Systematic Investment Planning (SIP) is one of the most popular ways to invest in mutual funds in India. With a SIP, you invest a fixed amount regularly to buy units of a mutual fund scheme. This helps you average out the fluctuations of the market and build long-term wealth.
As we are halfway through 2026, which SIP mutual funds are best to invest in for goals 6-7 years away?
Here are some of the best-performing mutual funds in 2026 likely to give good returns over the 3-5 year period based on past trends.
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Benefits of Investing in the Best SIP Plans
Before we look at the top mutual funds to invest in, let’s understand why SIPs make for great investments:
- Rupee cost averaging: SIPs allow your money to buy more units when the market falls and fewer units when the market rises. This averages out the purchase cost over time.
- Power of compounding: Left untouched for long periods, SIPs can grow your wealth exponentially through the power of compounding.
- Disciplined investing: SIPs enforce a disciplined approach to investing a fixed amount regularly, helping you stay invested over the long term.
- Flexibility: You can start SIP with just ₹500-1000 per month. This flexibility makes it ideal for retail investors.
List of Best SIP Funds in 2026
Here are some of the best-performing mutual funds suitable for SIP investment in 2026:
| Fund Name | AUM (in Crs) | Min. Invest (₹) | Current Value (₹) | Return (p.a.) (%) | Age (in yrs) | Expense Ratio (%) |
|---|---|---|---|---|---|---|
| ICICI Prudential Infrastructure Fund | 7920 | 500 | 1347000 | 33.05 | 12 | 11.4 |
| Motilal Oswal Midcap Fund | 30401 | 500 | 1326000 | 32.4 | 11 | 0.7 |
| SBI PSU Fund | 5259 | 500 | 1308000 | 31.8 | 12 | 0.81 |
| HDFC Infrastructure Fund | 2540 | 500 | 1292000 | 31.3 | 12 | 1.02 |
| Aditya Birla Sun Life PSU Equity Fund | 5582 | 500 | 1287000 | 31 | 5 | 0.53 |
| Bandhan Infrastructure Fund | 17101 | 500 | 1261000 | 30.25 | 12 | 0.85 |
| Quant Small Cap Fund | 28205 | 1000 | 1256000 | 30.1 | 12 | 0.66 |
| Canara Robeco Infrastructure Fund | 904 | 1000 | 1251000 | 29.91 | 12 | 0.99 |
| Franklin Build India Fund | 2857 | 500 | 1255000 | 29.88 | 12 | 0.95 |
| Nippon India Power & Infra Fund | 7417 | 500 | 1242000 | 29.61 | 12 | 0.95 |
| ICICI Prudential BHARAT 22 FOF Scheme | 2358 | 1000 | 1242000 | 29.6 | 7 | 0.12 |
| DSP India T.I.G.E.R. Fund | 35319 | 500 | 1237000 | 29.45 | 12 | 0.87 |
| Nippon India Small Cap Fund | 63007 | 500 | 1220000 | 28.85 | 12 | 0.65 |
| Franklin India Opportunities Fund | 6864 | 500 | 1205000 | 28.32 | 12 | 0.95 |
| ICICI Prudential India Opportunities Fund | 28204 | 500 | 1201000 | 28.21 | 6 | 0.63 |
| Quant Infrastructure Fund | 3370 | 1000 | 1178000 | 27.36 | 12 | 0.72 |
| ICICI Prudential Dividend Yield Equity Fund | 5401 | 500 | 1169000 | 27.05 | 11 | 0.58 |
| HDFC Focused 30 Fund | 19578 | 500 | 1153000 | 26.49 | 12 | 0.61 |
| SBI Contra Fund | 45496 | 500 | 1121000 | 25.26 | 12 | 0.62 |
Disclaimer: The table above lists some of the good SIP plans in India for 2026, highlighting key details such as AUM, minimum investment, return rates and expense ratios.
This information is for educational purposes only and does not constitute any advisory.
How to Invest in the Best SIP Mutual Fund?
Nowadays, investing in SIPs are super simple. You just need to follow the below mentioned steps:
- Define Your Financial Goals
Start by identifying why you want to invest—wealth creation, retirement, buying a house, etc. Your goal will determine the type of fund you should choose.
- Assess Your Risk Appetite
Understand how much risk you can handle.
- Low risk → Debt funds
- Moderate risk → Hybrid funds
- High risk → Equity funds
- Choose the Right Mutual Fund Category
Based on your goals and risk level, select a suitable category like large-cap, mid-cap, index funds, or hybrid funds.
- Research and Shortlist Funds
Compare funds based on:
- Past performance (consistent returns, not just high returns)
- Fund manager track record
- Expense ratio
- Fund size (AUM)
- Select a Reliable Investment Platform
Choose a trusted platform or app (AMC website, broker app, or investment platforms) to start your SIP.
- Complete KYC (Know Your Customer)
Ensure your KYC is completed with valid documents (PAN, Aadhaar, bank details) before investing.
- Decide SIP Amount and Frequency
Choose an amount you can invest regularly (monthly is most common). Start small if needed and increase over time.
- Start Your SIP
Set up auto-debit from your bank account and initiate the SIP in your chosen fund.
- Monitor and Review Periodically
Track your investment every 6–12 months. Make changes only if:
- Fund performance is consistently poor
- Your financial goals change
- Stay Invested for the Long Term
SIP works best with discipline and time. Avoid stopping during market fluctuations.
Which is the Best SIP Plan to Invest: What to Look for in Mutual Funds?
Here are a few quick tips on what to analyse before you finalise a mutual fund for SIP investment:
- Past performance: Look at SIP returns over 3 years and 5 years to understand consistency.
- Portfolio: Review top 10 holdings to gauge market cap exposure and concentration risk.
- Fund manager: Check the background and capability of the fund manager managing the scheme.
- Expense ratio: A Lower expense ratio implies higher returns for investors.
- Risk profile: Assess your personal risk appetite before choosing an aggressive fund.
Factors to Consider Before Investing in the Best Funds for SIP
When thinking of investing in mutual funds through Systematic Investment Plans (SIPs), there are several things to keep in mind.
- Investment Goals – First you need to think about what you want to achieve with your investments. Are you saving for a short-term goal. Building wealth for the long term?
- Risk Appetite – Next you should consider how risk you are willing to take. Are you comfortable with high-risk investments that could give you returns or do you prefer low-risk investments?
- Mutual Fund Performance – Check how well the mutual fund has performed in the past. Look at its returns over market cycles.
- Expense Ratio – You should also consider the cost of managing the fund. A higher expense ratio can eat into your returns.
- Fund Manager Expertise – The experience and track record of the fund manager are also important. A good fund manager can make a difference in how well the fund performs.
- Asset Allocation – You should understand how the fund invests its money. Does it invest in stocks, bonds or other instruments?
- Investment Horizon – Your investment horizon is also crucial. It should match the type of fund you are investing in. For example equity funds are best for long-term investments.
- Exit Load & Lock-in Period – Some funds have penalties for withdrawing your money. Make sure you are aware of these.
- Fund Size (AUM) – The size of the fund can also be important. A larger fund may be more stable.
- Consistency Over Rankings – Finally don’t just look at the funds ranking. Check its performance over time. A fund that performs well is often a better choice than one that ranks highly but has inconsistent performance.
Conclusion
SIPs are a way to build wealth over time. They help you invest regularly and avoid the risks of market volatility. If you have goals that’re 6-7 years away you may want to consider funds like Motilal Oswal Midcap Fund and ICICI Prudential Infrastructure Fund. They have done well in the past. May offer good returns.
If you need money before your investments mature, you can consider taking a loan against your funds with Fibe Loan Against Mutual Funds. This can give you up to ₹10 lakhs instantly. You only pay interest on the amount you borrow.
FAQs on Best SIP Plans in India
Which SIP is best for the 15 years?
Motilal Oswal Midcap Fund and ICICI Prudential Infrastructure Fund are choices for 15 years. They have given returns and have reasonable costs.
What is the best investment, for 2026?
For 2026 SBI PSU Fund and Franklin Build India Fund are options. They have given returns and have low costs.
Which SIP funds have the expense ratios?
Aditya Birla Sun Life PSU Equity Fund and Motilal Oswal Midcap Fund have costs. This means more of your money works for you.
Can I invest in SIP funds with an amount?
Yes, you can start investing in SIP funds with ₹500. This makes it easy to invest even if you don’t have a lot of money.
