Best Mutual Fund SIP For 1 Year

The below table shows a list Of the Best Mutual Fund SIP For 1 Year based on AUM, NAV, and minimum SIP.

What Is A Systematic Investment Plan?

A Systematic Investment Plan (SIP) is an investment strategy where investors regularly contribute a fixed amount into a mutual fund scheme at predetermined intervals, typically monthly or quarterly. This method allows for disciplined investing and helps in averaging out the cost of investment over time.

SIPs work on the principle of rupee cost averaging, where investors buy more units when prices are low and fewer units when prices are high. This approach can potentially reduce the overall impact of market volatility on the investment.

By automating the investment process, SIPs make it easier for investors to stay committed to their financial goals. They also allow investors to start with small amounts, making it accessible to a wide range of individuals.

Best SIP Plan For 1 Year

The table below shows the Best SIP Plan For 1 Year based on the lowest to highest expense ratio.

Top Mutual Fund SIP For 1 Year

The table below shows the Top Mutual Fund SIP For 1 Year based on the Highest 3Y CAGR.

Best Mutual Fund SIP for 1 Year in India

The table below shows the Best Mutual Fund SIP for 1 Year in India based on exit load, i.e., the fee that the AMC charges investors when they exit or redeem their fund units.

Who Should Invest In SIP For 1 Year?

SIP for 1 year is suitable for investors with short-term financial goals or those who want to test the waters of mutual fund investing. It’s ideal for individuals who have a lump sum to invest but prefer to spread it out over a year to mitigate short-term market volatility.

This approach can be beneficial for conservative investors who are hesitant about long-term commitments. It allows them to experience the SIP process and understand market dynamics without a prolonged lock-in period.

First-time investors or those saving for a specific short-term goal, such as a vacation or a major purchase, can also benefit from a 1-year SIP. It provides a structured approach to saving while potentially earning better returns than traditional savings accounts.

How To Invest In The SIP For 1 Year In India?

To invest in SIP for 1 year in India, start by researching mutual funds with strong short-term performance. Compare their returns, risk profiles, and expense ratios. Open an account with a reliable broker like Alice Blue to access these funds.

Choose a fund that aligns with your investment goals and risk tolerance. Decide on the SIP amount based on your financial capacity and goals. Set up automatic transfers from your bank account to ensure regular investments.

Monitor your investment periodically, but avoid making frequent changes based on short-term market movements. Consider the exit load and tax implications of redeeming your investment after one year.

Performance Metrics Of SIP For 1 Year In India

Performance metrics for SIP investments over 1 year typically include absolute returns, consistency of performance, and risk-adjusted returns. Absolute returns show the total growth of the investment over the year, providing a clear picture of the fund’s performance.

Consistency of monthly returns is crucial for short-term investments. This can be assessed by looking at the number of months the fund has outperformed its benchmark or category average.

Risk-adjusted metrics like the Sharpe ratio are also important, even for a 1-year period. They help in understanding how much return the fund has generated for the level of risk taken, which is crucial for short investment horizons.

Benefits Of Investing In Mutual Fund SIP For 1 Year

The main benefits of investing in Mutual Fund SIP for 1 year include short-term goal alignment, market volatility mitigation, flexibility, disciplined investing, and potential for better returns. These factors make SIPs an attractive option for short-term investors.

• Short-Term Goal Alignment: One-year SIPs are ideal for achieving short-term financial goals, providing a structured approach to saving for specific objectives within a year.

• Market Volatility Mitigation: By spreading investments over 12 months, SIPs can help in averaging out the impact of short-term market fluctuations, potentially reducing overall investment risk.

• Flexibility: One-year SIPs offer the flexibility to reassess investment strategies annually, allowing investors to adapt to changing financial situations or market conditions.

• Disciplined Investing: Regular monthly investments cultivate a habit of disciplined saving, even over a short period, which can be beneficial for overall financial health.

• Potential for Better Returns: Compared to traditional savings accounts, one-year SIPs in well-chosen mutual funds can potentially offer better returns, even in a relatively short investment period.

Challenges Of Investing In SIP Plan For 1 Year

The main challenges of investing in a SIP Plan for 1 Year include limited time for market corrections, the potential for lower returns, the higher impact of fees, missed opportunities for long-term growth, and behavioral biases. These factors require careful consideration for successful short-term SIP investing.

• Limited Recovery Time: One year may not be sufficient for the investment to recover from significant market downturns, potentially leading to negative returns.

• Lower Return Potential: Short investment horizons may not fully capitalize on the power of compounding, possibly resulting in lower overall returns compared to longer-term investments.

• Fee Impact: The impact of entry loads, exit loads, and expense ratios can be more significant over a short period, potentially eating into the returns.

• Missed Long-Term Opportunities: By focusing on a one-year horizon, investors might miss out on the benefits of long-term market growth and more substantial wealth creation.

• Behavioral Biases: Short-term market fluctuations can trigger emotional responses, leading to impulsive decisions that may negatively impact investment outcomes.

Introduction To Best Mutual Fund SIP for 1 Year in India

ICICI Prudential Liquid Fund Direct Plan-Growth

ICICI Prudential Liquid Fund Direct Plan-Growth is a Liquid mutual fund scheme offered by ICICI Prudential Mutual Fund. This fund has been operating for 11 years and 7 months, having commenced on January 1, 2013.

ICICI Pru Liquid Fund is a Liquid Fund with Assets Under Management (AUM) of 43,069.35 crores. It has a 5-year Compound Annual Growth Rate (CAGR) of 5.29%, an exit load of 0.01%, and an expense ratio of 0.20%. SEBI categorizes its risk as Moderate. The fund’s asset allocation is as follows: Commercial Paper at 59.50%, Certificate of Deposit at 27.98%, Cash & Equivalents at 21.19%, Corporate Debt at 0.98%, Government Securities at 0.24%, and Others at -9.90%.

Mirae Asset Large & Midcap Fund Direct-Growth

Mirae Asset Large & Midcap Fund Direct-Growth is a Large & MidCap mutual fund scheme from Mirae Asset Mutual Fund. This fund has been in existence for 11 years and 7 months, having been launched on January 1, 2013.

Mirae Asset Large & Midcap Fund is a Large & Mid Cap Fund with an AUM of 37,846.07 crores. It has a 5-year CAGR of 24.75%, an exit load of 1%, and an expense ratio of 0.58%. SEBI rates its risk as Very High. The fund’s asset allocation is distributed as follows: Equity at 98.43% and Cash & Equivalents at 1.57%.

Axis Liquid Direct Fund-Growth

Axis Liquid Direct Fund-Growth is a Liquid mutual fund scheme offered by Axis Mutual Fund. This fund has been active for 11 years and 7 months, having begun on January 1, 2013.

Axis Liquid Fund is a Liquid Fund with an AUM of 36,518.03 crores. Its 5-year CAGR stands at 5.31%, with an exit load of 0.01% and an expense ratio of 0.17%. SEBI categorizes its risk as Moderate. The fund’s asset allocation is as follows: Commercial Paper at 66.17%, Certificate of Deposit at 30.42%, Cash & Equivalents at 24.72%, Corporate Debt at 0.75%, Government Securities at 0.33%, and Others at -22.39%.

Axis Bluechip Fund Direct Plan-Growth

Axis Bluechip Fund Direct Plan-Growth is a Large-cap mutual fund scheme from Axis Mutual Fund. This fund has been operating for 11 years and 7 months, having launched on January 1, 2013.

Axis Bluechip Fund is a Large Cap Fund with an AUM of 34,520.15 crores. Its 5-year CAGR is 16.83%, with an exit load of 1% and an expense ratio of 0.67%. SEBI rates its risk as Very High. The fund’s asset allocation is divided into Equity at 96.22%, Cash & Equivalents at 3.05%, and Mutual Funds at 0.73%.

Nippon India Growth Fund Direct-Growth

Nippon India Growth Fund Direct-Growth is a Mid Cap mutual fund scheme from Nippon India Mutual Fund. This fund has been in existence for 11 years and 7 months, having been introduced on January 1, 2013.

Nippon India Growth Fund is a Mid Cap Fund with an AUM of 30,838.94 crores. Its 5-year CAGR is 31.17%, with an exit load of 1% and an expense ratio of 0.81%. SEBI categorizes its risk as Very High. The fund’s asset allocation is as follows: Equity at 98.44% and Cash & Equivalents at 1.56%.

Aditya Birla Sun Life Regular Savings Fund Direct-Growth

Aditya Birla Sun Life Regular Savings Fund Direct-Growth is a Conservative Hybrid mutual fund scheme from Aditya Birla Sun Life Mutual Fund. This fund has been active for 11 years and 7 months, having commenced on January 1, 2013.

Aditya Birla SL Savings Fund is an Ultra Short Duration Fund with an AUM of 13,145.43 crores. Its 5-year CAGR is 6.30%, with no exit load and an expense ratio of 0.34%. SEBI rates its risk as Moderate. The fund’s asset allocation is distributed as Corporate Debt at 38.55%, Certificate of Deposit at 22.58%, Floating-rate Debt at 15.04%, Commercial Paper at 8.95%, Treasury Bills at 7.69%, and Others at 7.20%.

Kotak Savings Fund Direct-Growth

Kotak Savings Fund Direct-Growth is an Ultra Short Duration mutual fund scheme offered by Kotak Mahindra Mutual Fund. This fund has been operating for 11 years and 7 months, having begun on January 1, 2013.

Kotak Savings Fund is an Ultra Short Duration Fund with an AUM of 12,840.69 crores. Its 5-year CAGR stands at 5.97%, with no exit load and an expense ratio of 0.36%. SEBI categorizes its risk as Moderately Low. The fund’s asset allocation is as follows: Certificate of Deposit at 39.34%, Corporate Debt at 32.39%, Cash & Equivalents at 16.09%, Commercial Paper at 10.94%, Government Securities at 1.53%, and Others at -0.29%.

HDFC Overnight Fund Direct Plan-Growth

HDFC Overnight Fund Direct Plan-Growth is an Overnight mutual fund scheme from HDFC Mutual Fund. This fund has been in existence for 11 years and 7 months, having launched on January 1, 2013.

HDFC Overnight Fund is an Overnight Fund with an AUM of 10,729.65 crores. Its 5-year CAGR is 4.76%, with no exit load and an expense ratio of 0.10%. SEBI rates its risk as Low. The fund’s asset allocation is simple, with Cash & Equivalents at 93.77% and Treasury Bills at 6.23%.

Best SIP For 1 Year – FAQs

Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.