Best SIP Plans to Invest in 2025 - ICICI Bank

Investing can often seem like a difficult task, especially for people who are new to Mutual Funds and Systematic Investment Plans (SIPs). This blog will give you an idea about SIPs and guide you in selecting the best plans for 2025. It is crucial to develop an understanding about SIPs for long-term financial planning, such as retirement and this article will serve as a comprehensive guide for both new and experienced investors.

What is SIP and How it works

SIP, or Systematic Investment Plan, is a popular way for beginners to start investing in mutual funds. It means investors can invest a fixed amount at regular intervals of time, generally monthly or quarterly. It is best suited for people who are looking to start their investment journey and trying to build wealth, planning for retirement, or have a set financial goal in mind.

SIP is a regular investing style in various investment instruments such as stocks and mutual funds. Most finance experts recommend it as one of the affordable and convenient ways to start investing in mutual funds. When you invest in small amounts every month, you have the opportunity to overcome any market volatility that might occur over time. 

Best SIP plans for 2025

For 2025, following are the two notable SIP plans that stand out:

ICICI Prudential Smallcap Fund

It is an equity Mutual Fund that focuses on investing in small-cap companies to achieve long-term capital appreciation. Since its inception, the fund has delivered a Compound Annual Growth Rate (CAGR) of approximately 13.51%.

ICICI Prudential Technology Fund

It is one of the ICICI Prudential best SIP options. The fund focuses on long-term capital growth through investments in equity and related securities of technology and tech-driven companies. With a CAGR of 13.16% since inception, the fund offers potential for investors aiming to capitalise on the growth and innovation in the technology sector.

ICICI Prudential ELSS Tax Saver Fund

This fund focuses on long-term wealth creation through investments in equity and related securities. It additionally offers tax benefits under Section 80C of the Income Tax Act, 1961. With a strong CAGR of 19.44% since inception, it’s the best SIP in ICICI Prudential Mutual Fund for those seeking growth and savings.

ICICI Prudential Regular Gold Savings Fund

It is a fund-of-funds scheme that provides an opportunity to invest in gold through units of the ICICI Prudential Gold ETF. It is one of ICICI Prudential best SIP options for diversification. With a CAGR of 6.91% since its inception, the fund aims to offer stable returns while helping investors diversify their portfolios with a focus on gold-backed assets.

Factors to consider before choosing the Best SIP to invest in 2025

Before diving into SIP investment, several factors need to be taken into consideration:

• Investment goals: Your financial goals will dictate the type of SIP suitable for you. For instance, Equity Funds might be better for the long-term growth, while Debt Funds could be suitable for short-term goals.

• Risk tolerance: Your comfort with risk influences the fund choice. Higher risks (Equity Funds) may offer higher returns, whereas lower risks (Debt Funds) provide more stability.

• Time horizon: The duration of your investment plays a critical role. Longer investment horizons can afford more risk, as there is time to recover from the market downturns.

• Fund performance: Evaluating the past performance of a fund, although not a guarantee of future results, can provide insights into its management and strategy.

Benefits of investing in the best SIP plans

Here are a few key benefits of investing in SIPs:

An ideal way of Investing

SIPs are said to be a disciplined way of investing in mutual funds. Investing in SIPs every month gives you the freedom to take control of your finances and save a set amount of money monthly for investment.

Start Small

The best part of SIP investment is that anyone can do it. Newcomers to the investment journey can start small, with amounts as low as Rs 500 per month. This eases the burden on your pocket while getting you ready for investments.

Less Dependent on Market Volatility

Another perk of SIP investment is that with low monthly amounts, you do not need to worry much about market fluctuations.

Compounding Benefits

It is essential to understand that the monthly returns from SIP investments are reinvested in your investment amount until it matures. This compounding process helps grow your funds.

How to pick the best mutual funds for SIP to invest

Investing in mutual funds is a popular way to invest your money to earn profits. It will help you in the long run and benefit you. However, choosing the best Mutual fund to invest in is quite tricky with many types of funds in the market. Go through the below factors and learn how to choose the best mutual funds in India :

Know Your Investment Objective

The first factor to consider is your investment objective. Every mutual fund has an objective based on a set of strategies. You must decide what are the right strategies and objectives for you, and then proceed with the investment.

Risks and Benefits 

Each mutual fund provides various types of risks and associated benefits. Each type has a unique set of returns, and it is important to choose the one that aligns well with your risk profile. Investors can make decisions by analysing the returns and risks.

Investment Target 

You have to understand your investment goal and why you are buying the mutual fund, whether it is for tax savings or capital appreciation. Once you understand that, decide which mutual fund type you prefer.

Overview of Best Mutual Funds for SIP 2025

Here is an overview of the top Mutual Funds to invest through SIP in 2025:

1. ICICI Prudential Nifty Next 50 Index Fund Direct Growth

This option is ideal for individuals seeking exposure across a variety of cap stocks. The fund mirrors the Nifty Next 50 index, comprising companies following the 50 companies ranked just after the Nifty 50. It serves as a good selection for SIP since it provides cost-effective diversification among 50 prominent large and mid-sized corporations.

2. ICICI Prudential Bluechip Fund Direct Growth

If you are in search of an established large-cap fund for your investments in 2025 through SIPs, then the ICICI Prudential Bluechip Fund stands out as a top choice. This fund primarily directs its investments towards blue-chip companies known for their strong financial performance over the years. It emphasises stability and long-term growth prospects for investors, capital appreciation needs, and a balanced strategy towards equity investment options provided by the market.

3. IDBI Small Cap Fund Direct Growth

The IDBI Small Cap Fund suits investors who are comfortable with risks and looking for the chance to earn high returns. Small-cap stocks are recognised for their nature and also offer opportunities for significant expansion. Historically, this fund has shown decent performance by focusing on small-cap companies with growth prospects.

4. SBI PSU Direct Plan Growth

If you are considering investing in Public Sector Undertakings or PSUs, then the SBI PSU Direct Plan is a great option to look forward to. This fund primarily focuses on equity investments in PSUs that tend to gain from government policies and economic reforms, an approach that blends growth opportunities with stability effectively. The fund has shown performance, with returns hovering around 37. 89%, making it an attractive choice for diversifying your SIP portfolio.

5. Motilal Oswal Midcap Fund Direct Growth

Investors looking into mid-cap funds can find a good balance of risk and returns with the Motilal Oswal Midcap Fund. The notable choice in this category primarily targets companies displaying robust growth prospects. The fund has shown a return rate of 36.89%, consistently surpassing other mid-cap funds. This makes it an attractive choice for SIP investors seeking opportunities in upcoming companies with the potential to become market leaders in the future.

6. Aditya Birla Sun Life Medium Term Plan Direct Growth

Aditya Birla Sun Life Medium Term Plan in Direct Growth is rated as number 6 in its category.

If you prefer a diversified strategy in your investment approach then consider the Aditya Birla Sun Life Medium Term Plan. It is a mix of debt and equity investments. This fund emphasises medium-term debt securities, making it a secure choice for investors seeking returns (approx. 14.53%). It's a good option for SIP investors seeking stability paired with high growth opportunities. 

How to invest in the best SIP plans 

Here’s how you can invest in the best SIP plans in India:

Choose a mutual fund  

Begin with choosing the best SIP to invest in. To do so, you can research and compare various data to select the SIP that suits your financial goals, risk tolerance, and fund performance. 

Select the frequency of investment  

Next, choose the frequency of your SIP investment. The most common frequency chosen is a monthly SIP plan because it is convenient and easier for investors to pay out monthly.

Set up the SIP with a mutual fund plan

If you are a first-time investor, complete the KYC details, enter your bank details, and complete the SIP contribution and frequency details. Once you have chosen your mutual fund plan, complete the investment and submit it.

Since this is an auto-debit process, the chosen SIP amount will be deducted from your bank account every month and you will get the notifications accordingly. 

By being mindful of these common mistakes, investors can make informed decisions, leading to a more effective and rewarding SIP investment experience.

In summary, choosing the right SIP in 2025 depends on various factors, including your financial goals, risk tolerance and investment horizon. By understanding these elements and avoiding common pitfalls, you can make informed decisions that align with your long-term financial objectives.