The below table shows a list Of the Best Mutual Funds For SIP Based on AUM, NAV, and minimum SIP.
| Name | AUM (Cr) | NAV (Rs) | Minimum SIP (Rs) |
| Motilal Oswal Midcap Fund | 14,445.55 | 122.01 | 500 |
| Bandhan Small Cap Fund | 7,534.20 | 52.14 | 100 |
| ICICI Pru Nifty Next 50 Index Fund | 6,643.93 | 69.79 | 500 |
| Franklin India Opportunities Fund | 5,381.37 | 282.86 | 500 |
| UTI Nifty Next 50 Index Fund | 4,662.72 | 27.71 | 500 |
| Quant Infrastructure Fund | 3,990.92 | 46.18 | 1,000 |
| Motilal Oswal ELSS Tax Saver Fund | 3,983.77 | 62.4 | 500 |
| HDFC Defence Fund | 3,930.99 | 21.85 | 100 |
| Invesco India Focused Fund | 2,937.37 | 31.14 | 500 |
| ICICI Pru PSU Equity Fund | 2,627.96 | 22.12 | 100 |
Introduction to Top Mutual Funds for SIP
Motilal Oswal Midcap Fund
Motilal Oswal Midcap Fund Direct-Growth is a Mid Cap mutual fund scheme from Motilal Oswal Mutual Fund. This fund has been in existence for 10 years and 7 months, having been launched on 03/02/2014.
Motilal Oswal Midcap Fund as a Top Mutual fund for SIP, manages assets valued at ₹14,445.55 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 34.99%. This fund has an exit load of 1% and an expense ratio of 0.6%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises: Equity at 78.28%, Debt at 16.43%, and Other at 5.29%.
Bandhan Small Cap Fund
Bandhan Small Cap Fund Direct-Growth is a Small Cap mutual fund scheme from Bandhan Mutual Fund. This fund has been in existence for 4 years and 7 months, having been launched on 03/02/2020.
Bandhan Small Cap Fund as a Top Mutual fund for SIP, manages assets valued at ₹7,534.20 crore. Over the past 3 years, it has achieved a Compound Annual Growth Rate (CAGR) of 21.78%. This fund has an exit load of 1% and an expense ratio of 0.35%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises: Equity at 89.25%, Debt at 0.04%, and Other at 10.71%.
ICICI Pru Nifty Next 50 Index Fund
ICICI Prudential Nifty Next 50 Index Direct-Growth is a Large Cap Index mutual fund scheme from Icici Prudential Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013.
ICICI Pru Nifty Next 50 Index Fund as a Top Mutual fund for SIP, manages assets valued at ₹6,643.93 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 22.77%. This fund has no exit load and an expense ratio of 0.31%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises: Equity at 99.9%, no Debt, and Other at 0.1%.
Franklin India Opportunities Fund
Franklin India Opportunities Direct Fund-Growth is a Thematic mutual fund scheme from Franklin Templeton Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013.
Franklin India Opportunities Fund as a Top Mutual fund for SIP, manages assets valued at ₹5,381.37 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 30.85%. This fund has an exit load of 1% and an expense ratio of 0.51%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises: Equity at 89.7%, no Debt, and Other at 10.3%.
UTI Nifty Next 50 Index Fund
UTI Nifty Next 50 Index Fund Direct-Growth is a Large Cap Index mutual fund scheme from UTI Mutual Fund. This fund has been in existence for 6 years and 3 months, having been launched on 08/06/2018.
UTI Nifty Next 50 Index Fund as a Top Mutual fund for SIP, manages assets valued at ₹4,662.72 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 22.98%. This fund has no exit load and an expense ratio of 0.37%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises: Equity at 99.91%, no Debt, and Other at 0.09%.
Quant Infrastructure Fund
Quant Infrastructure Fund Direct-Growth is a Sectoral-Infrastructure mutual fund scheme from Quant Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013.
Quant Infrastructure Fund as a Top Mutual fund for SIP, manages assets valued at ₹3,990.92 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 40.05%. This fund has an exit load of 0.5% and an expense ratio of 0.66%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises: Equity at 81.93%, Debt at 3.49%, and Other at 14.58%.
Motilal Oswal ELSS Tax Saver Fund
Motilal Oswal ELSS Tax Saver Fund Direct-Growth is an ELSS mutual fund scheme from Motilal Oswal Mutual Fund. This fund has been in existence for 9 years and 8 months, having been launched on 26/12/2014.
Motilal Oswal ELSS Tax Saver Fund as a Top Mutual fund for SIP, manages assets valued at ₹3,983.77 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 27.54%. This fund has no exit load and an expense ratio of 0.65%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises: Equity at 95.87%, Debt at 4.21%, and Other at (-)0.09%.
HDFC Defence Fund
HDFC Defence Fund Direct-Growth is a Thematic mutual fund scheme from HDFC Mutual Fund. This fund has been in existence for 1 year and 4 months, having been launched on 19/05/2023.
HDFC Defence Fund as a Top Mutual fund for SIP, manages assets valued at ₹3,930.99 crore. Over the past 1 years, it has achieved a Compound Annual Growth Rate (CAGR) of 84.19%. This fund has an exit load of 1% and an expense ratio of 0.72%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises: Equity at 94.99%, no Debt, and Other at 5.01%.
Invesco India Focused Fund
Invesco India Focused Fund Direct-Growth is a Focused mutual fund scheme from Invesco Mutual Fund. This fund has been in existence for 4 years, having been launched on 09/09/2020.
Invesco India Focused Fund as a Top Mutual fund for SIP, manages assets valued at ₹2,937.37 crore. Over the past 3 years, it has achieved a Compound Annual Growth Rate (CAGR) of 25.72%. This fund has an exit load of 1% and an expense ratio of 0.58%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises: Equity at 97.56%, no Debt, and Other at 2.44%.
ICICI Pru PSU Equity Fund
ICICI Prudential PSU Equity Fund Direct-Growth is a Thematic-PSU mutual fund scheme from ICICI Prudential Mutual Fund. This fund has been in existence for 2 years and 1 month, having been launched on 23/08/2022.
ICICI Pru PSU Equity Fund as a Top Mutual fund for SIP, manages assets valued at ₹2,627.96 crore. Over the past 1 years, it has achieved a Compound Annual Growth Rate (CAGR) of 67.2%. This fund has an exit load of 1% and an expense ratio of 0.63%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises: Equity at 86.23%, Debt at 1.5%, and Other at 12.26%.
What Is SIP?
A Systematic Investment Plan (SIP) is an investment strategy allowing individuals to invest a fixed amount regularly in mutual funds. This approach helps in averaging the cost of investment over time, making it less sensitive to market volatility.
SIPs encourage disciplined investing by setting up automatic deductions from bank accounts. This method fosters long-term wealth accumulation without the pressure of timing the market, making it accessible for both new and experienced investors.
Additionally, SIPs provide the benefit of compounding, where returns earned on investments generate further returns over time. This can significantly enhance wealth over the long term, aligning well with financial goals such as retirement planning or education funding.
Features of Systematic Investment Plan
The main features of a Systematic Investment Plan (SIP) include regular investments, flexibility in amounts, professional management, and the potential for compounding. These characteristics make SIPs an appealing investment choice for both new and seasoned investors looking for disciplined wealth accumulation.
- Regular Investments: SIPs allow investors to contribute a fixed amount at regular intervals, such as monthly or quarterly. This systematic approach fosters discipline in saving and investing, making it easier to build wealth over time without the pressure of large, one-time investments.
- Flexibility in Amounts: Investors have the option to choose the amount they wish to invest in each installment. This flexibility accommodates varying financial situations, allowing individuals to adjust their contributions based on changes in income or financial goals.
- Professional Management: SIPs invest in mutual funds managed by experienced professionals who analyze market trends and make informed decisions. This professional oversight provides investors with expertise they might lack, ensuring their investments are strategically allocated for optimal returns.
- Potential for Compounding: SIPs benefit from the power of compounding, where returns earned on investments generate further returns over time. This feature enhances wealth accumulation, especially when invested over the long term, making it a powerful strategy for achieving financial goals.
Top Mutual Funds For SIP In India Based on Expense Ratio
The table below shows the Best-performing Mutual Funds For SIP Based on the highest to lowest expense ratio.
| Name | Expense Ratio (%) | Minimum SIP (Rs) |
| LIC MF Infra Fund | 1.38 | 1,000 |
| Canara Rob Infrastructure Fund | 0.96 | 1,000 |
| HDFC Transportation and Logistics Fund | 0.94 | 100 |
| Bandhan Infrastructure Fund | 0.82 | 100 |
| Invesco India PSU Equity Fund | 0.76 | 500 |
| HDFC Defence Fund | 0.72 | 100 |
| Quant Manufacturing Fund | 0.71 | 1,000 |
| Invesco India Infrastructure Fund | 0.7 | 500 |
| Quant Infrastructure Fund | 0.66 | 1,000 |
| Motilal Oswal ELSS Tax Saver Fund | 0.65 | 500 |
Best Mutual Funds For SIP Based on 3Y CAGR
The table below shows the Best Mutual Funds For SIP Based on the Highest 3Y CAGR.
| Name | CAGR 3Y (Cr) | Minimum SIP (Rs) |
| Motilal Oswal Midcap Fund | 39.11 | 500 |
| Invesco India PSU Equity Fund | 37.43 | 500 |
| LIC MF Infra Fund | 35.57 | 1,000 |
| Bandhan Infrastructure Fund | 34.88 | 100 |
| Canara Rob Infrastructure Fund | 34.36 | 1,000 |
| Quant Infrastructure Fund | 34.32 | 1,000 |
| Invesco India Infrastructure Fund | 34.02 | 500 |
| Bandhan Small Cap Fund | 31.25 | 100 |
| Franklin India Opportunities Fund | 30.8 | 500 |
| Motilal Oswal ELSS Tax Saver Fund | 28.16 | 500 |
Top 10 Mutual Funds For SIP Based on Exit Load
The table below shows the performing Mutual Funds For SIP In India Based on Exit Load, i.e., the fee that the AMC charges investors when they exit or redeem their fund units.
| Name | AMC | Exit Load (%) |
| HDFC Transportation and Logistics Fund | HDFC Asset Management Company Limited | 1 |
| HDFC Defence Fund | HDFC Asset Management Company Limited | 1 |
| Quant Manufacturing Fund | Quant Money Managers Limited | 1 |
| ICICI Pru PSU Equity Fund | ICICI Prudential Asset Management Company Limited | 1 |
| Quant Value Fund | Quant Money Managers Limited | 1 |
| Motilal Oswal Midcap Fund | Motilal Oswal Asset Management Company Limited | 1 |
| Invesco India PSU Equity Fund | Invesco Asset Management Company Pvt Ltd. | 1 |
| LIC MF Infra Fund | LIC Mutual Fund Asset Management Limited | 1 |
| Canara Rob Infrastructure Fund | Canara Robeco Asset Management Company Limited | 1 |
| Invesco India Infrastructure Fund | Invesco Asset Management Company Pvt Ltd. | 1 |
Mutual Funds For SIP Returns
The table below shows Mutual Funds For SIP Returns Based on 1 Year returns.
| Name | Absolute Returns – 1Y (%) | Minimum SIP (Rs) |
| HDFC Defence Fund | 84.19 | 100 |
| Bandhan Small Cap Fund | 77.4 | 100 |
| Invesco India Focused Fund | 75.14 | 500 |
| LIC MF Infra Fund | 73.69 | 1,000 |
| Bandhan Infrastructure Fund | 73.16 | 100 |
| Motilal Oswal Midcap Fund | 72.27 | 500 |
| Motilal Oswal ELSS Tax Saver Fund | 69.87 | 500 |
| Franklin India Opportunities Fund | 69.78 | 500 |
| Quant Value Fund | 69.26 | 1,000 |
| Canara Rob Infrastructure Fund | 67.34 | 1,000 |
Historical Performance of Mutual Funds For SIP
The table below shows the Historical Performance Of Mutual Funds For SIP based on 5-year returns.
| Name | CAGR 5Y (Cr) | Minimum SIP (Rs) |
| Quant Infrastructure Fund | 40.05 | 1,000 |
| Motilal Oswal Midcap Fund | 34.99 | 500 |
| Invesco India Infrastructure Fund | 34.77 | 500 |
| Bandhan Infrastructure Fund | 33.46 | 100 |
| Canara Rob Infrastructure Fund | 32.47 | 1,000 |
| Invesco India PSU Equity Fund | 31.93 | 500 |
| Franklin India Opportunities Fund | 30.85 | 500 |
| LIC MF Infra Fund | 30.7 | 1,000 |
| Motilal Oswal ELSS Tax Saver Fund | 27.54 | 500 |
| UTI Nifty Next 50 Index Fund | 22.98 | 500 |
Factors to Consider When Investing in Mutual Funds For SIP
The main factors to consider when investing in mutual funds for SIPs include financial goals, risk tolerance, fund performance, and expense ratios. Evaluating these aspects ensures that your investment aligns with your objectives and enhances the likelihood of achieving desired returns.
- Financial Goals: Clearly define your financial objectives, such as retirement, education, or wealth accumulation. Understanding your goals helps in selecting mutual funds that align with your time horizon and expected returns, ensuring a more targeted investment strategy.
- Risk Tolerance: Assess your comfort level with risk before choosing mutual funds. Different funds carry varying risk profiles; equity funds are typically riskier, while debt funds are more conservative. Aligning investments with your risk tolerance is crucial for long-term satisfaction.
- Fund Performance: Review the historical performance of mutual funds over multiple market cycles. While past performance doesn’t guarantee future results, consistent returns can indicate effective fund management and a reliable investment choice, making it an essential evaluation criterion.
- Expense Ratios: Consider the expense ratios associated with mutual funds, as high fees can erode overall returns. Lower expense ratios typically lead to better net gains for investors, so it’s wise to compare costs before making a final decision.
How to Invest In Best Mutual Funds For SIP?
To invest in the best mutual funds for SIP, start by defining your financial goals and risk tolerance. Assess your investment horizon, as different funds cater to varying objectives, such as wealth creation, income generation, or capital preservation.
Next, research and compare mutual funds based on their historical performance, expense ratios, and fund manager expertise. Utilize online platforms or financial advisors to identify top-performing funds that align with your investment strategy, ensuring they have a consistent track record over multiple market cycles.
Finally, set up your SIP through a reliable investment platform or directly with the mutual fund house. Decide on the investment amount and frequency, then monitor your investments regularly to make adjustments as needed, ensuring they continue to meet your financial goals.
Impact of Market Trends on Top Mutual Funds For SIP
Market trends have a profound impact on top mutual funds for SIPs, as they directly influence the performance of underlying assets. In bullish markets, equity funds may deliver higher returns, attracting more investors, while bearish trends can lead to caution and reassessment.
Economic indicators like inflation and interest rates also shape mutual fund performance. Rising rates may negatively affect bond funds while fluctuating market sentiments can prompt investors to adjust their SIP allocations. Staying informed about these trends is crucial for optimizing investment strategies.
How Mutual Funds For SIP Perform in Volatile Markets?
In volatile markets, mutual funds for SIPs can demonstrate resilience through systematic investment strategies. By investing fixed amounts regularly, investors benefit from rupee cost averaging, which helps mitigate the impact of market fluctuations and reduces the risk of poor timing.
Additionally, SIPs encourage a long-term investment perspective, allowing funds to recover from short-term downturns. While volatility can affect performance temporarily, disciplined investing through SIPs can lead to significant wealth accumulation over time, provided investors stay committed to their financial goals.
Advantages of Investing in Mutual Funds For SIP
The main advantages of investing in mutual funds for SIPs include disciplined saving, diversification, professional management, and rupee cost averaging. These features make SIPs an appealing choice for investors looking to build wealth systematically while minimizing risks associated with market fluctuations.
- Disciplined Saving: SIPs encourage a consistent saving habit by automatically deducting a fixed amount from your bank account. This regular investment approach helps you stay committed to your financial goals and makes wealth accumulation easier without the temptation to spend.
- Diversification: Investing in mutual funds provides built-in diversification by spreading investments across various securities and asset classes. This reduces the impact of poor performance from any single investment, enhancing overall portfolio stability and lowering overall risk.
- Professional Management: Mutual funds are managed by experienced professionals who analyze market trends and select assets. Their expertise allows investors to benefit from informed decision-making, ensuring better management of investments without requiring extensive market knowledge from individual investors.
- Rupee Cost Averaging: SIPs utilize the principle of rupee cost averaging, allowing investors to purchase more units when prices are low and fewer when prices are high. This strategy helps mitigate the effects of market volatility and can improve long-term investment returns.
Risks of Investing in Mutual Funds For SIP
The main risks of investing in mutual funds for SIPs include market risk, liquidity risk, credit risk, and management risk. While SIPs offer benefits like rupee cost averaging, understanding these risks is crucial for making informed investment decisions.
- Market Risk: Mutual funds are subject to market fluctuations, meaning their value can decrease during economic downturns. Investors may experience losses if the market performs poorly, impacting the overall returns of their SIP investments.
- Liquidity Risk: Some mutual funds may have restrictions on withdrawals or specific exit loads. This can limit your ability to access funds during emergencies, making it essential to choose funds that align with your liquidity needs.
- Credit Risk: This risk pertains to the possibility that bond issuers within a mutual fund may default on their payments. If a fund holds low-rated securities, it can affect performance and returns, posing a risk for conservative investors.
- Management Risk: The expertise and decisions of the fund manager significantly influence a mutual fund’s performance. Poor management choices or strategy misalignments can lead to suboptimal returns, highlighting the importance of researching fund managers before investing.
Contribution of Mutual Funds For SIP to Portfolio Diversification
Mutual funds for SIPs play a vital role in portfolio diversification by providing access to a wide range of asset classes, such as equities, bonds, and real estate. This variety helps spread risk, reducing the impact of poor performance in any single investment.
Additionally, mutual funds are managed by professionals who analyze market trends and asset allocation strategies. This expertise allows investors to benefit from diversification without the need to research individual securities, making it an efficient way to enhance portfolio stability and growth potential.
Who Should Invest In Mutual Funds For SIP?
Mutual funds for SIPs are ideal for individuals seeking long-term wealth creation without the need for extensive market knowledge. They suit both new and experienced investors who prefer a disciplined approach to investing, allowing for gradual capital accumulation over time.
Additionally, SIPs benefit those with limited capital, as they enable investments with smaller, regular amounts. This approach is especially suitable for young professionals and individuals aiming for specific financial goals, such as retirement or education funding, while minimizing market timing risks.
Impact of Fund Manager Expertise on Mutual Funds For SIP Performance
The expertise of a fund manager significantly influences the performance of mutual funds for SIPs. Skilled managers make informed investment decisions, actively managing portfolios to capitalize on market opportunities, which can lead to superior returns compared to less experienced counterparts.
Additionally, experienced fund managers utilize research and analysis to navigate volatile markets effectively. Their ability to adjust asset allocation based on market conditions can enhance risk management, ensuring that SIP investors benefit from consistent performance over time, even amid fluctuating market dynamics.
How Much Money Should I Invest In Mutual Funds For SIP?
The amount to invest in mutual funds for SIPs depends on your financial goals, risk tolerance, and monthly budget. A common guideline is to allocate 10-15% of your monthly income to investments, adjusting based on personal circumstances and objectives.
It’s essential to assess your financial commitments and ensure that SIP investments do not strain your budget. Starting with a manageable amount allows for flexibility and adjustments over time, helping you build a habit of disciplined investing while working towards long-term wealth accumulation.
FAQs – Top Mutual Funds For SIP In India
A Systematic Investment Plan (SIP) is an investment method allowing individuals to invest a fixed amount regularly in mutual funds. This approach promotes disciplined saving, averages out investment costs, and reduces the impact of market volatility over time.
Top Mutual Funds For SIP #1: Motilal Oswal Midcap Fund,
Top Mutual Funds For SIP #2: Bandhan Small Cap Fund,
Top Mutual Funds For SIP #3: ICICI Pru Nifty Next 50 Index Fund,
Top Mutual Funds For SIP #4: Franklin India Opportunities Fund,
Top Mutual Funds For SIP #5: UTI Nifty Next 50 Index Fund.
These funds are listed based on the Highest AUM
The best Mutual Funds For SIP based on expense ratio include LIC MF Infra Fund, Canara Rob Infrastructure Fund, HDFC Transportation and Logistics Fund, Bandhan Infrastructure Fund, and Invesco India PSU Equity Fund.
Investing in mutual funds through SIPs is generally considered safe, especially when diversified across various assets. However, inherent market risks exist. Choosing funds with strong track records and aligning investments with your risk tolerance can enhance safety and potential returns.
The best Mutual Funds for SIP based on 3-Y CAGR include Motilal Oswal Midcap Fund, Invesco India PSU Equity Fund, LIC MF Infra Fund, Bandhan Infrastructure Fund, and Canara Rob Infrastructure Fund.
To invest in the best Mutual Funds For SIP, research top-performing funds and compare their performance. Open an account with Alice Blue, complete the necessary KYC verification, and invest based on your financial goals and risk tolerance for optimal results.
We hope you’re clear on the topic, but there’s more to explore in stocks, commodities, mutual funds, and related areas. Here are important topics to learn about.
Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change over time.
