What is SIP | Top 10 Mutual Funds Scheme for SIP

Last Updated on July 27, 2025 by monetizedeal

Planning to start your investment journey? SIP is a wise way to grow your wealth and achieve your financial goals. SIP permits you to invest small amounts regularly to increase it over time. Compound interest grows your SIP amounts, which is like your money earning money for you. You can easily start SIP with just a few taps on your phone. The rapidly evolving financial technology landscape enables a comprehensive analysis of the best mutual fund schemes for SIPs, allowing you to make an informed choice.

There are numerous top-rated SIP options with high-tech features. To make your work easier, we have shortlisted our recommended SIP schemes with high annualised returns. These schemes aim to simplify your investment process with a detailed description of credibility. Let’s check out insights of the best Mutual fund schemes for SIP to help you reach your financial goals.

What is SIP? 

A Systematic Investment Plan (SIP) is a convenient method of investing a fixed amount of money at regular intervals. Top mutual fund schemes allow you to choose the frequency of SIP payments like yearly, monthly, or quarterly— as per your preference. Rather than investing a lump sum amount of money, SIPs allow individuals to accumulate wealth gradually with smaller investments.

It harnesses the power of cost averaging and showcases the importance of compound interest earnings. Individuals can start a SIP with a minimum amount of Rs. 500 and select the time period according to their flexibility. This disciplined approach to investing is gaining popularity with various mutual fund schemes being launched.

How to start an SIP with a Minimum Amount 

Novice and experienced investors can start an SIP (Systematic Investment Plan) with as little as Rs. 100 to Rs. 1000. All they need to do is find the right stockbroker platform, such as Zerodha, Groww, and Upstox. Let’s learn how to start SIP with Grow– check out the following points. 

1. The basic step is to complete your KYC— online or offline, with the help of basic documents like PAN card, Aadhar Card, bank details, and address proof. 
2. Open the Groww app and head to the “Mutual Funds” section to explore the best SIP options. 
3. You can click on the desired mutual fund scheme and tap on “Start SIP” with a minimum amount of Rs. 500. 
4. Set up the payment method by choosing UPI or net banking. It is necessary to complete the AutoPay mandate via OTP or E-NACH for future ease of debit. 
5. Finalize your SIP investment by tracking all details. 

Note: Your first installment may be skipped if it is scheduled in less than 30 days from the setup. You have the liberty to make modifications to your SIP through the designated section. 

Top 10 Mutual Fund Schemes for SIP

1. ICICI Prudential Focused Equity Fund Direct Growth 

It is a direct plan, a growth variant of ICICI Prudential’s Focused Equity Fund. This fund falls under the category of Flexi-cap, which means it invests in a concentrated portfolio of up to 30 stocks across large, mid-cap, and small-cap companies. Launched on January 10, 2013, this fund utilizes approximately 95.79% of the total funds. to invest in Indian companies’ shares (stocks). 

• 65.26% is in large companies (called Large Cap)
• 10.5% is in medium-sized companies (Mid Cap)
• 1.9% is in small companies (Small Cap)
• Apart from stocks, the fund has also invested 1.44% in debt. 

Fund Details	Description
Fund Size	Rs. 12,244 Crore (as of June 2025)
Minimum SIP Amount	Rs. 100
Star Rating	4
Expense Ratio	0.57% – 0.58% per year
Exit Load	1% if redeemed within 1 year
3-year Annualised Returns	31.68%

2. Motilal Oswal Midcap Fund Direct Growth 

This is a mid-cap growth option that includes a high-risk equity fund with a target of long-term capital appreciation. This standout-performing scheme carries high volatility due to its concentrated and frequently rebalanced portfolio. The mutual fund has invested 83.37% of its assets in Indian company shares. 

• 16.59% is invested in Mid-Cap stocks
• 6.83% is invested in Small Cap stocks
• 83.37% is likely invested in Large Cap stocks

Fund Details	Description
Fund Size (AUM)	Rs. 18,604.02 crore
Minimum SIP Amount	Rs. 500
Star Rating	5
Expense Ratio	0.65%
Exit Load	1% if redeemed within 1 year
3-year Annualised Returns	33.19%

3. SBI PSU Direct Plan-Growth

This mutual fund scheme invests primarily in Public Sector Undertakings (PSUs) in India — both equity and small allocation to PSU-issued debt. It follows the BSE PSU TRI benchmarks to capture growth in PSU stocks. This fund poses a very high risk with a sensitive performance. This mutual fund invests 95.33% in Indian company shares

• 60.96% is invested in Large Cap stocks
• 24.87% is in Mid-Cap stocks
• 3.2% is in Small Cap stocks

Fund Details	Description
Fund Size (AUM)	Rs. 4,703.46 crore
Minimum SIP Amount	Rs. 500
Star Rating	NA
Expense Ratio	0.77%
Exit Load	1% if redeemed within 1 year
3-year Annualised Returns	33.27%

4. HDFC Balanced Advantage Fund Direct Plan Growth

This is a hybrid dynamic allocation fund that aims to provide long-term capital appreciation. It allows the investment in stocks and allocation in bonds for stable income. It automatically adjusts the mix between equity and debt based on market conditions. It is a high-risk mutual fund with market sensitivity. It has allocated 66.68% of the fund in stocks and 27.3% of the fundin debt as safe investments.

• 43.47% is in Large Cap stocks
• 5.19% is in Mid Cap stocks
• 4.86% is in Small Cap stocks

Fund Details	Description
Fund Size (AUM)	Rs. 96,535 crore
Minimum SIP Amount	Rs. 100
Star Rating	5
Expense Ratio	0.75%
Exit Load	1% if redeemed within 1 year
3-year Annualised Returns	21.34%

5. Aditya Birla Sun Life Medium Term Plan Direct Growth

The primary objective of this mutual scheme is to generate regular income and capital appreciation. It is invested in a portfolio of debt securities with medium-term maturity. It poses moderately risk and aims to balance it by investing in a mix of government securities, corporate bonds, and other debt instruments.This mutual fund invests 92.87% in debt instruments for safer choice. 

• 25.82% in Government securities
• 63.35% in Low Risk securities

Fund Details	Description
Fund Size (AUM)	Rs. 1,920.74 crore.
Minimum SIP Amount	Rs. 1000
Star Rating	NA
Expense Ratio	0.86%
Exit Load	1% if redeemed within 1 year
3-year Annualised Returns	14.67%

6. IDBI Credit Risk Fund Direct Growth

This mutual fund has higher yield potential due to its investment in lower-rated corporate bonds. ISBI mutual funds have exposure to a mix of government securities, corporate bonds, and T-Bills. The fund aims to generate regular income by predominantly investing in AA and below-rated corporate bonds. It is a considerable option for people looking for a long-term investment with less risk. 

•  70.9% allocated to debt instruments
•  29.1% held in cash.

Fund Details	Description
Fund Size (AUM)	Rs. 23.15 crore.
Minimum SIP Amount	Not Supported
Star Rating	3
Expense Ratio	0.61%
Exit Load	1% if redeemed within 1 year
3-year Annualised Returns	10.04%

7. Bandhan Infrastructure Fund Direct Plan-Growth

This is a sectoral equity mutual funds of India. Bandhan infrastructure fund was launched on Jaunary 1, 2013 and it invests predominantly in companies that benefits from nfrastructure development in India. It can include the sectors like capital goods, construction, energy, and mining. Its benchmark is the BSE India Infrastructure Index. 92.5% of the fund’s assets are invested in Indian equities.

• 25.74% in Large Cap Stocks
• 13.58% in Mid Cap Stocks
• 38.22% in Small Cap Stocks
• 14.96% likely inCash, debt instruments, or uncategorized equity holdings

Fund Details	Description
Fund Size (AUM)	Rs. 1,749.09 Crore
Minimum SIP Amount	Rs. 100
Star Rating	3
Expense Ratio	0.84%
Exit Load	0.5%, if redeemed within 30 days.
3-year Annualised Returns	35.40%

8. Franklin Build India Fund Direct-Growth

The Franklin Build India Fund is another equity fund focused related to infrastructure related companies. It was launched in 2013 and poses very high risk rating. The fund has delivered strong long-term returns since its inception. With a high risk profile and concentrated exposure, it is suitable for investors in the long-term time horizon. It has allocated 95.81% in domestic equities.

• 57.15% in Large Cap stocks
• 18.89% in Small Cap stocks
• 7.07% in Mid Cap stocks

Fund Details	Description
Fund Size (AUM)	Rs. 2,968.30 Crore
Minimum SIP Amount	Rs. 500
Star Rating	5
Expense Ratio	0.94%
Exit Load	1% if redeemed within 1 year
3-year Annualised Returns	34.73%

9. Nippon India Small Cap Fund Direct – Growth

This equity fund scheme was launched on January 1, 2013. It is an open-ended equity mutual fund that primarily invests in small-cap stocks to generate long-term capital appreciation. It is a part of direct plan that does not involve any distributor commission and results in  lower expense ratio for investors. The fund invests 95.98% in Indian stocks. 

• 7.72% is in Large Cap stocks
• 13.02% is in Mid Cap stocks
• 45.58% is in Small Cap stocks

Fund Details	Description
Fund Size (AUM)	Rs. 66,601.80 Crore
Minimum SIP Amount	Rs. 100
Star Rating	5
Expense Ratio	0.64%
Exit Load	1% if redeemed within 1 year
3-year Annualised Returns	30.36%

10. Invesco India Smallcap Fund Direct – Growth

This equity mutual fund invests in small-cap stocks to generate long-term capital appreciation. It was launched on 30 October 2018 and follows the direct plan model, which does not involve distributor commissions. The returns on this fund indicate its potential for high long-term gains, along with significant short-term volatility.The fund invests 97.39% of its money in domestic stocks

• 4.57% is in Large Cap stocks
• 9.8% is in Mid-Cap stocks
• 36.56% is in Small Cap stocks

Fund Details	Description
Fund Size (AUM)	Rs. 7,424.64 Crore
Minimum SIP Amount	Rs. 500
Star Rating	5
Expense Ratio	0.40%
Exit Load	1% if redeemed within 1 year
3-year Annualised Returns	32.53%