Best Mutual Fund SIP For 1 Year

The table below shows a list of the Best Mutual Fund SIP For 1 Year based on AUM, NAV, and minimum SIP.

Introduction to Top Mutual Fund SIP For 1 Year

Motilal Oswal Midcap Fund

Motilal Oswal Midcap Fund is a Mid Cap mutual fund scheme from Motilal Oswal Mutual Fund. This fund has been operational for 10 years and 7 months, having been launched on February 3, 2014.

Motilal Oswal Midcap Fund falls under the Mid Cap Fund category with an AUM of ₹12,627.68 crores, a 5-year CAGR of 35.92%, an exit load of 1%, and an expense ratio of 0.58%. The SEBI risk category is Very High. Its asset allocation includes 21.72% in Cash & Equivalents and 78.28% in Equity.

ICICI Prudential Overnight Fund

ICICI Prudential Overnight Fund is an Overnight mutual fund scheme from ICICI Prudential Mutual Fund. This fund has been operational for 5 years and 9 months, having been launched on November 14, 2018.

ICICI Prudential Overnight Fund falls under the Overnight Fund category with an AUM of ₹11,001.21 crores, a 5-year CAGR of 66.10%, an exit load of 0%, and an expense ratio of 0.1%. The SEBI risk category is Low. Its asset allocation includes 6.03% in Treasury Bills and 93.97% in Cash & Equivalents.

Nippon India Power & Infra Fund

Nippon India Power & Infra Fund is a Sectoral-Infrastructure mutual fund scheme from Nippon India Mutual Fund. This fund has been operational for 11 years and 8 months, having been launched on January 1, 2013.

Nippon India Power & Infra Fund falls under the Sectoral Fund – Energy & Power category with an AUM of ₹7,537.49 crores, a 5-year CAGR of 34.16%, an exit load of 1%, and an expense ratio of 1.01%. The SEBI risk category is Very High. Its asset allocation includes 1.40% in Cash & Equivalents and 98.60% in Equity.

ICICI Prudential Infrastructure Fund

ICICI Prudential Infrastructure Fund is a Sectoral-Infrastructure mutual fund scheme from ICICI Prudential Mutual Fund. This fund has been operational for 11 years and 8 months, having been launched on January 1, 2013.

ICICI Prudential Infrastructure Fund falls under the Sectoral Fund – Infrastructure category with an AUM of ₹5,703.04 crores, a 5-year CAGR of 33.85%, an exit load of 1%, and an expense ratio of 1.18%. The SEBI risk category is Very High. Its asset allocation includes 92.93% in Equity, 5.10% in Cash & Equivalents, 1.15% in Treasury Bills, and 0.82% in Other Securities (REITs & InvIT, Rights).

Aditya Birla Sun Life PSU Equity Fund

Aditya Birla Sun Life PSU Equity Fund is a Thematic-PSU mutual fund scheme from Aditya Birla Sun Life Mutual Fund. This fund has been operational for 4 years and 9 months, having been launched on December 9, 2019.

Aditya Birla Sun Life PSU Equity Fund falls under the Thematic Fund category with an AUM of ₹5,121.77 crores, a 5-year CAGR of 0%, an exit load of 1%, and an expense ratio of 0.43%. The SEBI risk category is Very High. Its asset allocation includes 5.35% in Cash & Equivalents and 94.65% in Equity.

SBI PSU Fund

SBI PSU Fund is a Thematic-PSU mutual fund scheme from SBI Mutual Fund. This fund has been operational for 11 years and 8 months, having been launched on January 1, 2013.

SBI PSU Fund falls under the Thematic Fund category with an AUM of ₹3,694.68 crores, a 5-year CAGR of 31.43%, an exit load of 0.5%, and an expense ratio of 0.73%. The SEBI risk category is Very High. Its asset allocation includes 7.93% in Cash & Equivalents and 92.07% in Equity.

HDFC Infrastructure Fund

HDFC Infrastructure Fund is a Sectoral-Infrastructure mutual fund scheme from HDFC Mutual Fund. This fund has been operational for 11 years and 8 months, having been launched on January 1, 2013.

HDFC Infrastructure Fund falls under the Sectoral Fund – Infrastructure category with an AUM of ₹2,310.79 crores, a 5-year CAGR of 29.36%, an exit load of 1%, and an expense ratio of 1.11%. The SEBI risk category is Very High. Its asset allocation includes 89.61% in Equity, 8.52% in Cash & Equivalents, and 1.87% in Other Securities (REITs & InvIT).

Invesco India PSU Equity Fund

Invesco India PSU Equity Fund is a Thematic-PSU mutual fund scheme from Invesco Mutual Fund. This fund has been operational for 11 years and 8 months, having been launched on January 1, 2013.

Invesco India PSU Equity Fund falls under the Thematic Fund category with an AUM of ₹1,663.11 crores, a 5-year CAGR of 35.00%, an exit load of 1%, and an expense ratio of 0.77%. The SEBI risk category is Very High. Its asset allocation includes 3.10% in Cash & Equivalents and 96.90% in Equity.

ICICI Prudential BHARAT 22 FOF

ICICI Prudential BHARAT 22 FOF is an Equity FoF mutual fund scheme from ICICI Prudential Mutual Fund. This fund has been operational for 6 years and 3 months, having been launched on June 19, 2018.

ICICI Prudential BHARAT 22 FOF falls under the FoFs (Domestic) – Equity Oriented category with an AUM of ₹1,576.73 crores, a 5-year CAGR of 29.09%, an exit load of 0%, and an expense ratio of 0.12%. The SEBI risk category is Very High. Its asset allocation includes 99.85% in Mutual Funds and 0.15% in Cash & Equivalents.

Bank of India Credit Risk Fund

Bank of India Credit Risk Fund is a Credit Risk mutual fund scheme from Bank of India Mutual Fund. This fund has been operational for 9 years and 7 months, having been launched on February 6, 2015.

Bank of India Credit Risk Fund falls under the Credit Risk Fund category with an AUM of ₹126.72 crores, a 5-year CAGR of 10.55%, an exit load of 3%, and an expense ratio of 1.19%. The SEBI risk category is Moderately High. Its asset allocation includes 63.77% in Corporate Debt, 22.03% in Commercial Paper, 12.09% in Cash & Equivalents, and 2.11% in Others.

What is the Meaning of SIP?

SIP, or Systematic Investment Plan, is a method of investing in mutual funds where an investor regularly contributes a fixed amount of money at predetermined intervals (usually monthly). This approach allows investors to benefit from rupee cost averaging and instills financial discipline.

SIPs enable investors to invest small amounts regularly, making it easier to start investing even with limited funds. By investing a fixed amount regardless of market conditions, investors buy more units when prices are low and fewer when prices are high.

This method is particularly beneficial for beginners or those who prefer a disciplined approach to investing. It helps in navigating market volatility and potentially enhances long-term returns through the power of compounding.

Features Of Top Mutual Fund SIP For 1 Year

The main features of Top Mutual Fund SIP For 1 Year include regular investing, rupee cost averaging, flexibility, potential for higher returns in the short-term, and ease of investment. These features make SIPs an attractive option for short-term goals.

• Regular Investing: SIPs allow for consistent, disciplined investing on a monthly or quarterly basis, helping to build a habit of saving.

• Rupee Cost Averaging: By investing a fixed amount regularly, investors can average out their purchase cost over time, potentially reducing the impact of market volatility.

• Flexibility: Most SIPs offer the flexibility to increase, decrease, or pause investments as per the investor’s financial situation.

• Short-term Focus: These SIPs are typically invested in funds suitable for short-term goals, often with a more conservative asset allocation.

• Ease of Investment: SIPs can be easily set up and managed online, making them accessible to a wide range of investors.

Best Mutual Fund SIP For 1 Year

The table below shows the Best Mutual Fund SIP For 1 Year based on the lowest to highest expense ratio.

Top Mutual Fund SIP For 1 Year In India

The table below shows the Top Mutual Fund SIP For 1 Year In India based on the Highest 3Y returns.

Top Mutual Fund SIP For 1 Year

The table below shows the Top Mutual Fund SIP For 1 Year based on exit load, i.e., the fee that the AMC charges investors when they exit or redeem their fund units.

Factors To Consider When Investing In Top Mutual Fund SIP For 1 Year

When investing in Top Mutual Fund SIP For 1 Year, consider the fund’s past performance, risk profile, expense ratio, fund manager’s expertise, and alignment with your short-term financial goals. These factors can significantly impact the suitability and potential returns of your investment.

• Past Performance: While not indicative of future results, review the fund’s performance over the past year and compare it with its benchmark and peers.

• Risk Profile: For a 1-year horizon, consider funds with lower volatility to protect your capital. Debt funds or balanced funds might be suitable.

• Expense Ratio: Look for funds with lower expense ratios as these can impact your overall returns, especially in a short time frame.

• Fund Manager Expertise: Evaluate the fund manager’s experience and track record in managing short-term funds.

• Investment Objective: Ensure the fund’s objective aligns with your 1-year investment goal, whether it’s capital preservation or moderate growth.

How To Invest In Top Mutual Fund SIP For 1 Year?

To invest in Top Mutual Fund SIP For 1 Year, start by researching funds suitable for short-term investments. Consider factors like past performance, risk profile, and expense ratio. Align the investment with your financial goals for the coming year.

Determine the amount you can comfortably invest each month. Remember, consistency is key in SIP investing, so choose an amount you can maintain for the entire year.

Open an account with Alice Blue. Complete the necessary documentation, including KYC requirements. Choose your preferred mutual fund and set up the SIP with your desired investment amount and date. Ensure you have sufficient funds in your linked bank account for each monthly deduction.

Advantages Of Investing In Top Mutual Fund SIP For 1 Year?

The main advantages of investing in Top Mutual Fund SIP For 1 Year include disciplined saving, the potential for better returns than traditional savings accounts, rupee cost averaging benefits, flexibility, and ease of investment for short-term goals.

• Disciplined Saving: SIPs encourage regular, systematic investing, helping build a savings habit over the year.

• Potential Higher Returns: Even in a short timeframe, mutual funds may offer better returns than traditional savings accounts or fixed deposits.

• Rupee Cost Averaging: Regular investments can help average out the purchase cost, potentially reducing the impact of market volatility.

• Flexibility: Most SIPs allow investors to modify or stop investments if needed, providing flexibility for changing financial situations.

• Short-term Goal Alignment: These SIPs are suitable for investors with short-term financial goals, offering a balance of growth and capital preservation.

Risks Of Investing In Top Mutual Fund SIP For 1 Year?

The main risks of investing in Top Mutual Fund SIP For 1 Year include market volatility, the potential for negative returns in the short term, interest rate risk for debt funds, credit risk, and the possibility of not meeting short-term financial goals.

• Market Volatility: Even with SIP, short-term market fluctuations can impact returns, especially in equity-oriented funds.

• Short-term Underperformance: In a 1-year timeframe, there’s a risk of negative or lower-than-expected returns due to market conditions.

• Interest Rate Risk: For debt fund SIPs, changes in interest rates can impact bond prices and fund returns.

• Credit Risk: Debt funds carry the risk of default by bond issuers, which can affect fund performance.

• Goal Mismatch: There’s a risk that the chosen fund’s performance may not align with your short-term financial goals.

Importance of Systematic Investment Plan

The main importance of Systematic Investment Plans lies in their ability to instill financial discipline, provide the benefits of rupee cost averaging, make investing accessible to all income levels, potentially enhance long-term returns through compounding, and help navigate market volatility.

• Financial Discipline: SIPs encourage regular, systematic investing, helping build a long-term savings habit.

• Rupee Cost Averaging: By investing a fixed amount regularly, SIPs can help average out the purchase cost over time.

• Accessibility: SIPs allow investors to start with small amounts, making mutual fund investing accessible to a wider range of people.

• Compounding Benefits: Regular investments over time can benefit from the power of compounding, potentially enhancing long-term returns.

• Volatility Management: The systematic nature of SIPs can help navigate market volatility by spreading investments over time.

How Long to Stay Invested in a Systematic Investment Plan?

The ideal investment duration for a Systematic Investment Plan depends on your financial goals and the type of fund you’re investing in. Generally, for equity funds, a longer investment horizon of 5-7 years or more is recommended to ride out market volatility and benefit from potential long-term growth.

For debt funds or balanced funds, a shorter time frame of 3-5 years might be suitable. However, even for short-term goals, staying invested for at least 1-3 years can help benefit from the rupee cost-averaging effect of SIPs.

Tax Implications of Investing in SIP

The tax implications of investing in SIPs depend on the type of mutual fund and the holding period. For equity funds, gains are tax-free up to ₹1 lakh per year if held for more than one year. Beyond this, long-term capital gains are taxed at 10%. Short-term gains (less than one year) are taxed at 15%.

For debt funds, gains are treated as short-term if held for less than three years and taxed at your income tax slab rate. Long-term gains (over three years) are taxed at 20% with indexation benefits. Always consult a tax professional for personalized advice.

Future of SIP

The future of Systematic Investment Plans looks promising in India. With increasing financial awareness and the need for long-term wealth creation, SIPs are likely to remain a popular investment method. The ease of investing through digital platforms is expected to further boost SIP adoption.

As the mutual fund industry evolves, we may see more innovative SIP options, such as flex SIPs that adjust investment amounts based on market conditions, or goal-based SIPs tailored to specific financial objectives. The focus on financial inclusion may also lead to more accessible SIP options.

Top Mutual Fund SIP For 1 Year – FAQs  

We hope you’re clear on the topic, but there’s more to explore in stocks, commodities, mutual funds, and related areas. Here are important topics to learn about.

Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.