Invest in Best SIP Plan for 3 years
Discover the best SIP plans for a 3-year investment horizon in India for 2024. Maximize returns with smart, long-term investment strategies.
Best SIP Plans for 3 Years
| Fund Name | AUM (₹ Cr) | Expense Ratio | NAV (₹) | Risk Level | 3-Year Return (%) |
|---|---|---|---|---|---|
| Mirae Asset Large Cap Fund | 34,000+ | Low | 98.45 | Moderately High | 18–20% |
| Axis Bluechip Fund | 38,000+ | Moderate | 53.75 | Moderately High | 16–18% |
| SBI Small Cap Fund | 15,000+ | Moderate | 115.60 | High | 25–30% |
| HDFC Balanced Advantage Fund | 48,000+ | Moderate | 257.00 | Moderate | 12–15% |
| Kotak Emerging Equity Fund | 18,000+ | Moderate | 78.50 | High | 20–22% |
| ICICI Prudential Technology Fund | 8,500+ | Moderate | 162.50 | High | 25–28% |
What is an SIP?
SIP stands for Systematic Investment Plan, a way of investing in mutual funds by making regular, fixed payments over an investment horizon. It’s like a savings plan that allows you to accumulate wealth gradually. SIPs are beneficial because they benefit from the power of compounding. Everyone should consider SIPs as they offer a simple, disciplined way to build wealth over the long term, even with small, regular contributions.
Best SIP plan for 3 years
For a 3-year investment horizon, a combination of equity and debt funds is advisable to balance risk and return. Through investing in SIP for three years, investors can invest a predetermined sum of money to maximize their returns. Here are some options that might be good for a 3 year investment period.
Benefits of Investing in SIP Plan for three years
- Power of Compounding: SIPs allow you to benefit from the power of compounding, where your returns multiply over the course of time
- Disciplined Investing: SIPs instill financial discipline by encouraging regular saving and investing. This habit helps you stay on track with your financial goals.
- Averaging Out Costs: SIPs help you average out your purchase price by investing a fixed amount at regular intervals. This reduces the impact of market fluctuations and lowers your overall investment cost.
- Building a Long-Term Portfolio: Investing in SIPs for three years allows you to build a diversified portfolio that can withstand market volatility and generate long-term returns. This provides a solid foundation for your financial future.
SIP Calculator
SIP Calculator
Things to Consider While Choosing a SIP for 3 Years
- Investment Objective: Be clear of your investment goal, whether it’s wealth creation, capital appreciation, or for serving a specific purpose
- Risk Appetite: Ensure the SIP investment aligns with your investment objective and risk appetite.
- Asset Allocation: Diversify your investment across different asset classes to manage risk and potentially enhance returns. Consider investing across equity, debt, and other suitable asset classes based on your risk profile.
- Fund Performance: Analyze the historical performance of the mutual fund scheme, including its returns, volatility, and consistency. Invest in funds with a strong track record
- Expense Ratio: Compare the expense ratios of different mutual fund schemes, as a lower expense ratio can contribute to better returns in the long run
- Liquidity: Make sure that your fund has the ease of withdrawing your investment as and when you require
FAQ for Best SIP Plan for 3 years
1. Is three years enough time for my SIP investment to grow?
While three years might seem short, it’s a good starting point to experience the power of compounding and start building wealth.
2. Will my SIP investments be safe for three years?
No investment is completely risk-free. However, SIPs help mitigate risk through rupee cost averaging
3. Can I withdraw my SIP investments before three years?
You can typically withdraw your SIP investments at any time. However, some funds may charge exit value and penalties
4. What if the market crashes during my three-year SIP investment period?
Market crashes are inevitable, but SIPs help you weather them. By investing regularly, you buy more units when prices are low and fewer units when prices are high, averaging out your cost and reducing overall risk.