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Best SIP Plans for 2023

Created on 23 Dec 2022

Wraps up in 6 Min

Read by 2.9k people

Updated on 03 Jan 2023

Imagine having a stable job, saving a decent amount, and being satisfied with your current lifestyle. Imagine that the only problem in your life is that there are no reunions of your favourite TV shows. (#BringBackTheOffice!). Now, let’s come back to the real world where everybody’s problem is that they’re insecure- body, diet, money and above all, what the future holds.  

While you can always start working on your body or diet, savings are something you must start sooner because, who knows, kal ho na ho!

Perhaps you have heard about how you should start investing at a young age, but you are all scared of losing your money due to market volatility, aren’t you? Let me tell you about SIP and take your fears down a few notches. No, drinking is not what I’m talking about. SIPs or Systematic Investment Plans serve as a means of mutual fund investment where you have to make pre-planned contributions periodically. Choosing the best SIP plans ensures you are on the right path to meet your financial goals. I mean, look at the inflation; cold coffee costs more than a litre of petrol! 🤯

SIPs help automate monthly contributions as per the plan’s requirements. However, this is not only the periodic payment that SIPs facilitate. You can make weekly, monthly, quarterly, semi-annually, or yearly payments as well. It’s like an EMI, except you are buying financial growth and independence. You won’t even realise your money is beginning to earn for you!

What are the Benefits of SIP Mutual Funds?

The process of investing in mutual funds through SIPs is very simple. The first step is to choose a mutual fund, followed by deciding on a suitable investment frequency. After that, you will have to set up an SIP with the selected mutual fund, and the work is done. Money will automatically be debited from the registered bank account and used to invest in the mutual fund.

Here are a few reasons why you could benefit from SIP plans in India:

  • A better way to save and invest: Usually, you crib about not being able to save an adequate amount of money. With the best SIP plans, your money will be saved and invested in the right places. This will also inculcate financial discipline. 
  • You can start with small amounts: There have been a number of misconceptions regarding the amount required to start investing in SIPs. However, that is not the case. It is easy to start investing in small amounts through SIPs. You can also find SIP plans for students that can start with a small sum of money. 
  • Power of compounding: In the case of SIP investment, the money that is obtained from monthly investments will be reinvested in the plan. This exposes your money to the benefit of compounding, and you may see augmented growth.
  • No worry about market timing: With SIPs, there is no need to time the market because this investment is made automatically on a regular basis. This is because SIPs enable investment, regardless of the market condition, at regular intervals. Moreover, you wouldn’t have to worry about the ups and downs of the market!
    SIPs also render price fluctuations useless due to rupee cost averaging.
  • Flexibility: Not only is there the flexibility to invest with a small amount, but you are also entitled to invest based on your choice of frequency and tenure. The best part is, should you decide to discontinue a SIP, you can make the call with ease. Since most mutual funds have no lock-in period, you lose nothing.

Best SIP Plans in India For ₹1,000 Per Month

Although ₹1,000 is a considerably low amount of money for a monthly investment, you can always utilise the power of compounding by choosing a suitable time horizon. These factors will be decided based on your financial goals, risk-taking ability, and financial stance. 

Below are the best SIP plans in India with an ₹1,000 monthly investment based on their compounded growth over 5 years and expense ratios:

Name of the Fund 5-Year CAGR Expense Ratio
Nippon India Value Fund 12% 1.25%
Nippon India Arbitrage Fund 5.75% 0.28%
Canara Robeco Emerging Equities Fund 12.82% 0.60%
Canara Robeco Blue Chip Equity Fund 15.04% 0.42%
Franklin India Feeder Franklin US Opportunities Fund 11.93% 0.50%

Best SIP Plans For 10 Years 

If you have a low risk-tolerance but want a high level of return, SIP plans for 10 years may be suitable for you as the risk related with stocks is spread over a longer period of time. This will also help you meet your future financial goals, and by the time you require this money, it will have had the benefit of compounding for a whole decade!

I have a compound joke, but it gets funny over time.😜

Here are the best SIP plans in India for the next 10 years based on absolute returns for the last 10 years:

Name of the Fund

10-Year Absolute Returns

Minimum Monthly Investment

Aditya Birla Sun Life Digital India Fund

601.4%

₹100

Franklin India Technology Fund

396.7%

₹500

ICICI Prudential Technology Fund

650.6%

₹100

Invesco India Infrastructure Fund

381%

₹500

SBI Technology Opportunities Fund

575.1%

₹500

Best SIP Plans For 5 Years 

If you want long-term gains and wish to accumulate funds for the future, an SIP plan for five years may be suitable for you. Also, if you keep investing your money in SIP periodically for five long years, it will develop financial discipline and will help you fulfil any future financial obligations.

Well, if we can bear with the same politician for 5 years, an SIP is only going to benefit us more.

Given below are the best SIP plans in India for the next five years based on the last 5 years' absolute returns:

Name of the Fund

5-Year Return

Monthly Investment

Axis Blue Chip Fund

80.5%

₹100

ICICI Prudential Technology Fund

194.8%

₹100

Invesco India Infrastructure Fund

73.0%

₹500

TATA India Consumer Fund

58.0%

₹150

Quant Infrastructure Fund

148.9%

₹1,000

Best SIP Plans For One Year 

An SIP investment for one year may give good returns, provided the investor has a high risk-tolerance to earn significant returns in a short period. You can even stop or skip a monthly payment without having to pay any penalty. 

Here is a list of the best SIP plans in India for a one-year time horizon based on last one year of performance: 

Name of the Fund

1-year Return

Minimum Monthly Investment

ICICI Prudential Liquid Fund

4.8%

₹100

Aditya Birla Sun Life Savings Fund

4.9%

₹1,000

Aditya Birla Sun Life Money Manager Fund

4.9%

₹1000

Tata Money Market Fund

5%

₹500

HDFC Floating Rate Debt Wholesale Plan

4.8%

₹100

Best SIP Plans with High Return 

With the right choice of SIP plans, you may get good returns without having to worry about market fluctuations. However, you always have to consider your investment constraints before choosing an SIP plan for yourself. 

Below are the best SIP plans in India with high returns that will help you meet your financial goals:

Name of the Fund

3 Year Return

5 Year Return

Minimum Monthly Investment Amount

Axis Bluechip Fund Growth

11.8%

12.8%

₹100

IDBI India Top 100 Equity Fund Growth

17.2%

12.2%

₹500

Canara Robeco Bluechip Equity Fund Regular Plan-Growth

17.1%

14.6%

₹1000

TATA India Consumer Fund Direct-Growth

17.7%

10.1%

₹150

Baroda BNP Paribas Large Cap Fund Regular Plan-Growth

15.1%

12.2%

₹500

The Bottom Line 

Choosing the best SIP to invest in can be confusing. So, it is important to keep a clear plan and decide on the basis of your financial goals, time horizon, and financial constraints. However, I hope that after reading this, the concept of SIP plans is clear, and you can make a better financial decision. You know, investing is not just more money in your saving; it’s a way to survive inflation. Small initiatives towards investing can make a considerable change. So, 👇

Disclaimer: The funds mentioned in this article are not a recommendation by Finology and should not be construed as such. The funds are mentioned based purely on numerical factors and the process of selection should follow thorough research and professional advise.

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Deb P Samaddar

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If people could be named after idioms, Deb would be called "I'm all ears." His brain is a storehouse, ever overflowing with derelict information. So, while most things he talks about are as useless as occasion-less greeting cards, everything he writes has the potential of bagging you multiple diplomas!

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