Which SIP gives the highest return in 1 year?

Systematic Investment Plan (SIP) is one of the best ways to start investing. You don’t require a huge lump sum amount to start a SIP. You can start a SIP even with a small amount of ₹500.

Moreover, SIP investment develops the habit of disciplined investing in you. You can use the SIP calculator app to know the returns through SIP investment.

When you check the best mutual funds for investments based on returns in the last 3 years, here are the top 3 funds:

Quant Small Cap Mutual Fund – Direct Plan-Growth which has a 3-year return of 48.82%
Nippon India Small Cap Mutual Fund – Direct Plan-Growth which has a 3-year return of 45.16%
SBI Contra Mutual Fund – Direct Plan-Growth which has a 3-year return of 39.55%.

For SIP investments, here are the top 3 funds based on returns in the last 3 years:

Nippon India Small Cap Mutual Fund – Direct Plan-Growth had a 3-year SIP return of 67.83%
Quant Small Cap Mutual Fund – Direct Plan-Growth had a 3-year SIP return of 67.67%
Motilal Oswal Midcap Mutual Fund – Direct Plan-Growth had a 3-year SIP return of 60.26%

However, these are equity funds and for a SIP for 1 year, you should opt for money market funds in the ultra-short-term category. Short-term SIPs have a tenure that ranges from 1-3 years. These are majorly liquid mutual funds and are most suitable for short-term investments. It offers less returns as compared to long-term funds.

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In this article, we will go through top SIPs for 1-year investment. Before that let’s understand why one should invest in SIP.

Why Invest in SIP for 1 year?

When you wish to invest systematically to accumulate some funds for a short-term financial goal in 1-year time, SIP is a great choice. However, you need to opt for the best funds for systematic investment in the ultra-short-term category. These funds are debt-oriented mutual funds which invest in companies for a tenure of 3 to 6 months and are ideal for people looking for very low-risk investments for a short duration which is less than 1 year.

Top SIPs Plans for 1 Year Investment:

Nippon India Ultra Short Duration Fund which has a fund size of ₹5,821 Crs and an absolute return of 4.03% in 1 year when invested systematically through SIP.

Benchmark: CRISIL 10-Year Gilt Index

The mutual fund has 94.06% of its total investment in Debt market instruments wherein 13.53% of it is in Government securities and about 80.53% in Low Risk fixed income securities.

Axis Ultra Short Term Fund which has a fund size of ₹4,894 Crs and an absolute return of 4.00% in 1 year when invested systematically through SIP.

Benchmark: CRISIL 10-Year Gilt Index

The mutual fund has 96.82% of its total investment in Debt market instruments wherein 17.38% of it is in Government securities and about 79.44% in Low Risk fixed income securities.
Baroda BNP Paribas Ultra Short Duration Fund which has a fund size of ₹949 Crs and an absolute return of 4.00% in 1 year when invested systematically through SIP.

Benchmark: CRISIL 10-Year Gilt Index

The mutual fund has 90.57% of its total investment in Debt market instruments wherein 8.45% of it is in Government securities and about 82.12% in Low Risk fixed income securities.
ICICI Prudential Ultra Short Term Fund which has a fund size of ₹13,376 Crs and an absolute return of 3.97% in 1 year when invested systematically through SIP.

Benchmark: CRISIL 10-Year Gilt Index

The mutual fund has 97.55% of its total investment in Debt market instruments wherein 13.82% of it is in Government securities and about 83.75% in Low Risk fixed income securities.
Aditya Birla Sun Life Savings Fund which has a fund size of ₹14,683 Crs and an absolute return of 3.97% in 1 year when invested systematically through SIP.

Benchmark: CRISIL 10-Year Gilt Index

The mutual fund has 95.28% of its total investment in Debt market instruments wherein 16.31% of it is in Government securities and about 78.99% in Low Risk fixed income securities.

Conclusion

SIP is a great way to maintain disciplined investing. Before investing in SIP for one year do consider your risk appetite, investment goals etc. You can use the SIP calculator app to determine the returns through SIP Plans.

Ref:

https://www.etmoney.com/mutual-funds/debt/ultra-short-duration/56