You can also make an investment in SIP for a longer duration. The term duration period for SIP ranges from one month to five years. You can choose the frequency of the investment between SIP from weekly, monthly, and quarterly.
SIP Calculator
Monthly Investment
₹22.4 L
Top Funds with High Returns (Past 7 Years)
16.82%
High Growth Fund
16.57%
Top 200 Fund
13.25%
Accelerator Mid-Cap Fund II
13.43%
Opportunities Fund
9.13%
Growth Plus Fund
11.71%
Accelerator Fund
12.71%
Grow Money Plus Fund
14.1%
Multiplier
10.7%
Equity Top 250 Fund
11.43%
Future Apex Fund
10.91%
Opportunities Fund
12.95%
Frontline Equity Fund
15.2%
Virtue II
9.52%
Pension Dynamic Equity Fund
11.03%
Top 300 Fund
9.19%
Blue-Chip Equity Fund
What are the Benefits of Investing in SIPs?
Many benefits come from investing in SIPs, which are given below:
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Rupee cost averaging
SIPs are the best option when it comes to the cost to returns ratio. You can start with smaller investments by buying units when the share prices are lower. This system allows investors to bring more return through lower investment. It is flexible and more beneficial than investing a huge sum of money in a lump sum.
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Power of compounding
As per the principle of compound interest, investors yield better and more returns by investing smaller amounts at regular intervals. These smaller amounts culminate over the years and bring more returns through compound interest. You can use an SIP Return Calculator to see how compounding helps you build a corpus.
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Lighter on pocket
SIPs are lighter on the pocket because you don't have to invest the amount in a lump sum. You can start from as low as Rs. 500 per investment cycle. These smaller amounts throughout the period will seem meager but will reap you higher returns.
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Automated payment option
SIPs seek to make investing hassle-free and flexible for investors. You can choose the option of automated payment at the commencement of the SIP. The predetermined amount will be directly deducted from your bank account on the fixed date. This way you don't have to worry about making payments and also you will not miss out on any payment.
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Liquidity
Even though you invest smaller amounts at the time, in case of emergencies, smaller amounts seem bigger. SIP allows you to liquidate your funds easily for emergencies. You can employ one click withdrawal option for illness, accidents, or job loss-like scenarios.
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Market performance is irrelevant
Knowing the market is essential before investing to mitigate the risk. Through systematic payment options, this gets eliminated. Market volatility will not affect your funds drastically as it will get even out throughout its term. It also allows increasing your returns as you can invest more when the share prices are low.
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Smaller amounts bring bigger returns
SIPs help you generate wealth through smaller investments. You invest smaller amounts on a certain frequency, and market performance will increase your returns. This process is called the 'reinvestment of returns.' By reinvesting your returns, you earn more interest on them, and it increases your corpus. Investing smaller amounts for a longer duration creates better wealth for you.
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Number of choices
In SIPs, you get full autonomy to choose how much you want to invest, at what frequency you want to invest, and for how long you want to invest. This liberty allows you to have better financial planning aimed at your funds.
Best SIPs to Invest in 2025 for 3 Years~
SIPs generate more returns if you invest in them for a longer duration. If you have short-term financial goals, you can opt for the SIP mutual funds that offer the investment option for 3 years. You can gain your desired financial goal without having to wait longer.
Following is the list of SIPs that you can invest in for 3 years in India based on their returns and performances:
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Baroda Pioneer Multi Cap Fund:
It is also known as the Baroda Pioneer Growth fund. It aims to generate income by investing in equity and equity-related instruments.
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It is an equity-related multi-cap fund started on 12th September, 03.
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It comes in the moderately high-risk category.
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Returns in 2020 were 19.5%.
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NAV (12th November 2021) is Rs. 180.4 crores.
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The expense ratio is 2.47%.
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For 3 years, you get returns of 25.9%.
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The current fund manager is Sanjay Chawla.
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Canara Robeco Emerging Equities:
It aims to generate capital by investing in diversified mid-cap stocks.
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It is an equity-related multi-cap fund started on 11th March, 05.
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It comes in the moderately high-risk category.
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Returns in 2020 were 24.5%.
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NAV (12th November 2021) is Rs. 169.58 crores.
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The expense ratio is 1.89%.
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For 3 years, you get returns of 25.3%.
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Current fund manager is Shridatta Bhandwaldar.
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Mahindra Badhat Yojana:
Its primary objective is to provide long-term capital appreciation goals by investing in equity funds and equity-related securities mainly derivatives.
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It is an equity-related multi-cap fund started on 11th May 17.
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It comes in the moderately high-risk category.
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Returns in 2020 were 16.6%.
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NAV (12th November 2021) is Rs. 21.65 crores.
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The expense ratio is 2.6%.
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For 3 years, you get returns of 29.7%.
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The current fund manager is Manish Lodha.
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Mirae Asset Emerging Bluechip Fund:
It aims to generate income and capital appreciation by investing in Indian equities and equity-related securities.
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It is an equity-related multi-cap fund started on 9th July, 10.
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It comes in the moderately high-risk category.
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Returns in 2020 were 22.4%.
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NAV (12th November 2021) is Rs. 101.972 crores.
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The expense ratio is 1.5%.
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For 3 years, you get returns of 28.8%.
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The current fund manager is Ankit Jain.
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Parag Parikh Long Term Equity Fund:
This scheme aims to generate long-term capital growth by investing in a diversified portfolio primarily of equity funds and equity-related securities.
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It is an equity-related multi-cap fund started on 24th May 2013.
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It comes in the moderately high-risk category.
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Returns in 2020 were 32.3%.
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NAV (12th November 2021) is Rs. 51.58 crores.
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The expense ratio is 1.97%.
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For 3 years, you get returns of 31%.
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The current fund manager is Raj Mehta.
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PGIM India Diversified Equity Fund:
The fund’s investment objective is to generate capital appreciation and income by investing in a varied portfolio of equity funds or equity-related instruments.
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It is an equity-related multi-cap fund started on 4th March 2015.
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It comes in the moderately high-risk category.
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Returns in 2020 were 35.9%.
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NAV (12th November 2021) is Rs. 27.97 crores.
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The expense ratio is 2.54%.
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For 3 years, you get returns of 31.6%.
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The current fund manager is Ravi Adukia.
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UTI Equity Fund:
It aims to secure unitholders' capital by investing in equity shares and convertible bonds and debentures.
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It is an equity-related multi-cap fund started on 18th May 92.
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It comes in the moderately high-risk category.
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Returns in 2020 were 31.5%.
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NAV (12th November 2021) is Rs. 277.325 crores.
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The expense ratio is 1.96%.
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For 3 years, you get returns of 28.7%.
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The current fund manager is Ajay Tyagi.
In Conclusion
SIP is the surest and disciplined way to generate wealth over the years. You can start investing smaller amounts at the fixed frequency till the tenure of your choosing. After the term period is over, you get the returns you have culminated over the years. It is advised to use SIP calculator online tool to analyse the SIP returns.
This scheme is suitable for those individuals who wish to grow wealth over the period but do not necessarily have a lump sum amount at their disposal.
FAQ's
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Do I get tax benefits on the return from SIP?
No, you do not get any tax benefit on the returns you gain from SIP. Tax will be applicable on the return amount and not on the unit. As long as you hold the unit, you do not have to pay taxes on it.
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Are partial withdrawals allowed?
Yes, you can withdraw from your SIP either partially or completely, depending upon the fund regulations.
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Will I have to pay a penalty if I cancel my SIP?
No, you don't have to pay any penalty for canceling the SIP during the fund tenure.
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Are there any tax savings SIPs?
Yes, many SIPs are specifically designed to offer tax benefits to investors. (*Tax benefit is subject to changes in tax laws.)
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Are SIPs good schemes for beginners?
Yes. SIPs do not require investors to have in-depth knowledge about the market. To get the better idea of SIP plans, it is suggested to study the
best SIP plans in the market before investing.
