SIP Plans for 5 Years Investment Horizon (2024)

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.

Best SIP Plan for 5 Years

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:

Best SIP Plans for 5 Years to invest (Equity)

FundAUM (In Crs)Expense Ratio3 Yr Return (%)5 Yr Return (%)Invest Now
Quant Mid Cap Fund Growth Option Direct Plan₹7953 Cr0.62 %35.63 %37 %
Quant Small Cap Fund Growth Option Direct Plan₹21243 Cr0.64 %35.33 %43.22 %
Nippon India Small Cap Fund - Direct Plan - Growth Plan₹50423 Cr0.68 %33.76 %33.9 %
Quant Flexi Cap Fund Growth Option Direct Plan₹6272 Cr0.59 %29.04 %33.72 %
Bandhan Small Cap Fund Direct Growth₹4994 Cr0.37 %28.45 %Fund inception in Year 2020

Overview of Best SIP Plans for 5 Years to invest (Equity)

Overview
Expense ratio
Expense ratio
0.62%
Benchmark
Benchmark
S&P BSE Midcap TR INR
AUM
AUM
₹7953 Cr
Inception Date
Inception Date
1 January, 2013
Min Lumpsum/SIP
Min Lumpsum/SIP
--/--
Exit Load
Exit Load
0.5%
Lock In
Lock In
No Lock-in
TurnOver
TurnOver
198.46%
Overview
Expense ratio
Expense ratio
0.64%
Benchmark
Benchmark
S&P BSE Smallcap TR INR
AUM
AUM
₹21243 Cr
Inception Date
Inception Date
1 January, 2013
Min Lumpsum/SIP
Min Lumpsum/SIP
--/--
Exit Load
Exit Load
1%
Lock In
Lock In
No Lock-in
TurnOver
TurnOver
86.77%
Overview
Expense ratio
Expense ratio
0.68%
Benchmark
Benchmark
S&P BSE Smallcap TR INR
AUM
AUM
₹50423 Cr
Inception Date
Inception Date
1 January, 2013
Min Lumpsum/SIP
Min Lumpsum/SIP
--/--
Exit Load
Exit Load
1%
Lock In
Lock In
No Lock-in
TurnOver
TurnOver
23.53%
Overview
Expense ratio
Expense ratio
0.59%
Benchmark
Benchmark
S&P BSE 500 India TR INR
AUM
AUM
₹6272 Cr
Inception Date
Inception Date
1 January, 2013
Min Lumpsum/SIP
Min Lumpsum/SIP
--/--
Exit Load
Exit Load
1%
Lock In
Lock In
No Lock-in
TurnOver
TurnOver
161.22%
Overview
Expense ratio
Expense ratio
0.37%
Benchmark
Benchmark
S&P BSE Smallcap TR INR
AUM
AUM
₹4994 Cr
Inception Date
Inception Date
26 February, 2020
Min Lumpsum/SIP
Min Lumpsum/SIP
--/--
Exit Load
Exit Load
1%
Lock In
Lock In
No Lock-in
TurnOver
TurnOver
30.06%

Best SIP Plans for 5 Years to invest (Debt)

Overview of Best SIP Plans for 5 Years to invest (Debt)

Overview
Expense ratio
Expense ratio
0.64%
Benchmark
Benchmark
CRISIL Composite Bond Fund TR INR
AUM
AUM
₹1699 Cr
Inception Date
Inception Date
1 January, 2013
Min Lumpsum/SIP
Min Lumpsum/SIP
--/--
Exit Load
Exit Load
0.5%
Lock In
Lock In
No Lock-in
TurnOver
TurnOver
141.28%
Overview
Expense ratio
Expense ratio
0.53%
Benchmark
Benchmark
CRISIL Composite Bond Fund TR INR
AUM
AUM
₹12571 Cr
Inception Date
Inception Date
1 January, 2013
Min Lumpsum/SIP
Min Lumpsum/SIP
--/--
Exit Load
Exit Load
0.25%
Lock In
Lock In
No Lock-in
TurnOver
TurnOver
83.81%
Overview
Expense ratio
Expense ratio
0.39%
Benchmark
Benchmark
CRISIL Short Term Bond Fund TR INR
AUM
AUM
₹9404 Cr
Inception Date
Inception Date
14 March, 2013
Min Lumpsum/SIP
Min Lumpsum/SIP
--/--
Exit Load
Exit Load
0%
Lock In
Lock In
No Lock-in
TurnOver
TurnOver
194.85%
Overview
Expense ratio
Expense ratio
0.35%
Benchmark
Benchmark
CRISIL Short Term Bond Fund TR INR
AUM
AUM
₹3178 Cr
Inception Date
Inception Date
1 January, 2013
Min Lumpsum/SIP
Min Lumpsum/SIP
--/--
Exit Load
Exit Load
0%
Lock In
Lock In
No Lock-in
TurnOver
TurnOver
135.24%
Overview
Expense ratio
Expense ratio
0.32%
Benchmark
Benchmark
CRISIL Short Term Bond Fund TR INR
AUM
AUM
₹27286 Cr
Inception Date
Inception Date
1 January, 2013
Min Lumpsum/SIP
Min Lumpsum/SIP
--/--
Exit Load
Exit Load
0%
Lock In
Lock In
No Lock-in
TurnOver
TurnOver
95.81%

Best SIP Plans for 5 Years to invest (Hybrid)

FundAUM (In Crs)Expense Ratio3 Yr Return (%)5 Yr Return (%)Invest Now
ICICI Prudential Equity & Debt Fund Direct Plan Growth₹35122 Cr1.02 %24.1 %21.61 %
HDFC Balanced Advantage Fund Direct Plan Growth Option₹86471 Cr0.73 %23.59 %19.6 %
Quant Absolute Fund Growth Option Direct Plan₹2114 Cr0.75 %21.92 %26.65 %
Edelweiss Aggressive Hybrid Direct Plan Growth Option₹1661 Cr0.33 %20.76 %19.47 %
UTI Aggressive Hybrid Fund-Growth - Direct₹5488 Cr1.27 %18.51 %17.84 %

Overview of Best SIP Plans for 5 Years to invest(Hybrid)

Overview
Expense ratio
Expense ratio
1.02%
Benchmark
Benchmark
CRISIL Hybrid 35+65 - Agg TR INR
AUM
AUM
₹35122 Cr
Inception Date
Inception Date
1 January, 2013
Min Lumpsum/SIP
Min Lumpsum/SIP
--/--
Exit Load
Exit Load
1%
Lock In
Lock In
No Lock-in
TurnOver
TurnOver
53.5%
Overview
Expense ratio
Expense ratio
0.73%
Benchmark
Benchmark
AUM
AUM
₹86471 Cr
Inception Date
Inception Date
1 January, 2013
Min Lumpsum/SIP
Min Lumpsum/SIP
--/--
Exit Load
Exit Load
1%
Lock In
Lock In
No Lock-in
TurnOver
TurnOver
19.43%
Overview
Expense ratio
Expense ratio
0.75%
Benchmark
Benchmark
CRISIL Hybrid 35+65 - Agg TR INR
AUM
AUM
₹2114 Cr
Inception Date
Inception Date
1 January, 2013
Min Lumpsum/SIP
Min Lumpsum/SIP
--/--
Exit Load
Exit Load
1%
Lock In
Lock In
No Lock-in
TurnOver
TurnOver
144.51%
Overview
Expense ratio
Expense ratio
0.33%
Benchmark
Benchmark
CRISIL Hybrid 35+65 - Agg TR INR
AUM
AUM
₹1661 Cr
Inception Date
Inception Date
1 January, 2013
Min Lumpsum/SIP
Min Lumpsum/SIP
--/--
Exit Load
Exit Load
1%
Lock In
Lock In
No Lock-in
TurnOver
TurnOver
80.89%
Overview
Expense ratio
Expense ratio
1.27%
Benchmark
Benchmark
CRISIL Hybrid 35+65 - Agg TR INR
AUM
AUM
₹5488 Cr
Inception Date
Inception Date
1 January, 2013
Min Lumpsum/SIP
Min Lumpsum/SIP
--/--
Exit Load
Exit Load
1%
Lock In
Lock In
No Lock-in
TurnOver
TurnOver
57.69%

SIP for 5 Years

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.

How to select the right SIP for 5 years

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:

1. Identify Your Financial Goals:

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.

2. Understand Your Risk Tolerance:

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.

3. Evaluate Fund Performance:

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.

4. Check the Expense Ratio:

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.

5. Review the Fund Manager's Track Record:

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.

6. Diversification:

Choose a fund that is well-diversified across sectors and companies. Diversification can help mitigate risk and stabilize returns.

7. Regularly Monitor Your SIP:

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.

Frequently Asked Questions

  • Which SIP is the best for 5 years?
  • What is the average return in SIP for 5 years?
  • Can we do SIP for 5 years?
  • How much is Rs.50,000 per month SIP for 5 years?
  • How to get 50 lakhs in 5 years with SIP?
  • How to make 1 crore in 5 years by SIP?
  • How to make 1 crore in 5 years in mutual funds?