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Best 10 Mutual Fund SIP Plan for July 2025

Best 10 Mutual Fund SIP Plan for July 2025

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    Investing in mutual funds through Systematic Investment Plans (SIPs) has emerged as one of the most widely used and successful ways for Indians to create wealth and achieve their financial objectives. If you're searching for the best SIP to invest in 2025, you've come to the right place. Whether you're a novice investor starting on your investment journey or an experienced investor looking to diversify your investment portfolio, selecting the best mutual fund investment plan is crucial for long-term financial success.

    What is a Mutual Fund?

    A mutual fund is an investment vehicle that pools money from many investors to invest in a diversified portfolio of stocks, bonds, or other securities. That pooled money is professional fund managers who have the expertise to select the right investments based on the fund's objectives.

    Think of it like this: Instead of buying individual stocks (which requires large amounts of money and expertise), you join hands with thousands of other investors to buy a variety of investments together. This way, even with a small amount like ₹500, you can own a piece of many different companies and access the best mutual funds in India.

    Key Benefits of Mutual Funds:

    • Professional Management : Your investments are managed by professional fund managers.

    • Diversification : Your money is invested in several instruments, which reduces your level of risk.

    • Affordability : Start investing today for as low as ₹500 a month.

    • Liquidity : You can get back your money (after exit load) as and when you want.

    • Transparency : With shares and lists provided regularly, you will know how your fund is performing and what it is invested in.

    What is SIP and How Does it Work?

    SIP stands for Systematic Investment Plan, which is a way to invest an amount of your choice regularly (monthly in most cases) in mutual funds. Instead of taking a lump-sum investment to invest, small amounts are put in every set interval (e.g., once a month). 

    How SIP Works:

    1. You select a mutual fund and decide how much you want to put in monthly. 

    2. The amount is automatically deducted from your bank account on a monthly basis. 

    3. With each deduction, you receive units of the mutual fund based on that day's per unit Net Asset Value (NAV). 

    4. Over time, you'll accumulate a greater number of these units and take advantage of market movement, either up or down.

     

    Benefits of SIP Investment:

    • Rupee Cost Averaging: Buying more units at a lower price and less when the price is higher.

    • Power of Compounding: Your returns give you more returns over time.

    • Discipline: Monthly automatic investing creates a good habit of investing.

    • Flexibility: You may increase, decrease, or stop SIP at any time.

    • Decreased Market Timing Risk: Investing regularly means the impact of timing the market is reduced.

    Top 10 Best SIP Plans for July 2025

    When looking for which mutual fund is best for SIP, it's important to consider historical performance, fund management quality, and consistency. Here are the best mutual funds to invest in 2025 based on a comprehensive analysis:

    Rank Fund Name Category 3Y CAGR 5Y CAGR AUM (₹ Cr) Min SIP Risk Level Best For
    1 Bandhan Small Cap Fund Small Cap 37.54% 38.15% 11,743.70 ₹500 Very High Long-term aggressive investors
    2 Motilal Oswal Midcap Fund Mid Cap 36.81% 37.79% 30,401.09 ₹500 Very High Balanced growth seekers
    3 ITI Small Cap Fund Small Cap 35.43% 30.50% 2,504.41 ₹500 Very High Aggressive growth investors
    4 SBI PSU Fund Equity (PSU) 33.27% - 4,703.46 ₹500 Very High PSU sector investors
    5 ICICI Prudential Infrastructure Fund Equity (Infra) 31.68% - 6,423 ₹100 Very High Infrastructure theme investors
    6 JM Aggressive Hybrid Fund Hybrid 22.09% - 642.94 ₹100 Very High Equity + Debt mix seekers
    7 HDFC Balanced Advantage Fund Hybrid 21.34% - 96,535 ₹100 High Conservative balanced approach
    8 Aditya Birla Sun Life Medium Term Plan Debt 14.67% - 1,920.74 ₹1,000 Moderate Conservative steady returns
    9 ICICI Prudential Technology Fund Equity (Tech) - 13.16%* - ₹500 Very High Technology sector enthusiasts
    10 ICICI Prudential Bluechip Fund Large Cap - - - ₹500 Moderate-High First-time equity investors

    Note: *Since inception, CAGR. Data as of June 2025.

    Quick Fund Analysis:

    Top Performers (35%+ CAGR):

    • Bandhan Small Cap Fund: Best overall performer with 37.54% 3-year returns

    • Motilal Oswal Midcap Fund: Consistent performer and one of the best mid cap index options with large AUM

    • ITI Small Cap Fund: Strong small-cap option with a good track record

    Balanced Options (15-25% CAGR):

    • HDFC Balanced Advantage Fund: Largest AUM, dynamic asset allocation

    • JM Aggressive Hybrid Fund: Good hybrid option with equity bias

    Conservative Choices (10-15% CAGR):

    • Aditya Birla Sun Life Medium Term Plan: Debt fund for steady returns

    • ICICI Prudential Technology Fund: Long-term technology play

    Category-wise Best Picks:

    Investment Goal Recommended Fund Why Choose
    Highest Returns Bandhan Small Cap Fund Top return mutual fund with 37.54% 3-year CAGR
    Balanced Growth Motilal Oswal Midcap Fund Best mid cap index stability with high returns
    Low Risk Aditya Birla Sun Life Medium Term Plan Debt fund with 14.67% mutual fund investment returns
    Technology Sector ICICI Prudential Technology Fund Leading technology mutual funds since 1999
    ₹100 Monthly HDFC Balanced Advantage Fund Best index mutual funds with the lowest minimum SIP
    ₹1000 Monthly SBI PSU Fund Strong PSU sector performance for best sip plans for 1000 per month
    First-time Investor ICICI Prudential Bluechip Fund Large-cap stability for beginners

    Best SIP Plans for Different Investment Goals

    Best SIP for 5-Year Investment

    If you're looking for the best SIP for 5 years, consider these top-performing options:

    1. Motilal Oswal Midcap Fund - 37.79% 5-year CAGR

    2. Bandhan Small Cap Fund - 38.15% 5-year CAGR

    3. HDFC Balanced Advantage Fund - Balanced approach with lower volatility

    Best SIP Plans for ₹1000 Per Month

    For investors seeking best sip plans for 1000 per month, these options offer excellent growth potential:

    1. SBI PSU Fund - good growth potential in the PSU space

    2. ICICI Prudential Infrastructure Fund - Infrastructure theme

    3. HDFC Balanced Advantage Fund - balanced approach

    4. Aditya Birla Sun Life Medium Term Plan - a conservative idea

    Best Technology Mutual Funds

    For technology mutual funds exposure in the growing tech sector:

    1. ICICI Prudential Technology Fund - Pioneer in tech investing

    2. Motilal Oswal Digital India Fund - Focus on digital transformation

    3. Franklin India Technology Fund - Diversified tech portfolio

    Best Index Mutual Funds

    For passive investing through best index mutual funds:

    1. ICICI Prudential Nifty Next 50 Index Fund - Mid and large-cap mix

    2. SBI Nifty Index Fund - Track Nifty 50 performance

    3. UTI Nifty Index Fund - Low-cost Nifty tracking

    How to Choose the Right SIP Plan

    Selecting which mutual fund is best for SIP depends on several crucial factors:

    1. Define Your Investment Goals

    • Short-term (1-3 years): Debt funds or conservative hybrid funds.
    • Medium-term (3-5 years): Best index mutual funds or large-cap funds for balanced growth.
    • Long-term (5+ years): Mid-cap, small-cap, or equity funds for maximum mutual fund investment returns.

    2. Assess Your Risk Tolerance

    • Conservative: Debt funds, balanced advantage funds.
    • Moderate: Large-cap, balanced hybrid funds.
    • Aggressive: Mid-cap, small-cap, sectoral funds.

    3. Consider Your Investment Amount

    • ₹500-1000: Start with best index mutual funds or large-cap funds for stability.
    • ₹1000-5000: Diversify across 2-3 different fund types from best mutual funds in India.
    • ₹5000+: Build a well-diversified portfolio across categories for optimal mutual fund investment returns.

    4. Check Fund Performance

    • Look at 3-year and 5-year returns, not just recent performance

    • Compare with the benchmark and peer funds

    • Check the consistency of returns

    5. Evaluate Fund Management

    • Experience of a fund manager

    • AUM size (not too small, not too large)

    • Expense ratio (lower is better for similar funds)

    Common Mistakes to Avoid in SIP Investing

    1. Stopping SIP During Market Downturns

    Market volatility is normal. SIPs help investors mitigate the impact of market volatility through cost averaging. Continue your SIP to benefit from lower prices.

    2. Choosing Funds Based Only on Recent Performance

    Past performance doesn't guarantee future results. Focus on consistency and long-term track record.

    3. Starting Too Many SIPs

    Begin with 1-2 funds and gradually add more as your income increases. Too many funds can become difficult to track.

    4. Not Reviewing Your Portfolio

    Review your SIP portfolio every 6-12 months. Remove consistent underperformers and rebalance if needed.

    5. Ignoring Expense Ratios

    High expense ratios can significantly impact your returns over time. Choose direct plans over regular plans to save on costs.

    Tax Implications of Mutual Fund SIP

    Equity Funds:

    • Short-term (less than 1 year): 15% tax on gains.
    • Long-term (more than 1 year): 10% tax on gains above ₹1 lakh per year.

    Debt Funds:

    • Short-term (less than 3 years): Added to income and taxed as per your income slab.
    • Long-term (more than 3 years): 20% tax with indexation benefit.

    ELSS Funds:

    • Tax deduction up to ₹1.5 lakh under Section 80C

    • 3-year lock-in period

    • Long-term capital gains tax is applicable after 3 years

    Getting Started with SIP Investment

    Step 1: Complete Your KYC

    • PAN card, Aadhaar card, and bank account details required

    • One-time process for all mutual fund investments

    Step 2: Choose Your Platform

    • AMC websites (fund house direct)

    • Online platforms (Groww, Zerodha, Paytm Money)

    • Traditional distributors or banks

    Step 3: Select Your Funds

    • Start with 1-2 funds based on your risk profile

    • Choose direct plans to save on costs

    Step 4: Set Up Auto-Debit

    • Link your bank account for automatic monthly deductions

    • Ensure sufficient balance on SIP dates

    Step 5: Monitor and Review

    • Track performance monthly

    • Review and rebalance annually

    • Stay committed to long-term goals

    Future Outlook for 2025

    The Indian mutual fund industry continues to grow, with SIP being the best SIP to invest for long-term wealth creation. When selecting from best mutual funds to invest in 2025, consider these key trends:

    • Technology Sector Growth:
      The Indian software product space is forecasted to touch USD 100 billion by 2025.

    • Capital Expenditure:
      The government’s focus on infrastructure will be a boon to related funds.

    • Digital Transformation:
      Based on 2022 performance, funds specifically targeting digital and fintech may outperform.

    • ESG Investing:
      Increased focus on Environment, Social, and Governance (ESG) funds.

    Conclusion

    Choosing the best mutual fund investment requires careful consideration of your financial goals, risk tolerance, and investment horizon. The best mutual funds to invest in 2025 listed above have shown strong historical performance, but remember that mutual fund investment returns vary based on fund type - equity funds potentially offering 12-18% annually, while debt-based SIPs return 6-9%.

    When searching for the best SIP to invest in, start your journey with a small amount, stay consistent, and gradually increase your investments as your income grows. The power of compounding and rupee cost averaging will work in your favor over the long term.

    For those wondering which mutual fund is best for SIP, remember that successful investing is not about timing the market but about time in the market. Whether you choose technology mutual funds, best index mutual funds, or diversified equity options, the key is to start today, stay disciplined, and let your money work for you to achieve your financial dreams.


    Disclaimer : Mutual fund investments are subject to market risks. Please read the offer document carefully before investing. Past performance doesn't guarantee future results. Consult with a financial advisor before making investment decisions.

    FAQs

    1. Which is the best SIP plan to invest in 2025?

    Based on recent performance, Bandhan Small Cap Fund leads with 37.54% 3-year CAGR, followed by Motilal Oswal Midcap Fund at 36.81%. For beginners, HDFC Balanced Advantage Fund offers a safer balanced approach with steady returns.

    2. What is the minimum amount required to start SIP investment?

    You can start SIP investment with as low as ₹100 per month in funds like HDFC Balanced Advantage Fund and ICICI Prudential Infrastructure Fund. Most equity funds require a minimum of ₹500 monthly, making it accessible for all income levels.

    3. How do SIP investments help in wealth creation?

    SIP investments leverage rupee cost averaging and compounding power. By investing regularly, you buy more units when prices are low and fewer when high, reducing average cost. Over 5+ years, this disciplined approach can generate 12-18% annual returns in equity funds.

    4. What are the tax implications of SIP investments?

    Equity SIPs held for over 1 year qualify for long-term capital gains tax at 10% on profits above ₹1 lakh annually. Short-term gains (under 1 year) are taxed at 15%. ELSS SIPs offer tax deduction up to ₹1.5 lakh under Section 80C with 3-year lock-in.

    5. Should I continue SIP during market downturns?

    Yes, continuing SIP during market downturns is crucial. Market volatility allows you to accumulate more units at lower prices, benefiting from rupee cost averaging. Historical data shows that consistent SIP investors outperform those who stop during market corrections.

    6. How many SIP funds should I invest in simultaneously?

    Beginners should start with 1-2 SIP funds to avoid complexity. As income grows, you can diversify across 3-4 different categories (large-cap, mid-cap, debt) for optimal risk-return balance. Too many funds become difficult to monitor and may lead to over-diversification.

    7. What's the ideal investment duration for SIP to maximize returns?

    SIP investments work best over 5+ years to harness compounding benefits. While short-term (1-3 years) may suit debt funds, equity SIPs require longer horizons. Top-performing funds like Bandhan Small Cap show 38.15% 5-year CAGR, demonstrating long-term wealth creation potential.

    Bhargav Dhameliya

    Bhargav Dhameliya - Content creator & copywriter at @Dhanarthi

    I help businesses to transform ideas into powerful words & convert readers into customers.