Top SIP Plans for Millennials and Gen Z in 2025
As the clock ticks into 2025, you need to plan your finances thoughtfully. For Millennials and Gen Z, mutual funds are the best choice for balancing risks and returns. Additionally, it allows you to invest in SIPs, which help you plan your budget efficiently.
Interestingly, a recent survey indicates that 59% of Gen Z have set up five-year financial plans, significantly outpacing the 40% of Millennials doing the same despite facing economic challenges.
However, the question is, which are the best mutual funds for Millennials and Gen Z? To answer this, let us explore them in the guide here.
5 Best SIP Plans for Millennials and Gen Z
Investing in the best mutual funds for SIP requires a clear understanding of potential returns and associated risks. Choosing funds that align with your goals and risk appetite is crucial. Hence, you must check past performance, too. Based on this, the top 5 SIP plans are here.
| SIP Plan | AUM (in ₹ Cr.) (as of 02-01-2025) | NAV (in ₹) (as of closing 02-01-2025) | 1-Year Return (%) | 5-Year Return (%) |
| Quant Small Cap Fund | 27160.76 | 280.59 | 26.54 | 47.92 |
| Motilal Oswal Midcap Fund | 22897.6 | 128.27 | 59.49 | 33.84 |
| Edelweiss Small Cap Fund | 4,373.58 | 49.43 | 29.75 | 33.54 |
| Tata Small Cap Fund Direct | 9,572.45 | 46.83 | 37.02 | 35.25 |
| HDFC Small Cap Fund Direct | 33,841.90 | 157.50 | 24.41 | 31.44 |
1. Quant Small Cap Fund
The fund’s portfolio aims to provide long-term growth opportunities through strategic market positioning by investing in small-cap companies. It aligns with the NIFTY SMALL CAP 250 TRI as its benchmark index. The fund invites new investors for SIPs starting at ₹1000. It maintains a flexible exit load of 1% if the investment is withdrawn within one year.
2. Motilal Oswal Midcap Fund
This fund invests in quality mid-cap companies with strong growth potential and competitive advantages. It follows the benchmark index of Nifty Midcap 150 TRI. The minimum SIP is ₹500, and an exit load of 1% if redeemed before a year. Managed by an expert team, the fund provides growth and IDCW options, making it a strategic choice for investors.
3. Edelweiss Small Cap Fund
It focuses on long-term capital appreciation by investing in quality small-cap companies with high growth potential. With a minimum SIP of ₹100, it offers growth and IDCW options. It follows a disciplined approach, avoiding low-quality businesses and prioritizing due diligence. With very high risk and a history of strong performance, it suits investors seeking exponential growth opportunities.
4. Tata Small Cap Fund Direct
It focuses on long-term capital growth by investing in small-cap businesses with strong profitability, cash flow, and reasonable valuations. With an expense ratio of 0.34%, it offers SIPs starting at ₹100. The fund aims to minimize risks while maximizing growth potential through a disciplined, bottom-up stock selection approach.
5. HDFC Small Cap Fund Direct
This fund focuses on long-term capital growth by investing in small-cap companies with strong financials, sustainable business models, and growth potential. The portfolio includes a mix of sectors like healthcare, IT, and infrastructure while avoiding high-risk global commodities. With a disciplined stock selection process and a minimum SIP investment of ₹100, this fund is ideal for investors seeking diversified exposure and steady returns in the small-cap segment.
Conclusion
Investing in SIPs is a great way to build wealth and secure your financial future. Using a mutual fund investment app makes this process even easier for Millennials and Gen Z. These apps provide a hassle-free way to explore top-performing funds, set up automated SIPs, and track your investments anytime, anywhere.
With flexible options and tools to compare funds, these apps empower you to make informed financial decisions and stay on top of your goals. Start investing today and take a step closer to achieving your dreams with the convenience of these modern investment platforms.