How to Choose the Mutual Fund to Invest in SIP for Better Returns?

Summary: 

• In 2026, several investors prefer the SIP route due to the benefits of compounding + rupee cost averaging. 

• To choose the “right” mutual fund, you may check parameters, like Sharpe Ratio, Standard Deviation, and Beta. 

• You can also perform a mutual fund portfolio analysis to review holdings, sector allocation, and the fund’s concentration risk. 

• Some of the mutual funds to invest in SIP can be explored on the airpay money mobile application. 

In India, SIPs are one of the most preferred investment routes. As per AMFI Monthly Note (for Fiscal 2025), annual SIP inflows increased 45.24% year-on-year and reached ₹2.89 lakh crore. Also, new SIP registrations climbed to 6.80 crore accounts in FY2025 (up from 4.28 crore in FY2024). 

But why this craze? 

Many investors now prefer monthly/ quarterly SIPs because they allow them to invest small amounts regularly and at the same time offer benefits like “compounding” and “rupee cost averaging”.   

However, that said, starting an SIP is only the first step! With hundreds of mutual fund schemes available across different categories, choosing the right fund becomes a real challenge for new investors in 2026. 

Want to know about some good mutual funds to invest in and learn how you can choose them? 

Read this article to check out some mutual funds to invest in SIP and understand how you can select the “right” product as per your risk appetite.  

Mutual Fund Schemes Available on the airpay money app 

To explore some of the mutual funds to invest in SIP, you may download the airpay money mobile application. The app allows you to browse a wide range of “active” and “passive” mutual fund schemes on a single app. 

If we talk about active funds, they are available under the “Curated Funds” section and are grouped into different investment themes, such as: 

• Better than FD 

• High Returns 

• Short-Term Investments 

• Emergency Fund 

• Bluechip Funds, and more 

In addition, you may also check out the various passive index funds, available on the airpay money app under categories, such as Nifty 50, Nifty Midcap, Nifty 100, Global fund, and more. Below is a list of some mutual funds, you may consider in 2026 (as per your risk appetite): 

Note: All the above mutual funds can be invested directly through the airpay money mobile application. The performance of these schemes may vary. Investors are advised to do their own research before investing. 

How to Pick the “Right” Mutual Fund Scheme in 2026? 

Many SIP investors select schemes based on past returns. Such an approach ignores risk, volatility, and portfolio quality. Need the right way? Below are some important parameters you may analyse in 2026: 

1. Check the Sharpe Ratio 

The Sharpe Ratio measures how much return a fund generates for every unit of risk taken. A higher Sharpe Ratio generally indicates better risk adjusted performance.  

As an investor, it is useful to compare the Sharpe Ratio of a fund with other funds in the same category, since risk levels differ across categories (e.g., equity, debt, hybrid).  

A scheme with a high Sharpe Ratio could be preferred, as it suggests that the fund has delivered better returns without taking excessive risk. 

2. Review Standard Deviation 

Standard deviation measures how much a fund’s returns deviate or fluctuate from its average return. A lower standard deviation generally indicates that the fund’s returns are more stable and less volatile, which many investors prefer, especially in debt or conservative categories. 

3. Perform a Beta Analysis 

Beta measures how sensitive a fund is to movements in the broader market index. By performing a beta analysis, you can understand how the fund behaves during market swings. Generally, it is interpreted as follows: 

For SIP investors, funds with a beta close to 1 or slightly lower may be preferred. 

4. Study the Fund’s Portfolio Quality 

Through a mutual fund portfolio analysis, you can check where your money is actually being invested. Some important areas you can examine are: 

As an investor, you may prefer a diversified + fundamentally strong portfolio. 

Conclusion 

So now you know about some good mutual funds to invest in and how to pick them. If we were to recap, a suitable SIP scheme can be selected by: 

• Checking its risk-adjusted performance via the Sharpe Ratio 

• Evaluating its volatility through beta and standard deviation 

• Performing a mutual fund portfolio analysis 

Want to invest in mutual funds online? Check out some good mutual funds to invest in on the airpay money app. We are a 360-degree financial wellness platform trusted by 1,00,000+ users. Download the airpay money mobile application today and start investing.