Overview of Best Mutual Funds for SIP 2025

IDBI Small Cap Fund Direct Growth

• The 3 years annualised returns from IDBI Small Cap Fund Growth is 39.12%
• The fund’s assets under management (AUM) are ₹370.18 crore.
• The fund’s portfolio consists of 97.5% equity investments and 2.5% cash.
•  The fund carries very high risk.
• It has invested in companies like Elgi Equipments, Kei Industries, and Tube Investments of India.
• The fund was started on June 21, 2017.
• Minimum Investment Value - not supported
• Expense Ratio - 1.39%

SBI PSU Direct Plan Growth

• 3 years annualised returns of 37.89%.
•  The fund has an AUM of ₹4,703.46 crore.
• The fund’s portfolio has invested 93.9% in equity and 6.1% is held as cash.
•  The fund carries very high risk.
• It has invested in various PSU stocks such as the State Bank of India, Power Grid Corporation of India, and GAIL (India).
• The fund was started on January 1, 2013
• Minimum SIP amount is Rs.500
• Expense Ratio - 0.74%

Motilal Oswal Midcap Fund Direct Growth

• 3 years annualised returns of 36.89%
• The fund has an AUM of ₹18,604.02 crore.
• The fund has allocated 99.4% to equity, while 0.6% is held as cash.
• It carries very high risk.
• The fund’s portfolio includes investments in companies such as Polycab India, Coforge, and Kalyan Jewellers India.
• The fund launched on February 24, 2014
• Minimum SIP amount is Rs.500
• Expense Ratio - 0.54%

Aditya Birla Sun Life Medium Term Plan Direct Growth

• 3 years annualised returns of 14.53%
• The fund has an AUM of ₹1,981 crore.
•  87.5% of the funds have been invested in debt instruments, while 7.8% is held as cash.
• The fund carries moderately high risk.
•  Holdings include government securities and debentures from various corporations such as Adani Airport Holdings and CreditAccess Grameen.
• The fund launched on Launched on January 1, 2013
• Minimum SIP amount is Rs.1,000
• Expense Ratio - 0.85%

Bank of India Short-Term Income Fund Direct Growth

• 3 years annualised returns of 14.06%
• The fund has an AUM of ₹70.71 crore.
• The fund has allocated 82.6% of the money in debt instruments, while 17.4% is held as cash.
•  It carries low to moderate risk.
•  Holdings include Power Finance Corporation, Small Industries Development Bank of India, and Canara Bank.
• Fund was launched on January 1, 2013
• Minimum SIP amount is Rs.1,000
• Expense Ratio - 0.50%

IDBI Credit Risk Fund Direct Growth

• 3 years annualised returns of 10.08%
•   AUM of ₹23.15 crore.
•  It has allocated 70.9% of the funds to debt instruments, while 29.1% is held as cash.
• The fund carries low to moderate risk.
• Holdings include treasury bills, government securities (G-Secs), and corporate debt.
• Fund was launched on March 3, 2014
• Minimum investment value - not supported
• Expense Ratio - 0.61%

JM Aggressive Hybrid Fund Direct Growth

• 3 years annualised returns of 24.88%
• AUM of ₹642.94 crore.
•  75% of the funds allocated to equity, 19.1% to debt, and 5.9% held as cash.
• The fund carries very high risk.
• The portfolio includes equity investments in HDFC Bank, Infosys, Bharti Airtel, and government debt instruments.
• Fund was launched on January 1, 2013
• Minimum SIP amount is Rs.100
• Expense Ratio - 0.66%

HDFC Balanced Advantage Fund Direct Plan Growth

• 3 years annualised returns of 23.52%
• AUM of ₹96,535 crore.
•  53.3% of the funds are allocated to equity, 29.9% to debt, and 15.3% held as cash.
• The fund carries very high risk.
•  Its holdings include government securities and equity investments in companies including HDFC Bank, ICICI Bank, and State Bank of India.
• Fund was launched on January 1, 2013
• Minimum SIP amount is Rs.100
• Expense Ratio - 0.75%

Quant Multi Asset Fund Direct Growth

• 3 years annualised returns of 21.98%.
• AUM of ₹2,983.94 crore.
• 52.7% of the funds are allocated to equity, 26.1% are held as cash, and 8.4% are allocated to debt.
• The fund carries high risk.
• Its holdings include treasury bills (T-bills) and equity investments in companies like Reliance Industries, ITC, and Jio Financial Services.
• Fund was launched on January 1, 2013
• Minimum SIP amount is Rs.1,000
• Expense Ratio - 0.62%

Things to Keep in Mind While Choosing an SIP

One can begin investing in the best SIP option in 2025 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 aspect of picking 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. While selecting a mutual fund, it is necessary to ensure that the scheme fits your risk profile.

Staying Consistent

Investing through the SIP route can be significantly beneficial as the investor can navigate market volatilities, get a better cost-price average, and benefit from the power of 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

While picking a mutual fund an investor might use the returns as a key benchmark to compare 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 years annualised returns can be a helpful metric for picking the best-performing mutual funds to add to one’s portfolio.