Invest in Best SIP Plan for 5 years
Explore the top-performing SIP plans for a 5-year investment horizon in India for 2024. Learn how these plans can help you achieve long-term financial growth with consistent returns.
Best SIP Plans for 5 Years
| Fund Name | AUM (₹ Cr) | Expense Ratio | NAV (₹) | Risk | 5-Year Return (%) |
|---|---|---|---|---|---|
| Motilal Oswal Midcap Direct Growth | ₹12,627.68 | 0.61% | ₹112.68 | Very High | 35.42% |
| Nippon India Small Cap Fund | ₹56,468.75 | 1.43% | ₹177.48 | Very High | 38.11% |
| Quant Mid Cap Fund | ₹8,747.40 | 1.74% | ₹247.50 | Very High | 37.67% |
| Quant Small Cap Fund | ₹22,967.17 | 0.64% | ₹294.90 | Very High | 49.11% |
| Canara Robeco Bluechip Equity Fund | ₹13,930.64 | 1.66% | ₹61.07 | Very High | 20.49% |
| ICICI Prudential Focused Equity Fund | ₹9,112.61 | 1.75% | ₹87.55 | Very High | 24.67% |
| Franklin India Focused Equity Fund | ₹12,198.10 | 1.76% | ₹107.81 | Very High | 22.70% |
| SBI Technology Opportunities Fund | ₹3,813.83 | 1.92% | ₹204.97 | Very High | 26.33% |
| Axis Small Cap Fund | ₹22,262.42 | 1.62% | ₹102.97 | Very High | 30.34% |
| Tata Digital India Fund | ₹10,204.35 | 1.68% | ₹49.30 | Very High | 27.44% |
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.
SIP investment for 5 years
Systematic Investment Plans have become the No 1 investment option for investors due to their convenience and the factor of power of compounding they offer. Especially those with a investment horizon like 5 years. If you are considering to invest over a five-year period, these are the funds that you need to invest in.
Benefits of Investing in SIP Plan for 5 years
- Rupee Cost Averaging: By investing a fixed amount regularly, investors can buy more units when the price is low and less when the price is high, balancing the cost of buying
- Power of Compounding: The power of compounding would allow your investment to grow by a bigger margin especially for a long investment horizon like 5 years
- Disciplined Savings: SIPs fosters a disciplined approach to saving and investing, ensuring you save some amount for your future easily
- Convenience: SIPs ease investment process. Once you give a mandate to the bank, the amount will be automatically deducted from your account on a particular date as per your convenience, making investment process a breeze
SIP Calculator
SIP Calculator
Things to Consider While Choosing Best SIP for 5 Years
- Investment Goals: Define your financial objectives in this period. Establish the purpose for which this fund is being built. This will help you pick the right investment strategy.
- Risk Tolerance: Understand your comfort level with dealing risk. Staying invested over 5 years would require you to have a good risk tolerance.
- Time Horizon: A 5-year time horizon offers a good balance between potential growth and risk. Consider investing in a mixture of equity and debt funds so that steady returns from debt neutralizes the market downturns equity part may face
- Fund Performance: Research the performance of these funds over a long term horizon. Pick the fund that offers consistently good returns that are in alignment with your financial goals
- Expense Ratio: This fee charged by the company can significantly impact your returns. Pick the funds with a low expense ratio so that your returns are not affected
- Fund Manager Expertise: Consider the experience and expertise of the fund manager. A skilled manager can navigate the market downturns and provide good returns for your investment
- Tax Implications: Understand the tax implications of mutual fund. According to the latest budget, LTC gains are taxed at 12.5%
- Review: Regularly monitor your investment and make adjustments as and when needed
FAQ for Best SIP Plan for 5 years
1. What if the market heads for a downturn during my SIP investment?
Don’t worry! SIPs help you average out your investment cost, so market events are less impactful over the long term.
2. Can I invest in multiple SIPs simultaneously?
Absolutely! The more the merrier, diversifying your money across various funds would allow you to increase your returns by a significant margin.
3. How much should I invest in a SIP for 5 years?
Start with an amount you can comfortably afford and gradually increase your investment as your income grows. Most funds allow you to start even with Rs. 500 per month as a starting investment.
4. How often should I review my SIP investments?
It’s a good practice to review your investments at least once a year, and make alterations to your portfolio based on the economic conditions.
5. Can I withdraw my SIP investment before 5 years?
You can withdraw your investment at any time, but you may have to pay an exit load or lose some potential returns.