10 Best SIP Plans for Beginners
Investing in mutual funds through Systematic Investment Plans (SIP) is one of the smartest ways for beginners to enter the world of wealth creation. But with thousands of funds available, how do you pick the best one? 🤔
If you’re a beginner looking for the best SIP plans in 2025, you’re in the right place! This detailed guide will walk you through the top-performing SIP mutual funds, their returns, risk levels, and expert insights to help you make informed decisions.
Let’s dive deep into the best SIP plans for beginners, backed by data, expert recommendations, and key factors to consider before investing.
Best SIP Plans for Beginners
| Fund Name | Category | 3-Year Annualized Returns | Minimum SIP Amount | Risk Level |
|---|---|---|---|---|
| IDBI Small Cap Fund Direct Growth | Equity | 39.12% | ₹500 | Very High |
| SBI PSU Direct Plan Growth | Equity | 37.89% | ₹500 | Very High |
| Motilal Oswal Midcap Fund Direct Growth | Equity | 36.89% | ₹500 | Very High |
| Aditya Birla Sun Life Medium Term Plan Direct Growth | Debt | 14.53% | ₹1,000 | Moderately High |
| Bank of India Short Term Income Fund Direct Growth | Debt | 14.06% | ₹1,000 | Low to Moderate |
| IDBI Credit Risk Fund Direct Growth | Debt | 10.08% | N/A | Low to Moderate |
| JM Aggressive Hybrid Fund Direct Growth | Hybrid | 24.88% | ₹100 | Very High |
| HDFC Balanced Advantage Fund Direct Plan Growth | Hybrid | 23.52% | ₹100 | Very High |
| Quant Multi Asset Fund Direct Growth | Hybrid | 21.98% | ₹1,000 | High |
10 Best SIP Plans for Beginners
1 IDBI Small Cap Fund Direct Growth – High Growth Potential
Why Consider This SIP Plan?
The IDBI Small Cap Fund is one of the highest-returning SIP funds for beginners, offering 39.12% annualized returns over 3 years. This fund focuses on high-growth small-cap stocks, making it suitable for investors willing to take high risks for high rewards.
Key Features & Performance
- AUM: ₹370.18 crore
- Equity Allocation: 97.5% in stocks, 2.5% in cash
- Top Holdings: Elgi Equipments, KEI Industries, Tube Investments of India
- Risk Level: Very High
- Expense Ratio: 1.39%
Who Should Invest?
If you have a long-term horizon (7+ years) and high-risk tolerance, this fund can deliver significant growth potential.
2 SBI PSU Direct Plan Growth – The Best PSU Focused SIP
Why Consider This SIP Plan?
With 37.89% annualized returns, this fund invests in Public Sector Undertakings (PSUs), which are known for their strong fundamentals and government backing.
Key Features & Performance
- AUM: ₹4,703.46 crore
- Equity Allocation: 93.9% stocks, 6.1% in cash
- Top Holdings: State Bank of India, Power Grid, GAIL India
- Risk Level: Very High
- Expense Ratio: 0.74%
Who Should Invest?
If you believe in the growth of India’s PSU sector, this SIP offers strong stability and long-term wealth creation.
3 Motilal Oswal Midcap Fund Direct Growth – Best Midcap Fund for SIP
Why Consider This SIP Plan?
With 36.89% returns, this fund focuses on midcap stocks, offering a balance between growth and risk.
Key Features & Performance
- AUM: ₹18,604.02 crore
- Equity Allocation: 99.4% stocks, 0.6% cash
- Top Holdings: Polycab India, Coforge, Kalyan Jewellers
- Risk Level: Very High
- Expense Ratio: 0.54%
Who Should Invest?
If you want high returns with moderate risk, midcap funds can be an excellent choice for your SIP investments.
4 Aditya Birla Sun Life Medium Term Plan Direct Growth – Best Debt Fund for Beginners
Why Consider This SIP Plan?
This debt fund provides stable returns with lower risk—perfect for conservative investors.
Key Features & Performance
- AUM: ₹1,981 crore
- Debt Allocation: 87.5% in bonds, 7.8% in cash
- Top Holdings: Adani Airport Holdings, CreditAccess Grameen
- Risk Level: Moderately High
- Expense Ratio: 0.85%
Who Should Invest?
If you want steady, risk-free returns with low volatility, this fund is a solid SIP choice.
5 Bank of India Short-Term Income Fund Direct Growth – Best Low-Risk SIP Option
Why Consider This SIP Plan?
A good choice for low-risk investors, offering 14.06% returns with a short duration focus.
Key Features & Performance
- AUM: ₹70.71 crore
- Debt Allocation: 82.6% in debt, 17.4% in cash
- Top Holdings: Power Finance Corporation, SIDBI, Canara Bank
- Risk Level: Low to Moderate
- Expense Ratio: 0.50%
Who Should Invest?
If you’re a beginner looking for safe, stable investments, this fund is a great option.
6 IDBI Credit Risk Fund Direct Growth – Low-Risk SIP with Decent Returns
Why Consider This SIP Plan?
This debt fund focuses on government securities and corporate bonds, delivering 10.08% returns with low risk.
Key Features & Performance
- AUM: ₹23.15 crore
- Debt Allocation: 70.9% in bonds, 29.1% in cash
- Top Holdings: Treasury bills, Government Securities
- Risk Level: Low to Moderate
- Expense Ratio: 0.61%
Who Should Invest?
Perfect for risk-averse investors looking for consistent and predictable returns.
7 JM Aggressive Hybrid Fund Direct Growth – Balanced Risk & Reward
Why Consider This SIP Plan?
This hybrid fund invests in both equity (75%) and debt (19.1%), offering a balanced growth strategy.
Key Features & Performance
- AUM: ₹642.94 crore
- Equity Allocation: 75%, Debt: 19.1%, Cash: 5.9%
- Top Holdings: HDFC Bank, Infosys, Bharti Airtel
- Risk Level: Very High
- Expense Ratio: 0.66%
Who Should Invest?
Best for investors who want growth but also need stability from debt investments.
8. HDFC Balanced Advantage Fund Direct Plan Growth
The HDFC Balanced Advantage Fund Direct Plan Growth is a solid pick for those looking to balance their investment risk while aiming for consistent returns. With a 3-year annualized return of 23.52%, this hybrid fund has been a strong contender for both beginner and experienced investors. The fund focuses on a mix of equity and debt securities, offering a diversified approach to mitigate risks.
Key Details:
- AUM: ₹96,535 crore
- Equity Allocation: 53.3%
- Debt Allocation: 29.9%
- Cash Holding: 15.3%
- Expense Ratio: 0.75%
- Minimum SIP: ₹100
Storytelling: How HDFC Balanced Advantage Fund Works
Imagine a financial scenario where you’re looking for a fund that can weather the volatility of the market while still providing a chance for high returns. Enter HDFC’s Balanced Advantage Fund. This fund is strategically designed for investors who are keen on both equity’s growth potential and debt’s stability.
If you had invested ₹10,000 in this fund three years ago, you’d have seen your investment grow by over 23%. While the equity portion (53.3%) took on the higher risk, it paid off with higher returns. The debt portion (29.9%) helped cushion the falls during market downturns. A well-rounded strategy for investors looking for long-term growth without too much volatility.
Why It’s Recommended for Beginners: With a relatively low expense ratio and a minimum SIP of ₹100, the HDFC Balanced Advantage Fund offers an affordable way to diversify your portfolio. The mix of equity and debt can give you the best of both worlds—capital growth with a safety net.
9. Quant Multi Asset Fund Direct Growth
The Quant Multi Asset Fund Direct Growth is another noteworthy hybrid fund for beginners. The fund diversifies across three different asset classes: equity, debt, and cash. With a 3-year annualized return of 21.98%, it provides a balanced exposure to high-risk and low-risk assets.
Key Details:
- AUM: ₹2,983.94 crore
- Equity Allocation: 52.7%
- Debt Allocation: 8.4%
- Cash Holding: 26.1%
- Expense Ratio: 0.62%
- Minimum SIP: ₹1,000
Storytelling: Diversification at Its Best
The Quant Multi Asset Fund believes in spreading risk. By investing in equity, debt, and cash (treasury bills), the fund aims to reduce the impact of market volatility. For instance, during periods of equity market downturns, the cash holdings help stabilize the returns, giving investors a more consistent growth experience.
Let’s say you were to invest ₹5,000 every month. After three years, your investment in the Quant Multi Asset Fund would have grown steadily, with solid returns from the equity portion but protected during market slumps by the cash reserves.
This fund is ideal for new investors who might feel uncertain about investing all in equities. It helps in managing risk through diversified assets while giving a good opportunity for growth through equity investments.
10. Aditya Birla Sun Life Medium Term Plan Direct Growth
The Aditya Birla Sun Life Medium Term Plan Direct Growth focuses on delivering returns via debt securities primarily. With a more conservative approach, the fund has an annualized return of 14.53% over the past three years.
Key Details:
- AUM: ₹1,981 crore
- Debt Allocation: 87.5%
- Cash Holding: 7.8%
- Expense Ratio: 0.85%
- Minimum SIP: ₹1,000
Storytelling: Safe and Steady Growth
For a beginner looking for a relatively safe investment, the Aditya Birla Sun Life Medium Term Plan stands out. While it’s not as aggressive as equity-based funds, its debt-heavy portfolio helps safeguard your investment from high market volatility.
If you had invested ₹10,000 per month over the past three years, this plan would have provided steady returns with less fluctuation, making it a great choice for cautious investors. The debt allocation of 87.5% makes it more stable but still offers consistent returns over time. It’s the perfect choice if you’re just beginning your investment journey but still want growth.
Why It’s Ideal for Beginners: For those new to investing, debt funds are a good place to start. They tend to offer more stability and less risk compared to equities. With a minimum SIP of ₹1,000, this fund provides an excellent entry point for cautious investors who want to grow their wealth with less market risk.
11. IDBI Credit Risk Fund Direct Growth
The IDBI Credit Risk Fund Direct Growth is another debt-oriented fund but with a focus on credit risk securities, making it slightly more volatile than other purely debt funds. This fund aims to generate higher returns than traditional debt funds by investing in credit-rated securities that carry a bit more risk. The 3-year annualized return stands at 10.08%, which is decent considering its high risk.
Key Details:
- AUM: ₹23.15 crore
- Debt Allocation: 70.9%
- Cash Holding: 29.1%
- Expense Ratio: 0.61%
- Minimum Investment: Not Supported
Storytelling: The Trade-Off Between Risk and Reward
The IDBI Credit Risk Fund is suitable for investors who are looking to take on a little more risk in their debt investments to gain higher returns. With a portfolio that focuses on corporate debt and government securities, it provides returns that are above the norm for traditional debt funds.
Imagine you invested ₹5,000 each month. You could have seen a decent return over the past three years, though there might have been fluctuations due to the riskier nature of the fund’s holdings. However, this fund could be the right fit for an investor who is just starting but still wants to explore opportunities in the credit market for higher returns.
