Systematic Investment Plan (SIP) has gained immense popularity in India as a method for individuals to invest in mutual funds. It is an investment strategy that allows individuals to invest a fixed sum of money regularly in mutual funds.
SIPs offer several advantages such as the ability to invest with small amounts, the convenience of automatic deductions, and the power of compounding over the long term.
With the rapidly growing interest in SIPs, many investors are left wondering: which is the best SIP scheme in India?
In this blog post, we will explore what makes a good SIP scheme, the factors to consider before investing in SIPs, and look at some of the top SIP schemes available in India in 2025.
By the end of this article, you’ll have a clear understanding of how to choose the best SIP scheme that aligns with your financial goals.
What is an SIP Scheme?
Before diving into the details of the best SIP schemes in India, it’s important to understand what an SIP is and how it works.
SIP stands for Systematic Investment Plan, a facility offered by mutual funds that allows investors to contribute a fixed amount regularly (monthly or quarterly) towards their investment.
This amount is invested in mutual fund units, which are bought at the prevailing market price (NAV) on the day of investment.
One of the main advantages of SIPs is dollar-cost averaging, which helps reduce the impact of market volatility by spreading the investment over a long period.
This feature allows you to buy more units when the market is down and fewer units when the market is high, thus mitigating risk and potentially maximizing returns over the long term.
Why Invest in SIP?
SIP is often considered one of the best ways to invest in mutual funds, especially for beginners, because it offers several benefits:
- Discipline and Consistency: SIP encourages a disciplined approach to investing as you commit to a fixed monthly investment, irrespective of market conditions.
- Power of Compounding: Since SIP investments are made regularly, your returns are reinvested, and the power of compounding accelerates over time, leading to higher potential wealth accumulation.
- Affordability: SIPs allow individuals to start investing with as little as ₹500, making it an affordable way for anyone to start building their investment portfolio.
- No Market Timing Required: As SIPs invest regularly, they do not require you to time the market, which can be difficult even for professional investors. The consistency of investments makes SIPs a safe, long-term strategy.
- Diversification: SIPs enable you to invest in a variety of mutual funds, which can diversify your risk across different asset classes (equity, debt, hybrid, etc.).
- Tax Benefits: Some SIPs, like those invested in equity-linked savings schemes (ELSS), offer tax benefits under Section 80C of the Income Tax Act, reducing the tax burden.
Factors to Consider When Choosing the Best SIP Scheme
Selecting the best SIP scheme requires evaluating several factors to ensure the scheme aligns with your financial goals. Here are some key aspects to consider:
- Investment Objective: Clearly define your investment goals. Are you looking for long-term wealth creation, short-term savings, tax benefits, or regular income? Different SIP schemes cater to different objectives (e.g., equity funds for wealth creation, debt funds for regular income).
- Risk Appetite: Your risk tolerance will determine the type of mutual fund scheme you should choose. If you are risk-averse, debt funds or hybrid funds may be suitable, while equity funds are better for investors with higher risk tolerance.
- Time Horizon: SIPs are ideal for long-term investments. The longer you stay invested, the more potential you have to benefit from compounding. Equity funds are better suited for long-term goals (5-10 years), while debt funds may be more appropriate for short-term goals (1-3 years).
- Past Performance: While past performance does not guarantee future returns, it is a good indicator of how a mutual fund has performed in varying market conditions. Look at 3-year, 5-year, and 10-year returns to evaluate the fund’s consistency and volatility.
- Expense Ratio: The expense ratio of a mutual fund is the cost of managing the fund, expressed as a percentage of the fund’s average assets under management (AUM). Choose funds with a lower expense ratio to maximize your returns over time.
- Fund Manager’s Track Record: The experience and credibility of the fund manager play a significant role in the performance of a mutual fund. Research the manager’s track record to assess their ability to manage the fund effectively.
- Fund Rating: Check the fund’s rating by credit rating agencies like CRISIL or Morningstar. A higher rating indicates a better-performing fund with lower risk.
Top 10 Best SIP Schemes in India for 2025
Based on factors like performance, risk, and market reputation, here are the 10 best SIP schemes in India that you can consider for investment in 2025:
1. Mirae Asset Large Cap Fund
Category: Large-Cap Equity Fund
Risk: Moderate
Ideal For: Investors seeking stable returns with moderate risk
Mirae Asset Large Cap Fund is one of the most popular equity mutual funds in India. The fund focuses on investing in large-cap stocks, which are well-established companies with a large market capitalization. It has shown consistent growth and is suitable for long-term wealth creation.
- 5-Year Return: 12.5%
- Expense Ratio: 0.69%
- Minimum SIP: ₹500
2. SBI Bluechip Fund
Category: Large-Cap Equity Fund
Risk: Moderate
Ideal For: Risk-averse investors seeking exposure to blue-chip companies
SBI Bluechip Fund is a large-cap mutual fund that invests in some of the top-performing companies in India. The fund has delivered strong returns over the years and is considered one of the best SIP schemes for conservative investors looking for stability and growth.
- 5-Year Return: 11.5%
- Expense Ratio: 0.52%
- Minimum SIP: ₹500
3. Axis Bluechip Fund
Category: Large-Cap Equity Fund
Risk: Moderate
Ideal For: Investors seeking a diversified portfolio with low volatility
Axis Bluechip Fund focuses on large-cap stocks with a focus on quality. The fund has consistently outperformed its benchmark and has a relatively low expense ratio, making it an attractive option for investors seeking long-term growth with lower risk.
- 5-Year Return: 13.2%
- Expense Ratio: 0.49%
- Minimum SIP: ₹500
4. HDFC Mid-Cap Opportunities Fund
Category: Mid-Cap Equity Fund
Risk: High
Ideal For: Investors with higher risk tolerance and long-term investment horizon
HDFC Mid-Cap Opportunities Fund invests in mid-cap stocks, which have higher growth potential but come with greater risk. This fund is ideal for investors looking to generate higher returns over the long term and are willing to take on more volatility.
- 5-Year Return: 15.8%
- Expense Ratio: 1.04%
- Minimum SIP: ₹500
5. Kotak Standard Multicap Fund
Category: Multicap Equity Fund
Risk: Moderate to High
Ideal For: Investors seeking exposure to both large and small companies
Kotak Standard Multicap Fund invests across different market caps, making it a diversified option. It is ideal for investors looking to balance risk by spreading their investments across large, mid, and small-cap stocks.
- 5-Year Return: 14.2%
- Expense Ratio: 0.85%
- Minimum SIP: ₹500
6. Tata Equity P/E Fund
Category: Value Fund
Risk: Moderate
Ideal For: Investors looking for undervalued stocks
Tata Equity P/E Fund focuses on undervalued stocks with low price-to-earnings ratios. The fund aims to generate long-term capital appreciation by investing in companies that are undervalued relative to their earnings potential.
- 5-Year Return: 10.9%
- Expense Ratio: 1.03%
- Minimum SIP: ₹500
7. ICICI Prudential Technology Fund
Category: Sectoral Fund (Technology)
Risk: High
Ideal For: Investors with a high-risk appetite and interest in technology stocks
ICICI Prudential Technology Fund focuses on investing in technology companies, which have seen strong growth in recent years. This fund is ideal for investors who believe in the long-term potential of the technology sector.
- 5-Year Return: 18.4%
- Expense Ratio: 1.19%
- Minimum SIP: ₹500
8. Aditya Birla Sun Life Tax Relief 96
Category: ELSS (Equity Linked Savings Scheme)
Risk: High
Ideal For: Tax-conscious investors seeking long-term growth
Aditya Birla Sun Life Tax Relief 96 is an ELSS fund that offers tax benefits under Section 80C of the Income Tax Act. This fund invests primarily in equities and is ideal for individuals looking to reduce their taxable income while gaining exposure to the equity market.
- 5-Year Return: 13.0%
- Expense Ratio: 1.06%
- Minimum SIP: ₹500
9. Mirae Asset Emerging Bluechip Fund
Category: Hybrid Fund (Large and Mid-Cap)
Risk: Moderate to High
Ideal For: Investors looking for a blend of stability and growth
Mirae Asset Emerging Bluechip Fund invests in a mix of large-cap and mid-cap stocks. This fund is suitable for investors who want to diversify their portfolio and enjoy both growth potential and stability.
- 5-Year Return: 14.8%
- Expense Ratio: 0.87%
- Minimum SIP: ₹500
10. Franklin India Low Duration Fund
Category: Debt Fund
Risk: Low
Ideal For: Conservative investors looking for short-term investment options
Franklin India Low Duration Fund invests in short-term debt instruments and is ideal for investors looking to park their money in low-risk debt securities while earning modest returns.
- 5-Year Return: 7.5%
- Expense Ratio: 0.34%
- Minimum SIP: ₹500
Conclusion
Choosing the best SIP scheme depends largely on your investment goals, risk tolerance, and time horizon. While equity funds are ideal for long-term wealth creation and offer higher returns, debt funds are suitable for conservative investors seeking steady returns with minimal risk. Mid-cap and sectoral funds offer growth opportunities but come with higher volatility.
In 2025, some of the best SIP schemes include Mirae Asset Large Cap Fund, SBI Bluechip Fund, Axis Bluechip Fund, and HDFC Mid-Cap Opportunities Fund, among others.
It is crucial to assess your risk profile, investment horizon, and financial goals before selecting a fund. Consulting a financial advisor can also help you make the most suitable choice for your SIP investments.
By making regular investments through SIPs and staying invested for the long term, you can leverage the power of compounding and grow your wealth steadily. Choose wisely, stay disciplined, and watch your money grow!