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10 Best SIP Plans for 1 year to Invest in India in 2020

A lot of people are turning towards new ways to generate higher income in a short time. Some turn to stocks and some invests in traditional investment methods such as recurring deposits. Systematic Investment Plan or SIP too, have gained recognition among many investors. If you have decided on investing in SIPs, then one of the first things you will do is surf the Internet and search for the best SIP plans. Let us help you find the best SIP plans for one-year investment. Read further to know more.

An Overview of SIP Plans

SIP is a disciplined plan where you invest a fixed sum in mutual fund schemes at regular intervals. It develops a habit of saving while helping wealth grow. You can achieve long term goals, such as a child’s education, house purchase, etc. Short term goals, such as a tour can be met too.

SIP investment is a wealth-saving as a wealth-creation tool. If an investor starts from a young age, the power of compounding can grow your wealth substantially in the future. Investors don’t even need to invest big as they can start with only Rs.500 per month or week. Future financial targets can be achieved by investing in SIPs. Investing in SIP is easy too as money gets debited every month without investor’s efforts.

How You Can Make Investments in SIP

With a systematic investment plan, you can invest in different types of mutual funds schemes such as debt funds, equity funds, etc. Equity offers higher returns, and debt provides higher security. While the profits of debt fund are low, the risk with equity funds is high. You need to decide which scheme would be suitable for you, depending on your risk appetite.

You can invest in different types of SIPs too. Some can be invested in for the long run while there are some SIP plans that are good for an investment horizon of a year. If you are looking for 1-year investment plans, then you can also consider liquid funds as they have a maturity period of 91 days. Low duration debt funds are good too as you can invest for 6 months to 12 months. You can also invest in ultra-short duration debt funds. Their maturity period is between 3 months to 6 months.

Top 10 Best SIP plans for 1 year-

Investment Returns in 3 Months Returns in 1 Year
Aditya Birla Sun Life Savings Fund 0.9% 7.3%
ICICI Prudential Ultra Short Term Fund 1.2% 7.7%
India Bulls Ultra Short Term Fund 1.2% 6.8%
Kotak Savings Fund 1.1% 6.9%
BOI AXA Ultra Short Duration Fund 1% 6.7%
DSP BlackRock Money Manager 1% 6.5%
IDBI Liquid Fund 1.3% 6.2%
Invesco India Ultra Short Term Fund 1% 6.7%
Nippon India Liquid Fund 1.3% 6.3%
Franklin India Liquid Fund 2% 7%
  • Aditya Birla Sun Life Savings Fund

    Aditya Birla Sun Life Savings Fund is an open-ended debt scheme with an investment period ranging from 3 to 6 months. The scheme invests in money market instruments, cash and cash equivalents, and fixed income securities.

  • ICICI Prudential Ultra Short-Term Fund

    This is an Ultra-short-term growth option that earns income by investing in fixed income securities for investors seeking dividend option. It also helps investors generate capital by investing in equity and related instruments. This fund is suitable for conservative investors looking for higher returns.

  • India Bulls Ultra Short-Term Fund

    The Ultra short-term fund has 96.19% in debt funds' investments, which includes 90.75% in low-risk securities and 5.44% in government securities. The risk is moderately low. The duration of the scheme is 3 months to 6 months.

  • Kotak Savings Fund

    This type of SIP invests predominantly in floating rate securities and money market instruments. It also tries to reduce the risk of the interest rate that is linked to fixed-rate financial instruments. The fund achieved 7.8% returns in 2019.

  • BOI AXA Ultra Short Duration Fund

    BOI AXA Ultra Short Duration Fund offers returns in the form higher liquidity and low risk by investing mainly in debt and money market instruments. BOI AXA Ultra Short Duration Fund earned returns at 7.5% in 2019.

  • DSP BlackRock Money Manager Fund

    The fund tries to generate profits with higher liquidity and low risk. When you invest in DSP BlackRock Money Manager Fund, the investment is in money market securities and high-quality debt securities. The fund generated returns at 7.3% in 2019.

  • IDBI Liquid Fund

    IDBI Liquid Fund invests in debt instruments and money market instruments with a maturity period of up to 91 days. If you're looking for a steady income and high level of liquidity, this is an ideal investment plan. In 2019, the fund generated returns at 6.6%.

  • Invesco India Ultra Short-Term Fund

    The fund invests in medium-term debt and money market instruments to generate capital appreciation and regular income. The scheme offers low returns. Invesco India Ultra Short-Term Fund earned returns at 7.6% in 2019.

  • Nippon India Liquid Fund

    Nippon India Liquid Fund tries to earn higher profits and liquidity at moderate risk. The fund invests in debt and money market instruments to achieve it. The returns in 2019 were at 6.7%.

  • Franklin India Liquid Fund

    The fund invests in debt and money market instruments to generate regular income with high liquidity at low risk. It was also rated with five stars by VRO Star Rating.

    Investors who want to invest for short term to generate regular income with high liquidity at low risk can achieve that with the funds mentioned above. Research the market and compare the performances of mutual funds to find out which can be the best one-year systematic investment plan suitable for you.