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10 Best SIPs for 1 Year

The number of SIP accounts in India was at an all-time high in Sep 2023 reaching 7.12 crores. 

Even the investments in SIP reached an all-time high at around ₹16,042 crore for the same period. 

Due to an increase in financial awareness, people have started planning their financial goals by investing in mutual funds via SIP. 

You can invest in SIP for the long term as well as for short periods such as a month. In this article, we will explore the best SIP for 1 year.

Top 10 Best SIPs for 1 year

Here is a list of the best SIPs to invest for 1 year. You can compare and invest in various SIP and lump sum schemes on our platform.

1. ICICI Prudential Short-Term Fund: Direct Fund- Growth

The SIP scheme aims to generate income by investing in debt and money market instruments with a short maturity date.

It was launched on 1st Jan 2013 and is managed by Nikhil Kabra and Manish Banthia. 

  • Type: Debt Fund
  • Fund size: ₹18,766.60 Cr
  • Expense Ratio: 0.45%
  • 1-year SIP return: 8.33%
  • Morning Star Rating: 5

2. JM Liquid Fund: Direct-Growth

This mutual fund was launched on 1st Jan 2013 and primarily invests in debt instruments with a maximum maturity of 91 days. 

The scheme has 95.63% of overall investments in debt. Naghma Khoja and Shalini Tibrewala are working as fund managers for the scheme. 

  • Type: Liquid
  • Fund size: ₹1,628.26 Cr
  • Expense Ratio: 0.16%
  • 1-year SIP return: 7.18%

3. HDFC Floating Rate Debt Fund: Direct-Growth

This is another best SIP for 1 year managed by Shobhit Mehrotra and Vikas Agrawal. 

The fund has 91.79% of the investment in debt, most of which is invested in Government securities and low-risk securities with a floating interest rate.

  • Type: Debt
  • Fund size: ₹14,765.10 Cr
  • Expense Ratio: 0.26%
  • 1-year SIP return: 8.01%
  • Morning Star Rating: 5

4. Aditya Birla Sun Life Low Duration Fund: Direct-Growth

This debt fund came into existence on 2nd Jan 2013. The scheme has invested in debt and money-market instruments of short maturity. 

Dhaval Joshi, Kaustubh Gupta, and Mohit Sharma are presently managing this low-duration fund. 

  • Type: Debt
  • Fund size: ₹12,058.50 Cr
  • Expense Ratio: 0.40%
  • 1-year SIP return: 7.63%
  • Morning Star Rating: 5

5. Baroda BNP Paribas Liquid Fund: Direct Plan-Growth

Launched on 1st Jan 2013, this fund is managed by fund managers Mayank Prakash and Vikram Pamnani. 

It has 97.59% of the overall investment in debt. Out of this 21.17% of the investment is in Government Securities and 76.42% is in low-risk securities.

  • Type: Debt
  • Fund size: ₹11,208.00 Cr
  • Expense Ratio: 0.19%
  • 1-year SIP return: 7.1%
  • 3-year SIP Return: 5.81%

6. Mirae Asset Cash Management Fund: Direct Plan-Growth

The scheme was launched on 6th Jan 2013. The fund has 102.49% of the investment in debt. 

Out of this major portion is invested in low-risk securities. Abhishek Iyer is the fund manager of the scheme. 

  • Type: Debt
  • Fund size: ₹11,079.30 Cr
  • Expense Ratio: 0.12%
  • 1-year SIP return: 7.22%

7. Nippon India Short-Term Fund: Direct Plan-Growth

This Nippon India fund is an open-ended short-duration debt fund and was established in 2013. There are 4 fund managers appointed for the scheme. 

They are Kinjal Desai, Sushil Budhia, Vivek Sharma, and Akshay Sharma. The scheme has the majority of investment in government securities and low-risk securities. 

  • Type: Debt
  • Fund size: ₹5,986.49 Cr
  • Expense Ratio: 0.37%
  • 1-year SIP return: 7.83%
  • Morning Star Rating: 5

8. Aditya Birla Sun Life Liquid Fund: Direct Plan-Growth

The scheme aims to provide returns with a high level of safety and liquidity. It was launched on 1st Jan 2013. 

Out of the overall investment, 96.58% is in debt. The fund managers are Dhaval Joshi, Sanjay Pawar, Sunaina Da Cunha, and Kaustubh Gupta. 

  • Type: Debt
  • Fund size: ₹43,962.00 Cr
  • Expense Ratio: 0.21%
  • 1-year SIP return: 7.28%

9. Union Liquid Fund: Direct Plan-Growth

Launched on 1st Jan 2013, this fund has an objective to provide reasonable returns with a low risk and high liquidity aspect. 

Parajit Agrawal and Devesh Thacker are currently the fund managers of the scheme. 

The fund has around 17.18% of the investments in Government securities and 73.58% in low-risk securities. It is one of the best SIPs for 1 year. 

  • Type: Debt
  • Fund size: ₹2,739.96 Cr
  • Expense Ratio: 0.08%
  • 1-year SIP return: 7.11%

10. Axis Liquid Fund: Direct Plan-Growth

Managed by fund managers Sachin Jain, Devang Shah, and Aditya Pagaria, this Axis Bank fund was launched a decade ago. The fund has 112.24% of the overall investment in debt. Out of this 23.14% is in Government securities and 89.1 is in low-risk securities.

  • Type: Debt
  • Fund size: ₹33,841.40 Cr
  • Expense Ratio: 0.17%
  • 1-year SIP return: 7.22%

Why Invest in SIPs for 1 Year?

Investing in any asset gives your money a chance to grow and beat inflation. While most people know this, they struggle to invest consistently. SIPs fix this.

Starting a SIP in mutual funds means you set aside a chunk of your salary every month solely to invest.

This consistency has the potential to compound and earn decent returns for you in 12 months.

Take a liquid fund with a 6% CAGR. If you start a SIP of ₹10,000 for 12 months, your ₹1,20,000 will become ₹1,23,972. That’s a gain of ₹3,972. 

Give your money more time in the same fund and you’ll earn ₹1,01,189 on top of your invested amount in 5 years. 

Or, take an equity fund and the same investment will fetch you ₹2,24,864 at 12% CAGR. If you want to invest for a longer timeframe, do check out 10 Best SIPs for 3 Years.

Conclusion

In this article, we have listed some of the top SIP investments for 1 year. These are majorly liquid and debt funds. Before investing in this take into consideration your investment goals and risk appetite. 

Note: Mutual funds are subject to market risk. Please do your own due diligence before investing. The funds mentioned above are exemplary, not recommendatory. None of the funds above are to be construed as investment advice.

Shriram Shekhar

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