1. Which mutual funds are performing best for SIPs in December 2025?
Infrastructure, PSU equity, and small-cap funds such as ICICI Prudential Infrastructure Fund, SBI PSU Fund, and Quant Small Cap Fund are among the top performers.
2. Are small-cap funds suitable for long-term SIP investing?
Small-cap funds show short-term volatility but deliver strong long-term returns, making them suitable for SIPs focused on long-horizon wealth creation.
3. Why are PSU equity funds performing well in 2025?
PSU funds are benefiting from strong government spending, improved balance sheets, and higher profitability across banking, energy, and manufacturing sectors.
4. Do infrastructure funds offer stable returns for SIPs?
Infrastructure funds have shown steady 3-year and 5-year performance due to rising capital expenditure and ongoing growth in core sectors.
5. Can mid-cap funds be part of a diversified SIP portfolio?
Mid-cap funds add growth potential and diversification, complementing infrastructure, PSU, and small-cap themes in a balanced SIP strategy.