Top SIP Investment Plans for Beginners in India

For beginners entering mutual fund investing, SIPs offer a structured, accessible starting point. Investors can start with low minimums and automate contributions. SIPs eliminate the need for market-timing expertise and help build long-term wealth through regular income investing.

Top SIP for Beginners

Here is a list of the top SIPs for beginners based on 5Y CAGR:

Disclaimer: Please note that the above list of the Best SIP for Beginners is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing. The data is derived from Tickertape Mutual Fund Screener and is subject to real-time updates.

Note: The data on the list of Best SIP for Beginners is from 24th June, 2026. This data is derived from the Tickertape Mutual Funds Screener.

• Plan: Growth
• Category: Equity
• 5Y CAGR: Sorted from highest to lowest

Pro Tip: You can use Tickertape’s Mutual Fund Screener to research and evaluate funds with over 50+ pre-loaded filters and parameters.

Overview of the Best Mutual Fund for SIP in India

ICICI Pru Infrastructure Fund

ICICI Pru Infrastructure Fund is an equity scheme focused on infrastructure-linked businesses such as construction, power, energy, transport, telecom, and industrial sectors. Its performance depends on capital expenditure cycles, government spending, sector demand, valuations, and company fundamentals.

Aditya Birla SL PSU Equity Fund

Aditya Birla SL PSU Equity Fund invests mainly in equity and equity-related instruments of public sector undertakings. The fund’s portfolio is linked to government-owned companies across sectors such as energy, banking, utilities, defence, infrastructure, and capital goods.

SBI PSU Fund

SBI PSU Fund invests in a diversified basket of domestic public sector undertaking stocks, along with debt and money market instruments issued by PSUs and others. Its performance depends on PSU earnings, policy changes, valuations, and sector cycles.

DSP India T.I.G.E.R Fund

DSP India T.I.G.E.R. Fund is a thematic equity fund focused on infrastructure and economic growth. It invests across sectors linked to transport, power, capital goods, construction, energy, utilities, and other areas connected to India’s development cycle.

Nippon India Power & Infra Fund

Nippon India Power & Infra Fund invests in companies linked to power, energy, infrastructure, utilities, capital goods, and related sectors. Its performance depends on infrastructure spending, power demand, policy support, project execution, valuations, and market conditions.

Canara Robeco Infrastructure Fund

Canara Robeco Infrastructure Fund is an open-ended equity scheme focused on infrastructure-related companies. It may invest across sectors such as construction, engineering, power, transport, utilities, and capital goods, depending on the fund’s portfolio strategy and market opportunities.

Invesco India PSU Equity Fund

Invesco India PSU Equity Fund focuses on equity and equity-related instruments of public sector undertakings. Its portfolio may include government-owned companies across banking, energy, power, defence, utilities, capital goods, and infrastructure-linked sectors.

Motilal Oswal Midcap Fund

Motilal Oswal Midcap Fund is an equity scheme that primarily invests in mid-cap companies. Mid-cap companies are ranked between 101st and 250th by market capitalisation and may offer exposure to emerging businesses with higher growth and volatility.

Bank of India Mfg & Infra Fund

Bank of India Manufacturing & Infrastructure Fund invests primarily in equity and equity-related securities of companies engaged in the manufacturing and infrastructure sectors. Its performance depends on industrial activity, capex cycles, demand trends, policy support, and company fundamentals.

Invesco India Infrastructure Fund

Invesco India Infrastructure Fund invests in companies linked to infrastructure and allied sectors. The portfolio may include businesses from construction, power, capital goods, transport, utilities, cement, and engineering, depending on the scheme’s investment strategy and market conditions.

What are SIPs in Mutual Funds?

A Systematic Investment Plan allows an investor to invest a fixed amount in a mutual fund at regular intervals, usually monthly. Each instalment buys units at the prevailing Net Asset Value (NAV). This process averages the purchase cost across different market conditions. SIPs support disciplined investing for individuals who earn regular income.

How to Invest in SIP for Beginners?

You can easily start to invest in the best SIP investment plan by following these steps:

• To invest in the best SIP, you can visit a mutual fund investment platform such as smallcase.
• The next step is to research and identify the SIPs that match your financial goals. Tools like the Tickertape Mutual Fund Screener can help you filter and compare funds based on parameters such as returns, expense ratio, and fund size.
• Once you shortlist the funds, visit smallcase, log in, and search for the fund by name. You can then choose the investment mode, either a one-time lump sum or a mutual fund SIP, and complete the process.

Taxation on SIP in Mutual Funds in India

Indian tax law treats each SIP instalment as a separate investment. The holding period begins from the purchase date of each instalment. The tax rate depends on the fund’s asset composition and the holding duration before redemption. FIFO (First In, First Out) applies at redemption, so the oldest units are sold first. The table below explains the applicable rules under Finance Act provisions effective for the 2025 to 26 assessment year.

Advantages of Investing in the Best SIP Investment Plan

• Growing Investor Confidence: SIPs continue to attract millions of investors across India. In 2026, monthly SIP inflows crossed ₹31,000 cr, while SIP assets under management exceeded ₹16.8 lakh cr. These figures highlight the growing confidence investors place in systematic investing as a long-term wealth-building strategy.
• Affordable Entry Point: Most SIPs allow investors to start with as little as ₹500 per month, and some funds accept even lower contributions. This low entry barrier makes mutual fund investing accessible to students, young professionals, and first-time investors.
• Rupee Cost Averaging: SIPs invest a fixed amount at regular intervals regardless of market conditions. When markets decline, investors purchase more units, and when markets rise, they acquire fewer units. Over time, this strategy can help reduce the impact of market volatility on the overall investment.
• Disciplined Wealth Creation: Regular contributions encourage a consistent investment habit. Since investments occur automatically, investors are less likely to skip contributions or make decisions based on short-term market movements.
• Long-Term Compounding Benefits: SIPs allow investors to benefit from compounding over extended periods. Returns generated on investments can earn additional returns, helping the portfolio grow faster over time. Investors who stay invested for many years often benefit the most from this effect.
• Suitable for Multiple Financial Goals: Investors can use SIPs to work towards various objectives, including retirement planning, children’s education, home purchases, and long-term wealth creation. The flexibility to align investments with specific goals makes SIPs suitable for different life stages.
• Wide Choice of Investment Options: Investors can choose from equity, debt, hybrid, index, and sector-based mutual funds based on their financial goals and risk appetite. This variety allows beginners to build portfolios that match their needs and investment horizons.

Risks of Investing in the Best SIP for Beginners in India

• No Guaranteed Returns: A SIP is only a method of investing and does not guarantee profits. The performance of the investment depends on the underlying mutual fund and prevailing market conditions.
• Exposure to Market Volatility: Equity-focused SIPs can experience fluctuations during market downturns. While SIPs help average purchase costs, investors may still see temporary declines in portfolio value during periods of market uncertainty.
• Risk of Early Withdrawal: Many beginners stop their SIPs when markets become volatile. Industry data from 2026 shows that SIP discontinuation rates remain high, indicating that some investors exit before giving their investments sufficient time to recover and grow.
• Inflation Risk: If investment returns fail to exceed inflation over the long term, the real value of accumulated wealth may decrease. Investors should consider funds that have the potential to generate inflation-beating returns based on their goals.
• Long-Term Commitment Required: SIPs generally work best when investors remain invested for several years. Those seeking quick gains may not achieve their expectations, particularly during periods of market volatility.
• Behavioural Risks: Emotional reactions to market movements often lead investors to stop SIPs, redeem investments prematurely, or frequently switch funds. Such actions can reduce the long-term benefits that SIP investing is designed to deliver.

Factors to Consider Before Investing in the SIP for Beginners in India

• Investment Objective: Every SIP is generally linked to a financial goal, whether it is wealth creation, retirement planning, higher education funding, or a future purchase. The objective often influences the type of mutual fund and investment strategy considered.
• Risk Profile of the Fund: Mutual funds carry different levels of risk depending on their underlying investments. Equity funds typically experience higher market fluctuations, while debt funds tend to be relatively less volatile. Understanding the fund’s risk profile helps place its potential returns and volatility in context.
• Investment Horizon: The length of time an investor plans to stay invested can affect the suitability of different fund categories. Longer investment horizons are often associated with greater ability to withstand market fluctuations, while shorter horizons may require a different approach.
• Historical Performance: Reviewing a fund’s performance across multiple market cycles provides insight into its consistency and behaviour during changing market conditions. Although past performance does not guarantee future returns, it remains a widely used evaluation metric.
• Expense Ratio: The expense ratio represents the annual fee charged for managing the fund. Since this cost is deducted from the fund’s assets, it can influence overall returns, particularly over longer investment periods.

Who Can Consider Investing in the Best SIP for Beginners in India?

• Salaried Individuals Starting Their Investment Journey: Those with a regular monthly income and no prior investment experience can use SIPs to begin building wealth systematically. The auto-debit cycle aligns naturally with monthly salary credits.
• Young Investors with Long Time Horizons: Investors in their 20s and early 30s have the longest compounding runway. Starting early, even with small amounts, allows time to function as the primary return driver rather than aggressive fund selection.
• Investors Moving Away from Traditional Savings Instruments: Those transitioning from fixed deposits or recurring deposits may find SIPs a structurally familiar entry point, regular fixed contributions, automated debits, and no active portfolio management required.
• Investors Without a Lump Sum to Deploy: SIPs are designed for investors who lack a large upfront corpus but can set aside a fixed amount monthly. They provide equity market access without the capital requirements of lump-sum investing.
• Investors Who Want to Build Financial Habits: Beyond returns, SIPs build savings discipline that many beginners find difficult to develop on their own. The automated structure makes them as much a behavioural tool as a financial one.

To Wrap It Up

SIPs provide beginners with an accessible and structured way to enter mutual fund investing. Low starting amounts, automation, and rupee cost averaging support long-term compounding and disciplined participation.

However, outcomes depend on fund selection, contribution size, time horizon, and consistency during market volatility. Investors who align SIPs with clear goals and review contributions periodically are better positioned to benefit over time. The focus should remain on sustaining the investment journey rather than merely starting it.

Frequently Asked Questions About the Best SIP for Beginners in India