Investor's Favourite Mutual Fund Type in 2025 – Advice by Varun Hiremath
If you are curious about where to invest your money, then you should definitely check the latest mutual fund data of March 2025. Where you will find that, from SIP stoppages making a record to certain scheme, investors are investing without any fear of loss.
If we talk about Varun Hiremath, who has completed his graduation in Business Management from USF Muma College of Business in the year 2015, who then served as an analyst at Girik Capital and a banking analyst at ET Now, is now the founder of Fair Deal Wealth Advisors, a mutual fund and PMS distribution company. He is helping people manage their finances by offering them personalized advice based on their financial goals.
Key Insights from Recent Mutual Fund Trends:
- SIP Stoppage Ratio:
The SIP (Systematic Investment Plan) stoppage has undergone a sharp increase in the past year. More SIPs started in FY 23-24 (52.41%), then in FY 24-25, 75.63% of SIPs discontinued. The ratio increased to 128.27% by March 2025, with many SIPs getting discontinued. This discontinuation resulted in market fluctuations, thereby making investors lose confidence. - SIP Contributions:
The SIP contribution still remains strong with an increase from ₹19,929 crores in FY 23-24 to ₹28,935 crores in FY 24-25. This increase the confidence of the investors. - Should You Stop Your SIPs?
Varun Hiremath’s advice: Do not stop your SIPs, be consistent with your investment and don’t let the ups and downs in the market affect your investment, and prevent future gains.
Best Mutual Funds to Consider for 2025:
- Large Cap Funds:
The Nipon stands out among the top large-cap funds like DSP, ICICI, and HDFC, because of its ability to ensure stable growth with its best alpha and sharp ratio. - Mid Cap Funds:
HDFC Mid Cap stands out, because of its ability to ensure strong risk-adjusted returns and solid performance even during volatile market conditions, with its excellent sharp and Certano ratios. - Flexi Cap Funds:
HDFC Flexi Cap ensures you solid, long-term returns, by offering the best balance of risk and reward. - Small Cap Funds:
In the dynamic small-cap category, Bhandan and Invesco lead, with Bhandan offering the best downside protection due to its strong sharp and Certano ratios. - Multicap Funds:
Nipon India Multicap Fund, with its strong alpha and superior sharp and Certano ratios, will definitely help you if you are looking for a diversified exposure.
Varun Hiremath's Key Takeaway
Do not stop your SIPs due to the market ups and downs; be consistent with your investment to enjoy long-term benefits.
Conclusion:
In the year 2025, we see a mixture of trends, from increasing SIP stoppages to continued strong SIP contributions, leading to market fluctuations. It is strongly advisable to keep yourself consistent with the investment and not let the market ups and downs stop you from enjoying long-term benefits.
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.
