10 Best SIP Plans for 1 year to invest in India

Best SIP Plans for 1 year to invest in IndiaBest SIP Plans for 1 year to invest in India


Stock markets continue to be volatile in India. There are various steps taken by the Government, but stock markets are not getting excited except for 1-2 days. In this situation, investors might be thinking to invest in some of the mutual fund schemes with low duration of 1 year. Some investors might be thinking to save money every month for short duration of 1 month to 1 year period. If you are one among these investors who want to invest every month in mutual funds for short duration up to 1 year, this article is for you. Which SIP Mutual Fund Schemes are good for 1 year duration? Which are the Best SIP Plans for 1 year to invest in India?

Also Read: Best SIP Plans for 10 years to invest

What is Systematic Investment Plan (SIP)?


SIP is where you invest a fixed amount in mutual fund schemes. Systematic Investment Plan (SIP) can be done either daily or weekly or monthly or quarterly or yearly. However, the most popular one is a Monthly SIP in mutual funds.

Which are the various categories of mutual funds that are good for 1 year investment?


Here are some of the mutual fund categories that can be invested in 1 day to 1 year. Let us check which category of mutual funds is best for 1 year duration.

1) Overnight Mutual Funds: These are open ended debt mutual fund schemes that will invest in overnight securities. These would invest in overnight securities with a maturity of one day. If you are looking for 1 year SIP funds this would not be the right choice.

2) Liquid Funds: These MF schemes will invest in debt and money market instruments that matures within 91 days of tenure. If you are unsure whether your investment horizon is 1 month or 3 months or 1 year, investing in liquid funds good be a good idea.

3) Ultra short duration debt mutual funds: These ultra-short term debt funds would invest in securities that has a maturity between 3 months to 6 month period. If you are not sure whether you need money in 3 months or 6 months or 1 year, these could be Best SIP plans for 1 year duration.

4) Low duration debt funds: These debt funds would invest in instruments that has duration between 6 months and 12 months. If you think you may not need money for 6 months to 12 months duration, these funds could be good investment option for 1 year duration.

Best SIP Plans for 1 year – Liquid Funds segment


Who can invest in liquid funds?


Investors can invest in liquid funds that are best alternative to bank FD or RDs to park their surplus money for any short term requirement. Some experts argue that SIP in liquid funds or a lump sum of liquid funds does not make any sense as they provide similar returns, however good compared to bank RDs. If you are not sure whether you require money in 1 month or 1 year and willing to invest every month, investing in liquid funds through SIP could be a good idea.

Now let us jump and pick-up some of the best liquid mutual funds.

#1 – Quant Liquid Plan


Investment Objective: The MF scheme aims to provide income and liquidity consistent with the prudent risk from a portfolio comprising of money market and debt instruments.

Here is the fund’s snapshot:

FundQuant Liquid Plan
CategoryLiquid Fund
Returns in 3mth2%
Returns in 1 year7%
Annualised Returns in 3 years7%
Annualised Returns in 5 years8%
VRO Star Rating5 Star
Exp Ratio0.97%
Net Assets (AUM) Rs Crs138
Risk GradeLow
Return GradeHigh

Why to invest: This is one of the top performing liquid mutual fund schemes in India that gave 7.4% returns in the last 1 year and 1.7% returns in the last 3 months. Value Research rates this as 5 Star Fund that has a low risk grade and high return grade. Its beta is 0.29 and Alpha is 1.49.

#2 – Franklin India Liquid Fund


Investment Objective: The mutual fund scheme aims to provide current income with high liquidity through 100% investment in debt and money market instruments.

Here is the fund’s snapshot:

FundFranklin India Liquid Fund
CategoryLiquid Fund
Returns in 3mth2%
Returns in 1 year7%
Annualised Returns in 3 years7%
Annualised Returns in 5 years8%
VRO Star Rating5 Star
Exp Ratio0.86%
Net Assets (AUM) Rs Crs12,029
Risk GradeLow
Return GradeHigh

Why to invest: This is one of the best performing liquid fund that gave 7.4% returns in the last 1 year and 1.6% returns in the last 3 months. Value Research rates this as 5 Star Fund that has a low risk grade and high return grade. Its beta is 0.22 and Alpha is 1.38.

#3 – Aditya Birla Sun Life Liquid Fund


Investment Objective: The MF scheme seeks to provide high liquidity and safety with reasonable returns through investments in debt and money market instruments.

Here is the fund’s snapshot:

FundAditya Birla Sun Life Liquid Fund
CategoryLiquid Fund
Returns in 3mth2%
Returns in 1 year7%
Annualised Returns in 3 years7%
Annualised Returns in 5 years8%
VRO Star Rating4 Star
Exp Ratio0.28%
Net Assets (AUM) Rs Crs58,689
Risk GradeLow
Return GradeHigh

Why to invest: This is one of the good performing liquid fund that gave 7.3% returns in the last 1 year and 1.6% returns in the last 3 months. Value Research rates this as 3 Star Fund that has a low risk grade and high return grade. Its beta is 0.22 and Alpha is 1.38.

You may like: Top 5 Best Mutual Funds to invest through SIP

Best SIP Plans for 1 year – Ultra Short Term Debts segment


Who can invest in Ultra Short Term Debt funds?


Investors can invest in Ultra Short funds that are alternative to bank FD or RDs to park their surplus money for any short term requirement of 3 months to 1 year period. If you want to park money, but are not sure whether you need money in 3 months to 1 year period and willing to invest every month, investing in Ultra Short Term Funds through SIP could be a good bet.

Now let us jump and pick-up some of the best Ultra Short Term Debt Funds.

#4 – Franklin India Ultra Short Bond Fund


Investment Objective: The mutual fund aims to enhance income consistent with a high level of liquidity, through a judicious portfolio mix of money market and debt instruments.

Here is the fund’s snapshot:

FundFranklin India Ultra Short Bond Fund
CategoryUltra Short Term
Returns in 3mth2%
Returns in 1 year10%
Annualised Returns in 3 years9%
Annualised Returns in 5 years9%
VRO Star Rating5 Star
Exp Ratio-
Net Assets (AUM) Rs Crs19,751
Risk GradeLow
Return GradeHigh

Why to invest: This is one of the top performing Ultra Short Term mutual fund schemes in India that gave 10.1% returns in the last 1 year and 2.4% returns in the last 3 months. Value Research rates this as 5 Star Fund that has a low risk grade and high return grade.  Its beta is 1.39 and Alpha is 5.

#5 – Aditya Birla Sun Life Savings Fund


Investment Objective: The mutual fund scheme aims to generate regular income from a portfolio of debt and money market instruments, cash and cash equivalents.

Here is the fund’s snapshot:

FundAditya Birla Sun Life Savings Fund
CategoryUltra Short Term
Returns in 3mth2%
Returns in 1 year9%
Annualised Returns in 3 years8%
Annualised Returns in 5 years8%
VRO Star Rating4 Star
Exp Ratio0.35%
Net Assets (AUM) Rs Crs15,421
Risk GradeAvg
Return GradeAbove Avg

Why to invest: This is one of the good Ultra Short Term mutual fund schemes in India that gave 9.1% returns in the last 1 year and 2.3% returns in the last 3 months. Value Research rates this as 4 Star Fund that has an average risk grade and above average return grade.  Its beta is 1.8 and Alpha is 4.9.

#6 – ICICI Prudential Ultra Short Term Fund


Investment Objective: The scheme seeks to generate income through investments in a range of debt and money market instruments.

Here is the fund’s snapshot:

FundICICI Prudential Ultra Short Term Fund
CategoryUltra Short Term
Returns in 3mth2%
Returns in 1 year9%
Annualised Returns in 3 years8%
Annualised Returns in 5 years9%
VRO Star RatingNA
Exp Ratio0.94%
Net Assets (AUM) Rs Crs5,459
Risk GradeAvg
Return GradeAbove Avg

Why to invest: This is one of the best Ultra Short Term mutual fund schemes in India that gave 8.7% returns in the last 1 year and 2.1% returns in the last 3 months. Value Research rates this as 4 Star Fund.  Its beta is 1.7 and Alpha is 4.5.

Best SIP Plans for 1 year – Low Duration Debt Mutual Funds Segment


Who can invest in Low Duration  Debt funds?


Investors can invest in Low Duration Short term funds that are good alternative to bank FD or RDs to park money for any short term requirement. If you want to park money, but are not sure whether you need money in 6 months to 1 year period and willing to invest every month to get good returns, investing in Low Duration Short Term Funds through SIP could be better. If you are looking for best 1 year SIP plan, these funds would fit your requirement.

Now let us jump and pick-up some of the best Low Duration Short Term Debt Funds.

#7 – ICICI Prudential Savings Fund


Investment Objective: The scheme seeks to generate income through investments in a range of debt and money market instruments of various maturities with a view to maximizing income while maintaining the optimum balance of yield, safety and liquidity.

Here is the fund’s snapshot:

FundICICI Prudential Savings Fund
CategoryLow Duration
Returns in 3mth2%
Returns in 1 year9%
Annualised Returns in 3 years8%
Annualised Returns in 5 years8%
VRO Star Rating4 Star
Exp Ratio0.50%
Net Assets (AUM) Rs Crs19,925
Risk GradeAvg
Return GradeHigh

Why to invest: This is one of the best performing Low Duration Debt mutual fund schemes in India that gave 9% returns in the last 1 year and 2.3% returns in the last 3 months. Value Research rates this as 4 Star Fund that has a below average risk grade and high return grade.  Its beta is 2.2 and Alpha is 5.4.

#8 – IDFC Low Duration Fund


Investment Objective: The fund aims to offer an investment avenue for short term savings, by looking to generate returns commensurate with a low risk strategy from a portfolio that invests in debt and money market securities such that the Macaulay duration of the portfolio is between 6 months and 12 months.

Here is the fund’s snapshot:

FundIDFC Low Duration Fund
CategoryLow Duration
Returns in 3mth2%
Returns in 1 year9%
Annualised Returns in 3 years8%
Annualised Returns in 5 years8%
VRO Star Rating4 Star
Exp Ratio0.48%
Net Assets (AUM) Rs Crs4,587
Risk GradeAvg
Return GradeAbove Avg

Why to invest: This is one of the top performing Low Duration Debt mutual fund schemes in India that gave 9% returns in the last 1 year and 2.3% returns in the last 3 months. Value Research rates this as 4 Star Fund that has a below average risk grade and above average return grade.  Its beta is 2.2 and Alpha is 5.4. This is one of the good mutual fund investment plan for 1 year.

You may like: Best SIP Mutual Funds for 5 years investment

#9 – Franklin India Low Duration Fund


Investment Objective: The Scheme seeks to earn regular income for investors through investment primarily highly rated debt securities. in debt securities.

Here is the fund’s snapshot:

FundFranklin India Low Duration Fund
CategoryLow Duration
Returns in 3mth2%
Returns in 1 year9%
Annualised Returns in 3 years8%
Annualised Returns in 5 years9%
VRO Star Rating5 Star
Exp Ratio0.88%
Net Assets (AUM) Rs Crs6,296
Risk GradeAvg
Return GradeHigh

Why to invest: This is one of the top performing Low Duration Debt mutual fund schemes in India that gave 8.8% returns in the last 1 year and 2.4% returns in the last 3 months.  Value Research rates this as 5 Star Fund that has an average risk grade and high return grade.  Its beta is 1.9 and Alpha is 4.5.

#10 – Aditya Birla Sun Life Low Duration Fund


Investment Objective: The fund scheme seeks to provide income which is consistent with a portfolio through investments in a basket of debt and money market instruments of short maturities with a view to provide reasonable returns.

Here is the fund’s snapshot:

FundAditya Birla Sun Life Low Duration Fund
CategoryLow Duration
Returns in 3mth2%
Returns in 1 year9%
Annualised Returns in 3 years7%
Annualised Returns in 5 years8%
VRO Star Rating3 Star
Exp Ratio1.23%
Net Assets (AUM) Rs Crs9,170
Risk GradeAvg
Return GradeAvg

Why to invest: This is one of the good performing Low Duration Debt mutual fund schemes in India that gave 8.8% returns in the last 1 year and 2.4% returns in the last 3 months. Value Research rates this as 3 Star Fund that has an average risk grade and average return grade.  Its beta is 2 and Alpha is 4.75. If you are looking for best SIP plans for one year, this fund could be suitable to you.

Here is the summary of the 10 Best SIP Plans to invest for one year period


Mutual Fund SchemeVRO Star Rating(Annualised returns)
3mth
(Annualised returns)
1 Year
(Annualised returns)
3 Years
(Annualised returns)
5 years
Quant Liquid Plan5 Star1.7%7.5%7.1%7.7%
Franklin India Liquid Fund5 Star1.6%7.4%7.1%7.6%
Aditya Birla Sun Life Liquid Fund4 Star1.6%7.3%7.0%7.5%
Franklin India Ultra Short Bond Fund5 Star2.4%10.1%8.8%9.2%
Aditya Birla Sun Life Savings Fund4 Star2.3%9.1%7.8%8.4%
ICICI Prudential Ultra Short Term FundNA2.1%8.7%7.6%8.9%
ICICI Prudential Savings Fund4 Star2.3%9.0%7.7%8.3%
IDFC Low Duration Fund4 Star2.3%9.0%7.6%8.1%
Franklin India Low Duration Fund5 Star2.4%8.8%8.3%9.0%
Aditya Birla Sun Life Low Duration Fund3 Star2.4%8.8%7.3%7.8%

Data source: Value Research Online as on 5th October, 2019

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Suresh KP

Best SIP Plans for 1 year to invest in India

12 comments

  • RLN

    Hi Suresh,

    I read an article which suggested to invest in passive funds than actively managed funds as active funds unable to beat the return of passive funds due to the recent re-clasification in India.

    Can you shed some light? Also I read active charges commission which is very less in passive funds.

    • Hello RLN, Passive Funds are nothing but index funds. If there is huge stock market fall and we are sure that it would recover in future, Index funds are the best ones. However when stock markets have reached peak or not able to see any direction, investing index funds would not have any meaning. Currently we are in the phase of consolidation / declining trend. Hence investing in index funds / passive funds might be disaster. Since these invest in underlying stocks and fund manager would do nothing beyond that, the expenses ratio / charges would be very low. If you still wish to test the index funds, you can invest small amount every month from your overall portfolio.

      • RLN

        sure thanks for the insight Suresh.

        When you get sometime and if it is worth then please write about top 10 index funds.

  • RLN

    Thanks Suresh, As usual very nice information for the investors

  • Babu

    Is it still safe to invest in Dept funds/liquid funds after NBFC issues?

    • Hello Babu, The debt funds that took beating due to NBFC crisis are majorly the medium and long duration debt funds. However we cannot rule out this. You can park in 2-3 funds to reduce the risk .

  • raja

    your facebook and twitter threads are inactive. unable to share.

    • Raja, There was some issue and we were testing them by deactivating for the past 48 hours. We have reactivated today. Thanks for your comments. You can share them now on FB and Twitter.

  • Dr Kuldeep Singh

    You never talk about uti mutual funds

    • Oh my god. I am never against UTI Mutual Funds. See some samples. I am recommending top funds in specific category in my articles. Do you see any fund that has performed well and we have ignored?

      1) Best Banking mutual funds – 5th one is UTI fund. Link is here.

      2) Best Solution based mutual funds – 3rd fund is UTI fund. Link is here.

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