Best Mutual Funds For 5 Years SIP

Best Mutual Funds For 5 Years SIP

The below table shows the International Mutual Funds based on AUM, NAV, and minimum SIP.

NameAUM (Cr)NAVMinimum SIP (Rs)
Kotak Equity Arbitrage Fund39099.3436.63100
SBI Contra Fund27585.8732.941500
Nippon India Arbitrage Fund13853.8526.311500
HSBC Small Cap Fund13401.2481.35500
ICICI Pru Technology Fund12224.12187.01100
Aditya Birla SL Arbitrage Fund10668.4126.19100
Tata Digital India Fund9710.9647.34100
PGIM India Arbitrage Fund115.0417.991000

Content:

What is the Top Mutual Funds for SIP 5 Years?

The top mutual funds for SIPs over a 5-year period typically include equity, balanced, and debt funds, known for consistent performance and strong management. These funds are chosen based on past returns, risk profile, and the fund manager’s expertise in navigating market conditions.

Equity funds are preferred for their potential to offer high returns by investing primarily in stocks. Investors who are comfortable with a higher risk often choose these funds to capitalize on the growth prospects of the equities market over a long-term horizon.

Balanced and debt funds, on the other hand, appeal to those seeking a mix of safety and returns. Balanced funds invest in both equities and fixed-income securities, providing a cushion during market volatility, while debt funds focus on income and stability.

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Best Mutual Funds For 5 Years SIP 

The table below shows the Best International Mutual Funds based on the lowest to highest expense ratio.

NameExpense Ratio (%)Minimum SIP (Rs)
Tata Digital India Fund0.31100
Aditya Birla SL Arbitrage Fund0.35100
Nippon India Arbitrage Fund0.371500
PGIM India Arbitrage Fund0.381000
SBI Contra Fund0.421500
Kotak Equity Arbitrage Fund0.43100
HSBC Small Cap Fund0.7500
ICICI Pru Technology Fund0.94100

List Of Top Mutual Funds For SIP 5 Years

The table below shows the Best International Mutual Funds In India based on the Highest 3Y CAGR. 

NameCAGR 3Y (Cr)Minimum SIP (Rs)
HSBC Small Cap Fund35.24500
Tata Digital India Fund18.41100
ICICI Pru Technology Fund17.28100
Kotak Equity Arbitrage Fund6.4100
SBI Contra Fund6.341500
Nippon India Arbitrage Fund6.261500
Aditya Birla SL Arbitrage Fund6.18100
PGIM India Arbitrage Fund5.751000

Top Mutual Funds for SIP 5 Years

The table below shows the Top International Mutual Funds In India based on exit load, i.e., the fee that the AMC charges investors when they exit or redeem their fund units.

NameAMCExit Load (%)
Tata Digital India FundTata Asset Management Private Limited0.25
Kotak Equity Arbitrage FundKotak Mahindra Asset Management Company Limited0.25
SBI Contra FundSBI Funds Management Limited0.25
Nippon India Arbitrage FundNippon Life India Asset Management Limited0.25
Aditya Birla SL Arbitrage FundAditya Birla Sun Life AMC Limited0.25
PGIM India Arbitrage FundPGIM India Asset Management Private Limited0.25
HSBC Small Cap FundHSBC Global Asset Management (India) Private Limited1
ICICI Pru Technology FundICICI Prudential Asset Management Company Limited1

Best Mutual Funds For 5 Years SIP 

The table below shows International Mutual Funds based on Absolute 1 Year Return and AMC.

NameAMCAbsolute Returns – 1Y (%)
HSBC Small Cap FundHSBC Global Asset Management (India) Private Limited53.49
Tata Digital India FundTata Asset Management Private Limited40.18
ICICI Pru Technology FundICICI Prudential Asset Management Company Limited36.93
Kotak Equity Arbitrage FundKotak Mahindra Asset Management Company Limited8.67
SBI Contra FundSBI Funds Management Limited8.46
Nippon India Arbitrage FundNippon Life India Asset Management Limited8.43
Aditya Birla SL Arbitrage FundAditya Birla Sun Life AMC Limited8.41
PGIM India Arbitrage FundPGIM India Asset Management Private Limited7.68

Who Should Invest In Best Mutual Funds For 5 Years SIP?

Investors looking for medium to long-term capital appreciation should consider the best mutual funds for a 5-year SIP. Ideal for those with a moderate risk appetite, these funds aim to balance growth and stability, leveraging market trends and professional fund management.

Individuals planning for future financial goals like buying a home, funding education, or preparing for retirement find these funds suitable. The 5-year investment horizon allows enough time for the investment to overcome market fluctuations and potentially yield substantial returns.

Moreover, new investors wishing to build their investment portfolio can benefit from SIPs in these funds. SIPs help in averaging the purchase cost and reducing the impact of market volatility, making it a prudent choice for building wealth systematically over time.

How To Invest in the Top Mutual Funds for SIP 5 Years?

To invest in top mutual funds for a 5-year SIP, begin by researching and selecting funds with strong historical performance through a brokerage like Alice Blue. Ensure the chosen funds align with your financial goals, risk tolerance, and investment timeline.

Using Alice Blue, you can set up an account online, completing KYC (Know Your Customer) requirements. Once your account is active, explore their platform to find mutual funds that suit your criteria for a 5-year SIP investment, looking at factors like past returns and fund manager reputation.

After selecting your mutual funds, you can easily start your SIP via Alice Blue’s platform. Determine your monthly investment amount and set up auto-debits from your bank account to fund the SIP. This automated approach helps in cultivating a disciplined saving habit without manual intervention each month.

Performance Metrics Of Best Mutual Funds For 5 Years SIP

Performance metrics of the best mutual funds for a 5-year SIP include annualized returns, risk-adjusted returns, and fund ranking within its category. These indicators help investors evaluate how well a fund has performed relative to its peers and the market conditions.

Annualized returns provide a clear picture of what investors might expect to earn annually over a period of five years, factoring in compound interest. This metric is crucial for comparing the effectiveness of different funds and gauging potential future performance based on past trends.

Risk-adjusted returns, such as the Sharpe ratio, measure how much return a fund has generated per unit of risk taken. This helps investors understand if higher returns were due to smart investment choices or excessive risk-taking, enabling a balanced investment decision.

Benefits of Investing in Top Mutual Funds For SIP For 5 Years In India

The main benefits of investing in top mutual funds via SIP for 5 years in India include potential high returns, financial discipline through regular savings, and risk diversification. SIPs also offer flexibility and are accessible to investors with varying budgets and risk appetites.

  • High Return Potential: Top mutual funds selected for SIPs often deliver competitive returns, especially over a 5-year period. Investing in these funds exposes your capital to a variety of assets which potentially increase in value, thus maximizing returns as opposed to traditional saving methods.
  • Cultivates Financial Discipline: SIPs enforce a regular investment habit, helping you save a predetermined amount monthly regardless of market conditions. This disciplined approach builds up substantial savings over time, making it easier to achieve long-term financial goals without the stress of lump-sum investments.
  • Effective Risk Diversification: By investing in a diverse array of assets, top mutual funds minimize risks associated with market volatility. SIPs further reduce risk by averaging the purchase price over time, which can protect against the highs and lows of market fluctuations, stabilizing your investment returns.

Challenges Of Investing In Best Mutual Funds For 5 Years SIP In India

The main challenges of investing in top mutual funds for a 5-year SIP in India include market volatility, liquidity constraints, and the risk of choosing underperforming funds. Investors must regularly monitor their investments and adjust strategies in response to changing economic conditions and fund performances.

  • Riding the Market Rollercoaster: Market volatility is a significant challenge for SIP investors in mutual funds. Economic fluctuations and geopolitical events can impact fund performance unpredictably, making it essential for investors to stay resilient and patient through the ups and downs of the market.
  • Liquidity Lock-In Concerns: Some mutual funds, especially those with higher returns, may have lock-in periods or charge fees for early withdrawals. This can limit an investor’s access to their funds in case of financial emergencies, requiring careful planning and consideration of liquidity needs.
  • Performance Pitfalls: Selecting the right fund is crucial but challenging. Not all mutual funds perform equally well; choosing a fund that consistently underperforms can jeopardize long-term investment goals. Regular performance reviews and potentially reallocating investments are necessary to manage this risk effectively.

Introduction to Best Mutual Funds For 5 Years SIP

Kotak Equity Arbitrage Fund

The Kotak Equity Arbitrage Fund Direct-Growth is an Arbitrage mutual fund offering from Kotak Mahindra Mutual Fund. This fund has a tenure of 11 years and 3 months, starting its operations on January 1, 2013.

The Kotak Equity Arbitrage Fund, categorized as an Arbitrage Fund, manages assets totaling ₹39099.34 crore. It has achieved a 5-year CAGR (Compound Annual Growth Rate) of 8.67%. This fund imposes an exit load and expense ratio of 8.67% and 0.43 respectively, categorizing it as Low in the SEBI risk category. The current asset allocation comprises Commercial Paper, Cash & Equivalents, Mutual Funds, and Equity. These assets represent 0.19%, 3.97%, 17.81%, and 78.04% respectively. This diversified allocation aims to optimize returns while managing risk across different asset classes within the investment portfolio.

SBI Contra Fund

The SBI Contra Direct Plan-Growth is a Contra mutual fund offering from SBI Mutual Fund. This fund has a tenure of 11 years and 3 months, commencing its operations on January 1, 2013.

The SBI Contra Fund, categorized as an Arbitrage Fund, manages assets totaling ₹27585.87 crore. It has achieved a 5-year CAGR (Compound Annual Growth Rate) of 8.46%. This fund imposes an exit load and expense ratio of 8.46% and 0.42 respectively, categorizing it as Low in the SEBI risk category. The current asset allocation includes Rights, REITs & InvITs, Treasury Bills, Cash & Equivalents, and Equity. These assets represent 0.89%, 0.93%, 6.98%, 9.45%, and 81.75% respectively. This diversified allocation aims to optimize returns while managing risk across different asset classes within the investment portfolio.

Nippon India Arbitrage Fund

The Nippon India Arbitrage Fund Direct-Growth is an Arbitrage mutual fund offering from Nippon India Mutual Fund. This fund has a tenure of 11 years and 3 months, starting its operations on January 1, 2013.

The Nippon India Arbitrage Fund, classified under the Arbitrage Fund category, manages assets worth ₹13853.85 crore. It has achieved a 5-year CAGR (Compound Annual Growth Rate) of 8.43%. This fund imposes an exit load and expense ratio of 8.43% and 0.37 respectively, placing it in the Low SEBI risk category. The current asset allocation includes Corporate Debt, Certificate of Deposit, Cash & Equivalents, Mutual Funds, and Equity. These assets represent 1.43%, 2.79%, 5.07%, 18.19%, and 72.52% respectively. This diversified allocation aims to optimize returns while managing risk across different asset classes within the investment portfolio.

HSBC Small Cap Fund

The HSBC Small Cap Fund Direct-Growth is a Small Cap mutual fund offering from HSBC Mutual Fund. This fund has a tenure of 10 years, having commenced its operations on April 22, 2014.

The HSBC Small Cap Fund, categorized as a Small Cap Fund, manages assets totaling ₹13401.24 crore. It has achieved a 5-year CAGR (Compound Annual Growth Rate) of 53.49%. This fund imposes an exit load and expense ratio of 53.49% and 0.7 respectively, placing it in the Very High SEBI risk category. The current asset allocation consists of Cash & Equivalents and Equity. These assets represent 2.64% and 97.36% respectively. This diversified allocation aims to optimize returns while managing risk across different asset classes within the investment portfolio.

ICICI Pru Technology Fund

The ICICI Prudential Technology Direct Plan-Growth is a Sectoral-Technology mutual fund offering from ICICI Prudential Mutual Fund. This fund has a tenure of 11 years and 3 months, commencing its operations on January 1, 2013.

The ICICI Pru Technology Fund, categorized as a Sectoral Fund – Technology, manages assets totaling ₹12224.12 crore. It has achieved a 5-year CAGR (Compound Annual Growth Rate) of 36.93%. This fund imposes an exit load and expense ratio of 36.93% and 0.94 respectively, placing it in the Very High SEBI risk category. The current asset allocation includes Rights, Cash & Equivalents, and Equity. These assets represent 2.44%, 3.74%, and 93.82% respectively. This diversified allocation aims to optimize returns while managing risk across different asset classes within the investment portfolio.

Aditya Birla SL Arbitrage Fund

The Aditya Birla Sun Life Arbitrage Fund Direct-Growth is an Arbitrage mutual fund offering from Aditya Birla Sun Life Mutual Fund. This fund has a tenure of 11 years and 3 months, commencing its operations on January 1, 2013.

The Aditya Birla SL Arbitrage Fund, classified under the Arbitrage Fund category, manages assets totaling ₹10668.41 crore. It has achieved a 5-year CAGR (Compound Annual Growth Rate) of 8.41%. This fund imposes an exit load and expense ratio of 8.41% and 0.35 respectively, placing it in the Low SEBI risk category. The current asset allocation includes Cash & Equivalents, Mutual Funds, and Equity. These assets represent 3.94%, 20.88%, and 75.18% respectively. This diversified allocation aims to optimize returns while managing risk across different asset classes within the investment portfolio.

Tata Digital India Fund

The Tata Digital India Fund Direct-Growth is a Sectoral-Technology mutual fund offering from Tata Mutual Fund. This fund has a tenure of 8 years and 4 months, commencing its operations on December 4, 2015.

The Tata Digital India Fund categorized as a Sectoral Fund – Technology, manages assets totaling ₹9710.96 crores. It has achieved a 5-year CAGR (Compound Annual Growth Rate) of 40.18%. This fund imposes an exit load and expense ratio of 40.18% and 0.31 respectively, placing it in the Very High SEBI risk category. The current asset allocation comprises Cash & Equivalents and Equity. These assets represent 4.43% and 95.57% respectively. This diversified allocation aims to optimize returns while managing risk across different asset classes within the investment portfolio.

PGIM India Arbitrage Fund

The PGIM India Arbitrage Fund Direct-Growth is an Arbitrage mutual fund offering from PGIM India Mutual Fund. This fund has a tenure of 9 years and 8 months, commencing its operations on August 13, 2014.

The PGIM India Arbitrage Fund, categorized as an Arbitrage Fund, manages assets totaling ₹115.04 crore. It has achieved a 5-year CAGR (Compound Annual Growth Rate) of 7.68%. This fund imposes an exit load and expense ratio of 7.68% and 0.38 respectively, categorizing it as Low in the SEBI risk category. The current asset allocation includes Treasury Bills, Government Securities, Mutual Funds, Equity, and Cash & Equivalents. These assets represent -67.98%, 0.42%, 8.79%, 12.38%, and 67.48% respectively. This diversified allocation aims to optimize returns while managing risk across various asset classes within the investment portfolio.

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Best Mutual Funds For 5 Years SIP – FAQs

1. Which Are The Best Mutual Funds For 5 Years SIP?

Best Mutual Funds For 5 Years SIP #1: Tata Digital India Fund
Best Mutual Funds For 5 Years SIP #2: SBI Contra Fund
Best Mutual Funds For 5 Years SIP #3: PGIM India Arbitrage Fund
Best Mutual Funds For 5 Years SIP #4: Nippon India Arbitrage Fund
Best Mutual Funds For 5 Years SIP #5: Kotak Equity Arbitrage Fund

These funds are listed based on the Highest AUM.

2. What Are The Top Mutual Funds for SIP 5 Years?

The top mutual funds for SIP over 5 years include Tata Digital India Fund, SBI Contra Fund, PGIM India Arbitrage Fund, Nippon India Arbitrage Fund, and Kotak Equity Arbitrage Fund. These funds offer the potential for growth and diversification, catering to investors’ long-term investment objectives.

3. Can I Invest In Best Mutual Funds for SIP 5 Years?

Yes, you can invest in the best mutual funds for SIP over 5 years. Conduct thorough research to understand each fund’s performance, investment strategy, and risk profile. Select funds that align with your financial goals, risk tolerance, and investment timeframe before making investment decisions.

4. Is It Good To Invest In Top Mutual Funds For Sip For 5 Years In India?

Investing in top mutual funds for SIP over 5 years in India can be beneficial, as it offers the potential for long-term wealth creation and capital appreciation. However, investors should consider factors like risk tolerance, investment goals, and market conditions before making investment decisions to ensure suitability and mitigate risks.

5. How To Invest In Best Mutual Funds For 5 Years SIP?

To invest in the best mutual funds for a 5-year SIP using Alice Blue, research and select funds aligned with your investment goals. Open an account with Alice Blue, navigate to the mutual funds section, choose the desired funds, and set up a SIP investment plan according to your preferences.

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.

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