Best SIP to Invest for 6 Months

What is a SIP for 6 Months?

A Systematic Investment Plan (SIP) for 6 months is a short-term investment strategy in which you regularly invest a fixed amount in a market-linked fund for six consecutive months. It helps you benefit from disciplined investing, cost averaging, and potential market growth over a brief period. It provides you the flexibility to reassess your financial goals at the end of the term.

Best Short-Term SIPs to Invest for 6 Months

Under the SIP investment for 6 months, it is advisable to choose short-duration debt funds or liquid funds. These options provide stability and liquidity, making them suitable for short-term goals. Some good choices include:

*Updated as of September 2024.

Details of Best Short-Term SIPs to Invest for 6 Months

1. PGIM India Flexi Cap Fund

   The PGIM India Flexi Cap Fund invests at least 65% in equities and up to 35% in debt. This best investment option takes an unconstrained approach, diversifying across large, mid, and small-cap segments. The portfolio includes strong growth companies with sustainable business models across various industries and sectors.

   Features of PGIM India Flexi Cap Fund:

   • Investment Objective: The scheme aims to generate income and capital growth by mainly investing in a diverse, actively managed portfolio of equities and related instruments, including derivatives.

   • Launched On: 11 February 2015

   • Benchmark Index: Nifty 500

2. Axis Bluechip Fund 

   The Axis Bluechip Fund invests primarily in large, well-established companies, focusing on liquid and less volatile stocks with proven track records. This investment plan is suitable for long-term financial goals like children's education, retirement, and wealth creation.

   Features of Axis Bluechip Fund:

   • Investment Objective: The scheme seeks long-term capital growth by investing primarily in a diversified portfolio of equities and related instruments focused on large-cap companies.

   • Launched On: 01 January 2013

   • Benchmark Index: BSE 100 

3. Canara Robeco Bluechip Fund

   The Canara Robeco Bluechip Fund is an open-ended equity mutual fund that primarily invests in large-cap stocks of well-established companies with strong fundamentals. It is an ideal choice for investors looking to diversify their portfolios and benefit from the growth of blue-chip companies.

   Features of Canara Robeco Bluechip Fund:

   • Investment Objective: The scheme aims to provide capital appreciation by primarily investing in large-cap companies. Canara Robeco Large Cap+ Fund reflects this strategy, focusing on a concentrated portfolio of the top 150 stocks by market capitalization.

   • Launched On: 01 January 2013

   • Benchmark Index: BSE 100 

4. Canara Robeco Emerging Equities Fund

   The Canara Robeco Emerging Equities Fund is an open-ended equity mutual fund that invests primarily in mid and small-cap stocks. It is an excellent option for investors looking to tap into the growth potential of emerging businesses and enhance their investment portfolio.

   Features of Canara Robeco Emerging Equities Fund:

   • Investment Objective: The scheme aims to generate capital appreciation by investing in a diversified portfolio of large and mid-cap stocks.

   • Launched On: 01 January 2013

   • Benchmark Index: Nifty Large Midcap 250

5. Mirae Asset Large Cap Fund

   The Mirae Asset Large Cap Fund is an open-ended equity mutual fund that primarily invests in large-cap stocks of established companies with strong market positions. It is suitable for investors looking to achieve stable returns through investments in reliable, blue-chip companies within the large-cap segment.

   Features of Mirae Asset Large Cap Fund:

   • Investment Objective: The scheme aims to maximize long-term capital appreciation by identifying investment opportunities driven by India's economic growth and structural shifts, investing in equities and related securities.

   • Launched On: 01 January 2013

   • Benchmark Index: Nifty 100 

Best Ultra-Short Duration SIPs to Invest for 6 Months

The Ultra-short Duration Funds are open-ended debt schemes, which are ideal for investors with a goal of a week to six months. These funds focus on low-risk instruments like treasury bills and commercial papers, offering better liquidity and stable returns:

Details of Best Ultra Short Duration SIPs to Invest for 6 Months

1. UTI Ultra Short Duration Fund

   UTI Ultra Short Duration Fund is a debt fund that aims to provide stable returns by investing in a mix of short-term debt and money market instruments. The fund typically holds securities with a duration of 3 to 6 months, offering better liquidity and lower interest rate risk.

   Features of UTI Ultra Short Duration Fund:

   • Investment Objective: The scheme aims to generate reasonable income with low volatility by investing in a portfolio of debt and money market instruments.

   • Launched On: 01 January 2013

   • Benchmark Index: CRISIL Ultra Short Duration Debt A-I Index 

2. Nippon India Ultra Short Duration Fund

   Nippon India Ultra Short Duration Fund is a debt fund focused on providing short-term income by investing in a mix of short-term debt and money market instruments. This fund is ideal for investors seeking a low-risk, short-term investment option.

   Features of Nippon India Ultra Short Duration Fund:

   • Investment Objective: The scheme aims to generate optimal returns while maintaining moderate risk and liquidity by investing in debt and money market instruments.

   • Launched On: 01 January 2013

   • Benchmark Index: CRISIL Ultra Short Duration Debt A-I Index 

3. Axis Ultra Short Term Fund

   Axis Ultra Short Term Fund is a debt mutual fund that primarily invests in short-term debt and money market instruments. It aims to deliver better returns than traditional savings accounts while maintaining capital safety.

   Features of Axis Ultra Short Term Fund:

   • Investment Objective: The scheme aims to generate regular income and capital appreciation by investing in a portfolio of short-term debt and money market instruments. It focuses on maintaining a Macaulay duration of 3 to 6 months to manage interest rate risk effectively.

   • Launched On: 27 August 2018

   • Benchmark Index: CRISIL Ultra Short Duration Debt A-I Index

4. ICICI Prudential Ultra Short Term Fund

   ICICI Prudential Ultra Short Term Fund is a debt mutual fund focused on investing in short-term debt securities and money market instruments. It aims to provide investors with regular income and capital preservation while minimizing interest rate risk. 

   Features of ICICI Prudential Ultra Short Term Fund:

   • Investment Objective: The scheme aims to generate income by investing in a variety of debt and money market instruments.

   • Launched On: 01 January 2013

   • Benchmark Index: CRISIL Ultra Short Duration Debt A-I Index 

5. Tata Ultra Short Term Fund

   Tata Ultra Short Term Fund is a debt mutual fund that invests primarily in short-term debt instruments and money market securities. This fund focuses on high-quality securities and aims to deliver returns that exceed traditional savings accounts, making it an attractive choice for conservative investors looking for stability in their portfolio.

   Features of Tata Ultra Short Term Fund:

   • Investment Objective: The scheme aims to generate returns by investing in Debt and Money Market instruments, targeting a Macaulay duration of 3 to 6 months.

   • Launched On: 11 January 2019

   • Benchmark Index: CRISIL Ultra Short Duration Debt A-I Index 

Taxation on Best SIP for 6 Months in India

The chosen best SIP for 6 months is taxed as per following terms:

• Equity Mutual Funds: Gains held for less than 1 year are taxed at 15% as short-term capital gains (STCG).

• Debt Mutual Funds: Gains held for less than 3 years are taxed as per your income tax slab of the chosen old vs new tax regime as STCG.

• Hybrid Funds: Tax treatment depends on equity exposure; more than 65% equity is treated as equity funds.

• SIP Tax Benefits: ELSS SIPs provide tax deductions under Section 80C up to ₹1.5 lakh with a 3-year lock-in.

Why Should You Invest in the Best SIP for 6 Months?

The following list shows the key benefits of ultra short-term and short duration SIPs to invest for 6 months:

• Short-Term Goals: The SIP for 6 months is ideal for investors looking to achieve short-term financial objectives or save for specific expenses.

• Market Timing: It provides an opportunity to capitalize on market fluctuations within a shorter investment horizon.

• Sufficient Returns: These funds have the potential for attractive returns over a brief investment period, especially in equity-focused funds.

• Accrual Returns: You benefit from regular income through accrual returns from debt instruments within the portfolio.

• Reduced Risk: SIPs for 6 months mitigate market volatility through systematic investments, averaging out costs over time.

• No Exit Load: Many short-term SIPs do not impose exit loads, allowing for hassle-free withdrawals.

• Liquidity: The shorter investment duration allows easier access to funds after the investment period ends.

• Flexibility: You can adjust your investment strategy based on market performance and personal financial goals.

• Tax Efficiency: Short-term investments in equity may yield returns with a favorable tax rate compared to traditional savings instruments.

Factors to Consider Before Investing in Best SIP for 6 Months

You must consider the following factors before you select the best SIP Plans to invest for 6 months for you: 

• Fund Type: Choose between equity, debt, or hybrid funds based on risk appetite and return expectations.

• Historical Performance: Analyze the fund’s past performance to assess its consistency in delivering returns.

• Expense Ratio: Opt for funds with a lower expense ratio to maximize your returns.

• Market Conditions: Consider prevailing market trends and interest rates to choose the right asset allocation.

• Fund Manager’s Expertise: Review the fund manager’s track record and investment strategy for managing short-term SIPs.

• Exit Load: Ensure the fund does not impose an exit load, which can affect short-term returns.

• Sector Allocation: Check the fund’s sector exposure to ensure diversification and potential for higher returns.

In Summary

When choosing the best SIP for a 6-month investment, it is crucial to remember that SIPs are typically designed for long-term growth. For short-term goals, you may want to explore less volatile options like liquid or ultra-short-term funds, which offer stability and modest returns. Always assess your risk tolerance and financial objectives before investing.