Invest in Best SIP Plan for 1 year
Explore the top-performing SIP plans for a 1-year investment horizon in India for 2024. Learn how these plans can help you achieve short-term financial goals with consistent returns.
Best SIP Plans for 1 Year
| Fund Name | Fund Category | AUM (₹ Cr) | NAV (₹) | Expense Ratio (%) | Risk | 1-Year Return (%) | Fund Manager |
|---|---|---|---|---|---|---|---|
| HDFC Mid-Cap Opportunities Fund | Equity | 16,132.50 | 33.45 | 1.81 | High | 48.22 | Chirag Setalvad |
| Axis Bluechip Fund | Equity | 21,583.00 | 56.21 | 1.78 | High | 45.19 | Jinesh Gopani |
| SBI Small Cap Fund | Equity | 9,124.00 | 551.96 | — | High | 50.32 | Sandeep Bhat |
| HDFC Balanced Advantage Fund | Hybrid | 9,845.00 | 39.67 | 1.67 | Moderate | 37.45 | Prashant Jain |
| ICICI Prudential Balanced Advantage Fund | Hybrid | 15,702.00 | 40.80 | 1.58 | Moderate | 35.78 | Sandeep Bhat |
| Mirae Asset Hybrid Equity Fund | Hybrid | 3,621.00 | 20.54 | 1.53 | Moderate | 38.12 | Gaurav Misra |
| Axis Treasury Advantage Fund | Debt | 4,903.00 | 27.84 | 0.88 | Low | 7.15 | Karan Bhagat |
| HDFC Corporate Bond Fund | Debt | 8,431.00 | 33.20 | 1.05 | Low | 7.50 | Anupam Joshi |
| ICICI Prudential All Seasons Bond Fund | Debt | 5,210.00 | 29.34 | 0.95 | Low | 7.80 | Pankaj Jain |
What is SIP?
SIP (Systematic Investment Plan) is a popular way of investing in Mutual Fund that regularly helps you save periodically every month instead of investing in lump sum. Investing in SIP inculcates disciplined savings behavior. Through investing in SIP regularly over a period, investors can invest a predetermined sum of money to get good returns at the end of the period. Though, ideally SIPs maximize returns through a long-term investment horizon, here are some options that might be good for a 1-year investment period
Investing in the Best SIP Plan for 1 Year
Systematic Investment Plans (SIPs) have emerged as one of the most popular and effective investment methods for those looking to enter the world of mutual funds. SIPs allow investors to contribute a fixed amount regularly into a mutual fund scheme, providing the dual benefits of disciplined saving and the power of compounding. In this comprehensive guide, we will delve into the nuances of SIPs, the criteria for choosing the best SIP plan, and recommend some of the top-performing SIP plans for a 1-year investment horizon.
Understanding SIPs
A Systematic Investment Plan (SIP) is an investment strategy offered by mutual funds where investors can invest a fixed amount of money at regular intervals, usually monthly or quarterly, into a selected mutual fund scheme. SIPs are a disciplined way of investing and help in accumulating wealth over time.
Key Benefits of SIPs
- Rupee Cost Averaging: By investing a fixed amount regularly, investors buy more units when the price is low and fewer units when the price is high, averaging out the cost of investment over time.
- Power of Compounding: Regular investments, combined with the compounding effect, can significantly increase the value of your investments over time.
- Disciplined Savings: SIPs encourage a disciplined approach to saving and investing, ensuring that investors put aside a specific amount regularly.
- Convenience: SIPs automate the investment process, making it easier for investors to manage their investments without constant monitoring.
Things to Consider While Choosing a SIP for 1 Year
- Investment Objective: Be clear of your investment goals. For a 1-year investment horizon, focus on capital preservation and stable returns rather than focusing
- Risk Tolerance: Take note of your risk appetite. The mentioned funds here are equity funds, if you are interested in safer option, opt for debt and hybrid funds
- Fund Performance: Evaluate the historical performance of the fund, particularly its 1-year returns. Compare it with its benchmark and category peers.
- Expense Ratio: Check the fund’s expense ratio, which impacts your overall returns. Lower expense ratios result in higher returns
- Fund Manager’s Expertise: Check the fund manager’s expertise in managing the funds. Pick the one who has a good track record
- Liquidity: Ensure the fund offers good liquidity, allowing you to redeem whenever you have an emergency
SIP Calculator
SIP Calculator
Conclusion
Investing in SIPs for a 1-year period can be a good choice, if you prevent stability over high-risk opportunities. It is for this reason; it is highly recommended to choose short term debt funds for a 1-year investment horizon. Evaluate your financial goals, risk tolerance, and fund’s performance to help you make an informed decision.
FAQ for Best SIP to invest in 1 year
1. Are there any risks associated with investing in SIP for 1 year?
Like any market related investment, SIPs also have some risk, but they offer a relatively low-risk approach compared to direct share investing.
2. How can I track my SIP investments for 1 year?
Most fund issuers have mobile apps that have easy-to-use tools to track your investment performance and manage your SIPs. Alternatively, you can also use SIP aggregator websites like Fincover, which has extensive features to track your investment
3. What happens to my SIP after 1 year?
You can continue your SIP investment for an extended period or withdraw your funds, based on your requirements.
4. Can I withdraw my SIP investment before 1 year?
You can withdraw your investment any time you wish, but you may incur an exit load or lose potential returns. So, it is advised to stay invested according to your goals
5. How much should I invest in SIP for 1 year?
It depends on your goals and risk appetite. Most SIPs allow you to begin even with a meager investment of Rs. 500 per month