Top 10 Best SIP Plans for 5 Years Investment 2024

17 July 2024 by

Kartikey Keshari

SIP stands for Systematic Investment Plans. It's one of the reliable methods where you invest monthly in a mutual fund which gives you an advantage of Compounding and Rupee cost Average.

If investors are looking at holding a medium term investment for a 5 year period there are several best SIP mutual fund that can be recommended.

In this article, we will discuss the 10 best SIP plans for 5 years investment horizon for 2024 with all relevant information and details for an investor to make a proper decision.

10 Best SIP Plans for 5 Years Investment in India

1. Quant Mid Cap Fund Growth Option Direct Plan

AUM: ₹8747 Cr
Expense Ratio: 0. 62%
3 Year Return: 35. 1%
5 Year Return: 38. 94%

The Quant Mid Cap Fund has also delivered fantastic ROI for the last some years and is one of the most preferred opted funds by the investor community targeting mid-cap category funds. For an aggressive investor this fund is suitable because of its low expense ratio and good past performance.

Checkout: How the Power of Compounding Works in Mutual Funds

2. Nippon India Small Cap Fund – Direct Plan – Growth Plan

AUM: ₹56469 Cr
Expense Ratio: 0. 64%
3 Year Return: 33. 53%
5 Year Return: 36. 95%

Nippon India Small Cap Fund has been providing higher returns consistently and it is a favorite of investors to invest in small cap stocks. Despite having a large asset base, and consequently a proven performance record, it offers higher risk for possible higher gains.

Best SIP Plans for 5 Years Investment

3. Quant Small Cap Fund Growth Option Direct Plan

AUM: ₹22967 Cr
Expense Ratio: 0. 64%
3 Year Return: 32. 81%
5 Year Return: 45. 77%

The best SIP plans to invest for people who do not mind taking higher risks is the Quant Small Cap Fund that boasted the highest 5-year returns on our list. While it carries extra risk the fund has rallied quite impressively since the start of the year and is dedicated solely to small-cap stocks.

4. Bandhan Small Cap Fund Direct Growth

AUM: ₹5880 Cr
Expense Ratio: 0.33%
3 Year Return: 28.7%
Fund Inception: 2020

The Bandhan Small Cap Fund may not be as old as other funds, but it has been best SIP mutual fund so far it was launched. It has comparatively low expense ratios, and the vehicle has offered good returns; thus, it can be useful for investors who wish to invest in the growth segment of small-cap stocks.

Checkout: How to Choose the Best Investments for Short-Term Goals

4. Quant Flexi Cap Fund Growth Option Direct Plan

AUM: ₹6885 Cr
Expense Ratio: 0. 59%
3 Year Return: 28. 05%
5 Year Return: 35. 1%

The Quant Flexi Cap Fund invests in companies at various market capitalizations hence reducing risk while increasing the possibility of getting good returns. Due to the general adaptability of the company in its investment policies and the steady growth of its revenues, it is more suitable for mid-caliber risks.

6. Aditya Birla Sun Life Dynamic Bond Fund – Direct Plan – Growth

AUM: ₹1709 Cr
Expense Ratio: 0. 64%
3 Year Return: 7. 22%
5 Year Return: 5. 88%

For those who are in search of decent returns with comparatively less risks to their capital, Aditya Birla Sun Life Dynamic Bond Fund can well be recommended. This debt fund is suitable for conservative investors with the goal of income generation and preservation of capital.

7. ICICI Prudential All Seasons Bond Fund – Direct Plan – Growth

AUM: ₹12593 Cr
Expense Ratio: 0. 59%
3 Year Return: 6. 96%
5 Year Return: 7. 94%

The ICICI Prudential All Seasons Bond Fund also offers rather constant and steady returns with moderate risk, which is quite appropriate for earners seeking stable income out of bond funds investment.

Best SIP mutual fund

8. SBI Dynamic Bond Fund Direct Growth

AUM: ₹3126 Cr
Expense Ratio: 0. 62%
3 Year Return: 6. 79%
5 Year Return: 7. 01%

The next best mutual fund for the conservative investor is SBI Dynamic Bond Fund. It gives a combination of safety and returns making it suitable for fixed income investment instruments.

9. ICICI Prudential Equity & Debt Fund Direct Plan Growth

AUM: ₹37037 Cr
Expense Ratio: 1%
3 Year Return: 25. 38%
5 Year Return: 22. 91%

From the investment company ICICI Prudential, this is a fund that invests in both equity and debt hence giving a balance between risks and returns. Medium risk investors will find it ideal in the sense they will get both growth and stability.

Checkout: Top 5 Reasons Why You Should Invest in Equity Mutual Funds

10. HDFC Balanced Advantage Fund – Direct Plan – Growth Option

AUM: ₹89903 Cr
Expense Ratio: 0. 73%
3 Year Return: 25. 33%
5 Year Return: 20. 92%

HDFC Balanced Advantage Fund has options for asset allocation that may shift between equity and debt instruments. The great thing about this stock is its high and sound performance and adjusted flexibility makes for a good play for those who want to take moderate risks for moderate gains.

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How to Choose The Best SIP Plans for 5 Years

The process of selecting the best SIP plans for 5 years is not very easy and involves a number of considerations. Here are some key steps to help you select the most suitable SIP plans to invest for your investment portfolio:

Identify Your Financial Goals: Determine your goals whether it is for retirement, to buy a house, or save for your child’s education. This will allow you to make a correct decision regarding the choice of best SIP mutual fund.

Understand Your Risk Tolerance: Equity funds are the funds that have the potential of providing high rate of returns, but the risk associated with it is also high, whereas debt funds are less risky as compared to equity funds but the probability of high return is low. This is important since the risk tolerance every person has is unique and thus ought to guide him or her when selecting a best SIP mutual fund.

Evaluate Fund Performance: Check how the fund performed in the past to determine if the results are steady and credible.

Check the Expense Ratio: Expenses matter a lot because a high expense ratio can lower the overall return considerably. This means you need to go for best SIP mutual fund that have lower expense ratios.

Review the Fund Manager's Track Record: As found, the choice of a fund manager can influence the fund’s performance tremendously. Review where the manager has been and what they have done before joining the business and or investing in it.

SIP plans to invest

Conclusion

It tends to work as a good investment tool for those investors looking to create the Corpus for a medium-term financial endeavor for a period of 5 years or more and has benefits in terms of rupee cost averaging coupled with the power of compounding. The choice of the best SIP plan for 5 years investment again depends on the investor’s goals and tolerance often alongside proper research.

To achieve the best results with your investments, seeking professional financial advice is highly recommended. Contact us for more information about SIPs and mutual funds. We can help you begin your journey to financial freedom with our comprehensive range of investment services.