.36 |
| 2 | Motilal Oswal Midcap Fund | Equity – Mid Cap | 24 Feb 2014 | ₹500 | 38,003 | 100.4 | 18.85 | 23.66 |
| 3 | Bandhan Small Cap Fund | Equity – Small Cap | 25 Feb 2020 | ₹100 | 18,174 | 46.23 | 22.72 | 23.24 |
| 4 | HDFC Mid Cap Fund | Equity – Mid Cap | 25 Jun 2007 | ₹100 | 92,169 | 202.33 | 20.68 | 22.94 |
| 5 | Franklin Build India Fund | Equity -Thematic (Infra) | 4 Sep 2009 | ₹500 | 3,068 | 141.45 | 17.89 | 22.35 |
| 6 | ICICI Prudential Value Fund | Equity – Value Oriented | 16 Aug 2004 | ₹100 | 60,391 | 498.08 | 19.16 | 20.57 |
| 7 | Nippon India Growth Mid Cap Fund | Equity – Mid Cap | 8 Oct 1995 | ₹100 | 40,042 | 700.71 | 19.41 | 21.48 |
| 8 | HDFC Focused Fund | Equity – Flexi Cap | 17 Sep 2004 | ₹100 | 26,230 | 238.45 | 18.98 | 21.26 |
| 9 | Motilal Oswal Large & Mid Cap Fund | Equity – Flexi Cap | 17 Oct 2019 | ₹100 | 15,146 | 33.34 | 19.95 | 21.13 |
| 10 | HDFC Flexi Cap Fund | Equity – Flexi Cap | 1 Jan 1995 | ₹100 | 94,069 | 2,073.28 | 19.49 | 21.06 |
1. ICICI Prudential Infrastructure Fund
ICICI Prudential Mutual Fund is a well-known name in India’s mutual fund industry. It began in 1993 and is backed by ICICI Bank and Prudential Plc, a UK-based company. The fund house has built a strong reputation for investing driven by research. It has a diverse range of funds across various categories. Exit Load is 1% for redemption within 15 days. Return since launch is 15.75%. The Fund Manager is Ihab Dalwani.
2. Motilal Oswal Midcap Fund
Motilal Oswal Financial Services started Motilal Oswal Mutual Fund in 2008 and is based in Mumbai. It manages an array of different mutual fund schemes and tries to add value through extensive research and active fund management. Exit Load is 1% for redemption within 365 days. Return since launch is 21.58%. The Fund Manager is Niket Shah.
3. Bandhan Small Cap Fund
Bandhan Mutual Fund is one of India’s oldest fund houses and has been managing funds since 2000. Bandhan Financial Holdings bought it and changed its name from IDFC Mutual Fund to Bandhan Financial Holdings. Today, it offers a wide range of equity, debt, and hybrid funds. Exit Load is 1% for redemption within 365 days. Return since launch is 30.21%. Fund Managers of the fund are Kirthi Jain & Manish Gunwani.
4. HDFC Mid Cap Fund
Founded in 1999, HDFC Mutual Fund is one of the oldest and most well-known AMCs in India. It is part of the prominent HDFC Group. It offers different mutual fund schemes in multiple categories. Exit Load is 1% for redemption within 365 days. Return since launch is 17.67%. The fund manager is Chirag Setalvad.
5. Franklin Build India Fund
As a part of the international investment company Franklin Templeton, Franklin Templeton Mutual Fund has been operating in India for many years. It has long offered a variety of debt, equity, and hybrid funds and is renowned for its long-term, research-driven investment philosophy. Exit Load is 1% for redemption within 365 days. Return since launch is 17.67%. The Fund Manager is Ajay Argal.
6. ICICI Prudential Value Fund
This fund follows a value investing philosophy, focusing on stocks that are undervalued when compared to their intrinsic value. Exit Load is 1% for redemption within 365 days. Return since launch is 20.10%. The Fund Manager is Dharmesh Kakkad.
7. Nippon India Growth Mid Cap Fund
Nippon India Mutual Fund was founded in 1995 and is among India’s largest and fastest-growing AMCs. It manages a variety of equity, debt, hybrid, and index funds and is backed by Nippon Life Insurance of Japan. Exit Load is 1% for redemption within 30 days. Return since launch is 22.15%
8. HDFC Focused Fund
A fund that follows a focused investing approach and concentrates its portfolio on a select number of companies. Exit Load is 1% for redemption within 365 days. Return since launch is 16.10%. The Fund Manager is Gopal Agarwal. The fund is generally chosen by investors who believe in quality over quantity.
9. Motilal Oswal Large & Mid Cap Fund
This fund is offered by Motilal Oswal Mutual Fund, a Mumbai-based AMC known for its strong research capabilities. The fund invests in both large-cap and mid-cap stocks, blending stability with growth potential. Exit Load is 1% for redemption within 365 days. Return since launch is 21.60%. The Fund Manager is Ajay Khandelwal.
10. HDFC Flexi Cap Fund
The fund has been in existence for over 30 years. The approach is to balance risk and reward.
Exit Load is 1% for redemption within 365 days. Return since launch is 18.80%. The fund manager is Chirag Setalvad.
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Read Also: Top 10 High-Return Mutual Funds in India
Conclusion
There isn’t a “best” SIP mutual fund that works for everyone. The right fund is one that fits your financial goals, your risk tolerance, and lets you stay invested calmly through market ups and downs. SIP investing is less about guessing what will happen in the markets and more about being disciplined and patient if you pick the right mix of funds and give your investments enough time.
Frequently Asked Questions (FAQs)
What is SIP in Mutual Funds?
An SIP lets you invest a fixed amount regularly in a mutual fund instead of investing a lump sum at once.
Are SIPs safe investments?
SIPs are market-linked, so returns are not guaranteed, but they help reduce risk through disciplined investing over time.
Can I stop or pause my SIP anytime?
Yes, SIPs are flexible and can be paused, modified, or stopped anytime.
Do SIPs give guaranteed returns?
No, SIP returns depend on market performance, but long-term investing improves return potential.
How many SIPs should I have at one time?
It is better to have a few well-chosen SIPs aligned with your goals rather than too many overlapping funds.
