Best Mutual Fund SIP Portfolios to Invest in 2025

Fund Overview

The overview of each of the funds are given below:

SBI PSU Direct Plan Growth

1. Started in: 1 January 2013

1. Invests in: Various PSU stocks such as the State Bank of India, GAIL (India), and Power Grid Corporation of India.

1. Minimum SIP amount: Rs.500

1. Expense ratio: 0.77%

1. Fund allocation: 93.9% in equity and 6.1% in cash

1. Risk: High

ICICI Prudential Infrastructure Direct Growth

1. Started in: 1 January 2013

1. Invests in: Companies such as NTPC, L&T, and ICICI Bank

1. Minimum SIP amount: Rs.100

1. Expense ratio: 1.21%

1. Fund allocation: 93.8% to equity, 4.7% is held as cash, and 0.9% as debt

1. Risk: Very high

HDFC Balanced Advantage Fund Direct Plan Growth

1. Started in: 1 January 2013

1. Invests in: Government securities and equity investments in companies including State Bank of India, HDFC Bank, and ICICI Bank.

1. Minimum SIP amount: Rs.100

1. Expense ratio: 0.75%

1. Fund allocation: 53.3% to equity, 29.9% to debt, and 15.3% held as cash

1. Risk: Very high

Motilal Oswal Midcap Fund Direct Growth

1. Started in: 24 February 2014

1. Invests in: Companies such as Kalyan Jewellers India, Polycab India, and Coforge.

1. Minimum SIP amount: Rs.100

1. Expense ratio: 0.65%

1. Fund allocation: 99.4% to equity and 0.6% is held as cash

1. Risk: Very high

Aditya Birla Sun Life Medium Term Plan Direct Growth

1. Started in: 1 January 2013

1. Invests in: Government securities and debentures from various corporations such as CreditAccess Grameen and Adani Airport Holdings.

1. Minimum SIP amount: Rs.1000

1. Expense ratio: 0.86%

1. Fund allocation: 87.5% to debt funds and 7.8% is held as cash

1. Risk: High

Bank of India Short Term Income Fund Direct Growth

1. Started in: 1 January 2013

1. Invests in: Small Industries Development Bank of India, Power Finance Corporation, and Canara Bank

1. Minimum SIP amount: Rs.1000

1. Expense ratio: 0.50%

1. Fund allocation: 82.6% in debt fund and 17.4% is held as cash

1. Risk: Low to moderate

IDBI Credit Risk Fund Direct Growth

1. Started in: 3 March 2014

1. Invests in: Government securities (G-Secs), treasury bills, and corporate debt

1. Minimum SIP amount: NA

1. Expense ratio: 0.61%

1. Fund allocation: 70.9% to debt funds and 29.1% is held as cash

1. Risk: Low to moderate

JM Aggressive Hybrid Fund Direct Growth

1. Started in: 1 January 2013

1. Invests in: Equity funds in Infosys, Bharti Airtel, HDFC Bank, and government debt instruments

1. Minimum SIP amount: Rs.100

1. Expense ratio: 0.66%

1. Fund allocation: 19.1% to debt, and 5.9% held as cash

1. Risk: Very high

Quant Multi Asset Fund Direct Growth

1. Started in: 1 January 2013

1. Invests in: Equity investments and treasury bills (T-bills) in companies, such as ITC, Reliance Industries, and Jio Financial Services

1. Minimum SIP amount: Rs.1000

1. Expense ratio: 0.61%

1. Fund allocation: 52.7% to equity, 26.1% held as cash, and 8.4% to debt funds.

1. Risk: High

How to Choose the Best Mutual Fund to SIP?

With more than 5,500 mutual fund schemes available in India, choosing the right one to invest through an SIP is no easy task. Though finding the right mutual fund is not easy, below are some pointers that can help you navigate through the various options and choose the ideal one.

Clarify Your Investment Objective

1. Define your financial goals before choosing a mutual fund, it’s crucial to define your financial goals.

1. Mutual funds are designed with specific investment strategies and objectives, such as growth, income generation, or capital preservation.

1. Ensure the fund’s strategy aligns with your personal objectives.

Assess the Risks and Rewards

1. Each mutual fund carries a different level of risk, ranging from low-risk debt funds to high-risk equity funds.

1. It is important to evaluate your risk appetite, based on your age, income stability, and investment timeline.

1. Along with risks, consider the potential benefits or returns, and also consider the past performance, fund ratings, and historical volatility can guide your decision.

1. A balanced understanding of both risk and reward will help you make informed and confident investment choices.

Understand Your Investment Purpose

1. Determine the reason behind your investment whether it is for tax-saving or for long-term capital gain.

1. Knowing your purpose helps in selecting the right category of mutual funds, such as ELSS for tax benefits, equity funds for long-term growth, or liquid funds for short-term parking of funds.

1. This clarity ensures you are investing in a fund that serves your specific financial needs.

Why should you invest in an SIP?

Investing in SIP is considered one of the affordable investment options that enables investors to build wealth over a long-term period. Some other reasons to invest in an SIP are listed below: 

1. You can start a SIP with as little as Rs.100, making it ideal for new investors and minimizing risk through gradual investment.

1. SIPs run automatically, ensuring consistent investment without manual effort.

1. Investing regularly through SIPs helps reduce the stress of choosing the “right time” to invest.

1. Ensures high flexibility by allowing you to adjust, pause, or stop your SIP anytime, with control over investment amount, frequency, and duration.

1. SIPs buy more units when prices are low and fewer when high, lowering the average cost of investment.

1. Offers advantage of compound growth as returns are reinvested over time.

How to Achieve more with SIP?

To derive maximum benefits from an SIP, ensure that you do the following:

1. Make a list of your goals and calculate the amount of saving you need to do to achieve your goals.
2. Determine how much amount you wish to invest monthly/quarterly through SIP in order to fulfill your goals.
3. Research the mutual fund market and check which funds have performed well over the past years. Once you have done that, you will be able to figure out which plan to invest in through an SIP.
4. All mutual fund investments require investors to complete the KYC documentation process along with other formalities like submission of cheques and forms. Complete the process and start investing.
5. To reap good returns on your investments, choose a plan on a long-term basis.
6. You can invest in multiple SIPs to diversify your investments and optimise the returns.

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Benefits of Investing in the Best SIP Plans

The benefits of investing in the best SIP plans are mentioned below:

1. SIPs encourage consistent, monthly investments, while building a regular saving habit.

1. Allows a small amount investment every month thereby making it accessible for beginners and easy on your budget.

1. Reduces the impact of market fluctuations as SIPs involve smaller, regular investments.

1. Returns are reinvested every month, which helps your money grow over time through the effect of compounding.

How to Achieve more with SIP?

To derive maximum benefits from an SIP, ensure that you do the following:

1. Start Early to Maximize Growth: Begin your SIP investments as early as possible to take full advantage of compounding.

1. Stay Consistent with Contributions: Invest regularly and avoid pausing or skipping SIPs unless absolutely necessary to ensure you benefit from Rupee Cost Averaging, thereby reducing the impact of market ups and downs.

1. Choose Funds Wisely: Evaluate your financial goals, risk appetite, and investment duration before selecting a fund.

1. Diversify your portfolio: Keep a mix of well-diversified portfolio by selecting equity fund for long-term growth, while for more stability you can select debt funds.

1. Gradually Increase SIP Amounts: Boost your SIP contributions as your income grows to enhance long-term wealth creation.

1. Stay Updated and Aware: Review your portfolio regularly to monitor fund performance to ensure your investments remain aligned with your goals and risk profile.

1. Avoid Frequent Fund Switching: Stick to your long-term strategy and only make changes when your personal financial goals or risk tolerance change substantially as frequent changes can result in unnecessary costs and reduced gains.

1. Reinvest Dividends: Reinvest your dividend payouts instead of withdrawing to boost the compounding effect.

1. Use Top-Up SIP Options: Helps to adjust inflation to ensure that your investments keep pace with increasing costs over time.