Best SIP Plan for 5 Years in India

Best SIP Plans for 5 years to invest in India in 2019Best SIP Plan for 5 Years in India


One cannot predict stock market movement. Mutual Fund investors are upset now, as majority of mutual fund schemes have recorded low returns or negative returns in the last 1-2 years. If you are planning to invest in SIP Mutual Funds for 5 years, this article is for you. We have filtered some of the Top Mutual Funds to invest for the next 5 years through SIP. Which is the Best SIP Plan for 5 years in India? Who can invest in these SIP mutual fund schemes?

Also Read: Best SIP Plans for 10 years to invest in India

What is a SIP in Mutual Funds and what are its Benefits?


You can skip this section if you are already familiar and investing through SIP.

Systematic Investment Plan or SIP is where you can invest pre-defined amount at regular intervals in mutual fund schemes. There are several SIPs like daily SIP, weekly SIP, Monthly SIP, Quarterly SIP and Yearly SIP. SIP in mutual funds has become famous owing to several benefits. Here are the benefits of SIPs in Mutual Funds.

#1 – You can invest as low as Rs 500 per month in mutual fund schemes.

#2 – You do not need to time the market as you are investing regularly every month. Market fluctuations can be taken care there-off.

#3 – It would create disciplined saving as you save regularly and investing in SIP mutual funds.

#4 – You can take advantage of compounding of the returns in mutual funds.

#5 – It would help you rupee cost averaging. You invest a fixed amount when markets are stable. You still invest a fixed amount when markets are down where you get more MF units. You invest a fixed amount when markets are up where you might get lower MF units. This way whatever you invest, this would get averaged out.

If you want to have video view about the Benefits of SIP, you can check below the video.

Video Credit: Yadnya Investment

How we filtered Best SIP Plan for 5 years in India?


We have filtered these SIP mutual funds based on below parameters

1) We have reviewed a large cap, midcap, smallcap, multi cap, sector funds, etc., and believe that Balanced Funds / Hybrid Aggressive Mutual Funds could be best bet for 5 year investment period.

2) We have considered performance of 1 year to 10 years time frame. While our objective is to check SIP mutual funds only for 5 years, such long term performance can help you know how well a fund has performed in various stock market cycles

3) We have considered mutual fund schemes that provided highest SIP returns in the last 5 years. You can check Best SIP Plan for 5 years calculator / calculations in our below analysis, which would tell you how much returns you would have received, if you invested in the last 5 years or 10 years.

4) We have considered 5 star, 4 star, 3 star and 2 star rated funds from Value Research Online.

5) Low Beta mutual funds are considered that can provide strong support during volatile markets.

6) We have considered mutual fund schemes that have AUM of > Rs 500 Crores. This would prove investor confidence in such funds.

You may like: What are various types of SIPs in Mutual Funds?

Best SIP Plan for 5 Years in India


Now let us jump into some of the best SIP Mutual Funds to invest in India for 5 year period.

#1 – SBI Equity Hybrid Fund


Investment objective

The MF scheme aims to provide investors long-term capital appreciation by investing in a mix of debt and equity. The scheme will invest in a diversified portfolio of equities of high growth companies and balance the risk through investing the rest in fixed income securities.

Performance & Ratios of the scheme

This mutual fund scheme gave 12% annualized returns in the last 10 years, 10% annualized returns in the last 5 years, 9% annualized returns in the last 3 years and 5% returns in the last 1 year.

If you would have invested Rs 1,000 per month through SIP for 5 years, the investment would have been Rs 60,000 and your investment would have grown to Rs 75,000. Similarly, if you would have invested Rs 1,000 per month through SIP for 10 years, the investment would have been Rs 120,000 and your investment would have grown to Rs 230,000.

This fund beta is 0.8. It means that this fund is less volatile compared to stock market fluctuations.

The ratios of the fund are Mean-8.34, Standard Deviation-9.5, Sharpe-0.25, Sortino-0.43.

Its expense ratio is 1.66%, which is low compared to other equity mutual fund schemes.

Why to invest?

This mutual fund scheme has outperformed and gave 16% annualized returns since the inception of the fund i.e. 24 years. This fund has provided highest SIP Returns in the last 5-10 years. It has been rated as a 4 Star (4 out of 5) by Value Research Online. Considering these factors, this is one of the Best SIP Plan for 5 years in SBI.

#2 – Canara Robeco Equity Hybrid Fund


Investment objective

The MF scheme aims to build a balanced portfolio, which would provide a combination of high annual return and capital appreciation.

Performance & Ratios of the scheme

This mutual fund scheme gave 12% annualized returns in the last 10 years, 9% annualized returns in the last 5 years, 8% annualized returns in the last 3 years and 2% returns in the last 1 year.

If you would have invested Rs 1,000 per month through SIP for 5 years, the investment would have been Rs 60,000 and your investment would have grown to Rs 73,000. Similarly, if you would have invested Rs 1,000 per month through SIP for 10 years, the investment would have been Rs 120,000 and your investment would have grown to Rs 218,000.

This fund beta is 0.8. It means that this fund is less volatile compared to stock market fluctuations.

The ratios of the fund are Mean-7.56, Standard Deviation-9.11, Sharpe-0.18, Sortino-0.26.

Its expense ratio is 2.15%, which is low compared to other equity mutual fund schemes.

Why to invest?

This mutual fund scheme has outperformed and gave 12% annualized returns since the inception of 26 years. This fund has provided highest SIP Returns in the last 5-10 years. It has been rated as a 4 Star (4 out of 5) by Value Research Online. Considering these factors, this is one of the Good SIP Plan for 5 years to invest in India in 2019.

#3 – ICICI Prudential Equity & Debt Fund


Investment objective

The MF scheme aims to generate long-term capital appreciation and income by investing in equities and related instruments and fixed income options. It invests 50% to 80% in equity and 20% to 50% in debt instruments

Performance & Ratios of the scheme

This mutual fund scheme gave 14% annualized returns in the last 10 years, 9% annualized returns in the last 5 years, 8% annualized returns in the last 3 years and 1% negative returns in the last 1 year.

If you would have invested Rs 1,000 per month through SIP for 5 years, the investment would have been Rs 60,000 and your investment would have grown to Rs 72,000. Similarly, if you would have invested Rs 1,000 per month through SIP for 10 years, the investment would have been Rs 120,000 and your investment would have grown to Rs 230,000.

This fund beta is 0.73. It means that this fund is less volatile compared to stock market fluctuations.

The ratios of the fund are Mean-7.04, Standard Deviation-8.86, Sharpe-0.12, Sortino-0.22.

Its expense ratio is 1.72%, which is low compared to other equity mutual fund schemes.

Why to invest?

This mutual fund scheme has outperformed and gave 14% annualized returns since the inception of 20 years. This fund has provided highest SIP Returns in the last 5-10 years. It has been rated as a 4 Star (4 out of 5) by Value Research Online. Considering these factors, this is one of the Best SIP Plan for next 5 years to invest.

You may also like: Best Banking Mutual Fund Schemes to invest in 2019

#4 – Aditya Birla Sun Life Equity Hybrid ’95 Fund


Investment objective

The mutual fund aims to generate long term growth of capital and current income, through a portfolio investing in equity, debt and money market securities. The secondary objective is the income generation and distribution of dividend.

Performance & Ratios of the scheme

This mutual fund scheme gave 11% annualized returns in the last 10 years, 8% annualized returns in the last 5 years, 4% annualized returns in the last 3 years and 4% negative returns in the last 1 year.

If you would have invested Rs 1,000 per month through SIP for 5 years, the investment would have been Rs 60,000 and your investment would have grown to Rs 68,000. Similarly, if you would have invested Rs 1,000 per month through SIP for 10 years, the investment would have been Rs 120,000 and your investment would have grown to Rs 202,000.

This fund beta is 0.8. It means that this fund is less volatile compared to stock market fluctuations.

The ratios of the fund are Mean-4.16, Standard Deviation-9.55, Sharpe—(-0.19), Sortino-(-0.27).

Its expense ratio is 1.83%, which is low compared to other equity mutual fund schemes.

Why to invest?

This mutual fund scheme has outperformed and gave 19% annualized returns since the inception of the fund of 25 years. This fund has provided highest SIP Returns in the last 5-10 years. It has been rated as a 3 Star (3 out of 5) by Value Research Online.

#5 – HDFC Hybrid Equity Fund


Investment objective

The mutual fund scheme aims to generate capital appreciation or income from a portfolio, predominantly of equity & equity related instruments.

Performance & Ratios of the scheme

This mutual fund scheme gave 14% annualized returns in the last 10 years, 9% annualized returns in the last 5 years, 7% annualized returns in the last 3 years and 1% returns in the last 1 year.

If you would have invested Rs 1,000 per month through SIP for 5 years, the investment would have been Rs 60,000 and your investment would have grown to Rs 66,000. Similarly, if you would have invested Rs 1,000 per month through SIP for 10 years, the investment would have been Rs 120,000 and your investment would have grown to Rs 180,000.

This fund beta is 0.84. It means that this fund is less volatile compared to stock market fluctuations.

The ratios of the fund are Mean-7.17, Standard Deviation-9.76, Sharpe-0.13, Sortino-0.23.

Its expense ratio is 1.72%, which is low compared to other equity mutual fund schemes.

Why to invest?

This mutual fund scheme has outperformed and gave 15% annualized returns since the inception of 19.5 years. This fund has provided highest SIP Returns in the last 5-10 years. It has been rated as a 4 Star (4 out of 5) by Value Research Online.  Considering these factors, this is one of the Best SIP Plan for 5 years in 2019.

#6 – Tata Hybrid Equity Fund


Investment objective

The mutual fund scheme objective is to provide steady returns from debt along with growth from equity instruments. This would invest up to 70% in equity and up to 30% in debt. One should note that this  as earlier known as Tata Equity Growth Fund, Tata Twin Balanced has been merged into this fund.

Performance & Ratios of the scheme

This mutual fund scheme gave 12% annualized returns in the last 10 years, 7% annualized returns in the last 5 years, 4% annualized returns in the last 3 years and 0.5% returns in the last 1 year.

If you would have invested Rs 1,000 per month through SIP for 5 years, the investment would have been Rs 60,000 and your investment would have grown to Rs 66,000. Similarly, if you would have invested Rs 1,000 per month through SIP for 10 years, the investment would have been Rs 120,000 and your investment would have grown to Rs 208,000.

This fund beta is 0.86. It means that this fund is less volatile compared to stock market fluctuations.

The ratios of the fund are Mean-3.87, Standard Deviation-9.68, Sharpe-(-0.21), Sortino-(-0.39).

Its expense ratio is 1.94%, which is low compared to other equity mutual fund schemes.

Why to invest?

This mutual fund scheme has outperformed and gave 15% annualized returns since the inception of 24 years. This fund has provided highest SIP Returns in the last 5-10 years. It has been rated as a 2 Star (2 out of 5) by Value Research Online. Considering these factors, this is one of the Top SIP Plan for next 5 years to invest.

Also Read: Top and Best Term Insurance Plans in India

Here is the List of Best SIP Plans for 5 years to invest in India


Best SIP Plans for 5 years in India 2019

Who can invest in these Mutual Fund Schemes?


These mutual funds are suitable for the following:

1) If you are planning to invest for 5 years time frame through SIP, these mutual funds could be the best bet for you.

2) If you are an aggressive investor and looking to invest in SIP in mutual funds for 5 years tenure, these could be good for you.

3) If you are a moderate risk taker and willing to invest in Mutual Funds through SIP for 5 years, these funds could be good for you.

One should note that these are not Best SIP Plans for 1 year or 4 years.

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Suresh KP

Best SIP Plan for 5 Years in India

9 comments

  • AVIK SEN

    For last two years I am investing in ICICI Pru Value Discovery Fund-Grwth-Direct SIP for Rs 2000.
    Recently this fund performance is not good. Shall I continue sip? Please advise.

  • Priyanka Desai

    Thanks for telling us about best sip plan for next 5 years.

  • Akshat kaushal

    I have invested 1500 pm in following fund since 1 year
    HDFC small cap fund
    Mirae assets large cap fund
    Principal hybrid fund
    Axis bluchip fund
    Long term horizon for wealth appreciation
    Kindly guide

  • Suresh Kumar Thakur

    Thanks for a nice article on SIP meant for min 05 years investment. Would appreciate if you can throw useful light on Monthly dividend (Regular and Direct) MF schemes as well please. Have a good day

  • RLN

    Hi Suresh,

    I have stopped my sip for the below funds since last 10 months or so as I saw them going so much.

    1.L&T infra fund regular
    2.Reliance small fund
    3.Franklin India focused equity.

    Especially I saw reliance small fund was giving 60% returns at one poin and now down to -10% last 10 months.

    My questions are:
    1. Should I keep whatever I invested on the above unchanged
    2.should I restart SIP
    3. should I change them to one of the fund you mentioned here?

    • Smallcap and midcap funds are in down trend in the last 1-2 years. This should recover in the next 2-3 years. If you are long term investor, just continue them. You should restart SIP as you would buy more units with same SIP amount as these funds are down. All 3 funds are good, continue to invest

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