Best Mutual Funds to Invest in SIP in 2025

Overview of a Mutual Fund for SIP

A Mutual Fund for SIP is an investment plan where you contribute fixed amounts at regular intervals into a mutual fund scheme. It allows systematic investing, helping you build wealth over time while reducing the impact of market volatility.

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Financial experts suggest that a person should invest 10-15% of their monthly income for long-term financial growth

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Financial experts suggest that individuals should ideally invest for a period of 5 to 10 years, or even longer, to maximize the benefits of compounding and navigate market fluctuations effectively

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Expected return Pro Tip

Top 25% of investors consistently generate more than 12% return

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Total Wealth ₹22.4 L

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I want to invest for Pro Tip

Financial experts suggest that individuals should ideally invest for a period of 5 to 10 years, or even longer, to maximize the benefits of compounding and navigate market fluctuations effectively

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Expected return Pro Tip

Top 25% of investors consistently generate more than 12% return

% Annually

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Monthly Investment ₹22.4 L

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Top Funds with High Returns (Past 7 Years)

19.3%

High Growth Fund

15.61%

Accelerator Mid-Cap Fund II

15.48%

Opportunities Fund

Types of Mutual Funds for SIP Investments

When investing through a SIP investment, you can choose from various types of mutual funds based on the asset class:

• Equity Mutual Funds: Invest mainly in stocks, offering the potential for high returns over the long term but with higher risk.

• Debt Mutual Funds: Focus on fixed-income securities like bonds, providing stable returns with lower risk, suitable for conservative investors.

• Hybrid Mutual Funds: Combine equity and debt investments to balance risk and return, catering to a variety of investor needs.

• Tax-saving Mutual Funds (ELSS): Invest in equities and offer tax benefits under Section 80C, with a mandatory lock-in period of three years.

• Index Funds: Track specific market indices, like the Nifty or Sensex, typically featuring lower fees due to passive management.

• Sectoral/Thematic Funds: Concentrate on specific sectors (e.g., technology or healthcare), presenting higher risk but the potential for significant gains.

• International Mutual Funds: Invest in foreign markets or companies, allowing for diversification beyond domestic assets.

In the following sections, let us learn the best return mutual funds for SIP of the above mentioned categories.

1. Top 5 Equity Mutual Funds to Invest in SIP 2025

   Equity mutual funds invest primarily in stocks, aiming for long-term wealth creation by leveraging market growth. Let us have a look below at the top 5 equity mutual funds for SIP in India in 2025:

   Mutual Fund Scheme	Net Asset Value (NAV)	Assets Under Management (AUM)	1-Year Returns	3-Year Returns	5-Year Returns
   IDBI Small Cap Fund	₹22.81	₹370.18 crore	22.9%	39.1%	16.7%
   SBI PSU Fund	₹35.91	₹4,703.46 crore	46.8%	38.5%	27.4%
   Motilal Oswal Midcap Fund	₹128.94	₹18,604.02 crore	63.8%	37.4%	35.4%
   Aditya Birla Sun Life PSU Equity Fund	₹37.02	₹5,895.79 crore	36.7%	37.1%	30.3%
   Invesco India PSU Equity Fund	476.41	₹1,435.71 crore	46.0%	36.7%	30.8%

   *Returns as on 10 December 2024.
   Disclaimer: Policybazaar does not endorse, rate, or recommend any particular company or product. The policyholder bears the investment risk in the investment portfolio.

2. Top 5 Debt Mutual Funds to Invest in SIP 2025

   Debt mutual funds are low-risk investment instruments that are chosen by investors who cannot afford to take high risks. Such investors want to keep their money in mutual funds for a short period of time in order to earn moderate returns.

   Check out the table below to learn about the best debt funds to invest in 2025:

   Mutual Fund Scheme	Net Asset Value (NAV)	Assets Under Management (AUM)	1-Year Returns	3-Year Returns	5-Year Returns
   Aditya Birla Sun Life Medium Term Plan	₹40.19	₹1,920.74	11.8%	14.6%	12.1%
   Bank of India Short Term Income Fund	₹27.76	₹70.71 crore	10.1%	14.1%	8.9%
   Aditya Birla Sun Life Medium Term Plan	₹40.19	₹1,920.74 crore	11.8%	14.6%	12.1%
   IDBI Credit Risk Fund	₹17.55	₹23.15 crore	7.1%	10.1%	3.8%
   Aditya Birla Sun Life Credit Risk Fund	₹22.34	₹916.98 crore	13.2%	9.5%	9.3%

   *Returns as on 10 December 2024.
   Disclaimer: Policybazaar does not endorse, rate, or recommend any particular company or product. The policyholder bears the investment risk in the investment portfolio.

3. Top 5 Hybrid Mutual Funds to Invest in SIP 2025

   Hybrid mutual funds balance growth and stability by investing in both equity and debt. Following are the top 5 hybrid mutual funds to consider for SIPs in 2025:

   Mutual Fund Scheme	Net Asset Value (NAV)	Assets Under Management (AUM)	1-Year Returns	3-Year Returns	5-Year Returns
   JM Aggressive Hybrid Fund	₹144.23	₹642.94 crore	36.6%	24.8%	26.5%
   HDFC Balanced Advantage Fund	₹549.67	₹96,535.51 crore	23.6%	23.1%	21.7%
   JM Aggressive Hybrid Fund	₹144.23	₹642.94 crore	36.6%	24.8%	26.5%
   Quant Multi Asset Fund	₹148.29	₹2,983.94 crore	34.6%	23.0%	30.0%
   ICICI Prudential Multi Asset Fund	₹776.15	₹50,495.58 crore	22.5%	20.5%	22.1%

   *Returns as on 10 December 2024.
   Disclaimer: Policybazaar does not endorse, rate, or recommend any particular company or product. The policyholder bears the investment risk in the investment portfolio.

   

4. Top 5 Tax- Saving Mutual Funds to Invest in SIP 2025

   Equity funds, particularly Equity Linked Savings Schemes (ELSS), are investment options that provide tax benefits while primarily investing in stocks. Let us have a look at the best return tax-saving mutual funds for SIP in 2025:

   Mutual Fund Scheme	Net Asset Value (NAV)	Assets Under Management (AUM)	1-Year Returns	3-Year Returns	5-Year Returns
   Motilal Oswal ELSS Tax Saver Fund	₹64.17	₹4,187 Crs	56.91%	29.31%	26.83%
   Quant ELSS Tax Saver Fund	₹413.33	₹10,980 Crs	22.43%	19.05%	34.28%
   SBI Long Term Equity Fund	₹474.38	₹27,847 Crs	38.99%	25.9%	26.66%
   Bank of India ELSS Tax Saver Fund	₹203.57	₹1,436 Crs	33.59%	21.39%	28.07%
   JM ELSS Tax Saver Fund	₹57.54	₹183 Crs	39.68%	21.67%	24.37%

   *Returns as on 10 December 2024.
   Disclaimer: Policybazaar does not endorse, rate, or recommend any particular company or product. The policyholder bears the investment risk in the investment portfolio.

5. Top 5 Index Mutual Funds to Invest in SIP 2025

   Investing in index mutual funds is a smart way to grow your wealth through a diversified portfolio that tracks market indices. Following are the best Index Mutual Funds for SIP in 2025:

   Mutual Fund Scheme	Net Asset Value (NAV)	Assets Under Management (AUM)	1-Year Returns	3-Year Returns	5-Year Returns
   Motilal Oswal Nifty Midcap 150 Index Fund	₹39.18	₹1,894 Crs	31.76%	23.42%	29.62%
   Motilal Oswal Nasdaq 100 FOF	₹39.01	₹5,469 Crs	40.21%	14.8%	25.56%
   Axis Nifty 100 Index Fund	₹22.58	₹1,662 Crs	21.82%	13.86%	17.41%
   Bandhan Nifty 50 Index Fund	₹54.12	₹1,645 Crs	18.25%	13.19%	16.93%
   UTI Nifty 50 Index Fund	₹170.22	₹20,083 Crs	18.32%	13.09%	16.74%

   *Returns as on 10 December 2024.
   Disclaimer: Policybazaar does not endorse, rate, or recommend any particular company or product. The policyholder bears the investment risk in the investment portfolio.

6. Top 5 International Mutual Funds to Invest in SIP 2025

   International mutual funds offer investors a chance to diversify their portfolios by investing in foreign markets, potentially leading to higher returns. 

   Let us learn the best international mutual funds to consider for SIP investments in 2025:

   Mutual Fund Scheme	Net Asset Value (NAV)	Assets Under Management (AUM)	1-Year Returns	3-Year Returns	5-Year Returns
   Invesco India - Invesco Global Equity Income FoF	₹29.48	₹25 Crs	23.48%	14.18%	15.19%
   Franklin India Feeder Franklin US Opportunities Fund	₹84.17	₹3,514 Crs	36.83%	8.37%	18.76%
   ICICI Prudential US Bluechip Equity Fund	₹72.09	₹3,349 Crs	21.06%	12.66%	16.95%
   PGIM India Global Equity Opportunities Fund	₹50.45	₹1,322 Crs	31.59%	5.85%	19.01%
   Aditya Birla Sun Life Global Excellence Equity FoF	₹35.02	₹196 Crs	27.13%	9.58%	10.05%

   *Returns as on 10 December 2024.
   Disclaimer: Policybazaar does not endorse, rate, or recommend any particular company or product. The policyholder bears the investment risk in the investment portfolio.

7. Top 5 Thematic Mutual Funds to Invest in SIP 2025

   Thematic mutual funds are specialized investment vehicles that focus on specific trends or themes in the market, allowing investors to capitalize on targeted growth opportunities. 

   The below mentioned list shows the best thematic mutual funds to consider for SIP investments in 2025:

   Mutual Fund Scheme	Net Asset Value (NAV)	Assets Under Management (AUM)	1-Year Returns	3-Year Returns	5-Year Returns
   Franklin India Opportunities Fund	₹280.87	₹5,623 Crs	46.52%	29.25%	30.17%
   ICICI Prudential India Opportunities Fund	₹37.41	₹24,786 Crs	30.99%	27.85%	29.45%
   ICICI Prudential Manufacturing Fund	₹37.28	₹6,699 Crs	36.81%	28.14%	29.39%
   ICICI Prudential Commodities Fund	₹44.25	₹2,399 Crs	22.85%	20.79%	34.97%
   UTI Transportation and Logistics Fund	₹293.28	₹3,472 Crs	29.68%	26.34%	25.12%

   *Returns as on 10 December 2024.
   Disclaimer: Policybazaar does not endorse, rate, or recommend any particular company or product. The policyholder bears the investment risk in the investment portfolio.

Key Factors to Decide the Best Mutual Funds for SIP in India for You

You must consider the following key factors before starting a SIP in best mutual funds in India:

• Investment Goal: Align the fund with your financial goal—wealth creation, retirement, or child’s education.

• Risk Appetite: Choose funds based on your risk tolerance—low, moderate, or high risk.

• Time Horizon: Match the fund type with your investment duration (short-term or long-term).

• Past Performance: Analyze the fund's historical returns over 3, 5, and 10 years for consistency.

• Expense Ratio: Prefer funds with a low expense ratio to maximize returns.

• Fund Manager’s Expertise: Check the track record of the fund manager and their experience.

• Portfolio Diversification: Look for funds offering a balanced mix of sectors and assets.

• Fund’s Rating: Refer to trusted ratings by agencies like CRISIL or Morningstar.

• Tax Efficiency: Consider tax-saving funds if eligible for benefits under Section 80C.

• Exit Load and Charges: Verify exit loads and other charges to avoid unexpected deductions.

• Liquidity Needs: Choose funds offering flexibility to redeem units when required.

Wrapping Up

SIPs help build wealth steadily, so start early and invest consistently to make the most of your financial journey. Choosing the best mutual funds for SIP in 2025 depends on your financial goals, risk tolerance, and investment horizon. Focus on funds with a strong track record, consistent performance, and alignment with your objectives.