Top 5 Mutual Fund SIPs to Invest in January 2025 – Expert’s Ultimate Choice

Investing in mutual funds through Systematic Investment Plans (SIPs) is an excellent way to grow your wealth over time. SIPs allow you to invest small amounts regularly, making it easier to achieve your financial goals without putting a strain on your budget. We have compiled a list of the best mutual fund SIPs to invest in January 2025 to help you make an informed decision based on your risk profile, investment horizon, and financial goals.

Benefits of Starting a SIP

SIPs are a disciplined way to invest in mutual funds. They help mitigate market volatility through rupee cost averaging and encourage the habit of regular savings. Whether you are a conservative investor or someone willing to take risks for higher returns, there is a SIP portfolio tailored to your needs.

Here are the top mutual fund SIPs to invest in January 2025 based on their 1-year, 3-year, and 5-year returns

Top 10 Mutual Fund SIPs for January 2025

Mutual Fund SIP Scheme Name	1- Year Return (%)	3- Year Return (%)	5-Year Return (%)	Category
Motilal Oswal Mid Cap Fund	57.69%	35.11%	33.27%	Mid Cap Fund
LIC MF Infrastructure Fund	47.99%	32.44%	27.70%	Thematic Fund
HDFC Mid-Cap Opportunities Fund	28.17%	27.73%	28.81%	Mid Cap Fund
Bandhan Small Cap Fund	43.16%	27.55%	–	Small Cap Fund
Motilal Oswal ELSS Tax Saver Fund	47.57%	27.51%	24.39%	ELSS Fund
Invesco India Infrastructure Fund	33.34%	27.40%	30.05%	Thematic Fund
Motilal Oswal Large and Midcap Fund	45.80%	27.18%	26.62%	Large & Mid Cap Fund
JM Flexi Cap Fund	33.39%	26.43%	24.48%	Flexi Cap Fund
Nippon India Small Cap Fund	26.27%	26.24%	35.11%	Small Cap Fund
Nippon India Multicap Fund	25.89%	25.78%	24.27%	Multi Cap Fund

Motilal Oswal Mid Cap Fund

Motilal Oswal Mid Cap Fund is a ₹22,897.62 crore mid-cap mutual fund SIP with an expense ratio of 1.62%, lower than the category average. This mutual fund SIP invests 99.39% in domestic equities, with 10.59% in large-cap stocks, 12.71% in mid-cap stocks, and 20.9% in small-cap stocks. This fund is suitable for investors looking to stay invested for 3-4 years to achieve high returns, while being prepared for moderate losses due to market volatility.

LIC MF Infrastructure Fund

With an AUM of ₹852.07 crore, LIC MF Infrastructure Fund focuses on the infrastructure sector, allocating 94.61% to domestic equities, including 9.22% in large-cap stocks, 19.93% in mid-cap stocks, and 34.97% in small-cap stocks. The mutual fund SIP has an expense ratio of 2.3%, slightly above the category average. It is ideal for investors with a deep understanding of macroeconomic trends, willing to take selective, high-risk bets for potentially higher returns.

HDFC Mid-Cap Opportunities Fund

HDFC Mid-Cap Opportunities Fund is a top mid-cap offering with a sizeable AUM of ₹76,060.89 crore and a competitive expense ratio of 1.39%. It allocates 91.77% to domestic equities, with 7.51% in large-cap stocks, 48.52% in mid-cap stocks, and 15.48% in small-cap stocks. This mutual fund SIP is suitable for investors with a medium to long-term horizon of 3-4 years, seeking high returns and prepared for moderate market risks.

Bandhan Small Cap Fund

Bandhan Small Cap Fund boasts an AUM of ₹9,248.28 crore and an expense ratio of 1.72%. It primarily invests in domestic equities within the small-cap category, making it ideal for investors with a higher risk appetite and a long-term perspective. This fund is perfect for those looking for significant growth potential and willing to endure market fluctuations.

Motilal Oswal ELSS Tax Saver Fund

Motilal Oswal ELSS Tax Saver Fund, with an AUM of ₹4,186.93 crore and an expense ratio of 1.83%, is designed for investors seeking tax-saving benefits alongside equity returns. The fund invests 98.81% in domestic equities, with 8.45% in large-cap stocks, 13.97% in mid-cap stocks, and 33.57% in small-cap stocks. It is best suited for investors with a minimum 3-year horizon, aiming for wealth creation while benefiting from tax deductions under Section 80C.

Invesco India Infrastructure Fund

With a fund size of ₹1,609.31 Cr and an expense ratio of 2.08%, this mutual fund SIPs allocates 97.95% of its assets to domestic equities, including 19.6% in large-cap, 23.53% in mid-cap, and 25.18% in small-cap stocks. It is ideal for investors with advanced knowledge of macro trends who prefer taking selective bets for higher returns. However, they should be prepared for moderate to high losses, even when the broader market performs well.

Motilal Oswal Large and Midcap Fund

This fund has a size of ₹7,710.01 Cr and a slightly lower expense ratio of 1.77%. It invests 97.07% in domestic equities, split into 8.61% in large-cap, 13.03% in mid-cap, and 35% in small-cap stocks. Suitable for investors seeking high returns over a 3-4 year horizon, it carries the possibility of moderate losses, aligning with its long-term growth potential.

JM Flexi Cap Fund

With a corpus of ₹5,012.19 Cr and an expense ratio of 1.81%, this mutual fund SIPs invests 98.93% in domestic equities, distributed across 38.17% in large-cap, 9.88% in mid-cap, and 22.25% in small-cap stocks. It caters to investors aiming for high returns with a flexible equity allocation. A minimum 3-4 year investment horizon and readiness for moderate losses are prerequisites.

Nippon India Small Cap Fund

Managing a sizable ₹61,646.36 Cr and maintaining a low expense ratio of 1.43%, this mutual fund SIPs focuses 95.02% of its portfolio on domestic equities, with 6.77% in large-cap, 11.19% in mid-cap, and 49.94% in small-cap stocks. It is designed for investors seeking very high returns over a 3-4 year period while being prepared for significant fluctuations and potential losses.

Nippon India Multicap Fund

With a robust mutual fund SIPs size of ₹39,000.8 Cr and an expense ratio of 1.55%, this multi-cap mutual fund SIPs invests 98.8% in domestic equities. Its allocation includes 35.41% in large-cap, 21.13% in mid-cap, and 20.24% in small-cap stocks. Suitable for long-term investors seeking high returns over at least 3-4 years, it also requires an appetite for moderate risks associated with diversified equity investments.

How to Choose the Right SIP Portfolio

To select the best mutual fund SIPs for your needs, consider the following factors:

Investment Objective: Align your SIP Investments with your financial goals, whether it’s retirement, buying a house, or funding education.
Risk Profile: Understand your risk tolerance before investing in any category.
Time Horizon: Longer investment durations are better suited for equity-oriented Mutual fund SIPs, while shorter durations might require debt-heavy Mutual fund SIPs.

Conclusion

January 2025 is an excellent time to start or review your Mutual Fund SIP investments. By carefully selecting mutual fund SIPs aligned with your goals and risk appetite, you can make the most of your financial journey. Whether you’re a conservative, moderate, or aggressive investor, the above portfolios cater to diverse needs.

Make your SIP journey seamless by leveraging the best SIP platform and tools like a SIP calculator. Start investing today to secure a financially sound future!