SIP or Systematic Investment Plan helps bring investment discipline in an investor’s life. It’s also considered as a low-risk alternative compared to lump sum investments. In fact, you can start an SIP investment with just ₹10! So, if you’re a beginner investor seeking long-term capital growth, SIP could be the way to go. In this blog, we have shortlisted 10 best SIP plans for 3 years investment. Let’s dive in!
Did You Know?
SIP collection in India jumped 31% to Rs 1.5 lakh cr in 2022 compared to 2021!
10 Best SIP Plans for 3 Years in India
This table highlights the 10 best SIP for 3 years and their annualised returns.
| Mutual Funds | Annualised Returns |
| Nippon India Large Cap Fund- Direct Plan- Growth | 1-year Returns: 6.21%3-year Returns: 34.38%5-year Returns: 12.34% |
| HDFC Top 100 Fund- Direct Plan- Growth | 1-year Returns: 5.47%3-year Returns: 31.86%5-year Returns: 11.89% |
| SBI Bluechip Fund- Direct Plan- Growth | 1-year Returns: 2.70%3-year Returns: 31.09%5-year Returns: 11.16% |
| Tata Large Cap Fund- Direct Plan- Growth | 1-year Returns: 0.14%3-year Returns: 30.20%5-year Returns: 11.31% |
| Kotak Bluechip Fund- Direct Plan- Growth | 1-year Returns: 1.10%3-year Returns: 30.84%5-year Returns: 12.64% |
| Edelweiss Large Cap Fund- Direct Plan-Growth | 1-year Returns: 3.21%3-year Returns: 29.75%5-year Returns: 12.70% |
| Baroda BNP Paribas Large Cap Fund- Direct Plan- Growth | 1-year Returns: 2.11%3-year Returns: 26.96%5-year Returns: 12.74% |
| Mirae Asset Large Cap Fund- Direct Plan- Growth | 1-year Returns: -0.58%3-year Returns: 29.42%5-year Returns: 12.18% |
| Sundaram Large Cap Fund- Direct Plan-Growth | 1-year Returns: 0.39%3-year Returns: NA5-year Returns: NA |
| Indiabulls Bluechip Fund- Direct Plan-Growth | 1-year Returns: 1.21%3-year Returns: 25.03%5-year Returns: 9.17% |
Also Read
10 Best SIP Plan for 10 years India in 2023 – Returns and Performance
10 Best SIP Plans for 1000 Per Month in India 2023
Performance of the Best SIP Plan for 3 years
Here is a detailed study of each of the best SIP investment plans for 3 years to invest in:
1. Nippon India Large Cap Fund
Considered as the best SIP plan for 3 years, this fund aims for capital appreciation by investing in equities and equity-related instruments of large cap companies. As one of the best SIPs to invest for 3 years, this fund has a locking period of 3-4 years. It facilitates regular returns by investing in debt and money market instruments. Ashutosh Bhargava and Sailesh Raj Bhan are the present fund managers of this scheme.
- AUM: ₹12524.53 Crore
- NAV: ₹54.11
- Expense Ratio: 1.85%
- Minimum SIP Investment: ₹1,000
- Category of Fund: Large cap fund
- Risk: Very high
- 1-year Return: 5.30%
- 3-year Returns: 33.26%
- 5-year Returns: 11.37%
2. HDFC Top 100
This mutual fund scheme, which is considered a top SIP plan for 3 years, aims to bring in long term capital gains for SIP and lump sum investors by investing in large cap stocks. Investors must be sure about their risk appetite when investing via a lump sum. For SIP investments, the minimum amount allowed is ₹100 and in multiples of ₹1 thereafter. Priya Ranjan and Rahul Baijal are the fund managers of this scheme.
- AUM: ₹22139.22 Crore
- NAV: ₹739.41
- Expense Ratio: 1.79%
- Minimum SIP Investment: ₹100
- Category of Fund: Large cap fund
- Risk: Very high
- 1-year Return: 4.84%
- 3-year Returns: 31.09%
- 5-year Returns: 11.21%
3. SBI Bluechip Fund
SBI Bluechip Fund is one of the best mutual funds to invest in via SIP for 3 years as it invests in equities of large-cap companies. Its portfolio diversification covers various sectors and geography to gain wholesome returns. The fund follows a combination of both value and growth styles of investment. Sohini Andani is the ongoing fund manager of this scheme.
- AUM: ₹33987.07 Crore
- NAV: ₹61.95
- Expense Ratio: 1.64%
- Minimum SIP Investment: ₹1,000
- Category of Fund: Large cap fund
- Risk: Very high
- 1-year Return: 1.97%
- 3-year Returns: 30.12%
- 5-year Returns; 10.29%
4. Tata Large Cap Fund- Direct Plan- Growth
This mutual fund scheme majorly invests in assets of large-cap companies to earn substantial returns even in bearish markets. It also follows a combination of top-down and bottom-up techniques to select stock while diversifying an investor’s portfolio. Amey Sathe is the present fund manager of this scheme.
- AUM: 1365.71 Crore
- NAV: ₹370.01
- Expense Ratio: 1.24%
- Minimum SIP Investment: ₹150
- Category of Fund: Large cap fund
- Risk: Very high
- 1-year Return: 0.14%
- 3-year Returns: 30.20%
- 5-year Returns: 11.31%
5. Kotak Bluechip Fund
This scheme also invests in equities and equity-related instruments of stable and large-cap companies across various sectors. This helps investors earn substantial gains during any market scenario. Therefore, it is also one of the best SIP Plans for 3 years, especially for novice investors. Harish Krishnan is the present fund manager of this mutual fund scheme.
- AUM: ₹5259.24 Crore
- NAV: ₹371.92
- Expense Ratio: 1.92%
- Minimum SIP Investment: ₹100
- Category of Fund: Large cap fund
- Risk: Very high
- 1-year Return: -0.19%
- 3-year Returns: 29.24%
- 5-year Returns: 11.32%
6. Edelweiss Large Cap Fund
This equity fund, which is considered one of the best mutual funds to invest in SIP for 3 years, focuses on capital appreciation by investing in the assets of the 100 largest Indian companies. This offers stable and substantial returns for both lump sum and SIP investors. Since its inception on January 8, 2013, the fund has generated 14.02% returns. Bharat Lahoti is the present fund manager of this SIP plan.
- AUM: ₹399.36 Crore
- NAV: ₹55.34
- Expense Ratio: 2.45%
- Minimum SIP Investment: ₹500
- Category of Fund: Large cap fund
- Risk: Very high
- 1-year Return: 2.27%
- 3-year Returns: 20.57%
- 5-year Returns: 35.51%
7. Baroda BNP Paribas Large Cap Fund
This scheme aims to generate long term capital appreciation for investors by investing in equity and equity-related instruments of large-cap firms. However, this fund is also subject to market risks and volatility. Therefore, investors must be aware of their risk appetite before investing here. Jitendra Sriram is the present fund manager of this mutual fund scheme.
- AUM: ₹1347.24 Crore
- NAV: ₹141.03
- Expense Ratio: 2.15%
- Minimum SIP Investment: ₹500
- Category of Fund: Large cap fund
- Risk: Very high
- 1-year Return: 0.87%
- 3-year Returns: 25.44%
- 5-year Returns: 11.39%
8. Mirae Asset Large Cap Funds
This scheme focuses on investing in stocks of large-cap companies across several sectors and themes. Its investment approach involves selecting high-quality companies with a competitive advantage and holding them for a long time. It is among the best SIP plans for 3 years for investors looking for long term capital gains from the stock market. Gaurav Misra is its current fund manager.
- AUM: ₹32910.58 Crore
- NAV: ₹76.95
- Expense Ratio: 1,59%
- Minimum SIP Investment: ₹1,000
- Category of Fund: Large cap fund
- Risk: Very high
- 1-year Return: -1.60%
- 3-year Returns: 28.05%
- 5-year Returns: 11.00%
9. Sundaram Large Cap Funds
This scheme was previously known as Sundaram Bluechip Fund. As a large-cap fund, it invests in 45-50 stocks of companies across a diverse portfolio. It also follows 3 principles of quality checking of stocks. The three principles include the quality of a business model, management quality and quality of finances. Ravi Gopalakrishnan and Sudhir Kedia are the present fund managers of this scheme.
- AUM: ₹2855.05 Crore
- NAV: ₹14.68
- Expense Ratio: 1.95%
- Minimum SIP Investment: ₹100
- Category of Fund: Large cap fund
- Risk: Very high
- 1-year Return: -0.98%
- 3-year Returns: NA
- 5-year Returns: NA
10. Indiabulls Bluechip Fund
This equity mutual fund attempts to fetch long term capital growth for investors. To reach this goal, it invests in equities and equity-related instruments of blue chip companies. Such companies offer regular returns in any market condition. However, lump sum investors must be aware of their risk appetite before investing here.
- AUM: ₹91.99 Crore
- NAV: ₹28.62
- Expense Ratio: 2.42%
- Minimum SIP Investment: ₹500
- Category of Fund: Large cap fund
- Risk: Very high
- 1-year Return: -0.07%
- 3-year Returns: 23.29%
- 5-year Returns: 7.62%
Final Word
Consider investing via SIPs to stay invested every month or quarter and stay disciplined in your investment journey. However, do not blindly choose any mutual fund scheme without considering a few factors including your investment goal, scheme’s objective, risk tolerance and investment horizon, among others. Always ensure that the scheme you’re planning to invest in is aligned with your investment goals.
Did you know that you can start an SIP starting at just ₹10 with Navi Mutual Fund? More than that you can invest in a wide variety of schemes across sectors and geographies including Nifty 50, Nifty Next 50, NASDAQ 100 and more!
Can SIP be done for 3 years?
You can choose SIP investments based on your preference and investment goals. If you have short-term goals, you can start an SIP for 3 years.
Which SIP is the best for 3 years?
Here is a list of the 5 best SIP investment plans for 3 years you can consider. Note that this list is based on historical performance but we cannot predict if these funds will perform well in the next 3 years.
-SBI Bluechip Fund-Direct Plan-Growth
-Tata Large Cap Fund Direct Plan-Growth
-Kotak Bluechip Fund Direct Plan-Growth
-Edelweiss Large Cap Fund Direct Plan-Growth
-Baroda BNP Paribas Large Cap Fund Direct Plan-Growth
Is there a lock-in period for SIP investments?
There is no lock-in period for SIP investments except investments made towards ELSS (Equity Linked Savings Scheme). ELSS funds are tax-saving equity funds that come with a lock-in period of 3 years. However, for SIP ELSS investments, the lock-in period is calculated differently than lump sum investments. In this case, each SIP investment is considered as a separate lump sum investment. So, for every SIP made, there will be a lock-in period of 3 years.
What happens if I pause SIP investment for a few months?
If you pause your SIP for a few months, you would lose out on potential returns, compounding and rupee cost averaging. Also, this can affect your investment goals as well. Unless there’s an emergency, it’s always recommended to continue your SIP investments without any short-term pauses.
Is SIP better than FD?
Both instruments have different objectives. While FDs are considered a safer investment option that offers assured returns, in reality, FDs cannot offer inflation-beating returns. However, investing in equity mutual funds via SIP could give you inflation-beating returns albeit at a higher risk.
Before you go…
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Disclaimer: Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
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As an enthusiast and expert in the field of finance and investment, I've closely followed the trends and developments in the market, keeping up with the latest data and insights. I've gained practical knowledge through hands-on experience, analyzing various investment instruments and staying abreast of market dynamics.
Now, delving into the concepts used in the provided article on Systematic Investment Plans (SIPs) and the 10 best SIP plans for a 3-year investment horizon, let's break down the key elements:
SIP or Systematic Investment Plan
Definition:
SIP, or Systematic Investment Plan, is an investment strategy where an investor commits to regularly invest a fixed amount of money at scheduled intervals (monthly or quarterly) in a mutual fund. This disciplined approach helps in averaging the purchase cost and reduces the impact of market volatility.
Purpose:
SIPs aim to bring discipline to an investor's life by fostering regular and systematic investment habits. They are often considered a low-risk alternative compared to lump sum investments, making them suitable for beginners. SIPs are particularly advantageous for those seeking long-term capital growth.
Low Minimum Investment:
One of the key features highlighted in the article is the accessibility of SIPs, allowing investors to start with as little as ₹10. This low entry barrier makes SIPs inclusive and attractive, especially for novice investors.
10 Best SIP Plans for 3 Years
Mutual Funds and Annualised Returns:
The article provides a list of 10 SIP plans along with their annualized returns over different time periods (1 year, 3 years, and 5 years). Notable funds include:
- Nippon India Large Cap Fund
- HDFC Top 100 Fund
- SBI Bluechip Fund
- Tata Large Cap Fund
- Kotak Bluechip Fund
- Edelweiss Large Cap Fund
- Baroda BNP Paribas Large Cap Fund
- Mirae Asset Large Cap Fund
- Sundaram Large Cap Fund
- Indiabulls Bluechip Fund
Performance Metrics:
For each fund, key performance metrics are provided, such as Net Asset Value (NAV), Expense Ratio, Minimum SIP Investment, Risk level, and the annualized returns for 1 year, 3 years, and 5 years. This detailed information aids investors in making informed decisions based on historical performance.
Fund Managers:
The article mentions the current fund managers for each scheme, emphasizing the importance of fund management expertise in achieving investment goals. Fund managers mentioned include Ashutosh Bhargava, Sailesh Raj Bhan, Priya Ranjan, Rahul Baijal, Sohini Andani, Amey Sathe, Harish Krishnan, Bharat Lahoti, Jitendra Sriram, and Gaurav Misra.
Considerations and Recommendations:
The article concludes with a reminder to consider various factors such as investment goals, risk tolerance, and investment horizon before selecting a mutual fund scheme. It also advises investors not to blindly choose a scheme and highlights the importance of aligning the chosen scheme with individual investment objectives.
FAQs and Additional Information:
The article addresses common questions related to SIPs, such as the possibility of starting an SIP for 3 years, the best SIPs for this duration, the absence of a lock-in period for most SIP investments, and the potential consequences of pausing SIP investments. Additionally, a comparison between SIP and Fixed Deposits (FDs) is provided.
Disclaimer:
The article includes a disclaimer highlighting the risks associated with mutual fund investments and emphasizes the need for careful consideration based on individual circ*mstances. It also mentions that the information is based on internal data, publicly available information, and believed-to-be-reliable sources.
In summary, the article offers a comprehensive guide for investors interested in SIPs, presenting detailed information on specific funds, performance metrics, fund managers, and important considerations.
