Mutual fund investments can be a potential avenue for beginners to invest with small amounts and get diverse exposure. Systematic investment plans can help attain these objectives. There are numerous schemes available for SIP investments in the market. Selecting the best SIP plans among them can be a difficult task.
Therefore, this list of some of the best SIP plans in 2025 can help investors make decisions for the most suitable SIP investment.
List of best SIP plans to invest in 2025
The following schemes are curated based on their 3-year returns for SIP investments as on March 21, 2025, and diverse categories. Moreover, all these schemes are direct plans with growth options.
| Mutual Fund Scheme | 3-year SIP returns |
| Bandhan Small Cap Fund | 53.20% |
| Motilal Oswal Midcap Fund | 49.04% |
| LIC MF Infrastructure Fund | 47.00% |
| JM Aggressive Hybrid Fund | 35.18% |
| ICICI Prudential Multi-Asset Fund | 32.46% |
| HDFC Balanced Advantage Fund | 31.09% |
| Aditya Birla Sun Life Credit Risk Fund | 21.31% |
| Invesco India Credit Risk Fund | 17.55% |
| ICICI Prudential Long Term Fund | 15.05% |
(Data as of March 21, 2025)
An interesting read: Identifying the Right Stocks for SIP Investments
Explore the best SIP plans in 2025 in detail!
Investors should explore the features of these schemes to determine the most suitable investment for their portfolio.Here is a detailed explanation of these schemes, their risk factors, portfolio and other dynamics.
- Bandhan Small Cap Fund
The fund is consistently outperforming its benchmark in terms of 3-year and 5-year returns.
Source: Morningstar
- Due to the majority of investments being small-cap stocks, the scheme also faced high risk. Its beta is 6 basis points higher than the category beta.
- The scheme invests 91.67% of its assets under management (AUM) in equities and has a major allocation in financial services.
- The minimum SIP amount in this fund is ₹100.
- Motilal Oswal Midcap Fund
This midcap scheme has generated balanced returns compared to its category. Moreover, its portfolio has some of the best-performing stocks which paves its path to become one of the best SIP to invest in 2025.
Source: Morningstar
- Efficient fund management is evident in the financial metrics like a beta of 0.89, which trails below the category average, and a Sharpe ratio of 1.1, which is higher than the category.
- The fund invests 71.67% in equities, with the majority of investments in technology followed by consumer durable industry.
- The minimum SIP amount for this fund is ₹500.
- LIC MF Infrastructure Fund
Investors can diversify their portfolios in such funds to get specific industry exposure. Moreover, infrastructure is one of the most focused sectors in developing nations like India, which makes this fund attractive.
Source: Morningstar
- The scheme’s beta exceeds category beta by 1 basis point, which indicates above-average risk.
- It has 97.03% investment in equities, specifically in the industrial companies related to infrastructure.
- The minimum investment for SIP in this fund is ₹200.
- JM Aggressive Hybrid Fund
The fund has experience of nearly 10 years in the market and has generated potential long-term returns for its investors.
Source: Morningstar
- In terms of risk, the fund is rated above average.
- 69.26% of its assets are invested in equities. However, being a hybrid fund, it also provides 18.22% exposure to AAA-rated fixed-income investments.
- The minimum SIP amount is ₹100 for this scheme.
- ICICI Prudential Multi-Asset Fund
One of the key benefits of investing in such funds is its relatively balanced exposure to more asset classes in one investment.
Source: Morningstar
- The fund has invested 51.7% of its assets in equities and 9.2% in fixed-income investments.
- The majority of the fund assets are in blue chip stocks, which balances the debt risk for the portfolio.
- The amount for minimum SIP investment is ₹100.
- HDFC Balanced Advantage Fund
Since its inception, the fund has been consistently generating significant returns for investors by outperforming its benchmark.
- The risk-o-meter for this fund indicates a very high risk compared to the benchmark.
- The fund balances 60%-30% investment in equities and debt, respectively.
- The minimum amount for a systematic investment plan in this fund is ₹100.
- Aditya Birla Sun Life Credit Risk Fund
Debt funds can be a significant source of returns with security. Moreover, credit risk funds invest in corporate bonds, which are rated AA or below.
Source: Moneycontrol
- The fund has moderate to high-risk levels due to its exposure to AAA, AA, A and BBB-rated bonds and its market performance.
- It invests nearly 62% of its assets in AA-rated bonds. The funds also have exposure to government bonds and securitised debt assets.
- The minimum amount for a systematic investment plan in this fund is ₹100.
- Invesco India Credit Risk Fund
The funds have performed moderately over the years but
Source: Morningstar
- The fund has a moderately high risk due to current market conditions and its investments.
- The fund invests 93% of its assets in fixed-income securities. In this majority, bonds have ratings of AAA and AA.
- In this fund, SIP investment starts at ₹1000.
- ICICI Prudential Long Term Bond Fund
Investors preferring safety may find this fund highly attractive due to its investment in high-rated bonds.
Source: Morningstar
- It has low risk due to AAA-rated government bonds in the portfolio, but a high rating generates low-moderate returns.
- 78% of its fixed-income assets in the portfolio are government bonds. Moreover, 99.5% of its total investments are AAA-rated.
- The minimum SIP investment amount is ₹1000 for this bond.
Factors to consider in SIP investment
Selecting the best SIP plans to invest in can be an objective decision. Therefore, investors can check the following factors to assess the most suitable scheme:
- Personal investment objectives, risk tolerance and existing portfolio exposure.
- Market conditions for entry or exits from specific funds.
- Recent factsheet of the particular scheme to assess the risk-adjusted returns and other details.
- Suitable SIP amount for investment, which can be allocated every month.
Explore more: SIP investment: Your path to wealth building
Bottomline
Investors can explore the list of some of the best SIP plans in 2025 to select the most suitable investment. Moreover, they should also check factors like investment objective and risk to analyse a scheme for their portfolio.
Dive deeper! Why Must You Boost Sip Every Year?
FAQs
- What is SIP investment in mutual funds?
A SIP allows you to put in a fixed sum into a mutual fund at regular intervals, starting with as little as ₹500. Payments are automatically deducted from your bank account, usually every month. This method buys more units when prices drop and fewer when they rise, potentially balancing out costs. It’s an option for those looking to grow savings steadily without needing a large starting capital.
- Is there any SIP for 1 year?
Yes, you can invest in SIPs for just one year. Many mutual funds offer this flexibility. You make regular contributions and then stop. It’s suitable for short-term goals, though returns may fluctuate with market movements. Always review the fund’s history and performance before choosing.
- Is SIP 100% safe?
SIP is not completely without risk. SIPs involve mutual funds, which can be affected by market changes. The value of your money may fluctuate based on these movements. While this method reduces exposure by spreading out purchases, there is still uncertainty. Understand the potential downsides and select options that fit your comfort level. Always do your research first.
- Can I invest ₹1000 per month in SIP?
Yes, you can. Many options let you contribute small sums regularly. Some even accept ₹500 as a starting point. The main idea is consistency. Pick a plan that matches your financial goals and research before committing.
- Is SIP better than FD?
It really depends on your financial goals. SIPs can provide higher returns but come with uncertainties. Fixed deposits, on the other hand, are secure and offer fixed interest, though usually at a lower rate. Choose FDs for safety. Opt for SIPs if you seek potential long-term gains and can handle some ups and downs.
- What is the minimum amount required to start SIP in 2025?
In 2025, many mutual fund schemes offer SIP investment at as low as ₹100. However, it can differ based on the fund house and the investment scheme and the minimum amount can be ₹500 or ₹1000. Therefore, investors should check these details before investing.
- What is the minimum amount required to start SIP?
Systematic Investment Plan or SIP is a regular(monthly) allocation towards investment. Therefore, the minimum amount for SIP may differ based on the mutual fund scheme or asset management company. In India, SIP can be started as low as ₹100 in some schemes.
- What types of mutual funds can I invest in through SIPs?
Almost all the mutual fund categories allow SIP investments. Therefore, investors can invest through SIP in equity funds, hybrid funds, funds or others. The minimum amount for SIP should be checked for a specific scheme before investing through its factsheet or other authentic source.
- Can I claim a tax deduction on SIP investment?
No, other than SIP in Equity Linked Savings Scheme (ELSS), investors cannot claim SIP deduction. In ELSS, a total contribution of a maximum ₹1.5 lakhs (also includes other deductions) can be claimed as a tax deduction.
- How do I calculate the total cost of SIP investment?
The total cost of SIP can be determined by adding the total investment amount, exit load and any capital gain tax charged during redemption. The total investment cost will be the monthly SIP amount multiplied by the number of months. Exit load is when investments are redeemed before being prescribed by a fund house.
