Best 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:
| Fund | Quant Liquid Plan |
|---|---|
| Category | Liquid Fund |
| Returns in 3mth | 2% |
| Returns in 1 year | 7% |
| Annualised Returns in 3 years | 7% |
| Annualised Returns in 5 years | 8% |
| VRO Star Rating | 5 Star |
| Exp Ratio | 0.97% |
| Net Assets (AUM) Rs Crs | 138 |
| Risk Grade | Low |
| Return Grade | High |
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 – 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:
| Fund | Aditya Birla Sun Life Liquid Fund |
|---|---|
| Category | Liquid Fund |
| Returns in 3mth | 2% |
| Returns in 1 year | 7% |
| Annualised Returns in 3 years | 7% |
| Annualised Returns in 5 years | 8% |
| VRO Star Rating | 4 Star |
| Exp Ratio | 0.28% |
| Net Assets (AUM) Rs Crs | 58,689 |
| Risk Grade | Low |
| Return Grade | High |
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.
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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.
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.
#3 – 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:
| Fund | Aditya Birla Sun Life Savings Fund |
|---|---|
| Category | Ultra Short Term |
| Returns in 3mth | 2% |
| Returns in 1 year | 9% |
| Annualised Returns in 3 years | 8% |
| Annualised Returns in 5 years | 8% |
| VRO Star Rating | 4 Star |
| Exp Ratio | 0.35% |
| Net Assets (AUM) Rs Crs | 15,421 |
| Risk Grade | Avg |
| Return Grade | Above 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.
#4 – 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:
| Fund | ICICI Prudential Ultra Short Term Fund |
|---|---|
| Category | Ultra Short Term |
| Returns in 3mth | 2% |
| Returns in 1 year | 9% |
| Annualised Returns in 3 years | 8% |
| Annualised Returns in 5 years | 9% |
| VRO Star Rating | NA |
| Exp Ratio | 0.94% |
| Net Assets (AUM) Rs Crs | 5,459 |
| Risk Grade | Avg |
| Return Grade | Above 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.
#5 – 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:
| Fund | ICICI Prudential Savings Fund |
|---|---|
| Category | Low Duration |
| Returns in 3mth | 2% |
| Returns in 1 year | 9% |
| Annualised Returns in 3 years | 8% |
| Annualised Returns in 5 years | 8% |
| VRO Star Rating | 4 Star |
| Exp Ratio | 0.50% |
| Net Assets (AUM) Rs Crs | 19,925 |
| Risk Grade | Avg |
| Return Grade | High |
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.
#6 – 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:
| Fund | IDFC Low Duration Fund |
|---|---|
| Category | Low Duration |
| Returns in 3mth | 2% |
| Returns in 1 year | 9% |
| Annualised Returns in 3 years | 8% |
| Annualised Returns in 5 years | 8% |
| VRO Star Rating | 4 Star |
| Exp Ratio | 0.48% |
| Net Assets (AUM) Rs Crs | 4,587 |
| Risk Grade | Avg |
| Return Grade | Above 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.
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#7 – 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:
| Fund | Aditya Birla Sun Life Low Duration Fund |
|---|---|
| Category | Low Duration |
| Returns in 3mth | 2% |
| Returns in 1 year | 9% |
| Annualised Returns in 3 years | 7% |
| Annualised Returns in 5 years | 8% |
| VRO Star Rating | 3 Star |
| Exp Ratio | 1.23% |
| Net Assets (AUM) Rs Crs | 9,170 |
| Risk Grade | Avg |
| Return Grade | Avg |
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 Scheme | VRO Star Rating | (Annualised returns) 3mth | (Annualised returns) 1 Year | (Annualised returns) 3 years | (Annualised returns) 5 years |
|---|---|---|---|---|---|
| Quant Liquid Plan | 5 | 1.2% | 5.4% | 6.6% | 7.0% |
| Aditya Birla Sun Life Liquid Fund | 5 | 0.8% | 4.8% | 6.4% | 6.8% |
| Aditya Birla Sun Life Savings Fund | 5 | 1.4% | 7.4% | 7.7% | 8.0% |
| ICICI Prudential Ultra Short Term Fund | 4 | 1.5% | 7.2% | 7.4% | 7.9% |
| ICICI Prudential Savings Fund | 5 | 1.6% | 8.5% | 7.9% | 8.1% |
| IDFC Low Duration Fund | 4 | 1.0% | 7.4% | 7.5% | 7.7% |
| Aditya Birla Sun Life Low Duration Fund | 4 | 1.4% | 7.9% | 7.6% | 7.6% |
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Hi….. This is a nice post. thanx to share…. I visit the JM Finance is the investment firm and working as a financial advisory services provider.
Thanks Suresh, Very well explained and helpful article to start a SIP for one year period.