Investor's Top Mutual Fund Pick for 2025 – Expert Advice by Varun Hiremath:
If you are curious about the fact that, where most of the investors are putting their money in the year of 2025? You have reached the right place! After reviewing the trends of the mutual funds in March 2025, we've uncovered some key findings. It is quite significant to consider how the exiting and new favorites of the investors transform your investment strategy as investors continue to abandon some funds in favor of new favorites.
Meet Varun Hiremath:
Varun Hiremath, is the founder of Fair Deal Wealth Advisors.He has his own unique approach and perspective on wealth management. By providing outstanding and impactful advice, he brings valuable insight into investment management. He completed his graduation in Business Management from the USF Muma College of Business in 2015. Varun has successfully worked as a research analyst at Girik Capital and as a banking analyst at ET Now. His passion lies in equity research. His effective and impactful advice helps investors make the right financial decisions to build long-term wealth.
Key Insights from Recent Mutual Fund Trends:
- SIP Stoppage Ratio:
In the last one year, there has been a great rise in SIP stoppages. We could observe that even in the FY 23-24, 52.41% of SIPs were created as compared to those that were stopped. However, a complete change was witnessed in FY 24-25 with a stoppage ratio of 75.63 percent. This ratio rose high to an extent of 128.27% by March 2025, which proves the fact clearly that investors are leaving their SIPs more in proportion than opening one. This is a change brought by the increasing mood of uncertainty among the investors in times of market swings. - SIP Contributions:
Whereas inflows have remained constant, cancellation cases of SIPs have been on the increase. In the FY 23-24, 19,929 crores was invested through SIPs and in the FY 24-25 that was 28,935 crores, which is a 45.24% jump! These numbers spell out very clearly that the real genuine investors did not wilt in the bad days, but they even invested, in spite of the activity of SIP falling off. - Should You Stop Your SIPs?
Varun Hiremath’s advice: The approach of Varun Hiremath is totally opposite to the matter. The analyst recommended that the investors should go on with SIP. The simplest and the most basic strategy he explained of wealth creation through mutual funds is consistency. He said that when the stock market plunges, there is a temptation to withdraw SIPs. Nevertheless, mentioning historical statistics, as highlighted by the financial professional, remaining invested in all the market conditions is more likely to bring the best results in the long-term. Hence it might not be a good idea to halt SIPs at this point in time.
Best Mutual Funds to Consider for 2025:
- Large Cap Funds:
Under the large cap funds, the best funds to invest in are DSP, Nippon, ICICI and HDFC. Nippon has strong alpha and sharp ratio, which makes it a secure place of incessant growth with few downside risks. - Mid Cap Funds:
HDFC Mid cap is the bright star in mid cap category with a sound sharp and Certano ratio providing reliable risk-adjusted returns, even in the event of erratic markets. - Flexi Cap Funds:
HDFC and PGIM are doing well but Parag Parikh has not done well of late. HDFC Flexi Cap will present the optimum combination of risk and returns in the long-term. - Small Cap Funds:
In small cap segment, Bhandan and Invesco are at the forefront and Bhandan is offering the best downside protection due to its fabulous sharp and Certano ratios. - Multicap Funds:
Nippon India Multicap Fund remains a leader in this category as far as its alpha, excellent sharp, and Certano ratios are concerned, and thus it is a good fund to invest in by an investor who wants diversified exposure.
Varun Hiremath's Key Takeaway
Increasing SIP stoppage might be alarming, but the committed investors are still choosing to invest with confidence, irrespective of market volatility. If you're thinking of halting your SIPs due to the fear of financial loss, Varun Hiremath advises you to think twice. He says that consistency is the most basic and powerful tool for building wealth. It is impossible to predict when the market can reach the peak, that is why long-term and consistent investment is important for gaining future benefits. So stick to your SIPs and you see the benefits in the long run.
Conclusion:
The mutual fund data for 2025 are reflecting mixed trends.The tread is showing rising SIP stoppages and on the other hand a strong increase in SIP contributions.So the message is very clear: Don’t give priority to the short-term market fluctuations, because it may sway your investment decisions. Stay consistent to the course, to make your long-term growth stronger.
If you're unsure about your mutual fund choices or you have no idea where to invest or why,you must seek professional assistance. Financial experts like Varun Hiremath are there to guide you in this regard.
Frequently Asked Questions (FAQs)
Q1. Should I stop my SIPs during a market downturn?
No, according to Varun Hiremath, staying invested through market fluctuations helps build wealth in the long term due to rupee cost averaging.
Q2. Why has there been an increase in SIP stoppages in FY 24-25?
The rise in SIP stoppages is due to market volatility and investor uncertainty. The SIP stoppage ratio surged to 128.27% by March 2025.
Q3. Is it still wise to invest in mutual funds despite high SIP cancellations?
Yes, as seen in the data, SIP contributions jumped 45.24% year-on-year, proving that disciplined investors continue to trust mutual funds.
Q4. What are the best large-cap funds recommended for 2025?
DSP, Nippon, ICICI, and HDFC are top large-cap funds, with Nippon standing out due to its strong alpha and Sharpe ratio.
Q5. Which small-cap fund offers good downside protection?
Bhandan Small Cap Fund leads in downside protection with strong Sharpe and Certano ratios, making it ideal for cautious small-cap investors.
Q6. Why is HDFC Mid Cap Fund a strong performer?
HDFC Mid Cap delivers reliable risk-adjusted returns and stability even during volatile market phases, backed by excellent ratios.
Q7. Is it okay to pause a SIP temporarily?
While SIPs can be paused, Varun Hiremath advises against emotional decisions. Staying consistent is key to wealth creation.
Q8. What type of investor should choose Multicap Funds?
Multicap funds like Nippon India Multicap are ideal for those seeking diversified equity exposure with balanced risk and return.
