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SIP Investment: For First Time Investors

Updated on August 27, 2025 , 6458 views

SIP or a Systematic Investment plan is an investment mode that allows you to invest your money in a fixed duration of time. Generally, a SIP investment starts the process of wealth creation over a regular interval of time that can be monthly, quarterly and annually. The investment through a SIP or Systematic Investment Plan is invested in stock markets, thus generates good returns when invested for a long duration. A SIP investment is considered to be one of the Best ways to invest money as the money invested is distributed over a certain duration. Unlike lump sum investment, SIP investment does not take place all at once, therefore, it is convenient for investors. With a simple SIP investment, one can start Investing small sums of money from a young age. We have a list of some of the Top SIP investments for you. Have a look!

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Best Mutual Funds for SIP 2025

To make a SIP investment it's important to understand the Best SIP Plans based on your risk appetite. There is a huge category of Equity Mutual Funds in which you can invest through a SIP. These include Large Cap, mid cap funds, Small cap funds, Multi Cap Funds. One can also invest in Balanced Funds via a SIP. But, for the first time investors, the best investment options for SIP might be-

1. Large-Cap Mutual Funds

Investing in Large cap funds via a SIP or Systematic Investment Plan is beneficial. Usually, Large-cap Funds invest in firms that have a possibility of showing steady growth and earning high profits year after year. These funds are generally stable and offer stable returns when invested over a long period of time.

FundNAVNet Assets (Cr)Min SIP Investment3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2024 (%)
Nippon India Large Cap Fund Growth ₹89.8671
↓ -0.18
₹44,165 100 0.7150.619.722.618.2
ICICI Prudential Bluechip Fund Growth ₹108.84
↓ -0.36
₹71,788 100 -0.113-0.618.120.516.9
SBI Bluechip Fund Growth ₹90.7285
↓ -0.17
₹53,030 500 -0.712.1-0.813.917.712.5
Aditya Birla Sun Life Frontline Equity Fund Growth ₹516.88
↓ -1.41
₹30,235 100 -0.612.9-2.115.118.215.6
Essel Large Cap Equity Fund Growth ₹30.7626
↑ 0.20
₹96 500 -8-14.5-2.6107
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 29 Aug 25

Research Highlights & Commentary of 5 Funds showcased

CommentaryNippon India Large Cap FundICICI Prudential Bluechip FundSBI Bluechip FundAditya Birla Sun Life Frontline Equity FundEssel Large Cap Equity Fund
Point 1Lower mid AUM (₹44,165 Cr).Highest AUM (₹71,788 Cr).Upper mid AUM (₹53,030 Cr).Bottom quartile AUM (₹30,235 Cr).Bottom quartile AUM (₹96 Cr).
Point 2Established history (18+ yrs).Established history (17+ yrs).Established history (19+ yrs).Oldest track record among peers (23 yrs).Established history (13+ yrs).
Point 3Top rated.Rating: 4★ (upper mid).Rating: 4★ (lower mid).Rating: 4★ (bottom quartile).Rating: 4★ (bottom quartile).
Point 4Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: Moderately High.
Point 55Y return: 22.63% (top quartile).5Y return: 20.51% (upper mid).5Y return: 17.68% (bottom quartile).5Y return: 18.22% (lower mid).5Y return: 7.00% (bottom quartile).
Point 63Y return: 19.70% (top quartile).3Y return: 18.10% (upper mid).3Y return: 13.93% (bottom quartile).3Y return: 15.12% (lower mid).3Y return: 10.00% (bottom quartile).
Point 71Y return: 0.57% (top quartile).1Y return: -0.58% (upper mid).1Y return: -0.80% (lower mid).1Y return: -2.12% (bottom quartile).1Y return: -2.56% (bottom quartile).
Point 8Alpha: 0.61 (bottom quartile).Alpha: 1.58 (top quartile).Alpha: 1.05 (lower mid).Alpha: 1.34 (upper mid).Alpha: -3.02 (bottom quartile).
Point 9Sharpe: -0.37 (bottom quartile).Sharpe: -0.35 (lower mid).Sharpe: -0.34 (upper mid).Sharpe: -0.38 (bottom quartile).Sharpe: 0.10 (top quartile).
Point 10Information ratio: 1.84 (top quartile).Information ratio: 1.50 (upper mid).Information ratio: -0.12 (bottom quartile).Information ratio: 0.80 (lower mid).Information ratio: -0.82 (bottom quartile).

Nippon India Large Cap Fund

  • Lower mid AUM (₹44,165 Cr).
  • Established history (18+ yrs).
  • Top rated.
  • Risk profile: Moderately High.
  • 5Y return: 22.63% (top quartile).
  • 3Y return: 19.70% (top quartile).
  • 1Y return: 0.57% (top quartile).
  • Alpha: 0.61 (bottom quartile).
  • Sharpe: -0.37 (bottom quartile).
  • Information ratio: 1.84 (top quartile).

ICICI Prudential Bluechip Fund

  • Highest AUM (₹71,788 Cr).
  • Established history (17+ yrs).
  • Rating: 4★ (upper mid).
  • Risk profile: Moderately High.
  • 5Y return: 20.51% (upper mid).
  • 3Y return: 18.10% (upper mid).
  • 1Y return: -0.58% (upper mid).
  • Alpha: 1.58 (top quartile).
  • Sharpe: -0.35 (lower mid).
  • Information ratio: 1.50 (upper mid).

SBI Bluechip Fund

  • Upper mid AUM (₹53,030 Cr).
  • Established history (19+ yrs).
  • Rating: 4★ (lower mid).
  • Risk profile: Moderately High.
  • 5Y return: 17.68% (bottom quartile).
  • 3Y return: 13.93% (bottom quartile).
  • 1Y return: -0.80% (lower mid).
  • Alpha: 1.05 (lower mid).
  • Sharpe: -0.34 (upper mid).
  • Information ratio: -0.12 (bottom quartile).

Aditya Birla Sun Life Frontline Equity Fund

  • Bottom quartile AUM (₹30,235 Cr).
  • Oldest track record among peers (23 yrs).
  • Rating: 4★ (bottom quartile).
  • Risk profile: Moderately High.
  • 5Y return: 18.22% (lower mid).
  • 3Y return: 15.12% (lower mid).
  • 1Y return: -2.12% (bottom quartile).
  • Alpha: 1.34 (upper mid).
  • Sharpe: -0.38 (bottom quartile).
  • Information ratio: 0.80 (lower mid).

Essel Large Cap Equity Fund

  • Bottom quartile AUM (₹96 Cr).
  • Established history (13+ yrs).
  • Rating: 4★ (bottom quartile).
  • Risk profile: Moderately High.
  • 5Y return: 7.00% (bottom quartile).
  • 3Y return: 10.00% (bottom quartile).
  • 1Y return: -2.56% (bottom quartile).
  • Alpha: -3.02 (bottom quartile).
  • Sharpe: 0.10 (top quartile).
  • Information ratio: -0.82 (bottom quartile).

2. Mid-Cap Mutual Funds

Mid-cap funds invest in most emerging companies. To attain good returns one should invest for a longer duration in these funds. Longer than large-cap funds. Therefore, SIP benefits the most. Investing via a SIP tends to lower the risk and maintains the stability of returns.

FundNAVNet Assets (Cr)Min SIP Investment3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2024 (%)
Kotak Emerging Equity Scheme Growth ₹133.861
↓ -0.55
₹57,375 1,000 3.223.10.82126.433.6
Sundaram Mid Cap Fund Growth ₹1,359.76
↓ -3.59
₹12,596 100 0.919.3-0.922.825.232
Taurus Discovery (Midcap) Fund Growth ₹119.23
↓ -0.09
₹130 1,000 -0.919.3-8.917.319.811.3
HDFC Mid-Cap Opportunities Fund Growth ₹189.956
↓ -0.71
₹83,847 300 0.716.81.125.227.628.6
Motilal Oswal Midcap 30 Fund  Growth ₹101.99
↓ -0.51
₹33,609 500 1.9150.128.132.257.1
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 29 Aug 25

Research Highlights & Commentary of 5 Funds showcased

CommentaryKotak Emerging Equity SchemeSundaram Mid Cap FundTaurus Discovery (Midcap) FundHDFC Mid-Cap Opportunities FundMotilal Oswal Midcap 30 Fund 
Point 1Upper mid AUM (₹57,375 Cr).Bottom quartile AUM (₹12,596 Cr).Bottom quartile AUM (₹130 Cr).Highest AUM (₹83,847 Cr).Lower mid AUM (₹33,609 Cr).
Point 2Established history (18+ yrs).Established history (23+ yrs).Oldest track record among peers (31 yrs).Established history (18+ yrs).Established history (11+ yrs).
Point 3Top rated.Rating: 4★ (upper mid).Rating: 4★ (lower mid).Rating: 3★ (bottom quartile).Rating: 3★ (bottom quartile).
Point 4Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: Moderately High.
Point 55Y return: 26.40% (lower mid).5Y return: 25.20% (bottom quartile).5Y return: 19.82% (bottom quartile).5Y return: 27.61% (upper mid).5Y return: 32.15% (top quartile).
Point 63Y return: 21.05% (bottom quartile).3Y return: 22.85% (lower mid).3Y return: 17.32% (bottom quartile).3Y return: 25.19% (upper mid).3Y return: 28.09% (top quartile).
Point 71Y return: 0.78% (upper mid).1Y return: -0.94% (bottom quartile).1Y return: -8.89% (bottom quartile).1Y return: 1.08% (top quartile).1Y return: 0.15% (lower mid).
Point 8Alpha: 4.96 (top quartile).Alpha: 3.17 (lower mid).Alpha: -6.42 (bottom quartile).Alpha: 2.03 (bottom quartile).Alpha: 3.70 (upper mid).
Point 9Sharpe: -0.09 (top quartile).Sharpe: -0.17 (lower mid).Sharpe: -0.66 (bottom quartile).Sharpe: -0.21 (bottom quartile).Sharpe: -0.11 (upper mid).
Point 10Information ratio: -0.29 (bottom quartile).Information ratio: 0.00 (lower mid).Information ratio: -1.11 (bottom quartile).Information ratio: 0.76 (top quartile).Information ratio: 0.44 (upper mid).

Kotak Emerging Equity Scheme

  • Upper mid AUM (₹57,375 Cr).
  • Established history (18+ yrs).
  • Top rated.
  • Risk profile: Moderately High.
  • 5Y return: 26.40% (lower mid).
  • 3Y return: 21.05% (bottom quartile).
  • 1Y return: 0.78% (upper mid).
  • Alpha: 4.96 (top quartile).
  • Sharpe: -0.09 (top quartile).
  • Information ratio: -0.29 (bottom quartile).

Sundaram Mid Cap Fund

  • Bottom quartile AUM (₹12,596 Cr).
  • Established history (23+ yrs).
  • Rating: 4★ (upper mid).
  • Risk profile: Moderately High.
  • 5Y return: 25.20% (bottom quartile).
  • 3Y return: 22.85% (lower mid).
  • 1Y return: -0.94% (bottom quartile).
  • Alpha: 3.17 (lower mid).
  • Sharpe: -0.17 (lower mid).
  • Information ratio: 0.00 (lower mid).

Taurus Discovery (Midcap) Fund

  • Bottom quartile AUM (₹130 Cr).
  • Oldest track record among peers (31 yrs).
  • Rating: 4★ (lower mid).
  • Risk profile: Moderately High.
  • 5Y return: 19.82% (bottom quartile).
  • 3Y return: 17.32% (bottom quartile).
  • 1Y return: -8.89% (bottom quartile).
  • Alpha: -6.42 (bottom quartile).
  • Sharpe: -0.66 (bottom quartile).
  • Information ratio: -1.11 (bottom quartile).

HDFC Mid-Cap Opportunities Fund

  • Highest AUM (₹83,847 Cr).
  • Established history (18+ yrs).
  • Rating: 3★ (bottom quartile).
  • Risk profile: Moderately High.
  • 5Y return: 27.61% (upper mid).
  • 3Y return: 25.19% (upper mid).
  • 1Y return: 1.08% (top quartile).
  • Alpha: 2.03 (bottom quartile).
  • Sharpe: -0.21 (bottom quartile).
  • Information ratio: 0.76 (top quartile).

Motilal Oswal Midcap 30 Fund 

  • Lower mid AUM (₹33,609 Cr).
  • Established history (11+ yrs).
  • Rating: 3★ (bottom quartile).
  • Risk profile: Moderately High.
  • 5Y return: 32.15% (top quartile).
  • 3Y return: 28.09% (top quartile).
  • 1Y return: 0.15% (lower mid).
  • Alpha: 3.70 (upper mid).
  • Sharpe: -0.11 (upper mid).
  • Information ratio: 0.44 (upper mid).

3. ELSS or Tax Saving Mutual Funds

ELSS or Equity Linked Savings Scheme is equity diversified Mutual Fund that invests the major part of the fund corpus, generally more than 80%, in equity instruments and provides Market linked returns. Under Section 80C of the income tax Act, ELSS funds act as a tax saving Mutual Funds and allow tax deductions upto INR 1,50,000 for the taxable Income. So, all those you have just started earning a Taxable Income can now invest in ELSS funds to save tax and earn good returns as well.

FundNAVNet Assets (Cr)Min SIP Investment3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2024 (%)
Tata India Tax Savings Fund Growth ₹42.8712
↓ -0.14
₹4,595 500 -1.811.9-514.818.519.5
Bandhan Tax Advantage (ELSS) Fund Growth ₹148.667
↓ -0.27
₹6,974 500 -0.911.3-5.415.221.913.1
Aditya Birla Sun Life Tax Relief '96 Growth ₹59.75
↓ -0.24
₹15,457 500 1.216.4-1.413.712.916.4
DSP Tax Saver Fund Growth ₹134.666
↓ -0.40
₹16,981 500 -310.8-4.418.821.823.9
HDFC Long Term Advantage Fund Growth ₹595.168
↑ 0.28
₹1,318 500 1.215.435.520.617.4
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 29 Aug 25

Research Highlights & Commentary of 5 Funds showcased

CommentaryTata India Tax Savings FundBandhan Tax Advantage (ELSS) FundAditya Birla Sun Life Tax Relief '96DSP Tax Saver FundHDFC Long Term Advantage Fund
Point 1Bottom quartile AUM (₹4,595 Cr).Lower mid AUM (₹6,974 Cr).Upper mid AUM (₹15,457 Cr).Highest AUM (₹16,981 Cr).Bottom quartile AUM (₹1,318 Cr).
Point 2Established history (10+ yrs).Established history (16+ yrs).Established history (17+ yrs).Established history (18+ yrs).Oldest track record among peers (24 yrs).
Point 3Top rated.Rating: 5★ (upper mid).Rating: 4★ (lower mid).Rating: 4★ (bottom quartile).Rating: 3★ (bottom quartile).
Point 4Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: Moderately High.
Point 55Y return: 18.52% (lower mid).5Y return: 21.90% (top quartile).5Y return: 12.92% (bottom quartile).5Y return: 21.78% (upper mid).5Y return: 17.39% (bottom quartile).
Point 63Y return: 14.78% (bottom quartile).3Y return: 15.24% (lower mid).3Y return: 13.65% (bottom quartile).3Y return: 18.79% (upper mid).3Y return: 20.64% (top quartile).
Point 71Y return: -5.05% (bottom quartile).1Y return: -5.38% (bottom quartile).1Y return: -1.42% (upper mid).1Y return: -4.40% (lower mid).1Y return: 35.51% (top quartile).
Point 8Alpha: 0.24 (lower mid).Alpha: -3.48 (bottom quartile).Alpha: 1.19 (upper mid).Alpha: -0.09 (bottom quartile).Alpha: 1.75 (top quartile).
Point 9Sharpe: -0.42 (lower mid).Sharpe: -0.74 (bottom quartile).Sharpe: -0.36 (upper mid).Sharpe: -0.45 (bottom quartile).Sharpe: 2.27 (top quartile).
Point 10Information ratio: -0.22 (bottom quartile).Information ratio: -0.12 (upper mid).Information ratio: -0.94 (bottom quartile).Information ratio: 0.88 (top quartile).Information ratio: -0.15 (lower mid).

Tata India Tax Savings Fund

  • Bottom quartile AUM (₹4,595 Cr).
  • Established history (10+ yrs).
  • Top rated.
  • Risk profile: Moderately High.
  • 5Y return: 18.52% (lower mid).
  • 3Y return: 14.78% (bottom quartile).
  • 1Y return: -5.05% (bottom quartile).
  • Alpha: 0.24 (lower mid).
  • Sharpe: -0.42 (lower mid).
  • Information ratio: -0.22 (bottom quartile).

Bandhan Tax Advantage (ELSS) Fund

  • Lower mid AUM (₹6,974 Cr).
  • Established history (16+ yrs).
  • Rating: 5★ (upper mid).
  • Risk profile: Moderately High.
  • 5Y return: 21.90% (top quartile).
  • 3Y return: 15.24% (lower mid).
  • 1Y return: -5.38% (bottom quartile).
  • Alpha: -3.48 (bottom quartile).
  • Sharpe: -0.74 (bottom quartile).
  • Information ratio: -0.12 (upper mid).

Aditya Birla Sun Life Tax Relief '96

  • Upper mid AUM (₹15,457 Cr).
  • Established history (17+ yrs).
  • Rating: 4★ (lower mid).
  • Risk profile: Moderately High.
  • 5Y return: 12.92% (bottom quartile).
  • 3Y return: 13.65% (bottom quartile).
  • 1Y return: -1.42% (upper mid).
  • Alpha: 1.19 (upper mid).
  • Sharpe: -0.36 (upper mid).
  • Information ratio: -0.94 (bottom quartile).

DSP Tax Saver Fund

  • Highest AUM (₹16,981 Cr).
  • Established history (18+ yrs).
  • Rating: 4★ (bottom quartile).
  • Risk profile: Moderately High.
  • 5Y return: 21.78% (upper mid).
  • 3Y return: 18.79% (upper mid).
  • 1Y return: -4.40% (lower mid).
  • Alpha: -0.09 (bottom quartile).
  • Sharpe: -0.45 (bottom quartile).
  • Information ratio: 0.88 (top quartile).

HDFC Long Term Advantage Fund

  • Bottom quartile AUM (₹1,318 Cr).
  • Oldest track record among peers (24 yrs).
  • Rating: 3★ (bottom quartile).
  • Risk profile: Moderately High.
  • 5Y return: 17.39% (bottom quartile).
  • 3Y return: 20.64% (top quartile).
  • 1Y return: 35.51% (top quartile).
  • Alpha: 1.75 (top quartile).
  • Sharpe: 2.27 (top quartile).
  • Information ratio: -0.15 (lower mid).

4. Small-Cap Mutual Funds

Small-cap funds come after large and mid cap funds. These funds invest in startups or small-sized companies, therefore these funds take time to grow and generate returns. The performance of the fund depends on the growth of the companies. Thus, investors are advised to take a SIP route and stay invested for a long-term, ideally for more than 7 years.

FundNAVNet Assets (Cr)Min SIP Investment3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2024 (%)
SBI Small Cap Fund Growth ₹169.15
↓ -0.65
₹35,563 500 0.415.3-7.215.223.224.1
Aditya Birla Sun Life Small Cap Fund Growth ₹82.2854
↓ -0.29
₹5,011 1,000 -1.918.1-7.516.922.121.5
HDFC Small Cap Fund Growth ₹139.273
↓ -0.17
₹36,353 300 3.222.4-12328.920.4
DSP Small Cap Fund  Growth ₹194.34
↓ -0.30
₹17,005 500 122.1-2.720.426.425.6
Nippon India Small Cap Fund Growth ₹164.4
↓ -0.52
₹65,922 100 -0.617.9-7.9233126.1
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 29 Aug 25

Research Highlights & Commentary of 5 Funds showcased

CommentarySBI Small Cap FundAditya Birla Sun Life Small Cap FundHDFC Small Cap FundDSP Small Cap Fund Nippon India Small Cap Fund
Point 1Lower mid AUM (₹35,563 Cr).Bottom quartile AUM (₹5,011 Cr).Upper mid AUM (₹36,353 Cr).Bottom quartile AUM (₹17,005 Cr).Highest AUM (₹65,922 Cr).
Point 2Established history (15+ yrs).Oldest track record among peers (18 yrs).Established history (17+ yrs).Established history (18+ yrs).Established history (14+ yrs).
Point 3Top rated.Rating: 5★ (upper mid).Rating: 4★ (lower mid).Rating: 4★ (bottom quartile).Rating: 4★ (bottom quartile).
Point 4Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: Moderately High.
Point 55Y return: 23.17% (bottom quartile).5Y return: 22.05% (bottom quartile).5Y return: 28.86% (upper mid).5Y return: 26.42% (lower mid).5Y return: 31.05% (top quartile).
Point 63Y return: 15.16% (bottom quartile).3Y return: 16.90% (bottom quartile).3Y return: 22.95% (upper mid).3Y return: 20.36% (lower mid).3Y return: 22.96% (top quartile).
Point 71Y return: -7.23% (lower mid).1Y return: -7.47% (bottom quartile).1Y return: -0.95% (top quartile).1Y return: -2.72% (upper mid).1Y return: -7.92% (bottom quartile).
Point 8Alpha: 0.00 (top quartile).Alpha: 0.00 (upper mid).Alpha: 0.00 (lower mid).Alpha: 0.00 (bottom quartile).Alpha: -3.84 (bottom quartile).
Point 9Sharpe: -0.63 (bottom quartile).Sharpe: -0.43 (lower mid).Sharpe: -0.17 (upper mid).Sharpe: -0.06 (top quartile).Sharpe: -0.51 (bottom quartile).
Point 10Information ratio: 0.00 (top quartile).Information ratio: 0.00 (upper mid).Information ratio: 0.00 (lower mid).Information ratio: 0.00 (bottom quartile).Information ratio: 0.00 (bottom quartile).

SBI Small Cap Fund

  • Lower mid AUM (₹35,563 Cr).
  • Established history (15+ yrs).
  • Top rated.
  • Risk profile: Moderately High.
  • 5Y return: 23.17% (bottom quartile).
  • 3Y return: 15.16% (bottom quartile).
  • 1Y return: -7.23% (lower mid).
  • Alpha: 0.00 (top quartile).
  • Sharpe: -0.63 (bottom quartile).
  • Information ratio: 0.00 (top quartile).

Aditya Birla Sun Life Small Cap Fund

  • Bottom quartile AUM (₹5,011 Cr).
  • Oldest track record among peers (18 yrs).
  • Rating: 5★ (upper mid).
  • Risk profile: Moderately High.
  • 5Y return: 22.05% (bottom quartile).
  • 3Y return: 16.90% (bottom quartile).
  • 1Y return: -7.47% (bottom quartile).
  • Alpha: 0.00 (upper mid).
  • Sharpe: -0.43 (lower mid).
  • Information ratio: 0.00 (upper mid).

HDFC Small Cap Fund

  • Upper mid AUM (₹36,353 Cr).
  • Established history (17+ yrs).
  • Rating: 4★ (lower mid).
  • Risk profile: Moderately High.
  • 5Y return: 28.86% (upper mid).
  • 3Y return: 22.95% (upper mid).
  • 1Y return: -0.95% (top quartile).
  • Alpha: 0.00 (lower mid).
  • Sharpe: -0.17 (upper mid).
  • Information ratio: 0.00 (lower mid).

DSP Small Cap Fund 

  • Bottom quartile AUM (₹17,005 Cr).
  • Established history (18+ yrs).
  • Rating: 4★ (bottom quartile).
  • Risk profile: Moderately High.
  • 5Y return: 26.42% (lower mid).
  • 3Y return: 20.36% (lower mid).
  • 1Y return: -2.72% (upper mid).
  • Alpha: 0.00 (bottom quartile).
  • Sharpe: -0.06 (top quartile).
  • Information ratio: 0.00 (bottom quartile).

Nippon India Small Cap Fund

  • Highest AUM (₹65,922 Cr).
  • Established history (14+ yrs).
  • Rating: 4★ (bottom quartile).
  • Risk profile: Moderately High.
  • 5Y return: 31.05% (top quartile).
  • 3Y return: 22.96% (top quartile).
  • 1Y return: -7.92% (bottom quartile).
  • Alpha: -3.84 (bottom quartile).
  • Sharpe: -0.51 (bottom quartile).
  • Information ratio: 0.00 (bottom quartile).

5. Multi-Cap Mutual Funds

These funds invest across large, mid and small caps, thus the name-multi-cap. Multi-cap funds are a good option for diversifying a Portfolio. As, these funds invest across market capitalization, it balances risks and returns very well. Taking a SIP route can benefit by generating stable returns in the long-run.

FundNAVNet Assets (Cr)Min SIP Investment3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2024 (%)
Motilal Oswal Multicap 35 Fund Growth ₹61.1164
↑ 0.04
₹13,727 500 1.415.83.42318.845.7
Kotak Standard Multicap Fund Growth ₹82.518
↓ -0.19
₹53,293 500 -1.315.3-0.216.218.216.5
Mirae Asset India Equity Fund  Growth ₹110.982
↓ -0.40
₹39,975 1,000 -0.113.1-112.915.912.7
BNP Paribas Multi Cap Fund Growth ₹73.5154
↓ -0.01
₹588 300 -4.6-2.619.317.313.6
Bandhan Focused Equity Fund Growth ₹84.667
↓ -0.57
₹1,974 100 -0.511.7-0.217.216.430.3
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 29 Aug 25

Research Highlights & Commentary of 5 Funds showcased

CommentaryMotilal Oswal Multicap 35 FundKotak Standard Multicap FundMirae Asset India Equity Fund BNP Paribas Multi Cap FundBandhan Focused Equity Fund
Point 1Lower mid AUM (₹13,727 Cr).Highest AUM (₹53,293 Cr).Upper mid AUM (₹39,975 Cr).Bottom quartile AUM (₹588 Cr).Bottom quartile AUM (₹1,974 Cr).
Point 2Established history (11+ yrs).Established history (15+ yrs).Established history (17+ yrs).Oldest track record among peers (19 yrs).Established history (19+ yrs).
Point 3Top rated.Rating: 5★ (upper mid).Rating: 5★ (lower mid).Rating: 4★ (bottom quartile).Rating: 4★ (bottom quartile).
Point 4Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: Moderately High.
Point 55Y return: 18.76% (top quartile).5Y return: 18.25% (upper mid).5Y return: 15.90% (bottom quartile).5Y return: 13.57% (bottom quartile).5Y return: 16.42% (lower mid).
Point 63Y return: 22.96% (top quartile).3Y return: 16.19% (bottom quartile).3Y return: 12.88% (bottom quartile).3Y return: 17.28% (upper mid).3Y return: 17.19% (lower mid).
Point 71Y return: 3.43% (upper mid).1Y return: -0.16% (lower mid).1Y return: -0.97% (bottom quartile).1Y return: 19.34% (top quartile).1Y return: -0.22% (bottom quartile).
Point 8Alpha: 10.18 (upper mid).Alpha: 2.01 (lower mid).Alpha: 1.71 (bottom quartile).Alpha: 0.00 (bottom quartile).Alpha: 10.39 (top quartile).
Point 9Sharpe: 0.11 (lower mid).Sharpe: -0.31 (bottom quartile).Sharpe: -0.35 (bottom quartile).Sharpe: 2.86 (top quartile).Sharpe: 0.24 (upper mid).
Point 10Information ratio: 0.80 (top quartile).Information ratio: 0.24 (lower mid).Information ratio: -0.36 (bottom quartile).Information ratio: 0.00 (bottom quartile).Information ratio: 0.29 (upper mid).

Motilal Oswal Multicap 35 Fund

  • Lower mid AUM (₹13,727 Cr).
  • Established history (11+ yrs).
  • Top rated.
  • Risk profile: Moderately High.
  • 5Y return: 18.76% (top quartile).
  • 3Y return: 22.96% (top quartile).
  • 1Y return: 3.43% (upper mid).
  • Alpha: 10.18 (upper mid).
  • Sharpe: 0.11 (lower mid).
  • Information ratio: 0.80 (top quartile).

Kotak Standard Multicap Fund

  • Highest AUM (₹53,293 Cr).
  • Established history (15+ yrs).
  • Rating: 5★ (upper mid).
  • Risk profile: Moderately High.
  • 5Y return: 18.25% (upper mid).
  • 3Y return: 16.19% (bottom quartile).
  • 1Y return: -0.16% (lower mid).
  • Alpha: 2.01 (lower mid).
  • Sharpe: -0.31 (bottom quartile).
  • Information ratio: 0.24 (lower mid).

Mirae Asset India Equity Fund 

  • Upper mid AUM (₹39,975 Cr).
  • Established history (17+ yrs).
  • Rating: 5★ (lower mid).
  • Risk profile: Moderately High.
  • 5Y return: 15.90% (bottom quartile).
  • 3Y return: 12.88% (bottom quartile).
  • 1Y return: -0.97% (bottom quartile).
  • Alpha: 1.71 (bottom quartile).
  • Sharpe: -0.35 (bottom quartile).
  • Information ratio: -0.36 (bottom quartile).

BNP Paribas Multi Cap Fund

  • Bottom quartile AUM (₹588 Cr).
  • Oldest track record among peers (19 yrs).
  • Rating: 4★ (bottom quartile).
  • Risk profile: Moderately High.
  • 5Y return: 13.57% (bottom quartile).
  • 3Y return: 17.28% (upper mid).
  • 1Y return: 19.34% (top quartile).
  • Alpha: 0.00 (bottom quartile).
  • Sharpe: 2.86 (top quartile).
  • Information ratio: 0.00 (bottom quartile).

Bandhan Focused Equity Fund

  • Bottom quartile AUM (₹1,974 Cr).
  • Established history (19+ yrs).
  • Rating: 4★ (bottom quartile).
  • Risk profile: Moderately High.
  • 5Y return: 16.42% (lower mid).
  • 3Y return: 17.19% (lower mid).
  • 1Y return: -0.22% (bottom quartile).
  • Alpha: 10.39 (top quartile).
  • Sharpe: 0.24 (upper mid).
  • Information ratio: 0.29 (upper mid).

6. Balanced Funds or Hybrid Funds

Another Mutual fund that is suitable for first-time SIP investment is Balanced Fund. Balanced Mutual Funds invest more than 65% of their assets in equity instruments and the remaining assets in debt instruments. These funds are less risky than Equity Funds while providing equity comparable returns. This makes balanced funds one of the ideal investment options for beginners.

FundNAVNet Assets (Cr)Min SIP Investment3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2024 (%)
Edelweiss Arbitrage Fund Growth ₹19.5537
↓ 0.00
₹15,550 500 1.53.26.875.77.7
Aditya Birla Sun Life Equity Hybrid 95 Fund Growth ₹1,501.53
↓ -3.90
₹7,480 100 0.111.5-0.312.915.515.3
Kotak Equity Arbitrage Fund Growth ₹37.8154
↓ 0.00
₹71,608 500 1.53.26.97.25.97.8
ICICI Prudential Equity Arbitrage Fund Growth ₹34.622
↑ 0.00
₹31,526 1,000 1.53.36.975.77.6
Nippon India Arbitrage Fund Growth ₹26.7717
↑ 0.00
₹15,383 100 1.53.16.66.85.67.5
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 29 Aug 25

Research Highlights & Commentary of 5 Funds showcased

CommentaryEdelweiss Arbitrage FundAditya Birla Sun Life Equity Hybrid 95 FundKotak Equity Arbitrage FundICICI Prudential Equity Arbitrage FundNippon India Arbitrage Fund
Point 1Lower mid AUM (₹15,550 Cr).Bottom quartile AUM (₹7,480 Cr).Highest AUM (₹71,608 Cr).Upper mid AUM (₹31,526 Cr).Bottom quartile AUM (₹15,383 Cr).
Point 2Established history (11+ yrs).Oldest track record among peers (30 yrs).Established history (19+ yrs).Established history (18+ yrs).Established history (14+ yrs).
Point 3Top rated.Rating: 5★ (upper mid).Rating: 4★ (lower mid).Rating: 4★ (bottom quartile).Rating: 4★ (bottom quartile).
Point 4Risk profile: Moderately Low.Risk profile: Moderately High.Risk profile: Moderately Low.Risk profile: Moderate.Risk profile: Moderately Low.
Point 55Y return: 5.71% (lower mid).5Y return: 15.50% (top quartile).5Y return: 5.88% (upper mid).5Y return: 5.70% (bottom quartile).5Y return: 5.58% (bottom quartile).
Point 63Y return: 7.01% (bottom quartile).3Y return: 12.89% (top quartile).3Y return: 7.19% (upper mid).3Y return: 7.02% (lower mid).3Y return: 6.84% (bottom quartile).
Point 71Y return: 6.79% (lower mid).1Y return: -0.26% (bottom quartile).1Y return: 6.89% (top quartile).1Y return: 6.88% (upper mid).1Y return: 6.56% (bottom quartile).
Point 81M return: 0.49% (lower mid).1M return: -1.27% (bottom quartile).1M return: 0.51% (top quartile).1M return: 0.50% (upper mid).1M return: 0.49% (bottom quartile).
Point 9Alpha: 0.00 (upper mid).Alpha: 0.09 (top quartile).Alpha: 0.00 (lower mid).Alpha: 0.00 (bottom quartile).Alpha: 0.00 (bottom quartile).
Point 10Sharpe: 0.90 (lower mid).Sharpe: -0.38 (bottom quartile).Sharpe: 1.19 (upper mid).Sharpe: 1.21 (top quartile).Sharpe: 0.26 (bottom quartile).

Edelweiss Arbitrage Fund

  • Lower mid AUM (₹15,550 Cr).
  • Established history (11+ yrs).
  • Top rated.
  • Risk profile: Moderately Low.
  • 5Y return: 5.71% (lower mid).
  • 3Y return: 7.01% (bottom quartile).
  • 1Y return: 6.79% (lower mid).
  • 1M return: 0.49% (lower mid).
  • Alpha: 0.00 (upper mid).
  • Sharpe: 0.90 (lower mid).

Aditya Birla Sun Life Equity Hybrid 95 Fund

  • Bottom quartile AUM (₹7,480 Cr).
  • Oldest track record among peers (30 yrs).
  • Rating: 5★ (upper mid).
  • Risk profile: Moderately High.
  • 5Y return: 15.50% (top quartile).
  • 3Y return: 12.89% (top quartile).
  • 1Y return: -0.26% (bottom quartile).
  • 1M return: -1.27% (bottom quartile).
  • Alpha: 0.09 (top quartile).
  • Sharpe: -0.38 (bottom quartile).

Kotak Equity Arbitrage Fund

  • Highest AUM (₹71,608 Cr).
  • Established history (19+ yrs).
  • Rating: 4★ (lower mid).
  • Risk profile: Moderately Low.
  • 5Y return: 5.88% (upper mid).
  • 3Y return: 7.19% (upper mid).
  • 1Y return: 6.89% (top quartile).
  • 1M return: 0.51% (top quartile).
  • Alpha: 0.00 (lower mid).
  • Sharpe: 1.19 (upper mid).

ICICI Prudential Equity Arbitrage Fund

  • Upper mid AUM (₹31,526 Cr).
  • Established history (18+ yrs).
  • Rating: 4★ (bottom quartile).
  • Risk profile: Moderate.
  • 5Y return: 5.70% (bottom quartile).
  • 3Y return: 7.02% (lower mid).
  • 1Y return: 6.88% (upper mid).
  • 1M return: 0.50% (upper mid).
  • Alpha: 0.00 (bottom quartile).
  • Sharpe: 1.21 (top quartile).

Nippon India Arbitrage Fund

  • Bottom quartile AUM (₹15,383 Cr).
  • Established history (14+ yrs).
  • Rating: 4★ (bottom quartile).
  • Risk profile: Moderately Low.
  • 5Y return: 5.58% (bottom quartile).
  • 3Y return: 6.84% (bottom quartile).
  • 1Y return: 6.56% (bottom quartile).
  • 1M return: 0.49% (bottom quartile).
  • Alpha: 0.00 (bottom quartile).
  • Sharpe: 0.26 (bottom quartile).

Benefits of SIP Investment

Benefits-of-SIP-Investment

Generally, a SIP investment is considered to be an ideal way, when investing in Mutual Funds for the first time. Investing, for beginners, is usually very complicated and chaotic. They are often found facing challenges to channelize their savings into investments. Consider the above-mentioned best mutual funds for SIP to make your first SIP investment. Don’t miss an opportunity to save big by fearing to take the first step. Your first salary credited, make a wise SIP investment now!

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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