A systematic investment plan, or SIP, is a popular method for making regular, fixed-amount investments in any fund or scheme. This strategy ensures that the cost of investment evens out over time by investing across market stages, whether bullish or bearish. If you're seeking the best SIP plan for a 5-year period, consider investing through the Kotak Mutual Funds platform. With Kotak's systematic investment plans, you can discover optimal options to invest your money and generate wealth over time.
Benefits of Investing SIP Plan for 5 Years
Here are some of the benefits offered by Systematic Investment Plans -
- By promoting consistent savings, it fosters financial discipline.
- It offers rupee cost averaging, which lets investors purchase more at a discount to market prices and less at a premium.
- SIPs also provide investors convenience and flexibility, allowing them to start small and raise their investment over time.
- Starting a systematic investment plan (SIP) is generally a smart move because it can help develop long-term wealth-building potential and disciplined investing habits.
Unlike traditional fixed-income products, investments in mutual funds do not guarantee a return. However, equity fund investments have historically outperformed conventional fixed-income products in terms of long-term returns. They are preferable to short-term investments in some cases. That being said, there are market risks associated with investing in the best sip plan for 5 years. Before investing, you are urged to read all scheme-related documentation thoroughly.
Top SIP Plans for 5 Years
One of the greatest ways to invest money and get started with mutual funds is through the Kotak Mahindra Bank SIP plans for 5 years.
Equity Funds for 5 Years
| Scheme Name | 1 years returns | 3 years returns |
|---|
| Canara Robeco Bluechip Equity Fund | 13.97% | 18.45% |
| Franklin India Focused Equity Fund | 16.88% | 30.23% |
| ICICI Prudential Focused Equity Fund | 19.56% | 24.87% |
Debt Funds for 5 Years
| Scheme Name | 1 years returns | 3 years returns |
|---|
| Aditya Birla Sun Life Banking & PSU Debt Fund | 6.50% | - |
| Kotak Banking and PSU Debt Fund | 6.41% | - |
Equity Funds vs. Debt Funds for 5 years
| Particulars | Equity Funds | Debt Funds |
|---|
| Investments | Company shares that are exchanged on the stock market are renowned for producing higher returns than debt-based funds or term deposits. | Invest in fixed-income assets, such as government securities, corporate bonds, treasury bills, commercial papers, and a variety of other money market instruments. |
| Risks Involved | A somewhat high to strong willingness to take risks. | Low to moderate willingness to take risks |
| Returns | Low risks involved. | High risks involved. |
Best SIP Plans for 3 and 5 Years in Equity Funds
| Scheme Name | 1 years returns | 3 years returns | 5 years returns |
|---|
| Canara Robeco Bluechip Equity Fund | 13.97% | 18.45% | 16.04% |
| Edelweiss Focused Equity Fund | 16.98% | - | - |
| Kotak Emerging Equity Fund | 18.53% | 30.25% | 21.73% |
Factors to Consider Before Choosing a SIP Plan for 5 Years
- Look for liquidity: When investing in money in mutual funds, liquidity is crucial. Verify the fund's redemption procedure and exit load to guarantee easy and rapid access to your money.
- Analyse the fund’s past performance: It is important to conduct your own research and start investing after analysing the fund’s performance in the past.
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SIP Calculator for 5 Years Calculation
The mutual fund sip calculator demonstrates how a modest monthly contribution can help you accumulate a corpus over an extended period of time. Systematic investments have shown to be a reliable financial strategy over time.
SIP Calculator Formula
P*((1+i)^n)-1)/i)*(1+i) = A.
Here,
A - The sum that you will get
p - SIP total
I, or the compounded rate of return - is the percentage of return that occurs annually.
Amount of months- (n)
| Monthly investment | Expected return rate (p.a) | Time period |
|---|
| 25,000 | 12% | 5 years |
| Total invested amount | Estimated returns | Total value |
|---|
| ₹ 15,00,000 | ₹5,62,159 | ₹20,62,159 |
Frequently Asked Questions (FAQs)
Q: What is the minimum investment for a 5-year SIP?
The minimum investment starts from ₹500 to ₹1000 per month.
Q: Can I switch SIP plans before the completion of 5 years?
Yes, you can switch the SIP plans before the completion of 5 years.
Q: Are there penalties for withdrawing from a SIP before 5 years?
No, there are usually no penalties levied on withdrawing from a SIP before 5 years.
Q: Which SIP is best for 5 years?
Some of the best SIPs for 5 years include Kotak Emerging Equity Fund, Edelweiss Focused Equity Fund, Canara Robeco Bluechip Equity Fund and more.
FAQs
Best SIP Plans for 5 Years to invest (Equity)
| Fund | AUM (In Crs) | 5 Yr Return (%) |
|---|
| Motilal Oswal Midcap Direct Growth | ₹9819 Cr | 29.83 % |
| Nippon India Small Cap Fund - Direct Plan - Growth Plan | ₹50423 Cr | 33.66 % |
| Quant Mid Cap Fund Growth Option Direct Plan | ₹6920 Cr | 37.17 % |
| Quant Small Cap Fund Growth Option Direct Plan | ₹20164 Cr | 42.41 % |
1 more rowTop funds to fulfill your investment strategy
| Fund Name | 5Y Returns (p.a.) | VRO rating |
|---|
| Parag Parikh Flexi Cap Fund Equity - Flexi Cap | 26.64% | 5 |
| Canara Robeco Bluechip Equity Fund Equity - Large Cap | 21.14% | 4 |
| SBI Focused Equity Fund Equity - Focused | 20.53% | 3 |
| Kotak Equity Opportunities Fund Equity - Large & MidCap | 27.79% | 4 |
How much is Rs. 5,000 for 5 years in SIP? If you invest Rs. 5,000 per month through SIP for 5 years, assuming 12% return. The estimate total returns will be Rs. 1,12,432 and the estimate future value of your investment will be Rs. 4,12,431.
What if I invest $10,000 in SIP for 5 years? ›
Here is a fund which has delivered superior returns over a five year period outperforming the index it is benchmarked against. An investment of Rs 10,000 per month via systematic investment plan (SIP) route over a period of five years in Quant Small Cap Fund's growth is worth nearly Rs 19 lakh today.
What happens if I invest 20 000 a month in SIP for 5 years? ›
Value of INR 20,000 per Month in SIP
If an investor invests INR 20,000 per month for a period of 5 years, he will be able to earn INR 17 lakh as the overall income generated from SIP. The total investment in the tenure of 5 years will be only INR 12 lakh.
How to get 50 lakhs in 5 years with SIP? ›
For example, if an individual plan to accumulate ₹50 lakhs over the tenure of 5 years, assuming the individual invests in a Flexicap fund or a Multicap fund which is giving an annualized return of 15%, then the individual needs to invest ₹55,750 per month for 5 years in order to generate the required corpus.
What if I invest $30,000 in SIP for 5 years? ›
If you invest ₹30,000 per month in a Systematic Investment Plan (SIP) for a period of 5 years, assuming an average annual return of 12% on your SIP investment, using the SIP calculator, your returns will be: Your invested amount will be: ₹18,00,000. Estimated Returns will be will be: ₹6,74,591.
Which SIP gives 40% return in India? ›
There are eight large cap mutual funds which have delivered over 40 percent return in the past one year. These include Quant Large Cap Fund, Bank of India Bluechip Fund, JM Large Cap Fund and Nippon India Large Cap Fund, among others.
What happens if I invest $1,000 in SIP for 10 years? ›
You also have n = 10 years or 120 months. FV = Rs 1,84,170. So, the future value of a SIP investment of Rs 1,000 per month for 10 years at an estimated rate of return of 8% is Rs 1,84,170.
Is SIP better than FD? ›
Whether SIP is better than FD depends on your investment goals, horizon and risk tolerance. SIPs offer higher potential returns with more risk, while FDs provide stable, but usually lower, returns.
Is SIP tax-free? SIPs themselves are not tax-free, but they can be a powerful tax-saving tool. Here is why: SIPs are a way to invest in certain mutual funds, like Equity Linked Saving Schemes (ELSS).
Which bank is best for SIP? ›
Best SIP Plans in India in 2024
| Returns |
|---|
| Fund Name | 3 Years | 10 Years |
|---|
| Multi Cap Growth Fund ICICI Prudential | 15.63% | 12.51% View Plan |
| Equity Fund SBI | 14.73% | 12.42% View Plan |
| Growth Plus Fund Canara HSBC Oriental Bank | 12.78% | 10.7% View Plan |
7 more rowsQ: Which SIP is best for 5 years? Some of the best SIPs for 5 years include Kotak Emerging Equity Fund, Edelweiss Focused Equity Fund, Canara Robeco Bluechip Equity Fund and more.
Which SIP gives the highest return? ›
The three toppers in the list were from one fund house - Quant Mutual Fund. Quant Small Cap Fund, Quant Mid Cap Fund, and Quant ELSS Tax Saver Fund gave 37.30%, 31.84%, and 30.37% returns, respectively on SIP investments in the last seven years.
What if I invest $2000 a month in SIP? ›
Investing ₹2000 per month in SIPs for 20 years is a powerful way to build long-term wealth. You can pave the way for a financially secure future with a disciplined approach and the right choice of mutual funds. So why wait? Invest in these options today and make 2024 a year of SIPs!
Which mutual fund has the highest 5 year return? ›
100 Highest 5 Year ETF Returns
| Symbol | Name | 5-Year Return |
|---|
| IWY | iShares Russell Top 200 Growth ETF | 21.21% |
| MGK | Vanguard Mega Cap Growth ETF | 20.40% |
| SCHG | Schwab U.S. Large-Cap Growth ETF | 20.28% |
| PTF | Invesco Dorsey Wright Technology Momentum ETF | 20.21% |
93 more rowsEquity Hybrid Debt Solution Oriented Others Filter
| Scheme Name | Plan | 1Y |
|---|
| SBI Blue Chip Fund - Direct Plan - Growth | Direct Plan | 15.07% |
| Franklin India Bluechip Fund - Direct - Growth | Direct Plan | 14.48% |
| Sundaram Large Cap Fund - Direct Plan - Growth | Direct Plan | 14.44% |
| Mirae Asset Large Cap Fund - Direct Plan - Growth | Direct Plan | 13.67% |
29 more rowsHow to build Rs 1 cr corpus in 5 years though SIP investment. Naveen Kukreja, Co-founder & CEO, Paisabazaar, says that assuming an annualised return of 12 per cent, one needs to invest Rs 1.20 lakh per month through the SIP route to get a Rs 1 crore corpus.
Which SIP is most profitable? ›
List of Best SIP Funds in India sorted by ET Money Ranking
- Sundaram Focused Fund. ...
- Mirae Asset Large Cap Fund. ...
- Motilal Oswal Focused Fund. ...
- UTI Flexi Cap Fund. ...
- DSP Flexi Cap Fund. EQUITY Flexi Cap. ...
- Axis Bluechip Fund. EQUITY Large Cap. ...
- Axis Focused Fund. EQUITY Focused. ...
- Canara Robeco Emerging Equities Fund. EQUITY Large & MidCap.
