“I don’t know where to begin,” or “I wish I had started earlier,” are likely the two issues you’ve encountered if you’ve ever attempted regular investing and saving. You are not alone. Building long-term wealth in the fast-paced, uncertain economy of today can be daunting, particularly if you’re balancing bills, interest payments, and job insecurity. That’s where Systematic Investment Plans (SIPs) come in.
Consider SIPs as your monthly financial exercise; all you have to do is show up regularly rather than lifting large weights (i.e., investing a sizable lump sum). By investing a set amount into mutual funds monthly, SIPs help you develop discipline, lower risk, and steadily increase your wealth over time. SIPs function flawlessly whether you’re a 45-year-old saving for your child’s education fund or a 25-year-old just starting your career.
The top 10 mutual funds for SIP in India in 2025 are presented in this guide, which cuts through the clutter and includes thorough analysis, risk profiles, fund management insights, and guidance on how to pick the best option for you.
Also Read: 10 Best Healthcare Stocks (in India)
Why are SIPs becoming every Indian’s favorite way to invest?
- Start small – Invest as little as Rs. 250/month
- No timing the market – Ride out the highs and lows
- Power of compounding – Let time multiply your money
- Diversification made simple – Own 30–50 stocks in one fund
- Fully flexible – Pause, increase, or stop any time
Types of Mutual Funds Suitable for SIP
- Large-Cap Funds: Invest in the top 100 companies by market cap. Offer stability and lower volatility. Ideal for conservative investors.
- Mid-Cap Funds: Target mid-sized companies with high growth potential but higher risk. Good for medium-term investors with a moderate risk appetite.
- Small-Cap Funds: Invest in smaller firms. High return potential but very volatile. Suitable for aggressive investors with long horizons.
- Flexi-Cap Funds: Can invest across market caps. Offer dynamic allocation based on market conditions.
- ELSS (Equity Linked Saving Schemes): Tax-saving mutual funds under Section 80C. Have a 3-year lock-in but offer equity growth.
Top 10 Mutual Funds for SIP in India
| Rank | Fund Name | Category | 1‑Year CAGR | 3‑Year CAGR | 5‑Year CAGR | AUM (₹ Cr) | Action |
| 1 | Axis Bluechip Fund | Large Cap | 2.7% | 14.2% | 15.29% | ₹34,374 | Invest Now |
| 2 | Mirae Asset Large Cap Fund | Large Cap | 3.41% | 16.42% | 19.36 | ₹39,530 | Invest Now |
| 3 | Parag Parikh Flexi Cap Fund | Flexi Cap | 9.52 | 20.85 | 23.05 | ₹1,03,868 | Invest Now |
| 4 | ICICI Prudential Flexi Cap Fund | Flexi Cap | 2.30 | 20.87 | ~22.6 | ₹17,946 | Invest Now |
| 5 | HDFC Mid‑Cap Opportunities Fund | Mid Cap | 7.53 | 31.06 | 33.49 | ₹79,718 | Invest Now |
| 6 | Franklin India Prima Fund | Mid Cap | 6.13 | 28.39 | 28.53 | ₹14,500 | Invest Now |
| 7 | SBI Small Cap Fund | Small Cap | ~0.21 | 22.31 | ~28.9 | ₹35,696 | Invest Now |
| 8 | Kotak Multicap Fund | Multicap | ~0.3–0.4 | 27.34 | ~26.9% | ₹18,904 | Invest Now |
| 9 | UTI Nifty Next50 Index Fund (ELSS) | ELSS/Index | –8.2 | 20.2 | 20.85 | ₹5,551 | Invest Now |
| 10 | Edelweiss ELSS Tax Saver Fund | ELSS | 3.17 | 21.67 | 23.25 | ₹5,600 | Invest Now |
In-Depth Look at the Top 10 SIP Mutual Funds
1. Axis Bluechip Fund
One of the most well-liked large-cap mutual funds in India is the Axis Bluechip Fund, which is renowned for its reliable performance, conservative approach, and superior stock selection. Its main investments are in blue-chip businesses that have solid foundations and a track record of producing profits during market cycles. Perfect for cautious investors seeking SIPs that offer consistency and consistent returns. Fund Snapshot- Inception: January 2010
- Fund House: Axis Mutual Fund
- Fund Manager: Shreyash Devalkar
- Category: Large Cap Equity
- AUM: ₹45,000 Cr+
- Expense Ratio: 1.9%
- 5-Year CAGR: 15.29%
- 3-Year CAGR: 14.5%
- 1-Year CAGR: 2.7 %
- Sharpe Ratio: 0.74
- Standard Deviation: 13.5%
- Benchmark: Nifty 100 TRI
2. Mirae Asset Large Cap Fund
Mirae Asset Large Cap Fund invests in industry-leading firms from India’s top 100 list. It is renowned for its steady returns and careful diversification, which makes it the perfect core asset for a portfolio. The fund adheres to a rigorous investing approach and has a balanced mix of growth and value stocks. Fund Snapshot- Inception: April 2008
- Fund House: Mirae Asset Mutual Fund
- Fund Manager: Gaurav Misra
- Category: Large Cap Equity
- AUM: ₹32,000 Cr+
- Expense Ratio: 1.7%
- 5-Year CAGR: 19.36%
- 3-Year CAGR: 16.42%
- 1-Year CAGR: 3.41%
- Sharpe Ratio: 0.78
- Standard Deviation: 13.0%
- Benchmark: Nifty 100 TRI
3. Parag Parikh Flexi Cap Fund
Parag Parikh Flexi Cap is a genuinely unique Indian mutual fund that makes investments in both domestic and international IT businesses. It blends the ability to allocate funds across market capitalization and geographical areas with the concepts of value investing. With long-term worldwide exposure and risk-adjusted returns, it appeals to investors seeking diversity. Fund Snapshot- Inception: May 2013
- Fund House: PPFAS Mutual Fund
- Fund Manager: Rajeev Thakkar
- Category: Flexi Cap (India + Global)
- AUM: ₹20,000 Cr+
- Expense Ratio: 1.6%
- 5-Year CAGR: 23.05%
- 3-Year CAGR: 20.85%
- 1-Year CAGR: 9.52%
- Sharpe Ratio: 0.81
- Standard Deviation: 12.4%
- Benchmark: Nifty 500 TRI
4. ICICI Prudential Flexi Cap Fund
Based on market conditions, the flexible ICICI Prudential Flexi Cap Fund adjusts to different market capitalizations. It uses a combination of bottom-up stock selection and a top-down macro approach. Those who want consistent long-term development without being restricted to a certain market capitalization category will find it ideal. Fund Snapshot- Inception: October 1994
- Fund House: ICICI Prudential Mutual Fund
- Fund Manager: Sankaran Naren
- Category: Flexi Cap Equity
- AUM: ₹12,300 Cr+
- Expense Ratio: 1.7%
- 5-Year CAGR: ~22.6%
- 3-Year CAGR: 20.87%
- 1-Year Return: 2.30%
- Sharpe Ratio: 0.76
- Standard Deviation: 13.9%
- Benchmark: Nifty 500 TRI
5. HDFC Mid-Cap Opportunities Fund
HDFC Mid-Cap Opportunities, one of India’s oldest mid-cap funds, has a proven track record of above-average returns due to its astute allocation and strong emphasis on fundamentals. Investors with a moderate-to-high risk appetite will find it perfect as it makes investments in mid-sized businesses that have the potential to become future leaders. Fund Snapshot- Inception: June 2007
- Fund House: HDFC Mutual Fund
- Fund Manager: Chirag Setalvad
- Category: Mid-Cap Equity
- AUM: ₹30,200 Cr+
- Expense Ratio: 1.8%
- 5-Year CAGR: 33.49%
- 3-Year CAGR: 31.87%
- 1-Year CAGR: 7.53%
- Sharpe Ratio: 0.85
- Standard Deviation: 17.3%
- Benchmark: Nifty Midcap 150 TRI
6. Franklin India Prima Fund
One of the oldest mid-cap funds in India, Franklin India Prima Fund is renowned for its cautious mid-cap selections and steady long-term performance. Investors seeking mid-cap growth potential without excessive volatility will find it appealing. Capital has been protected throughout downturns because of its careful investment picking methodology. Fund Snapshot- Inception: December 1993
- Fund House: Franklin Templeton Mutual Fund
- Fund Manager: Anand Radhakrishnan
- Category: Mid-Cap Equity
- AUM: ₹14,500 Cr+
- Expense Ratio: 1.9%
- 5-Year CAGR: 28.53%
- 3-Year CAGR: 28.39%
- 1-Year CAGR: 6.13%
- Sharpe Ratio: 0.79
- Standard Deviation: 15.1%
- Benchmark: Nifty Midcap 150 TRI
7. SBI Small Cap Fund
SBI Small Cap Fund, a leading performer in the small-cap market, is renowned for finding undiscovered treasures and producing long-term alpha. It offers strong growth potential when combined with active stock selection and targeted research. It is best suited for investors who can commit for 7-10 years, nevertheless, because of its inherent volatility. Fund Snapshot- Inception: September 2009
- Fund House: SBI Mutual Fund
- Fund Manager: R. Srinivasan
- Category: Small Cap Equity
- AUM: ₹10,500 Cr+
- Expense Ratio: 2.1%
- 5-Year CAGR: ~28.9%
- 3-Year CAGR: 22.31%
- 1-Year CAGR: ~0.21%
- Sharpe Ratio: 0.88
- Standard Deviation: 21.2%
- Benchmark: Nifty Smallcap 250 TRI
8. Kotak Multicap Fund
Kotak Multicap Fund invests across large, mid, and small caps with a mandated 25% minimum allocation to each, providing true multicap diversification. The fund takes a well-researched approach to portfolio balancing and is designed for investors who want broad market exposure without over-concentration. Fund Snapshot- Inception: September 2009
- Fund House: Kotak Mahindra Mutual Fund
- Fund Manager: Harsha Upadhyaya
- Category: Multicap Equity
- AUM: ₹9,000 Cr+
- Expense Ratio: 2.0%
- 5-Year CAGR: 26.9%
- 3-Year CAGR: 27.34%
- 1-Year CAGR: ~0.3-0.4%
- Sharpe Ratio: 0.82
- Standard Deviation: 15.6%
- Benchmark: Nifty 500 TRI
9. UTI Nifty Next 50 Index Fund (ELSS Option)
This fund offers a tax-saving (ELSS) option in addition to tracking the Nifty Next 50 Index. It is a low-cost, passive fund that offers exposure to the next large corporations that may make it to the Nifty 50. Investors looking for tax advantages through a long-term index-based approach are the greatest candidates. Fund Snapshot- Inception: January 2013
- Fund House: UTI Mutual Fund
- Fund Manager: Vetri Subramaniam
- Category: ELSS / Index Fund
- AUM: ₹8,700 Cr+
- Expense Ratio: 0.8%
- 5-Year CAGR: 20.85%
- 3-Year CAGR: 20.2%
- 1-Year CAGR: -8.2%
- Sharpe Ratio: 0.74
- Standard Deviation: 12.7%
- Benchmark: Nifty Next 50 TRI
10. Edelweiss ELSS Tax Saver Fund
Tax savings and capital growth are two advantages offered by this actively managed Equity Linked Savings Scheme (ELSS) fund. Because of its fairly aggressive tilt and ability to invest across market capitalization and sectors, it is a fantastic choice for investors who want to increase their wealth while avoiding taxes under Section 80C. Fund Snapshot- Inception: December 2008
- Fund House: Edelweiss Mutual Fund
- Fund Manager: Radhika Gupta
- Category: ELSS (Tax Saving)
- AUM: ₹5,600 Cr+
- Expense Ratio: 1.5%
- 5-Year CAGR: 23.25%
- 3-Year CAGR: 21.67%
- 1-Year CAGR: 3.17%
- Sharpe Ratio: 0.70
- Standard Deviation: 13.1%
- Benchmark: Nifty 500 TRI
Conclusion
For millions of Indian households, SIP investing has emerged as the primary means of accumulating wealth. It provides a potent blend of:- Investing with discipline
- Availability of professionally managed portfolios
- Compounding growth throughout the long term
- Adaptability and personalization for all kinds of investors
