Top Trending SIPs in India (2025): Best Mutual Fund Picks for Long-Term Wealth Growth

Discover the latest trending SIPs (Systematic Investment Plans) in India for 2025, featuring high-performing mutual funds across small-cap, mid-cap, flexi-cap, and thematic categories. This guide covers top funds like Quant Small Cap, Parag Parikh Flexi Cap, and Motilal Oswal Midcap, along with expert tips on step-up SIPs, performance reviews, and smart investing strategies for long-term wealth creation.

🧭 Why SIPs Are Gaining Momentum Now

• Rupee-cost averaging continues to attract investors—buying more units when markets are lower and fewer when prices surge.

• Compounding and disciplined investing are fueling long-term wealth creation through steady growth.

• Monthly SIP AUM jumped to ₹14.61 lakh crore in May 2025, with inflows of ₹26,688 cr that month alone.

• Source: The Financial Express

🚀 Trending Equity SIP Categories & Top Picks

1. Small‑Cap/Specialty Growth

• Quant Small Cap Fund: 5Y CAGR ~46%, consistently outperforming its benchmark. Investors love its high-risk, high-reward profile.

• Bandhan Small Cap Fund: 3Y CAGR ~37.5%, AUM ₹11,744 cr

• Nippon India Small Cap Fund: AUM ₹63,000 cr, 5Y CAGR ~37.2%

2. Mid‑Cap & Large‑Mid Cap

• Motilal Oswal Midcap Fund: 5Y CAGR ~36–37%, AUM ₹30,400 cr; highly rated in multiple rankings

• Motilal Oswal Large & Mid Cap Fund: 5Y returns ~34%, blending stability and growth

• Invesco India Midcap Fund and Edelweiss Mid Cap Fund: 3Y CAGR ~34–35%

3. Flexi‑Cap & Multicap

• Parag Parikh Flexi Cap Fund: Among the elite 17 funds delivering over 20% XIRR on 10‑year SIPs. 5Y CAGR ~21–23%

• Quant Flexi Cap Fund: 5Y CAGR ~33%

• Kotak Equity Opportunities Fund: 5Y CAGR ~24.9%, robust AUM; noted as a solid large & mid-cap performer.

📈 Sectoral & Thematic SIPs on the Rise

• Quant Infrastructure Fund: 5Y CAGR ~41.3%, driven by India’s infrastructure push.

• ICICI Prudential Infrastructure Fund: 5Y CAGR ~37.4%, AUM ~₹8,000 cr

• HDFC Infrastructure Fund: 5Y CAGR ~35–36%.

🧾 Elss / Tax‑Saving SIPs to Watch

• Tata ELSS Fund: Long-standing favorite with tax‑saving angle; Tata ELSS among Tata’s SIP performers.

• SBI Magnum Tax Gain Fund: 1Y returns ~40%; ideal for Section 80C planning

Also Read: FPIs Exit Indian Market with ₹94,000 Crore Outflow in October, Driven by Rising Valuations and Chinese Investment Appeal

💡 Smart SIP Strategy: Step‑Up SIPs

Instead of static amounts, Step‑Up SIPs periodically increase your investment—e.g., +10% annually. This harnesses both rupee-cost averaging and compounding pushes as income rises, and is gaining popularity

🗓️ Most Recommended SIPs – July 2025 Summary

✅ SIP Tips for Investors

1. Review performance annually, and exit underperformers—then top up stronger ones

2. Set up Step‑Up SIPs—+10% annual increments help optimize returns.

3. Match SIPs to goals and risk appetite—small/mid for 10+ year wealth goals, infrastructure for high-conviction themes, ELSS for tax savings.

4. Avoid overconcentration—blend stable large/mid funds with higher-growth small or thematic allocations.

🔚 Final Word

SIPs remain central to the portfolios of Indian investors. Equity funds—especially small-cap, mid-cap, and flexi-cap—and thematic options, such as infrastructure, continue to trend in 2025. Combining these with strategies like Step-Up SIPs, periodic reviews, and smart allocation builds a resilient, goal-aligned investment portfolio.

📌 Risk Disclosure for SIP and Mutual Fund Investments

Investing in mutual funds through Systematic Investment Plans (SIPs) is subject to market risks. The value of your investment may fluctuate due to changes in market conditions, interest rates, and other economic factors. Past performance of mutual funds is not indicative of future returns.

Investors are advised to:

• Read all scheme-related documents carefully before investing.

• Understand their investment goals, risk tolerance, and financial situation.

• Note that small-cap, mid-cap, and sectoral/thematic funds tend to be more volatile and may carry higher risk than large-cap or diversified funds.

• Be aware that mutual fund investments are not guaranteed or insured by any government agency.

We do not offer investment advice or recommendations. Please consult a certified financial advisor before making any investment decisions.