Best SIP Mutual Funds 2026

Mutual funds are a popular investment option for both new and experienced investors. Mutual funds offer investors a high level of flexibility and several options for allocating capital to equity, debt, or hybrid funds. Additionally, investing through a Systematic Investment Plan (SIP) offers multiple benefits to investors.

However, the sheer number of mutual fund schemes in the market has made choosing the best SIP option tricky. To make this process easier, we look at some of the best mutual fund SIPs in India based on their 3-year annualised returns and share the insights. Read to learn more.

Best Mutual Funds for SIP 2026

Based on the 3-year annualised returns, here are some of the best SIP options. We have also included their respective 5-year annualised returns for better understanding.

The above data is last updated on January 07, 2026

Overview of Best Mutual Funds for SIP 2026

Bandhan Small Cap Fund Direct- Growth 

• The fund was launched on 26 February 2020
• The minimum SIP investment is ₹100, or you can make a lump sum investment of ₹1000
• The total AUM is ₹18,173.90 crore
• The NAV stands at ₹51.7620 as of 06 January, 2026
• The fund has delivered 0.37% in absolute returns over the last year
• The expense ratio of the fund is 0.42%
• The age of the fund is 5+ years, and there is no lock-in period, with it being an open-ended scheme
• Exit Load- 1% if redeemed within one year

Invesco India Mid Cap Fund Direct- Growth 

• The mutual fund scheme was launched on 01 January 2013
• The minimum SIP amount is ₹500 or a lump sum investment of ₹1000
• The AUM (assets under management) stands at ₹10,006.30 crores
• The NAV presently stands at ₹222.9100 as of 06 January, 2026
• The absolute returns of the fund are 7.59% in the past year
• The expense ratio of the fund stands at 0.54%
• There is no lock-in period, and the benchmark is the BSE Midcap 150 TRI
• The exit load is 1% if redeemed within one year, for units in excess of 10% of the investment 

Edelweiss Mid Cap Fund Direct- Growth

• The fund launched on 01 January 2013
• The minimum SIP investment is ₹100 
• The total assets under management (AUM) stand at ₹13,195.70 crore
• The NAV presently stands at ₹123.4680 as of 06 January, 2026-01-07 
• Absolute returns of 4.60% have been delivered by the fund in the past one year
• The fund’s expense ratio stands at 0.40%
• There is no lock-in period, while the benchmark is the Nifty Midcap 150 TRI
• The exit load is 1% if redeemed within 90 days 

Motilal Oswal Midcap Fund Direct- Growth 

• This fund was launched on 24 February 2014
• The minimum SIP amount is ₹500
• The total assets under management (AUM) of the fund stands at ₹38,002.70 crore 
• The NAV presently stands at ₹113.9835 as of 06 January, 2026
• Absolute returns of -11.35% have been delivered in the last one year by the fund 
• The fund’s expense ratio stands at 0.72% while there is no lock-in period
• The benchmark is the Nifty Midcap 150 TRI
• The exit load of the fund is 1% if redeemed within 365 days

HDFC Mid Cap Fund Direct- Growth 

• The equity mutual fund scheme was launched on 01 January 2013
• The minimum SIP amount is ₹100
• The assets under management (AUM) of the fund stand at ₹92,168.90 crore 
• The present NAV stands at ₹226.6310 as of 06 January, 2026
• Absolute returns of 7.45% have been delivered by the fund in the past year
• The fund’s expense ratio stands at 0.71%
• There is no lock-in period while the benchmark is the Nifty Midcap 150 TRI
• There is an exit load of 1% if redeemed within a year

Nippon India Growth Mid Cap Fund Direct- Growth 

• The equity mutual fund scheme was launched on 01 January 2013
• The minimum investment amount is ₹100
• The fund also manages total assets of ₹42,041.60 crore
• The present NAV stands at ₹4,714.2363 as of 06 January, 2026
• Absolute returns of 4.50% have been delivered by the fund over the past one year
• The expense ratio stands at 0.73% for the fund 
• There is no expense ratio, while the benchmark is the Nifty Midcap 150 TRI
• The exit load stands at 1% if redeemed within a month 

Motilal Oswal Large and Midcap Fund Direct- Growth 

• The equity mutual fund scheme was launched on 17 October 2019
• The minimum investment amount is ₹500
• The fund has a total AUM (assets under management) of ₹15,146.50 crore
• The NAV presently stands at ₹36.5882 as of 06 January, 2026
• The fund has also delivered absolute returns of -3.26% in the past year
• The expense ratio of the fund is 0.69% while there is no lock-in period
• The benchmark is Nifty Large Midcap 250 TRI, while the exit load is 1% if redeemed within 365 days 

Kotak Multicap Fund Direct- Growth 

• The equity mutual fund scheme was launched on 29 September 2021
• The minimum investment amount is ₹100
• The fund manages total assets (AUM) of ₹22,281.30 crore
• The present NAV stands at ₹21.6460 as of 06 January, 2026
• Absolute returns of 7.07% have been delivered by the fund in the past one year
• The expense ratio of the fund is 0.45% while there is no lock-in period 
• The benchmark for the fund is the NIFTY500 Multicap 50:25:25 Total Return Index (TRI)
• 1% will be charged as exit load for redemption within a year, for units in excess of 10% of the investment 

Bandhan Large & Mid Cap Fund Direct- Growth 

• The equity mutual fund was launched on 01 January 2013
• The minimum investment amount is ₹100 or a lump sum investment of ₹1000
• The fund manages total assets (AUM) of ₹12,783.70 crore
• The present NAV stands at ₹165.0050 as of 06 January, 2026
• The absolute returns of the fund stand at 8.16% over the past year
• The fund’s expense ratio is 0.56% while there is no lock-in period 
• The benchmark for the fund is the Nifty LargeMidcap 250 TRI
• Exit load stands at 1% for redemption within one year, for units exceeding 10% of the investment 

Things to Keep in Mind While Choosing an SIP

One can begin investing in the best SIP option in 2026 with relative ease. However, to make the most out of the investments, the investor should keep certain things in mind.

Financial Goals

While making any investment decision, the investor needs to know his/her financial goals. Having a clear picture of the investment tenure and investment approach can make the process of picking the best scheme straightforward and hassle-free.

Risk Profile

Another key factor in choosing the best mutual fund SIP option is assessing your risk profile. Equity and hybrid schemes carry a higher risk than a debt mutual fund scheme. When selecting a mutual fund, ensure the scheme fits your risk profile.

Staying Consistent

Investing through the SIP route can be highly beneficial, as the investor can navigate market volatility, achieve a better cost-to-price average, and benefit from compounding. However, to get the most out of these schemes, the investor should make SIP contributions consistently and stay invested for the long term.

Periodic Review

Although mutual fund investments reduce the need to regularly monitor your investments, it is advisable to do periodic reviews of your portfolio. By conducting periodic reviews, one can see which funds are performing better and which funds are underperforming.

Costs

When selecting a mutual fund, an investor might use returns as a key benchmark for comparing funds. However, it is also important to understand the costs associated with the funds, such as entry loads, exit loads, and management fees.

Conclusion

Equity, hybrid, and debt mutual funds are viable options for investors to begin investing through the SIP route. Investing in different types of schemes can also help in building a diverse portfolio. Comparing the 3-year annualised returns can be a helpful way to pick the best-performing mutual funds to add to one’s portfolio.