A strong three-year SIP plan can be a good start to accumulating wealth over the long term if you want to invest in the Indian market. Systematic Investment Plans, or SIPs, are a way to invest regularly and steadily in mutual fund schemes. You can contribute to a three-year top SIP to reach your long-term financial objectives.
Choosing the best SIP plan for three years can be challenging with so many mutual fund schemes on the market. Here are five three-year SIPs in India to invest in by 2023 to help your decision. The plans were chosen in part based on prior performance, portfolio management expertise, and job-related portfolios.
The benefits of the best three-year SIPs include:
• The simplicity of investing online.
• The potential for higher returns than those provided by traditional investments.
• The risk of them being lessened by several potential outcomes.
It turns out that starting to save money and build can be expensive.
Best SIP Plans to Invest for 3 Years
1. Mirae Asset Large Cap Fund
With an AUM of Rs 32,911 crore as of February 2023, Mirae Asset Large Cap Fund was one of India’s best-performing significant cap funds. Since it outperforms a benchmark index, the fund is well-liked by investors. As opposed to regular systems, which have a cost ratio of 1.59%, direct systems have a cost ratio of 0.54%. Rs 1,000 per month is the bare minimum SIP investment. Negative annual returns are produced by increased risk associated with the portfolio’s results in the first, third, and fifth years.
2. SBI Small Cap Fund
With an AUM of Rs 15,395 crore as of February 2023, the SBI Small Cap fund was a high-risk investment. The majority of the bank is made up of smaller businesses with bright growth prospects. Starting in January 2023, the cost of direct plans is 0.7%, while the cost of regular plans is 1.83%. A simple Rs 1,000 monthly SIP investment is required. One year, three years and five years have annual interest rates of 6.38%, 39.38%, and 15.6%, respectively.
3. HDFC Small Cap Fund
The HDFC Small Cap fund carries a high level of risk due to its AUM of Rs 14,649 crore. The bank primarily invests in startups that are experiencing steady growth. Fees for direct plans are 0.8%; regular plans are 1.84%, and a minimum SIP investment is Rs 100 per month. The annual rates of return after one year, three years, and five years, respectively, are 12.84%, 46.22%, and 13.49%.
4. ICICI Prudential Bluechip Fund
Large-cap stocks fund As of February 2023, the ICICI Prudential Bluechip Fund managed 34,199 crore rupees in assets. To participate in the fund’s scheme of contribution plan (SIP), you must contribute at least Rs—100 monthly. Bluechip corporations dominate Funda’s membership. While standard, the direct plan’s expense ratio is 1.06%. Plans show 1.67%. A significant amount of risk exists with the fund. The investment fund saw annualized returns of 2.77 percent, 28.74 percent, and 12.22% over the course of one year, three years, and five years, respectively.
5. Kotak Emerging Equity Fund
A high-risk investment that focuses on expanding mid-sized companies is the Kotak Emerging Equity Fund. At the beginning of 2023, it had assets worth Rs 23,963 crore. The debt-to-income ratio for the direct scheme is 0.49%, whereas it is 1.68% for the regular scheme. Three banks are offering an annual return of 5.2%, 5.2%, 37.11%, and 14.9% for a minimum monthly investment of Rs 100 over a year.
SIP investments support wealth creation and financial goals. Pick the best course of action to feel confident about the future. AUM, NAV, debt level, minimum SIP, fund class, risk, and returns are considered when ranking the top 5 SIP schemes in India for 2021–2023. These strategies provide cash flow and scalable technology.
It is crucial to remember that using past performance as a predictor does not, under any circumstances, ensure future success. Researching and assessing their investment goals and risk tolerance will help investors make the best SIP strategy decisions. Investors should also closely monitor their holdings to adjust their strategies to changing market conditions.
Long-term wealth can be created with the help of structured investment plans (SIPs). Compounding can help investors reach their financial objectives, but discipline and a long-term perspective are essential. SIPs are a dependable way to build wealth over three years or longer.