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.
SIP Calculator
Monthly Investment
₹22.4 L
Top Funds with High Returns (Past 7 Years)
18.11%
High Growth Fund
17.8%
Top 200 Fund
13.97%
Accelerator Mid-Cap Fund II
14.53%
Opportunities Fund
9.16%
Equity II Fund
12.86%
Accelerator Fund
14.32%
Growth Opportunities Plus Fund
15.24%
Multiplier
11.57%
Equity Top 250 Fund
12.76%
Future Apex Fund
12.02%
Opportunities Fund
14.09%
Frontline Equity Fund
15.2%
Virtue II
10.49%
Pension Dynamic Equity Fund
12.03%
Equity Optimiser Pension
10.05%
Blue-Chip Equity 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:
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Equity Mutual Funds: Invest mainly in stocks, offering the potential for high returns over the long term but with higher risk.
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Debt Mutual Funds: Focus on fixed-income securities like bonds, providing stable returns with lower risk, suitable for conservative investors.
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Hybrid Mutual Funds: Combine equity and debt investments to balance risk and return, catering to a variety of investor needs.
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Tax-saving Mutual Funds (ELSS): Invest in equities and offer tax benefits under Section 80C, with a mandatory lock-in period of three years.
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Index Funds: Track specific market indices, like the Nifty or Sensex, typically featuring lower fees due to passive management.
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Sectoral/Thematic Funds: Concentrate on specific sectors (e.g., technology or healthcare), presenting higher risk but the potential for significant gains.
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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.
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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 |
| Aditya Birla Sun Life PSU Equity Fund |
₹37.02 |
₹5,895.79 crore |
36.7% |
37.1% |
30.3% |
| IDBI Small Cap Fund |
₹22.81 |
₹370.18 crore |
22.9% |
39.1% |
16.7% |
| Invesco India PSU Equity Fund |
476.41 |
₹1,435.71 crore |
46.0% |
36.7% |
30.8% |
| Motilal Oswal Midcap Fund |
₹128.94 |
₹18,604.02 crore |
63.8% |
37.4% |
35.4% |
| SBI PSU Fund |
₹35.91 |
₹4,703.46 crore |
46.8% |
38.5% |
27.4% |
Disclaimer: ≈ Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is done in alphabetical order (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
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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 Credit Risk Fund |
₹22.34 |
₹916.98 crore |
13.2% |
9.5% |
9.3% |
| Aditya Birla Sun Life Medium Term Plan |
₹40.19 |
₹1,920.74 |
11.8% |
14.6% |
12.1% |
| Aditya Birla Sun Life Medium Term Plan |
₹40.19 |
₹1,920.74 crore |
11.8% |
14.6% |
12.1% |
| Bank of India Short Term Income Fund |
₹27.76 |
₹70.71 crore |
10.1% |
14.1% |
8.9% |
| IDBI Credit Risk Fund |
₹17.55 |
₹23.15 crore |
7.1% |
10.1% |
3.8% |
Disclaimer: ≈ Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is done in alphabetical order (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
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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 |
| HDFC Balanced Advantage Fund |
₹549.67 |
₹96,535.51 crore |
23.6% |
23.1% |
21.7% |
| ICICI Prudential Multi Asset Fund |
₹776.15 |
₹50,495.58 crore |
22.5% |
20.5% |
22.1% |
| JM Aggressive Hybrid Fund |
₹144.23 |
₹642.94 crore |
36.6% |
24.8% |
26.5% |
| 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% |
*Returns as on 10 December 2024.
Disclaimer: ≈ Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is done in alphabetical order (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
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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 |
| 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% |
| 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% |
Disclaimer: ≈ Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is done in alphabetical order (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
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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 |
| 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% |
| Motilal Oswal Nasdaq 100 FOF |
₹39.01 |
₹5,469 Crs |
40.21% |
14.8% |
25.56% |
| Motilal Oswal Nifty Midcap 150 Index Fund |
₹39.18 |
₹1,894 Crs |
31.76% |
23.42% |
29.62% |
| UTI Nifty 50 Index Fund |
₹170.22 |
₹20,083 Crs |
18.32% |
13.09% |
16.74% |
Disclaimer: ≈ Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is done in alphabetical order (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
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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 |
| Aditya Birla Sun Life Global Excellence Equity FoF |
₹35.02 |
₹196 Crs |
27.13% |
9.58% |
10.05% |
| 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% |
| Invesco India - Invesco Global Equity Income FoF |
₹29.48 |
₹25 Crs |
23.48% |
14.18% |
15.19% |
| PGIM India Global Equity Opportunities Fund |
₹50.45 |
₹1,322 Crs |
31.59% |
5.85% |
19.01% |
Disclaimer: ≈ Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is done in alphabetical order (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
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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% |
Disclaimer: ≈ Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is done in alphabetical order (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
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:
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Investment Goal: Align the fund with your financial goal—wealth creation, retirement, or child’s education.
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Risk Appetite: Choose funds based on your risk tolerance—low, moderate, or high risk.
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Time Horizon: Match the fund type with your investment duration (short-term or long-term).
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Past Performance: Analyze the fund's historical returns over 3, 5, and 10 years for consistency.
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Expense Ratio: Prefer funds with a low expense ratio to maximize returns.
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Fund Manager’s Expertise: Check the track record of the fund manager and their experience.
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Portfolio Diversification: Look for funds offering a balanced mix of sectors and assets.
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Fund’s Rating: Refer to trusted ratings by agencies like CRISIL or Morningstar.
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Tax Efficiency: Consider tax-saving funds if eligible for benefits under Section 80C.
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Exit Load and Charges: Verify exit loads and other charges to avoid unexpected deductions.
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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.
FAQs
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What is SIP in mutual funds?
SIP (Systematic Investment Plan) allows you to invest a fixed amount regularly in mutual funds.
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Why should I invest in SIPs in 2025?
SIPs are ideal for disciplined investing and help reduce market risks through rupee cost averaging.
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Which are the best mutual fund categories for SIPs in 2025?
Equity, hybrid, and
ELSS funds are popular categories for long-term growth and tax benefits.
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How much should I invest in SIP?
The amount depends on your financial goals, but starting with ₹500 to ₹1,000 monthly is common.
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What is the ideal tenure for SIP investments?
A tenure of 5-10 years or more is ideal for maximum returns due to compounding.
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Can I stop or modify my SIP anytime?
Yes, you can pause, stop, or change your SIP amount without any penalty.
