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SIP Investment: For First Time Investors

Updated on August 6, 2025 , 6405 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 (%)
ICICI Prudential Bluechip Fund Growth ₹108.1
↓ -0.96
₹72,336 100 2.25.22.817.721.516.9
SBI Bluechip Fund Growth ₹90.2239
↓ -1.09
₹53,959 500 1.94.22.513.718.712.5
Nippon India Large Cap Fund Growth ₹88.6916
↓ -0.83
₹43,829 100 3.85.62.319.124.318.2
Aditya Birla Sun Life Frontline Equity Fund Growth ₹514.48
↓ -4.64
₹30,927 100 1.94.91.314.819.315.6
Indiabulls Blue Chip Fund Growth ₹41.99
↓ -0.36
₹130 500 4.66-0.513.41612.5
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 8 Aug 25

Research Highlights & Commentary of 5 Funds showcased

CommentaryICICI Prudential Bluechip FundSBI Bluechip FundNippon India Large Cap FundAditya Birla Sun Life Frontline Equity FundIndiabulls Blue Chip Fund
Point 1Highest AUM (₹72,336 Cr).Upper mid AUM (₹53,959 Cr).Lower mid AUM (₹43,829 Cr).Bottom quartile AUM (₹30,927 Cr).Bottom quartile AUM (₹130 Cr).
Point 2Established history (17+ yrs).Established history (19+ yrs).Established history (18+ yrs).Oldest track record among peers (22 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: 21.46% (upper mid).5Y return: 18.72% (bottom quartile).5Y return: 24.29% (top quartile).5Y return: 19.29% (lower mid).5Y return: 16.01% (bottom quartile).
Point 63Y return: 17.70% (upper mid).3Y return: 13.70% (bottom quartile).3Y return: 19.09% (top quartile).3Y return: 14.76% (lower mid).3Y return: 13.43% (bottom quartile).
Point 71Y return: 2.78% (top quartile).1Y return: 2.54% (upper mid).1Y return: 2.32% (lower mid).1Y return: 1.33% (bottom quartile).1Y return: -0.47% (bottom quartile).
Point 8Alpha: 1.93 (top quartile).Alpha: 0.49 (lower mid).Alpha: 0.12 (bottom quartile).Alpha: 1.51 (upper mid).Alpha: -3.92 (bottom quartile).
Point 9Sharpe: 0.14 (top quartile).Sharpe: 0.10 (lower mid).Sharpe: 0.07 (bottom quartile).Sharpe: 0.11 (upper mid).Sharpe: -0.26 (bottom quartile).
Point 10Information ratio: 1.10 (upper mid).Information ratio: -0.38 (bottom quartile).Information ratio: 1.85 (top quartile).Information ratio: 0.63 (lower mid).Information ratio: -0.17 (bottom quartile).

ICICI Prudential Bluechip Fund

  • Highest AUM (₹72,336 Cr).
  • Established history (17+ yrs).
  • Top rated.
  • Risk profile: Moderately High.
  • 5Y return: 21.46% (upper mid).
  • 3Y return: 17.70% (upper mid).
  • 1Y return: 2.78% (top quartile).
  • Alpha: 1.93 (top quartile).
  • Sharpe: 0.14 (top quartile).
  • Information ratio: 1.10 (upper mid).

SBI Bluechip Fund

  • Upper mid AUM (₹53,959 Cr).
  • Established history (19+ yrs).
  • Rating: 4★ (upper mid).
  • Risk profile: Moderately High.
  • 5Y return: 18.72% (bottom quartile).
  • 3Y return: 13.70% (bottom quartile).
  • 1Y return: 2.54% (upper mid).
  • Alpha: 0.49 (lower mid).
  • Sharpe: 0.10 (lower mid).
  • Information ratio: -0.38 (bottom quartile).

Nippon India Large Cap Fund

  • Lower mid AUM (₹43,829 Cr).
  • Established history (18+ yrs).
  • Rating: 4★ (lower mid).
  • Risk profile: Moderately High.
  • 5Y return: 24.29% (top quartile).
  • 3Y return: 19.09% (top quartile).
  • 1Y return: 2.32% (lower mid).
  • Alpha: 0.12 (bottom quartile).
  • Sharpe: 0.07 (bottom quartile).
  • Information ratio: 1.85 (top quartile).

Aditya Birla Sun Life Frontline Equity Fund

  • Bottom quartile AUM (₹30,927 Cr).
  • Oldest track record among peers (22 yrs).
  • Rating: 4★ (bottom quartile).
  • Risk profile: Moderately High.
  • 5Y return: 19.29% (lower mid).
  • 3Y return: 14.76% (lower mid).
  • 1Y return: 1.33% (bottom quartile).
  • Alpha: 1.51 (upper mid).
  • Sharpe: 0.11 (upper mid).
  • Information ratio: 0.63 (lower mid).

Indiabulls Blue Chip Fund

  • Bottom quartile AUM (₹130 Cr).
  • Established history (13+ yrs).
  • Rating: 4★ (bottom quartile).
  • Risk profile: Moderately High.
  • 5Y return: 16.01% (bottom quartile).
  • 3Y return: 13.43% (bottom quartile).
  • 1Y return: -0.47% (bottom quartile).
  • Alpha: -3.92 (bottom quartile).
  • Sharpe: -0.26 (bottom quartile).
  • Information ratio: -0.17 (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 ₹133.512
↓ -1.15
₹57,102 1,000 11.28.34.821.628.133.6
Sundaram Mid Cap Fund Growth ₹1,353.88
↓ -14.87
₹12,818 100 7.86.23.623.126.932
Taurus Discovery (Midcap) Fund Growth ₹118.11
↓ -1.36
₹133 1,000 6.94.8-6.717.720.811.3
Edelweiss Mid Cap Fund Growth ₹98.079
↓ -1.29
₹10,988 500 6.76.25.424.429.538.9
HDFC Mid-Cap Opportunities Fund Growth ₹189.412
↓ -1.40
₹84,061 300 7.45.83.125.929.828.6
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 8 Aug 25

Research Highlights & Commentary of 5 Funds showcased

CommentaryKotak Emerging Equity SchemeSundaram Mid Cap FundTaurus Discovery (Midcap) FundEdelweiss Mid Cap FundHDFC Mid-Cap Opportunities Fund
Point 1Upper mid AUM (₹57,102 Cr).Lower mid AUM (₹12,818 Cr).Bottom quartile AUM (₹133 Cr).Bottom quartile AUM (₹10,988 Cr).Highest AUM (₹84,061 Cr).
Point 2Established history (18+ yrs).Established history (23+ yrs).Oldest track record among peers (30 yrs).Established history (17+ yrs).Established history (18+ 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: High.Risk profile: Moderately High.
Point 55Y return: 28.12% (lower mid).5Y return: 26.88% (bottom quartile).5Y return: 20.81% (bottom quartile).5Y return: 29.47% (upper mid).5Y return: 29.81% (top quartile).
Point 63Y return: 21.59% (bottom quartile).3Y return: 23.10% (lower mid).3Y return: 17.68% (bottom quartile).3Y return: 24.44% (upper mid).3Y return: 25.86% (top quartile).
Point 71Y return: 4.77% (upper mid).1Y return: 3.63% (lower mid).1Y return: -6.71% (bottom quartile).1Y return: 5.43% (top quartile).1Y return: 3.14% (bottom quartile).
Point 8Alpha: 2.01 (bottom quartile).Alpha: 2.82 (lower mid).Alpha: -5.34 (bottom quartile).Alpha: 5.34 (top quartile).Alpha: 3.00 (upper mid).
Point 9Sharpe: 0.16 (bottom quartile).Sharpe: 0.20 (lower mid).Sharpe: -0.20 (bottom quartile).Sharpe: 0.33 (top quartile).Sharpe: 0.23 (upper mid).
Point 10Information ratio: -0.52 (bottom quartile).Information ratio: -0.14 (lower mid).Information ratio: -1.20 (bottom quartile).Information ratio: 0.34 (upper mid).Information ratio: 0.62 (top quartile).

Kotak Emerging Equity Scheme

  • Upper mid AUM (₹57,102 Cr).
  • Established history (18+ yrs).
  • Top rated.
  • Risk profile: Moderately High.
  • 5Y return: 28.12% (lower mid).
  • 3Y return: 21.59% (bottom quartile).
  • 1Y return: 4.77% (upper mid).
  • Alpha: 2.01 (bottom quartile).
  • Sharpe: 0.16 (bottom quartile).
  • Information ratio: -0.52 (bottom quartile).

Sundaram Mid Cap Fund

  • Lower mid AUM (₹12,818 Cr).
  • Established history (23+ yrs).
  • Rating: 4★ (upper mid).
  • Risk profile: Moderately High.
  • 5Y return: 26.88% (bottom quartile).
  • 3Y return: 23.10% (lower mid).
  • 1Y return: 3.63% (lower mid).
  • Alpha: 2.82 (lower mid).
  • Sharpe: 0.20 (lower mid).
  • Information ratio: -0.14 (lower mid).

Taurus Discovery (Midcap) Fund

  • Bottom quartile AUM (₹133 Cr).
  • Oldest track record among peers (30 yrs).
  • Rating: 4★ (lower mid).
  • Risk profile: Moderately High.
  • 5Y return: 20.81% (bottom quartile).
  • 3Y return: 17.68% (bottom quartile).
  • 1Y return: -6.71% (bottom quartile).
  • Alpha: -5.34 (bottom quartile).
  • Sharpe: -0.20 (bottom quartile).
  • Information ratio: -1.20 (bottom quartile).

Edelweiss Mid Cap Fund

  • Bottom quartile AUM (₹10,988 Cr).
  • Established history (17+ yrs).
  • Rating: 3★ (bottom quartile).
  • Risk profile: High.
  • 5Y return: 29.47% (upper mid).
  • 3Y return: 24.44% (upper mid).
  • 1Y return: 5.43% (top quartile).
  • Alpha: 5.34 (top quartile).
  • Sharpe: 0.33 (top quartile).
  • Information ratio: 0.34 (upper mid).

HDFC Mid-Cap Opportunities Fund

  • Highest AUM (₹84,061 Cr).
  • Established history (18+ yrs).
  • Rating: 3★ (bottom quartile).
  • Risk profile: Moderately High.
  • 5Y return: 29.81% (top quartile).
  • 3Y return: 25.86% (top quartile).
  • 1Y return: 3.14% (bottom quartile).
  • Alpha: 3.00 (upper mid).
  • Sharpe: 0.23 (upper mid).
  • Information ratio: 0.62 (top quartile).

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 ₹43.0591
↓ -0.46
₹4,711 500 3.22.90.314.919.719.5
Bandhan Tax Advantage (ELSS) Fund Growth ₹147.227
↓ -1.55
₹7,151 500 2.12.7-2.814.923.413.1
Aditya Birla Sun Life Tax Relief '96 Growth ₹59.19
↓ -0.51
₹15,870 500 5.67.41.813.313.916.4
DSP Tax Saver Fund Growth ₹134.904
↓ -1.12
₹17,428 500 0.83.5018.823.223.9
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 8 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 (₹4,711 Cr).Lower mid AUM (₹7,151 Cr).Upper mid AUM (₹15,870 Cr).Highest AUM (₹17,428 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: 19.75% (lower mid).5Y return: 23.40% (top quartile).5Y return: 13.85% (bottom quartile).5Y return: 23.16% (upper mid).5Y return: 17.39% (bottom quartile).
Point 63Y return: 14.94% (bottom quartile).3Y return: 14.94% (lower mid).3Y return: 13.26% (bottom quartile).3Y return: 18.78% (upper mid).3Y return: 20.64% (top quartile).
Point 71Y return: 0.34% (lower mid).1Y return: -2.81% (bottom quartile).1Y return: 1.77% (upper mid).1Y return: 0.02% (bottom quartile).1Y return: 35.51% (top quartile).
Point 8Alpha: -0.42 (bottom quartile).Alpha: -2.56 (bottom quartile).Alpha: 0.36 (lower mid).Alpha: 2.27 (top quartile).Alpha: 1.75 (upper mid).
Point 9Sharpe: -0.01 (bottom quartile).Sharpe: -0.21 (bottom quartile).Sharpe: 0.04 (lower mid).Sharpe: 0.16 (upper mid).Sharpe: 2.27 (top quartile).
Point 10Information ratio: -0.31 (bottom quartile).Information ratio: -0.30 (lower mid).Information ratio: -1.34 (bottom quartile).Information ratio: 0.83 (top quartile).Information ratio: -0.15 (upper mid).

Tata India Tax Savings Fund

  • Bottom quartile AUM (₹4,711 Cr).
  • Established history (10+ yrs).
  • Top rated.
  • Risk profile: Moderately High.
  • 5Y return: 19.75% (lower mid).
  • 3Y return: 14.94% (bottom quartile).
  • 1Y return: 0.34% (lower mid).
  • Alpha: -0.42 (bottom quartile).
  • Sharpe: -0.01 (bottom quartile).
  • Information ratio: -0.31 (bottom quartile).

Bandhan Tax Advantage (ELSS) Fund

  • Lower mid AUM (₹7,151 Cr).
  • Established history (16+ yrs).
  • Rating: 5★ (upper mid).
  • Risk profile: Moderately High.
  • 5Y return: 23.40% (top quartile).
  • 3Y return: 14.94% (lower mid).
  • 1Y return: -2.81% (bottom quartile).
  • Alpha: -2.56 (bottom quartile).
  • Sharpe: -0.21 (bottom quartile).
  • Information ratio: -0.30 (lower mid).

Aditya Birla Sun Life Tax Relief '96

  • Upper mid AUM (₹15,870 Cr).
  • Established history (17+ yrs).
  • Rating: 4★ (lower mid).
  • Risk profile: Moderately High.
  • 5Y return: 13.85% (bottom quartile).
  • 3Y return: 13.26% (bottom quartile).
  • 1Y return: 1.77% (upper mid).
  • Alpha: 0.36 (lower mid).
  • Sharpe: 0.04 (lower mid).
  • Information ratio: -1.34 (bottom quartile).

DSP Tax Saver Fund

  • Highest AUM (₹17,428 Cr).
  • Established history (18+ yrs).
  • Rating: 4★ (bottom quartile).
  • Risk profile: Moderately High.
  • 5Y return: 23.16% (upper mid).
  • 3Y return: 18.78% (upper mid).
  • 1Y return: 0.02% (bottom quartile).
  • Alpha: 2.27 (top quartile).
  • Sharpe: 0.16 (upper mid).
  • Information ratio: 0.83 (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 (upper mid).
  • Sharpe: 2.27 (top quartile).
  • Information ratio: -0.15 (upper 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 (%)
Aditya Birla Sun Life Small Cap Fund Growth ₹82.8233
↓ -0.98
₹5,134 1,000 7.64.7-3.917.825.221.5
SBI Small Cap Fund Growth ₹167.662
↓ -0.92
₹35,696 500 5.72.4-5.415.625.824.1
HDFC Small Cap Fund Growth ₹138.38
↓ -1.03
₹35,781 300 13.67.82.524.131.520.4
DSP Small Cap Fund  Growth ₹191.065
↓ -1.66
₹17,126 500 12.15.2-0.919.828.625.6
Nippon India Small Cap Fund Growth ₹164.669
↓ -1.81
₹66,602 100 7.84.1-4.8243426.1
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 8 Aug 25

Research Highlights & Commentary of 5 Funds showcased

CommentaryAditya Birla Sun Life Small Cap FundSBI Small Cap FundHDFC Small Cap FundDSP Small Cap Fund Nippon India Small Cap Fund
Point 1Bottom quartile AUM (₹5,134 Cr).Lower mid AUM (₹35,696 Cr).Upper mid AUM (₹35,781 Cr).Bottom quartile AUM (₹17,126 Cr).Highest AUM (₹66,602 Cr).
Point 2Oldest track record among peers (18 yrs).Established history (15+ 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: 25.15% (bottom quartile).5Y return: 25.80% (bottom quartile).5Y return: 31.53% (upper mid).5Y return: 28.64% (lower mid).5Y return: 34.05% (top quartile).
Point 63Y return: 17.80% (bottom quartile).3Y return: 15.55% (bottom quartile).3Y return: 24.13% (top quartile).3Y return: 19.85% (lower mid).3Y return: 23.96% (upper mid).
Point 71Y return: -3.92% (lower mid).1Y return: -5.37% (bottom quartile).1Y return: 2.46% (top quartile).1Y return: -0.92% (upper mid).1Y return: -4.79% (bottom quartile).
Point 8Alpha: 0.00 (top quartile).Alpha: 0.00 (upper mid).Alpha: 0.00 (lower mid).Alpha: 0.00 (bottom quartile).Alpha: -2.86 (bottom quartile).
Point 9Sharpe: -0.12 (bottom quartile).Sharpe: -0.24 (bottom quartile).Sharpe: 0.07 (upper mid).Sharpe: 0.22 (top quartile).Sharpe: -0.10 (lower mid).
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: -0.10 (bottom quartile).

Aditya Birla Sun Life Small Cap Fund

  • Bottom quartile AUM (₹5,134 Cr).
  • Oldest track record among peers (18 yrs).
  • Top rated.
  • Risk profile: Moderately High.
  • 5Y return: 25.15% (bottom quartile).
  • 3Y return: 17.80% (bottom quartile).
  • 1Y return: -3.92% (lower mid).
  • Alpha: 0.00 (top quartile).
  • Sharpe: -0.12 (bottom quartile).
  • Information ratio: 0.00 (top quartile).

SBI Small Cap Fund

  • Lower mid AUM (₹35,696 Cr).
  • Established history (15+ yrs).
  • Rating: 5★ (upper mid).
  • Risk profile: Moderately High.
  • 5Y return: 25.80% (bottom quartile).
  • 3Y return: 15.55% (bottom quartile).
  • 1Y return: -5.37% (bottom quartile).
  • Alpha: 0.00 (upper mid).
  • Sharpe: -0.24 (bottom quartile).
  • Information ratio: 0.00 (upper mid).

HDFC Small Cap Fund

  • Upper mid AUM (₹35,781 Cr).
  • Established history (17+ yrs).
  • Rating: 4★ (lower mid).
  • Risk profile: Moderately High.
  • 5Y return: 31.53% (upper mid).
  • 3Y return: 24.13% (top quartile).
  • 1Y return: 2.46% (top quartile).
  • Alpha: 0.00 (lower mid).
  • Sharpe: 0.07 (upper mid).
  • Information ratio: 0.00 (lower mid).

DSP Small Cap Fund 

  • Bottom quartile AUM (₹17,126 Cr).
  • Established history (18+ yrs).
  • Rating: 4★ (bottom quartile).
  • Risk profile: Moderately High.
  • 5Y return: 28.64% (lower mid).
  • 3Y return: 19.85% (lower mid).
  • 1Y return: -0.92% (upper mid).
  • Alpha: 0.00 (bottom quartile).
  • Sharpe: 0.22 (top quartile).
  • Information ratio: 0.00 (bottom quartile).

Nippon India Small Cap Fund

  • Highest AUM (₹66,602 Cr).
  • Established history (14+ yrs).
  • Rating: 4★ (bottom quartile).
  • Risk profile: Moderately High.
  • 5Y return: 34.05% (top quartile).
  • 3Y return: 23.96% (upper mid).
  • 1Y return: -4.79% (bottom quartile).
  • Alpha: -2.86 (bottom quartile).
  • Sharpe: -0.10 (lower mid).
  • Information ratio: -0.10 (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 ₹59.6733
↓ -2.11
₹13,894 500 3.44622.118.545.7
Kotak Standard Multicap Fund Growth ₹82.764
↓ -0.89
₹54,841 500 4.47.72.316.319.216.5
Mirae Asset India Equity Fund  Growth ₹110.04
↓ -1.17
₹40,725 1,000 2.74.52.212.216.712.7
BNP Paribas Multi Cap Fund Growth ₹73.5154
↓ -0.01
₹588 300 -4.6-2.619.317.313.6
Bandhan Focused Equity Fund Growth ₹85.827
↓ -0.75
₹1,947 100 5.52.99.217.217.630.3
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 8 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 (₹13,894 Cr).Highest AUM (₹54,841 Cr).Upper mid AUM (₹40,725 Cr).Bottom quartile AUM (₹588 Cr).Bottom quartile AUM (₹1,947 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: 18.51% (upper mid).5Y return: 19.21% (top quartile).5Y return: 16.75% (bottom quartile).5Y return: 13.57% (bottom quartile).5Y return: 17.61% (lower mid).
Point 63Y return: 22.15% (top quartile).3Y return: 16.32% (bottom quartile).3Y return: 12.22% (bottom quartile).3Y return: 17.28% (upper mid).3Y return: 17.23% (lower mid).
Point 71Y return: 5.98% (lower mid).1Y return: 2.26% (bottom quartile).1Y return: 2.19% (bottom quartile).1Y return: 19.34% (top quartile).1Y return: 9.19% (upper mid).
Point 8Alpha: 8.72 (top quartile).Alpha: 1.33 (bottom quartile).Alpha: 1.62 (lower mid).Alpha: 0.00 (bottom quartile).Alpha: 5.67 (upper mid).
Point 9Sharpe: 0.42 (upper mid).Sharpe: 0.10 (bottom quartile).Sharpe: 0.12 (bottom quartile).Sharpe: 2.86 (top quartile).Sharpe: 0.33 (lower mid).
Point 10Information ratio: 0.73 (top quartile).Information ratio: 0.21 (upper mid).Information ratio: -0.70 (bottom quartile).Information ratio: 0.00 (bottom quartile).Information ratio: 0.18 (lower mid).

Motilal Oswal Multicap 35 Fund

  • Lower mid AUM (₹13,894 Cr).
  • Established history (11+ yrs).
  • Top rated.
  • Risk profile: Moderately High.
  • 5Y return: 18.51% (upper mid).
  • 3Y return: 22.15% (top quartile).
  • 1Y return: 5.98% (lower mid).
  • Alpha: 8.72 (top quartile).
  • Sharpe: 0.42 (upper mid).
  • Information ratio: 0.73 (top quartile).

Kotak Standard Multicap Fund

  • Highest AUM (₹54,841 Cr).
  • Established history (15+ yrs).
  • Rating: 5★ (upper mid).
  • Risk profile: Moderately High.
  • 5Y return: 19.21% (top quartile).
  • 3Y return: 16.32% (bottom quartile).
  • 1Y return: 2.26% (bottom quartile).
  • Alpha: 1.33 (bottom quartile).
  • Sharpe: 0.10 (bottom quartile).
  • Information ratio: 0.21 (upper mid).

Mirae Asset India Equity Fund 

  • Upper mid AUM (₹40,725 Cr).
  • Established history (17+ yrs).
  • Rating: 5★ (lower mid).
  • Risk profile: Moderately High.
  • 5Y return: 16.75% (bottom quartile).
  • 3Y return: 12.22% (bottom quartile).
  • 1Y return: 2.19% (bottom quartile).
  • Alpha: 1.62 (lower mid).
  • Sharpe: 0.12 (bottom quartile).
  • Information ratio: -0.70 (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 (₹1,947 Cr).
  • Established history (19+ yrs).
  • Rating: 4★ (bottom quartile).
  • Risk profile: Moderately High.
  • 5Y return: 17.61% (lower mid).
  • 3Y return: 17.23% (lower mid).
  • 1Y return: 9.19% (upper mid).
  • Alpha: 5.67 (upper mid).
  • Sharpe: 0.33 (lower mid).
  • Information ratio: 0.18 (lower 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 ₹19.5059
↑ 0.02
₹15,045 500 1.43.26.87.15.77.7
Aditya Birla Sun Life Equity Hybrid 95 Fund Growth ₹1,491.63
↓ -12.19
₹7,650 100 2.63.92.212.416.215.3
SBI Equity Hybrid Fund Growth ₹295.673
↓ -3.05
₹78,708 500 2.87.18.613.116.114.2
SBI Multi Asset Allocation Fund Growth ₹58.8635
↓ -0.27
₹8,940 500 4.25.98.215.813.712.8
ICICI Prudential Equity Arbitrage Fund Growth ₹34.5306
↑ 0.04
₹30,811 1,000 1.43.36.97.15.77.6
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 8 Aug 25

Research Highlights & Commentary of 5 Funds showcased

CommentaryEdelweiss Arbitrage FundAditya Birla Sun Life Equity Hybrid 95 FundSBI Equity Hybrid FundSBI Multi Asset Allocation FundICICI Prudential Equity Arbitrage Fund
Point 1Lower mid AUM (₹15,045 Cr).Bottom quartile AUM (₹7,650 Cr).Highest AUM (₹78,708 Cr).Bottom quartile AUM (₹8,940 Cr).Upper mid AUM (₹30,811 Cr).
Point 2Established history (11+ yrs).Oldest track record among peers (30 yrs).Established history (20+ yrs).Established history (19+ yrs).Established history (18+ 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 High.Risk profile: Moderate.Risk profile: Moderate.
Point 55Y return: 5.70% (bottom quartile).5Y return: 16.22% (top quartile).5Y return: 16.13% (upper mid).5Y return: 13.68% (lower mid).5Y return: 5.68% (bottom quartile).
Point 63Y return: 7.05% (bottom quartile).3Y return: 12.40% (lower mid).3Y return: 13.07% (upper mid).3Y return: 15.84% (top quartile).3Y return: 7.06% (bottom quartile).
Point 71Y return: 6.76% (bottom quartile).1Y return: 2.22% (bottom quartile).1Y return: 8.60% (top quartile).1Y return: 8.20% (upper mid).1Y return: 6.86% (lower mid).
Point 81M return: 0.52% (upper mid).1M return: -3.52% (bottom quartile).1M return: -3.87% (bottom quartile).1M return: -1.63% (lower mid).1M return: 0.52% (top quartile).
Point 9Alpha: 0.02 (upper mid).Alpha: -0.50 (bottom quartile).Alpha: 5.08 (top quartile).Alpha: 0.00 (lower mid).Alpha: 0.00 (bottom quartile).
Point 10Sharpe: 0.90 (upper mid).Sharpe: 0.04 (bottom quartile).Sharpe: 0.56 (lower mid).Sharpe: 0.41 (bottom quartile).Sharpe: 1.24 (top quartile).

Edelweiss Arbitrage Fund

  • Lower mid AUM (₹15,045 Cr).
  • Established history (11+ yrs).
  • Top rated.
  • Risk profile: Moderately Low.
  • 5Y return: 5.70% (bottom quartile).
  • 3Y return: 7.05% (bottom quartile).
  • 1Y return: 6.76% (bottom quartile).
  • 1M return: 0.52% (upper mid).
  • Alpha: 0.02 (upper mid).
  • Sharpe: 0.90 (upper mid).

Aditya Birla Sun Life Equity Hybrid 95 Fund

  • Bottom quartile AUM (₹7,650 Cr).
  • Oldest track record among peers (30 yrs).
  • Rating: 5★ (upper mid).
  • Risk profile: Moderately High.
  • 5Y return: 16.22% (top quartile).
  • 3Y return: 12.40% (lower mid).
  • 1Y return: 2.22% (bottom quartile).
  • 1M return: -3.52% (bottom quartile).
  • Alpha: -0.50 (bottom quartile).
  • Sharpe: 0.04 (bottom quartile).

SBI Equity Hybrid Fund

  • Highest AUM (₹78,708 Cr).
  • Established history (20+ yrs).
  • Rating: 4★ (lower mid).
  • Risk profile: Moderately High.
  • 5Y return: 16.13% (upper mid).
  • 3Y return: 13.07% (upper mid).
  • 1Y return: 8.60% (top quartile).
  • 1M return: -3.87% (bottom quartile).
  • Alpha: 5.08 (top quartile).
  • Sharpe: 0.56 (lower mid).

SBI Multi Asset Allocation Fund

  • Bottom quartile AUM (₹8,940 Cr).
  • Established history (19+ yrs).
  • Rating: 4★ (bottom quartile).
  • Risk profile: Moderate.
  • 5Y return: 13.68% (lower mid).
  • 3Y return: 15.84% (top quartile).
  • 1Y return: 8.20% (upper mid).
  • 1M return: -1.63% (lower mid).
  • Alpha: 0.00 (lower mid).
  • Sharpe: 0.41 (bottom quartile).

ICICI Prudential Equity Arbitrage Fund

  • Upper mid AUM (₹30,811 Cr).
  • Established history (18+ yrs).
  • Rating: 4★ (bottom quartile).
  • Risk profile: Moderate.
  • 5Y return: 5.68% (bottom quartile).
  • 3Y return: 7.06% (bottom quartile).
  • 1Y return: 6.86% (lower mid).
  • 1M return: 0.52% (top quartile).
  • Alpha: 0.00 (bottom quartile).
  • Sharpe: 1.24 (top 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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