10 Best SIP Plans for 5 years in India to Invest in 2023 (2024)

Systematic Investment Plan (SIP) could be an effective investment mode if you want to invest a fixed amount in mutual funds at regular intervals. This investment method is especially recommended for those who want to build financial discipline, a habit of forced savings, and want to grow wealth steadily by investing in mutual funds with high growth potential. Most asset management companies, who issue and manage mutual funds, allow weekly, fortnightly, monthly, and quarterly SIPs. You might even have the option to customise your own SIPs.

In this blog, we will explore and evaluate the best SIP plan for 5 years.

10 Best SIP Plan for 5 Years in India 2023

The table below lists the best SIP mutual fund for 5 years:

Mutual Funds	5-Year Annualised Returns*
Tata Digital India Fund – Direct Plan-Growth	22.73%
ICICI Prudential Technology Fund – Direct Plan-Growth	21.95%
SBI Technology Opportunities Fund – Direct Plan-Growth	21.56%
Aditya Birla Sun Life Digital India Fund – Direct Plan-Growth	21.41%
PGIM India Midcap Opportunities Fund – Direct Plan-Growth	18.32%
Kotak Small Cap Fund – Direct Plan-Growth	16.33%
Nippon India Small Cap Fund – Direct Plan-Growth	16.30%
SBI Contra Fund – Direct Plan-Growth	15.35%
HDFC Small Cap Fund – Direct Plan-Growth	13.16%
HSBC Small Cap Fund– Direct Plan-Growth	12.70%

Also Read

10 Best SIP Plans for 1000 Per Month in India 2023

10 Best SIP Plans for 20 Years to Invest in India

Detailed Overview of Best SIP Plans to Invest for 5 Years

1. Tata Digital India Fund – Direct Plan-Growth

The Tata Digital India Fund was launched on December 28, 2015. It aims to generate long-term capital appreciation by allocating 80% of its net assets to equity or equity-linked instruments of companies in the Information Technology (IT) sector. This thematic mutual fund invests mostly in software, ITeS, and hardware companies. This scheme has generated 20.36% annualised returns since its inception. More details are as follows:

AUM: ₹6765.81 Crore
NAV: ₹37.47
Expense Ratio: 0.31%
Minimum SIP Investment: ₹150
Category of Fund: Sectoral/thematic mutual fund
Risk: Very high risk
Annualised Returns 1 Year: -7.85%
Annualised Returns 3 Year: 29.76%
Annualised Returns 5 Year: 24.45%

2. ICICI Prudential Technology Fund – Direct Plan-Growth

This mutual fund was launched on 1st January, 2013, and since then it has delivered an average annualised return of 22.69%. If you’re looking for one of the best sip plans to invest for 5 years and want exposure to technology or technology-related companies, this fund could be an option for you. The minimum amount required for additional investment is ₹1,000. Here are some interesting details:

AUM: ₹9,091.67 crore
NAV: ₹154.28
Expense Ratio: 0.89%
Minimum SIP Investment: ₹100
Category of Fund: Sectoral/thematic mutual fund
Risk: Very high risk
Annualised Returns 1 Year: –16.79%
Annualised Returns 3 Year: 41.93%
Annualised Returns 5 Year: 22.73%

3. SBI Technology Opportunities Fund – Direct Plan-Growth

Selecting one or more of the best SIP plans for five years is not easy. Among multiple factors, such as past performance, growth potential, and expense ratio among others, you must consider your own goals vis-a-vis the fund’s asset composition, management style, and more. But SBI Technology Opportunities Fund – Direct Plan-Growth scheme could definitely be an option for your investment portfolio, if you’re looking for a fund with the potential to deliver steady and high returns. It mostly invests in technology or technology-dependent companies. Other sectors it invests in include media and entertainment, telecommunications, financial services, and others. Since it was launched on 10th January, 2013, it has delivered an average annualised return of 21.59%. Here are some other details:

AUM: ₹2861.77 Crore
NAV: ₹154.42
Expense Ratio: 0.87%
Minimum SIP Investment: ₹500
Category of Fund: Sectoral/thematic mutual fund
Risk: Very high risk
Annualised Returns 1 Year: -9.51%
Annualised Returns 3 Year: 39.77%
Annualised Returns 5 Year: 21.56%

4. Aditya Birla Sun Life Digital India Fund – Direct Plan-Growth

This scheme was officially launched on 2nd January, 2013, and since then it has generated an average annualised return of 21.91%. Aditya Birla Sun Life Digital India Fund is a multi-sector scheme which aims to generate long term capital appreciation. For this purpose, it invests in media, technology, entertainment and other related sectors. Provided below are more details:

AUM: ₹3338.13 Crore
NAV: ₹128.65
Expense Ratio: 0.88%
Minimum SIP Investment: ₹100
Category of Fund: Sectoral/thematic mutual fund
Risk: Very high risk
Annualised Returns 1 Year: -14.33%
Annualised Returns 3 Year: 42.67%
Annualised Returns 5 Year: 21.41%

5. PGIM India Midcap Opportunities Fund – Direct Plan-Growth

The PGIM India Midcap Opportunities Fund was introduced on 2nd December, 2013. Since then, it has delivered an 18.62% average annualised returns. NIFTY Midcap 150 is the underlying benchmark index of this fund. The fund managers of this mid cap equity scheme are Mr. Aniruddha Naha, Mr. Puneet Pal, and Mr. Vivek Sharma. Some other details are as follows:

AUM: ₹7707.73 Crore
NAV: ₹47.1
Expense Ratio: 0.46%
Minimum SIP Investment: ₹1,000
Category of Fund: Mid-cap fund
Risk: Very high risk
Annualised Returns 1 Year: -0.17%
Annualised Returns 3 Year: 46.73%
Annualised Returns 5 Year: 18.32%

6. Kotak Small Cap Fund – Direct Plan-Growth

This open-ended equity scheme primarily invests in stocks of small-cap companies across various market sectors. To be precise, it invests 22.6% in consumer durables, 17.55% in capital goods, 10.93% in chemicals, 7.77% in automobiles and auto components, 5.89% in the IT sector, and 5.26% in financial services. It also has exposure to sectors, such as consumer services, construction, and textiles. More details are as follows:

AUM: ₹8617.55 Crore
NAV: ₹180.18
Expense Ratio: 0.59%
Minimum SIP Investment: ₹1,000
Category of Fund: Small cap fund
Risk: Very high risk
Annualised Returns 1 Year: -2.93%
Annualised Returns 3 Year: 47.98%
Annualised Returns 5 Year: 16.33%

7. Nippon India Small Cap Fund – Direct Plan-Growth

This mutual fund was launched on 16th September, 2010. It has exposure in industrial products, financial institutions, auto components, chemicals and petrochemicals, construction, consumer durables, pharmaceuticals and biotechnology, finance, electrical equipment and textiles and apparel. While the scheme aims to generate long-term capital appreciation by investing in equities, it also aims to deliver regular returns by investing in debt instruments. More details are as follows:

AUM: ₹23910.18 Crore
NAV: ₹100.52
Expense Ratio: 0.86%
Minimum SIP Investment: ₹100
Category of Fund: Small cap fund
Risk: Very high risk
Annualised Returns 1 Year: 6.73%
Annualised Returns 3 Year: 52.35%
Annualised Returns 5 Year: 16.30%

8. SBI Contra Fund – Direct Plan-Growth

This actively managed scheme aims to deliver long-term capital appreciation by using a contrarian investment strategy. SBI Contra Fund, introduced on 2nd January, 2013, invests a minimum of 65% of its assets in stocks of various companies that fit the scheme’s contra strategy. The remaining 35% is invested in other equities and debt securities. Check below for more details:

AUM: ₹8340.65 Crore
NAV: ₹243.27
Expense Ratio: 0.91%
Minimum SIP Investment: ₹500
Category of Fund: Contra fund
Risk: Very high risk
Annualised Returns 1 Year: 13.28%
Annualised Returns 3 Year: 47.11%
Annualised Returns 5 Year: 15.35%

9. HDFC Small Cap Fund – Direct Plan-Growth

The list for the best SIP investment plans for 5 years may not be complete without this fund. It was officially launched on 2nd January, 2013. This open-ended equity scheme invests in small-cap stocks in line with its growth objectives and fund policies. S&P BSE 250 SmallCap Index is the underlying benchmark for this scheme. Its details are as follows:

AUM: ₹14648.76 Crore
NAV: ₹89.34
Expense Ratio: 0.8%
Minimum SIP Investment: ₹100
Category of Fund: Small cap fund
Risk: Very high risk
Annualised Returns 1 Year: 12.17%
Annualised Returns 3 Year: 48.12%
Annualised Returns 5 Year: 13.16%

10. HSBC Small Cap Fund – Direct Plan-Growth

HSBC Small Cap Fund was officially launched on 12th May, 2014. Previously, this open-ended equity scheme was known as L&T Emerging Businesses Fund. It makes use of a bottom-up fundamental strategy to search for small-cap stocks with high growth potential. Some other interesting fund details are as follows:

AUM: ₹8625.96 Crore
NAV: ₹51.46
Expense Ratio: 0.77%
Minimum SIP Investment: ₹1,000
Category of Fund: Small cap fund
Risk: Very high risk
Annualised Returns 1 Year: 5.26%
Annualised Returns 3 Year: 48.80%
Annualised Returns 5 Year: 12.70%

Note: NAV and returns data valid as of 5th April 2023.

Disclaimer: Mutual fund investments are subject to market risks, read all scheme-related documents carefully.

Final Words

Now that we have introduced you to some of the best SIP plans for 5 years, maybe you can start investing in an SIP plan of your choice after doing adequate research or seeking professional advice, if necessary.

Generally, SIPs are easy on the pocket since you can start your journey with as little as ₹100. On rare occasions, you can even start with ₹10. Like Navi Mutual Fund! As most Navi Mutual Fund schemes are managed passively, you get a low-cost investment option, benefit from low tracking error, and have the chance to maximise your profit margins, in line with the underlying indices of these funds. To know more about the Navi Mutual Fund schemes and start investing, download and install the Navi app today!

However, please remember to consider your long-term financial goals, risk tolerance, tax position, returns objective, and liabilities before investing.

Disclaimer: Mutual fund investments are subject to market risk, read all scheme-related documents carefully.

FAQs

Are SIPs good for 5 Years?

Many financial experts believe by staying invested longer in a mutual fund, you could improve your returns potential. So, investing in your preferred scheme via SIPs for 5 years, could be a good investment option, provided it is in complete alignment with your investment goals and risk tolerance.

Which is the best SIP for 5 years?

Some of the best SIP plans for 5 years are as follows:
-Tata Digital India Fund – Direct Plan-Growth
-ICICI Prudential Technology Fund – Direct Plan-Growth
-SBI Technology Opportunities Fund – Direct Plan-Growth
-Aditya Birla Sun Life Digital India Fund – Direct Plan-Growth
-PGIM India Midcap Opportunities Fund – Direct Plan-Growth

Can I withdraw SIP anytime?

Investors can generally withdraw money from a mutual fund i.e. redeem units any time, except for ELSS, which comes with a mandatory lock-in period of 3 years However, exit loads may be applicable if the withdrawal takes place before the stipulated period.
If you wish to withdraw from a plan, please remember that the SIP will continue as before and units will be allocated to you against each SIP. To discontinue a SIP, you need to request the fund house to cancel it.

What will happen if I miss a SIP payment?

Missing SIP payments won’t get your account deactivated. In fact, you can always pause your SIP instalments if you do not have sufficient funds. Financial experts recommend pausing SIP payments instead of cancelling them altogether. However, it is always advisable to continue to make regular SIP payments, until maturity, to maximise the returns potential of your investment.

What is the ideal time to invest via SIPs?

Investing in any of the best SIP mutual funds for 5 years is quite easy because you can do it online any time you want. What’s better? There is no such thing as an “ideal time” to start your investment via SIP. In fact, the earlier you start and the longer you stay invested, the higher could be your potential returns.

What is the minimum SIP amount I can invest?

Planning to start your investment in any of the best sip investment plans for 5 years? Good decision! But, let us assure you that SIPs need not be taxing on your pocket. In fact, on most occasions, you can start a mutual fund SIP with as little as ₹100. In fact, Navi Mutual Fund SIPs start at just ₹10.

Can SIP be risky?

Whether you’re investing in one of the best SIP investment plans for 5 years or not, mutual funds, being market-linked, will always carry some degree of risk. Some of the most common forms of risks are credit risk, liquidity risk, interest risk, and inflation risk among many others. However, if you invest via SIPs in the right mutual fund scheme and stay invested for a significantly long time, you could mitigate some risks and improve your chances of getting better returns.

What if I SIP 30,000 per month for 5 years?

Mutual funds are market-linked. Markets are dynamic and your returns can vary depending on a number of factors. However, let’s take a simple example to give you an estimate. Let’s assume that you have invested ₹30,000 per month in one of the best SIP investment plans for 5 years. Let us also assume that you have earned returns at a constant rate of 12% p.a. Here’s how much you would have earned:
-Total investment over 5 years: ₹18,00,000
-Estimated returns: ₹6,74,591
-Total earnings: ₹24,74,591*
*Based on Navi SIP Mutual Fund Calculator results

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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.

Systematic Investment Plan (SIP):

Definition: A method of investing a fixed amount at regular intervals (weekly, fortnightly, monthly, or quarterly) in mutual funds.
Benefits: Builds financial discipline, encourages forced savings, and aims for steady wealth growth.
Flexibility: Most asset management companies allow customization of SIPs.

Best SIP Plans for 5 Years in India 2023:

Tata Digital India Fund – Direct Plan-Growth:
- Launched: December 28, 2015.
- Investment Focus: Information Technology (IT) sector.
- Annualized Returns (5 Years): 22.73%.
ICICI Prudential Technology Fund – Direct Plan-Growth:
- Launched: January 1, 2013.
- Investment Focus: Technology and technology-related companies.
- Annualized Returns (5 Years): 22.69%.
SBI Technology Opportunities Fund – Direct Plan-Growth:
- Launch Date: January 10, 2013.
- Investment Focus: Technology, media, entertainment, telecommunications, and financial services.
- Annualized Returns (5 Years): 21.56%.
Aditya Birla Sun Life Digital India Fund – Direct Plan-Growth:
- Launched: January 2, 2013.
- Investment Focus: Multi-sector, including media, technology, and entertainment.
- Annualized Returns (5 Years): 21.41%.
PGIM India Midcap Opportunities Fund – Direct Plan-Growth:
- Introduced: December 2, 2013.
- Benchmark Index: NIFTY Midcap 150.
- Annualized Returns (5 Years): 18.32%.
Kotak Small Cap Fund – Direct Plan-Growth:
- Investment Focus: Small-cap companies across sectors.
- Annualized Returns (5 Years): 16.33%.
Nippon India Small Cap Fund – Direct Plan-Growth:
- Launched: September 16, 2010.
- Diversified Exposure: Industrial products, financial institutions, auto components, etc.
- Annualized Returns (5 Years): 16.30%.
SBI Contra Fund – Direct Plan-Growth:
- Launched: January 2, 2013.
- Investment Strategy: Contrarian approach.
- Annualized Returns (5 Years): 15.35%.
HDFC Small Cap Fund – Direct Plan-Growth:
- Launched: January 2, 2013.
- Benchmark: S&P BSE 250 SmallCap Index.
- Annualized Returns (5 Years): 13.16%.
HSBC Small Cap Fund – Direct Plan-Growth:
- Launched: May 12, 2014 (formerly L&T Emerging Businesses Fund).
- Investment Strategy: Bottom-up fundamental strategy.
- Annualized Returns (5 Years): 12.70%.

Frequently Asked Questions (FAQs):

Are SIPs good for 5 Years?
- Generally recommended for longer-term investments, potentially improving returns.
Which is the best SIP for 5 years?
- Mentioned funds like Tata Digital India Fund, ICICI Prudential Technology Fund, etc.
Can I withdraw SIP anytime?
- Withdrawals are generally allowed, with possible exit loads for certain funds.
What will happen if I miss a SIP payment?
- Missing payments won't deactivate the account; it's advisable to pause rather than cancel SIPs.
Ideal time to invest via SIPs?
- No "ideal time"; starting early and staying invested longer enhance potential returns.
Minimum SIP amount?
- Often as low as ₹100; some, like Navi Mutual Fund, start at ₹10.
Can SIP be risky?
- Mutual funds carry market-linked risks, but staying invested for the long term can mitigate some risks.
SIP calculation example: ₹30,000 per month for 5 years.
- Returns can vary, but a hypothetical example estimates earnings based on assumed returns.

Conclusion:

The article concludes by encouraging readers to consider their financial goals, risk tolerance, and other factors before investing. It emphasizes the ease of starting SIPs with as little as ₹100 and suggests the Navi app for low-cost, passively managed options. The final disclaimer reminds readers that mutual fund investments are subject to market risks, urging careful consideration of scheme-related documents.