Best SIP Plans for 1 year to invest in India

Best SIP Plans for 1 year to invest in India

What is Systematic Investment Plan (SIP)?

SIP is where you invest a fixed amount in mutual fund schemes. Systematic Investment Plan (SIP) can be done either daily or weekly or monthly or quarterly or yearly. However, the most popular one is a Monthly SIP in mutual funds.

Which are the various categories of mutual funds that are good for 1 year investment?

Here are some of the mutual fund categories that can be invested in 1 day to 1 year. Let us check which category of mutual funds is best for 1 year duration.

1) Overnight Mutual Funds: These are open ended debt mutual fund schemes that will invest in overnight securities. These would invest in overnight securities with a maturity of one day. If you are looking for 1 year SIP funds this would not be the right choice.

2) Liquid Funds: These MF schemes will invest in debt and money market instruments that matures within 91 days of tenure. If you are unsure whether your investment horizon is 1 month or 3 months or 1 year, investing in liquid funds good be a good idea.

3) Ultra short duration debt mutual funds: These ultra-short term debt funds would invest in securities that has a maturity between 3 months to 6 month period. If you are not sure whether you need money in 3 months or 6 months or 1 year, these could be Best SIP plans for 1 year duration.

4) Low duration debt funds: These debt funds would invest in instruments that has duration between 6 months and 12 months. If you think you may not need money for 6 months to 12 months duration, these funds could be good investment option for 1 year duration.

Who can invest in liquid funds?

Investors can invest in liquid funds that are best alternative to bank FD or RDs to park their surplus money for any short term requirement. Some experts argue that SIP in liquid funds or a lump sum of liquid funds does not make any sense as they provide similar returns, however good compared to bank RDs. If you are not sure whether you require money in 1 month or 1 year and willing to invest every month, investing in liquid funds through SIP could be a good idea.

Here is the summary of the 10 Best SIP Plans to invest for one year period

Mutual Fund Scheme VRO Star Rating (Annualised returns)
(Annualised returns)
1 Year
(Annualised returns)
3 Years
(Annualised returns)
5 years
Quant Liquid Plan 5 Star 1.7% 7.5% 7.1% 7.7%
Franklin India Liquid Fund 5 Star 1.6% 7.4% 7.1% 7.6%
Aditya Birla Sun Life Liquid Fund 4 Star 1.6% 7.3% 7.0% 7.5%
Franklin India Ultra Short Bond Fund 5 Star 2.4% 10.1% 8.8% 9.2%
Aditya Birla Sun Life Savings Fund 4 Star 2.3% 9.1% 7.8% 8.4%
ICICI Prudential Ultra Short Term Fund NA 2.1% 8.7% 7.6% 8.9%
ICICI Prudential Savings Fund 4 Star 2.3% 9.0% 7.7% 8.3%
IDFC Low Duration Fund 4 Star 2.3% 9.0% 7.6% 8.1%
Franklin India Low Duration Fund 5 Star 2.4% 8.8% 8.3% 9.0%
Aditya Birla Sun Life Low Duration Fund 3 Star 2.4% 8.8% 7.3% 7.8%