Systematic Investment Plans (SIPs) have become an increasingly popular choice for investors in India due to their convenience and the power of compounding they offer. Particularly for those with a medium-term investment horizon like 5 years, there are several excellent SIP options. If you're pondering over which SIP is best for 5 years or are looking for the best SIP plan for 5 years in India, this article will offer some insightful suggestions.
While choosing the best SIP for a 5-year term, it's important to consider factors such as the fund's past performance, the fund manager's expertise, the fund house's reputation, and the scheme's fit with your risk profile. Here are a few SIPs that have consistently performed well over the past 5 years:
Fund | AUM (In Crs) | Expense Ratio | 3 Yr Return (%) | 5 Yr Return (%) | Invest Now |
---|---|---|---|---|---|
Motilal Oswal Midcap Direct Growth | ₹18604 Cr | 0.6 % | 32.57 % | 33.23 % | |
Bandhan Small Cap Fund Direct Growth | ₹8489 Cr | 0.36 % | 27.66 % | Fund inception in Year 2020 | |
Nippon India Small Cap Fund - Direct Plan - Growth Plan | ₹62260 Cr | 0.68 % | 27.35 % | 36.15 % | |
Quant Small Cap Fund Growth Option Direct Plan | ₹26331 Cr | 0.64 % | 25.83 % | 47.35 % | |
Tata Small Cap Fund Direct Growth | ₹9464 Cr | 0.29 % | 25.51 % | 34.35 % |
Expense ratio | 0.6% |
Benchmark | S&P BSE Midcap TR INR |
AUM | ₹18604 Cr |
Inception Date | 24 February, 2014 |
Min Lumpsum/SIP | ₹500/₹500 |
Exit Load | 1.0% |
Lock In | No Lock-in |
TurnOver | 94.86% |
STCG | Selling within 36 months, gains taxed at slab rates. |
LTCG | Holding over 3 years, gains taxed at slab rates without indexation. |
Expense ratio | 0.36% |
Benchmark | S&P BSE Smallcap TR INR |
AUM | ₹8489 Cr |
Inception Date | 26 February, 2020 |
Min Lumpsum/SIP | ₹1000/₹100 |
Exit Load | 1.0% |
Lock In | No Lock-in |
TurnOver | 89.28% |
STCG | Selling within 36 months, gains taxed at slab rates. |
LTCG | Holding over 3 years, gains taxed at slab rates without indexation. |
Expense ratio | 0.68% |
Benchmark | S&P BSE Smallcap TR INR |
AUM | ₹62260 Cr |
Inception Date | 1 January, 2013 |
Min Lumpsum/SIP | --/₹100 |
Exit Load | 1.0% |
Lock In | No Lock-in |
TurnOver | 22.08% |
STCG | Selling within 36 months, gains taxed at slab rates. |
LTCG | Holding over 3 years, gains taxed at slab rates without indexation. |
Expense ratio | 0.64% |
Benchmark | S&P BSE Smallcap TR INR |
AUM | ₹26331 Cr |
Inception Date | 1 January, 2013 |
Min Lumpsum/SIP | ₹5000/₹1000 |
Exit Load | 1.0% |
Lock In | No Lock-in |
TurnOver | 86.77% |
STCG | Selling within 36 months, gains taxed at slab rates. |
LTCG | Holding over 3 years, gains taxed at slab rates without indexation. |
Expense ratio | 0.29% |
Benchmark | S&P BSE Smallcap TR INR |
AUM | ₹9464 Cr |
Inception Date | 13 November, 2018 |
Min Lumpsum/SIP | --/₹100 |
Exit Load | 1.0% |
Lock In | No Lock-in |
TurnOver | 15.44% |
STCG | Selling within 36 months, gains taxed at slab rates. |
LTCG | Holding over 3 years, gains taxed at slab rates without indexation. |
Fund | AUM (In Crs) | Expense Ratio | 3 Yr Return (%) | 5 Yr Return (%) | Invest Now |
---|---|---|---|---|---|
Aditya Birla Sun Life Dynamic Bond Fund Direct Plan Growth | ₹1697 Cr | 0.64 % | 7.71 % | 6.84 % | |
SBI Dynamic Bond Fund Direct Growth | ₹3305 Cr | 0.62 % | 7.41 % | 7.42 % | |
DSP Strategic Bond Fund Direct Plan Growth | ₹1717 Cr | 0.53 % | 7.06 % | 7.62 % | |
Kotak Dynamic Bond Direct Growth | ₹2877 Cr | 0.58 % | 6.89 % | 7.6 % | |
Bandhan Dynamic Bond Fund - Direct Plan - Growth | ₹2831 Cr | 0.72 % | 6.62 % | 7.45 % |
Expense ratio | 0.64% |
Benchmark | CRISIL Composite Bond Fund TR INR |
AUM | ₹1697 Cr |
Inception Date | 1 January, 2013 |
Min Lumpsum/SIP | ₹1000/₹1000 |
Exit Load | 0.5% |
Lock In | No Lock-in |
TurnOver | 243.03% |
STCG | Selling within 36 months, gains taxed at slab rates. |
LTCG | Holding over 3 years, gains taxed at slab rates without indexation. |
Expense ratio | 0.62% |
Benchmark | CRISIL Composite Bond Fund TR INR |
AUM | ₹3305 Cr |
Inception Date | 1 January, 2013 |
Min Lumpsum/SIP | ₹5000/₹500 |
Exit Load | 0.2% |
Lock In | No Lock-in |
TurnOver | 615.78% |
STCG | Selling within 36 months, gains taxed at slab rates. |
LTCG | Holding over 3 years, gains taxed at slab rates without indexation. |
Expense ratio | 0.53% |
Benchmark | CRISIL Composite Bond Fund TR INR |
AUM | ₹1717 Cr |
Inception Date | 1 January, 2013 |
Min Lumpsum/SIP | ₹100/₹100 |
Exit Load | 0% |
Lock In | No Lock-in |
TurnOver | 1279.64% |
STCG | Selling within 36 months, gains taxed at slab rates. |
LTCG | Holding over 3 years, gains taxed at slab rates without indexation. |
Expense ratio | 0.58% |
Benchmark | CRISIL Composite Bond Fund TR INR |
AUM | ₹2877 Cr |
Inception Date | 1 January, 2013 |
Min Lumpsum/SIP | ₹100/₹100 |
Exit Load | 0% |
Lock In | No Lock-in |
TurnOver | 479.57% |
STCG | Selling within 36 months, gains taxed at slab rates. |
LTCG | Holding over 3 years, gains taxed at slab rates without indexation. |
Expense ratio | 0.72% |
Benchmark | CRISIL Composite Bond Fund TR INR |
AUM | ₹2831 Cr |
Inception Date | 1 January, 2013 |
Min Lumpsum/SIP | ₹1000/₹100 |
Exit Load | 0% |
Lock In | No Lock-in |
TurnOver | 336.34% |
STCG | Selling within 36 months, gains taxed at slab rates. |
LTCG | Holding over 3 years, gains taxed at slab rates without indexation. |
Fund | AUM (In Crs) | Expense Ratio | 3 Yr Return (%) | 5 Yr Return (%) | Invest Now |
---|---|---|---|---|---|
HDFC Balanced Advantage Fund Direct Plan Growth Option | ₹94866 Cr | 0.72 % | 20.93 % | 20.75 % | |
ICICI Prudential Equity & Debt Fund Direct Plan Growth | ₹40203 Cr | 0.98 % | 18.4 % | 22.44 % | |
Edelweiss Aggressive Hybrid Direct Plan Growth Option | ₹2195 Cr | 0.4 % | 17.67 % | 20.05 % | |
UTI Aggressive Hybrid Fund-Growth - Direct | ₹6330 Cr | 1.26 % | 15.46 % | 19.64 % | |
Quant Absolute Fund Growth Option Direct Plan | ₹2251 Cr | 0.7 % | 14.65 % | 24.95 % |
Expense ratio | 0.72% |
Benchmark | |
AUM | ₹94866 Cr |
Inception Date | 1 January, 2013 |
Min Lumpsum/SIP | ₹100/₹100 |
Exit Load | 1.0% |
Lock In | No Lock-in |
TurnOver | 15.13% |
STCG | Selling within 36 months, gains taxed at slab rates. |
LTCG | Holding over 3 years, gains taxed at slab rates without indexation. |
Expense ratio | 0.98% |
Benchmark | CRISIL Hybrid 35+65 - Agg TR INR |
AUM | ₹40203 Cr |
Inception Date | 1 January, 2013 |
Min Lumpsum/SIP | ₹5000/₹100 |
Exit Load | 1.0% |
Lock In | No Lock-in |
TurnOver | 53.5% |
STCG | Selling within 36 months, gains taxed at slab rates. |
LTCG | Holding over 3 years, gains taxed at slab rates without indexation. |
Expense ratio | 0.4% |
Benchmark | CRISIL Hybrid 35+65 - Agg TR INR |
AUM | ₹2195 Cr |
Inception Date | 1 January, 2013 |
Min Lumpsum/SIP | ₹100/₹100 |
Exit Load | 1.0% |
Lock In | No Lock-in |
TurnOver | 93.41% |
STCG | Selling within 36 months, gains taxed at slab rates. |
LTCG | Holding over 3 years, gains taxed at slab rates without indexation. |
Expense ratio | 1.26% |
Benchmark | CRISIL Hybrid 35+65 - Agg TR INR |
AUM | ₹6330 Cr |
Inception Date | 1 January, 2013 |
Min Lumpsum/SIP | ₹1000/₹500 |
Exit Load | 1.0% |
Lock In | No Lock-in |
TurnOver | 55.02% |
STCG | Selling within 36 months, gains taxed at slab rates. |
LTCG | Holding over 3 years, gains taxed at slab rates without indexation. |
Expense ratio | 0.7% |
Benchmark | CRISIL Hybrid 35+65 - Agg TR INR |
AUM | ₹2251 Cr |
Inception Date | 1 January, 2013 |
Min Lumpsum/SIP | ₹5000/₹1000 |
Exit Load | 1.0% |
Lock In | No Lock-in |
TurnOver | 143.62% |
STCG | Selling within 36 months, gains taxed at slab rates. |
LTCG | Holding over 3 years, gains taxed at slab rates without indexation. |
Investing in SIP for 5 years can be an excellent way to achieve medium-term financial goals. It allows you to take advantage of the power of compounding and rupee cost averaging, potentially leading to substantial corpus over time.
Remember, while the past performance of a fund can give you an idea about its consistency and reliability, it does not guarantee future results. Always choose a SIP plan that aligns with your financial goals and risk tolerance, and if possible, consult with a financial advisor before making your decision.
In conclusion, the best SIP plan for 5 years in India could be any one of those listed above, or others, based on your individual financial goals and risk tolerance. Always ensure to conduct thorough research and consider getting professional advice before making your decision.
Choosing the best SIP (Systematic Investment Plan) requires careful evaluation of various factors. Here are some key steps to help you select the most suitable SIP for your investment portfolio:
The first step in selecting a SIP is to identify your financial goals. Are you investing for retirement, planning to buy a house, or saving for your child's education? The duration and the amount of money needed for these goals can help you decide the type of mutual fund to invest in.
Different mutual funds carry different levels of risk. Equity funds, for example, can offer high returns but are more risky compared to debt funds, which offer stable but relatively lower returns. Understanding your risk tolerance will help you choose the right category of mutual funds.
Look at how the mutual fund has performed over time. While past performance is not an indicator of future performance, it can give you an idea of the fund's consistency.
The expense ratio is the annual fee that mutual funds charge for managing your investments. A high expense ratio can eat into your returns over time. Therefore, it is advisable to opt for a fund with a lower expense ratio.
A good fund manager can make a significant difference to the fund's performance. Look at the fund manager's experience, his/her track record, and the performance of other funds managed by him/her.
Choose a fund that is well-diversified across sectors and companies. Diversification can help mitigate risk and stabilize returns.
After investing, it's crucial to regularly monitor your SIP's performance and make necessary adjustments in line with your changing financial goals or market conditions.
In conclusion, choosing the best SIP is a process that requires understanding your financial goals, assessing your risk appetite, and conducting thorough research on different mutual funds. You might also consider consulting with a financial advisor to make the most informed decisions.