Best SIP for Short Term

What is SIP for Short Term?

A SIP for the short term is a simple way to invest small amounts regularly in mutual funds for a period of 6 months to 1 year. It is a good investment option for meeting short-term goals like an emergency fund or a planned expense. These SIPs usually invest in debt or liquid funds, which are safer and provide nominal returns. They help you save in a disciplined way and allow easy withdrawals when needed. It is a smart and simple way to grow your money in the short term.

List of Best SIPs for Short Term

Following is the list of top SIP plans for short-term investments:

SIP Calculator

I know my investment amount I know my goal amount

Monthly SIP Yearly SIP Lumpsum

I want to invest Pro Tip

Financial experts suggest that a person should invest 10-15% of their monthly income for long-term financial growth

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I want to invest for Pro Tip

Financial experts suggest that individuals should ideally invest for a period of 5 to 10 years, or even longer, to maximize the benefits of compounding and navigate market fluctuations effectively

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Expected return Pro Tip

Top 25% of investors consistently generate more than 12% return

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Total Wealth ₹22.4 L

View Plans

I want to save

I want to invest for Pro Tip

Financial experts suggest that individuals should ideally invest for a period of 5 to 10 years, or even longer, to maximize the benefits of compounding and navigate market fluctuations effectively

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Expected return Pro Tip

Top 25% of investors consistently generate more than 12% return

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Monthly Investment ₹22.4 L

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Top Funds with High Returns (Past 7 Years)

19.3%

High Growth Fund

15.61%

Accelerator Mid-Cap Fund II

15.48%

Opportunities Fund

Details of 5 Best SIPs for Short Term in 2025

1. Aditya Birla Sun Life Low Duration Fund

   Aditya Birla Sun Life Low Duration Fund is a debt mutual fund that invests in short-term instruments with a portfolio maturity of 6-12 months. It offers stable returns with low risk and suits investors looking for better returns than savings accounts.

   Key Features of Aditya Birla Sun Life Low Duration Fund

   • Objective: To provide consistent income through investments in a portfolio of short-term debt and money market instruments.

   • Benchmark: NIFTY Low Duration Debt Index A-I

   • Inception Date: December 23, 1994

   • Fund Manager(s): Kaustubh Gupta, Mohit Sharma, and Dhaval Joshi

   • NAV (as of 08 January 2025): ₹697.69

2. Sundaram Low Duration Fund

   Sundaram Low Duration Fund is a short-term debt fund designed for stable returns with minimal risk. It primarily invests in quality debt instruments with a duration of 6 to 12 months, suitable for conservative investors.

   Key Features of Sundaram Low Duration Fund

   • Objective: To generate stable returns with minimal risk through investments in quality short-term debt instruments.

   • Benchmark: NIFTY Low Duration Debt Index A-I

   • Inception Date:  26 February 1996

   • Fund Manager(s): Dwijendra Srivastava and Sandeep Agarwal

   • NAV (as of 08 January 2025): ₹3,565.73

   

3. ICICI Prudential Savings Fund

   ICICI Pru Savings Fund is a debt mutual fund investing in short-term debt instruments and money market securities. It seeks to generate steady returns with lower risk by focusing on high-quality, short-duration assets.

   Key Features of ICICI Pru Savings Fund

   • Objective: To provide reasonable returns with low risk investments in short-term debt instruments.

   • Benchmark: NIFTY Low Duration Debt Index A-I

   • Inception Date: 12 October 1993

   • Fund Manager(s): Nikhil Kabra

   • NAV (as of 08 January 2025): ₹529.64

4. HDFC Low Duration Fund

   HDFC Low Duration Fund is a debt mutual fund that invests in short-term instruments to provide moderate returns with relatively low risk. It is ideal for investors seeking stability and liquidity, aiming to generate returns over a shorter investment horizon.

   Key Features of HDFC Low Duration Fund

   • Objective: To offer liquidity and better returns than savings accounts by investing in high-quality short-term instruments.

   • Benchmark: NIFTY Low Duration Debt Index A-I

   • Inception Date: 10 December 1999

   • Fund Manager(s): Anupam Joshi, Praveen Jain, and Dhruv Muchhal

   • NAV (as of 08 January 2025): ₹60.11

5. Kotak Low Duration Fund

   Kotak Low Duration Fund is a debt mutual fund that primarily invests in short-term debt securities with low interest rate risk. It aims to provide stable returns by focusing on liquid and high-quality instruments, making it suitable for conservative investors looking for a safe investment option.

   Key Features of Kotak Low Duration Fund

   • Objective: To provide income with lower interest rate risk by focusing on short-term debt and money market instruments.

   • Benchmark: NIFTY Low Duration Debt Index A-I

   • Inception Date: 05 August 1994

   • Fund Manager(s): Deepak Agrawal, Manu Sharma, and Palha Khanna

   • NAV (as of 08 January 2025): ₹3,499.52

How SIPs for Short Term Work?

The following steps will help you to understand the working of a chosen best SIP for short term:

• Choose a Fund: Pick a mutual fund based on how much risk you are willing to take. For short-term, go for liquid or debt funds.

• Set Investment Amount: Decide the amount you want to invest each month. You can start with as little as ₹500 in SIP.

• Select SIP Duration: For short-term goals, choose a SIP for 6 months to 3 years.

• Automate Payments: Set up automatic payments from your bank account to make sure you invest regularly.

• Monitor Performance: Keep an eye on how the fund is doing to make sure it’s helping you meet your short-term goal.

• Exit Strategy: When you reach your goal or market conditions are right, you can withdraw or switch your investment.

SIP Calculator to Estimate Investment for Short Term Funds

A SIP calculator is a simple tool that helps estimate the potential returns on short-term investments through a Systematic Investment Plan. It calculates how much wealth you can accumulate by investing a fixed amount regularly for a specific period. For short-term funds, the calculator factors in the investment amount, duration, and expected returns.

1. SIP Calculator for Short Term Funds:

   Select “I Know My Goal Amount” option and enter the following details:

   • Short Term Corpus Estimate: ₹1,00,000

   • Investment Duration: 1 year

   • Expected Return: 8% annually.

2. SIP Calculator Results:

   The calculator will show you the following results:

   • Monthly Investment Required: ₹7,990

   • Total Investment: ₹95,900

   • Amount Required: ₹1,00,000

   • Wealth Gained from SIP: ₹4,110 (in 1 year)

Key Benefits of Investing in the Best SIP for Short Term

The key benefits of investing in the best SIP plan for short term are as follows:

• Quick Wealth Growth: SIPs help you grow your money in a short time with regular and disciplined investments.

• Flexible Investment Amount: You can start investing with small amounts and increase the amount at your convenience.

• Reduced Risk: SIPs reduce risk by spreading your investments across different sectors and asset classes.

• Easy Liquidity: They provide easy withdrawal options, ensuring quick access to your funds when needed.

• Professional Management: Your investments are managed by professional fund managers to maximize returns.

• Power of Compounding: The power of compounding helps reinvest your earnings to grow your money faster.

• Protection from Market Volatility: SIPs reduce the impact of market ups and downs by investing at regular intervals.

Conclusion

The best SIP for short-term goals depends on your needs. Debt funds, liquid funds, and ultra-short duration funds are good options for 1-3 years. They give better returns than savings accounts and carry low risk. Check the fund’s past performance, expense ratio, and ratings before investing.