There has been a massive surge in SIP or Systematic Investment Plan investors in recent years. As per a Livemint report, SIP collections were up to a record high of ₹13,573 crore in December 2022. One of the primary reasons for the surge of SIP investors is to give the young and beginner investors of India the opportunity to invest in a structured and disciplined way – both for the long term and short term. So, if you’re looking for short-term SIP investments, check out our list of best SIP plans for 1-year investment.
Best SIP Plans for 1 Year
The table below provides a list of the best SIP mutual funds for 1 year:
| Best SIP for 1 Year Investment | 1-Year Annualised Returns* |
| ICICI Prudential Short-Term Fund-Direct Plan-Growth | 7.68% |
| Baroda BNP Paribas Liquid Fund-Direct Plan-Growth | 5.36% |
| Sundaram Liquid Fund-Direct Plan-Growth | 3.26% |
| Mirae Asset Cash Management Fund-Direct Plan-Growth | 5.33% |
| JM Liquid Fund – (Direct) – Growth | 5.28% |
| IDFC Cash Fund-Direct Plan-Growth | 5.20% |
| IDBI Liquid Fund-Direct Plan-Growth | 5.42% |
| Nippon India Short-Term Fund – Direct Plan-Growth | 7.13% |
| Edelweiss Banking and PSU Debt Fund – Direct Plan-Growth | 7.90% |
| Franklin India Short-Term Income Plan – Direct Plan-Growth | 5.33% |
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Performance of the Best SIP Plans for 1 Year
Let us take a detailed look at each of the best 1 year SIP plans mentioned above:
1. ICICI Prudential Short-Term Fund
You can consider investing in ICICI Prudential Short-Term mutual fund if you wish to earn short term capital appreciation. The investment portfolio comprises debt and money market instruments of various maturities. When it comes to sectoral allocation, it invests 45.31% in corporate securities, 19.09% in Government securities (long term) and 15.64% in Certificate of Deposits (CDs). More details are as follows:
- AUM: ₹14561.49 Crore
- NAV: ₹50.53
- Expense Ratio: 1.07%
- Minimum SIP Investment: ₹1000
- Category of Fund: Short-duration fund
- Risk: Moderate risk
- Annualised Returns 1 Year: 5.71%
- Annualised Returns 3 Year: 6.28%
- Annualised Returns 5 Year: 6.87%
2. Baroda BNP Paribas Liquid Fund
This mutual fund is an open-ended liquid scheme with moderate credit risk and low interest rate risk. Launched on January 1, 2013, this short term fund aims to deliver returns at a high level of liquidity. It is one of the best SIP to invest for 1 year. The investment portfolio comprises debt securities and money market instruments. Check its details below:
- AUM: ₹6686.41 Crore
- NAV: ₹2572.71
- Expense Ratio: 0.26%
- Minimum SIP Investment: ₹500
- Category of Fund: Liquid fund
- Risk (Low, Moderate or High): Low to moderate risk
- Annualised Returns 1 Year: 5.76%
- Annualised Returns 3 Year: 4.18%
- Annualised Returns 5 Year: 5.26%
3. Sundaram Liquid Fund
This mutual fund is an open-ended liquid scheme with a low interest rate risk and moderate credit risk. Sundaram Money fund has been renamed as Principal Cash Management Fund after the scheme merged into the latter. If you wish to receive a consistent level of income, preserve your capital and avail liquidity at the same time, you can consider investing in this scheme which mainly comprises money market and debt instruments. Details of the scheme are as follows:
- AUM: ₹4169.63 Crore
- NAV: ₹1973.43
- Expense Ratio: 0.28%
- Minimum SIP Investment: ₹1000
- Category of Fund: Liquid mutual fund
- Risk: Low to moderate risk
- Annualised Returns 1 Year: 5.69%
- Annualised Returns 3 Year: 4.09%
- Annualised Returns 5 Year: 3.17%
4. Mirae Asset Cash Management Fund
This open-ended liquid scheme was officially launched on January 6, 2013, and comes with a minimal interest rate risk. It aims to generate stable returns with minimum mark-to-market and credit risk. Its portfolio of debt and money market instruments strives to maintain an average maturity of up to 60 days. More details about the fund are as follows:
- AUM: ₹5983.36 Crore
- NAV: ₹2343.72
- Expense Ratio: 0.24%
- Minimum SIP Investment: ₹1000
- Category of Fund: Liquid fund
- Risk: Low to moderate risk
- Annualised Returns 1 Year: 5.70%
- Annualised Returns 3 Year: 4.20%
- Annualised Returns 5 Year: 5.23%
5. JM Liquid Fund
You can also consider investing in JM Liquid fund which seeks to generate consistent income over a short time frame. The primary objective of this open-ended liquid scheme is to generate income through dividend plans and capital growth. The investment portfolio comprises debt and money market instruments which have a maturity of up to 91 days. Take a look at its details:
- AUM: ₹1426.86 Crore
- NAV: ₹61.07
- Expense Ratio: 0.25%
- Minimum SIP Investment:
- Category of Fund: Liquid fund
- Risk: Low to moderate risk
- Annualised Returns 1 Year: 5.65%
- Annualised Returns 3 Year: 4.15%
- Annualised Returns 5 Year: 5.19%
6. IDFC Cash Fund
Launched on January 01, 2013, objective of IDFC Cash fund is to generate accrual income with low volatility. Its investment portfolio comprises debt and money market instruments. If you wish to earn short-term optimum returns with high liquidity and stability, you can consider investing in this scheme.
Check below for more details:
- AUM: ₹11961.99 Crore
- NAV: ₹2702.83
- Expense Ratio: 0.25%
- Minimum SIP Investment: ₹100
- Category of Fund: Liquid fund
- Risk: Low to moderate risk
- Annualised Returns 1 Year: 5.67%
- Annualised Returns 3 Year: 4.15%
- Annualised Returns 5 Year: 5.12%
7. IDBI Liquid Fund
IDBI liquid fund was introduced on December 31, 2012, and aims to generate regular income for investors along with the benefit of high liquidity. The investment portfolio allocates almost 100% of its investment to money market and debt securities.
More details about the fund are as follows:
- AUM: ₹763.09 Crore
- NAV: ₹2403.52
- Expense Ratio: 0.17%
- Minimum SIP Investment: ₹500 per month for a minimum period of 12 months or ₹1,000 per month for a minimum period of 6 months
- Category of Fund: Liquid fund
- Risk: Low to moderate risk
- Annualised Returns 1 Year: 5.70%
- Annualised Returns 3 Year: 4.32%
- Annualised Returns 5 Year: 5.35%
8. Nippon India Short-Term Fund
Nippon India Short Term fund is an open-ended short-term debt scheme which was launched on January 2, 2013. It is one of the best 1-year SIP plans. The Macaulay duration of the investment portfolio is between 1 to 3 years. The fund manager invests in money market and debt instruments and aims to deliver consistent returns for investors.
More details are as follows:
- AUM: ₹5147.42 Crore
- NAV: ₹44.38
- Expense Ratio: 1.16%
- Minimum SIP Investment: ₹100
- Category of Fund: Short-duration fund
- Risk: Low to moderate risk
- Annualised Returns 1 Year: 3.69%
- Annualised Returns 3 Year: 5.56%
- Annualised Returns 5 Year: 6.30%
9. Edelweiss Banking and PSU Debt Fund
Edelweiss Banking and PSU Debt fund was launched on September 13, 2013. It is an open-ended debt mutual fund which invests in public sector undertakings, public financial institutions, debt instruments of banks and municipal bonds. The fund managers are Dhawal Dalal and Rahul Dedhia and they strive to maintain liquidity in the investment portfolio.
More details are as follows:
- AUM: ₹355.41 Crore
- NAV: ₹20.75
- Expense Ratio: 0.64%
- Minimum SIP Investment: ₹500
- Category of Fund: Banking and PSU fund
- Risk: Moderate risk
- Annualised Returns 1 Year: 3.48%
- Annualised Returns 3 Year: 5.81%
- Annualised Returns 5 Year: 7.57%
10. Franklin India Short-Term Income Plan – Direct Plan – Growth
The primary objective of Franklin India Short-Term Fund is to generate consistent returns. So, it invests in debt and money market securities with shorter maturity periods of less than 3 years. The average maturity period of the investment portfolio is between 4 months and 12 months. This scheme was launched on January 1, 2013.
Take a look below for more details:
- AUM: ₹429.0 Crore
- NAV: ₹4968.79
- Expense Ratio: 0.04%
- Minimum SIP Investment: ₹500
- Category of Fund: Short-duration fund
- Risk: Very high risk
- Annualised Returns 1 Year: 5.00%
- Annualised Returns 3 Year: 7.04%
- Annualised Returns 5 Year: 5.33%
Note: All values mentioned above are valid as on 4th April 2023.
Final Word
SIP is great to maintain a structured investment pattern. However, before investing in a short-term mutual fund scheme of 1 year via SIP, consider your risk appetite, investment goals and the investment objective of the scheme. Remember that the best SIP plan for 1 year would be the scheme that’s closely aligned with your investment goals.
Did you know that you can start an SIP with just ₹10? Navi Mutual Fund gives you the opportunity to invest in a wide variety of mutual fund schemes with an extremely nominal amount starting at ₹10. Select funds as per your investment goals and start investing today!
FAQs
Which SIP is best for one year in 2023?
As per current annualised return rate, one of the best SIP plans for 1 year is SIP investment in ICICI Prudential Short Term Fund. With a CAGR of 5.89% as on February 16, 2023, it can be a lucrative investment option for risk-averse investors looking for stable short term income.
Is 1 year SIP good for growth?
1 year SIPs can be a good investment choice if you wish to earn stable returns (potential) quickly. By investing in such funds for a year, you can expect an annualised return in the range of 3% to 5% depending on the portfolio of the scheme.
What is the maximum and minimum amount that I can invest in 1-year SIPs?
It varies from one mutual fund to another. While there is no upper limit to investing in SIPs, the minimum SIP amount is generally set at ₹500. But certain fund houses like Navi Mutual Fund allow their investors to begin investing with ₹10 as well. It is preferable to consult a fund manager and financial advisors on how much you need to invest.
Can I withdraw my SIP amount within 1 year?
You can redeem your mutual fund units whenever you wish to. Usually, it takes 2-3 days to get the amount credited to your account unless it’s an ELSS fund where the lock-in period is 3 years.
What happens if I pause my SIP?
You will lose out on potential returns and benefits of rupee cost averaging if you pause your SIPs. This may affect your investment goals as well. Pause your SIPs only if you’re going through a financial crisis.
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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