Investing in mutual funds through a Systematic Investment Plan (SIP) is a disciplined approach to building long-term wealth. As we progress through 2025, we could see market correction of 15% to 25% across largecap, midcap and smallcap segment till few weeks back (which recovered to some extent now) which was an excellent opportunity to invest in mutual funds. Even now one can invest through SIP mutual funds to create wealth over a period of time. This article explores the Best Mutual Fund SIP Portfolios to Invest in 2025 for different investor risk profiles—conservative, moderate, and high-risk takers.
What is SIP in Mutual Funds?
A Systematic Investment Plan (SIP) allows investors to contribute a fixed amount at regular intervals, typically monthly, into mutual funds. This method promotes rupee cost averaging, mitigates market volatility, and encourages financial discipline, making it an effective tool for long-term wealth creation and achieving financial goals. Check this SIP Calculator which would tell you on the time taken to create 1 Crore with ₹ 1,000 to ₹ 5,000 monthly SIP.
Is a Single SIP Mutual Fund Portfolio Suitable for Everyone?
Investors have varying risk appetites influenced by factors such as age, income, financial goals, and market knowledge. Mutual funds cater to all types of investors, from risk-averse individuals to aggressive investors seeking high returns. We categorize SIP portfolios based on three broad risk profiles:
- Conservative Investors – Prioritize stability and safety over high returns.
- Moderate Risk Investors – Seek a balance between risk and return.
- High-Risk Investors – Aim for higher returns and are willing to take market risks.
While there are hundreds of top performing mutual funds in the last 5 to 10 years, it is not simple to filter only few funds. There are many more good funds beyond the list indicated in the article. As an example we wrote recently on 5 Mutual Fund Schemes with 5 year returns between 426% to 619%.
Best Mutual Fund SIP Portfolios for Conservative Investors (Low Risk)
Conservative investors focus on capital protection and steady returns. Hybrid funds and balanced advantage funds are suitable options.
Suggested Portfolio:
#1 – HDFC Balanced Advantage Fund
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- Investment Objective: Long-term capital appreciation and income via a mix of equity and debt.
- Returns:
- 3-Year CAGR: 20.8%
- 5-Year CAGR: 25.7%
- 10-Year CAGR: 15.2%
- 10 Year SIP Returns – CAGR 17.4%
- Risk: Suitable for investors with a low-to-moderate risk appetite seeking stability.
#2 – ICICI Prudential Balanced Advantage Fund
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- Investment Objective: Dynamic mix of equity and debt for long-term capital appreciation.
- Returns:
- 3-Year CAGR: 13.7%
- 5-Year CAGR: 17.0%
- 10-Year CAGR: 12.0%
- 10 Year SIP Returns – CAGR 12.8%
- Risk: Suitable for conservative investors preferring steady long-term returns.
#3 – Edelweiss Balanced Advantage Fund
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- Investment Objective: Stable returns through dynamic asset allocation.
- Returns:
- 3-Year CAGR: 13.0%
- 5-Year CAGR: 16.8%
- 10-Year CAGR: 11.4%
- 10 Year SIP Returns – CAGR 13.2%
- Risk: Ideal for conservative investors who seek risk-managed growth.
Best Mutual Fund SIP Portfolios for Moderate Risk Investors
Moderate risk investors seek a balance between safety and high returns. Large-cap funds are appropriate for this profile.
Suggested Portfolio:
#1 – Mirae Asset Large Cap Fund
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- Investment Objective: Capital appreciation via large-cap companies.
- Returns:
- 3-Year CAGR: 13.5%
- 5-Year CAGR: 20.7%
- 10-Year CAGR: 14.1%
- 10 Year SIP Returns – CAGR 14.7%
- Risk: Suitable for investors seeking stable growth with moderate risk.
#2 – ICICI Prudential Bluechip Fund
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- Investment Objective: Capital appreciation via well-established companies.
- Returns:
- 3-Year CAGR: 19.2%
- 5-Year CAGR: 24.8%
- 10-Year CAGR: 14.90%
- 10 Year SIP Returns – CAGR 16.8%
- Risk: Ideal for moderately conservative investors preferring steady returns.
This fund is part of our earlier article on 5 Blue-Chip Mutual Fund Recommendations for 2025.
#3 – SBI Bluechip Fund
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- Investment Objective: Long-term growth through diversified large-cap equities.
- Returns:
- 3-Year CAGR: 15.3%
- 5-Year CAGR: 22.1%
- 10-Year CAGR: 13.3%
- 10 Year SIP Returns – CAGR 14.6%
- Risk: Best for moderately risk-tolerant investors targeting blue-chip stability.
Best Mutual Fund SIP Portfolios for High-Risk Investors (Aggressive)
Aggressive investors are willing to take higher risks for potentially higher returns. Mid-cap, small-cap, and flexi-cap funds are suitable for this profile.
Suggested Portfolio:
#1 – Motilal Oswal Midcap Fund
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- Investment Objective: Growth via 30 quality mid-cap companies.
- Returns:
- 3-Year CAGR: 28.4%
- 5-Year CAGR: 37.1%
- 10-Year CAGR: 19.0%
- 10 Year SIP Returns – CAGR 22.6%
- Risk: Suitable for aggressive investors aiming for long-term capital growth.
This mutual fund is part of Best Mutual Funds Recommended by ChatGPT for 2025.
#2 – SBI Small Cap Fund
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- Investment Objective: Growth via diversified small-cap equity investments.
- Returns:
- 3-Year CAGR: 28.40%
- 5-Year CAGR: 32.25%
- 10-Year CAGR: 18.95%
- 10 Year SIP Returns – CAGR 14.6%
- Risk: Best suited for investors with high risk appetite and long investment horizons.
#3 – ICICI Prudential MidCap Fund
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- Investment Objective: Growth via mid-cap stocks with solid fundamentals.
- Returns:
- 3-Year CAGR: 19.7%
- 5-Year CAGR: 30.7%
- 10-Year CAGR: 15.6%
- 10 Year SIP Returns – CAGR 18.0%
- Risk: Ideal for those seeking aggressive returns with high market exposure.
#4 – Parag Parikh Flexi Cap Fund
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- This mutual fund is part of Best Mutual Funds to invest in 2025 as per Google Gemini AI.
- Investment Objective: Growth through diversified flexi-cap investments across market caps and geographies.
- Returns:
- 3-Year CAGR: 19.8%
- 5-Year CAGR: 28.4%
- 10-Year CAGR: 18.0%
- 10 Year SIP Returns – CAGR 20.3%
- Risk: Suitable for aggressive investors preferring diversification and global exposure.
Conclusion
Investing in mutual funds via SIP is a strategic approach to wealth creation. The optimal SIP portfolio depends on individual risk tolerance and financial objectives:
- Conservative Investors: Focus on stability through balanced advantage funds.
- Moderate Investors: Balance risk and return with large-cap funds.
- Aggressive Investors: Pursue high growth via mid-cap, small-cap, and flexi-cap funds.
Regularly review and adjust your portfolio to align with evolving financial goals and market conditions.
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