Best SIP Plans for 5-Year Investment 2025
Systematic Investment Plans (SIPs) are one of the most efficient and
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SIP Plan Benefits
Start SIP with as low as ₹1000
No hidden charges
Save upto ₹46,800 in Taxunder section 80C^
Zero LTCG Tax¶
Disciplined & worry-free investing
How Best SIP Plans for 5 Years Work?
An SIP works on the principle of investing a fixed amount regularly. For example, if a person decides to invest ₹5,000 per month in a SIP for 5 years, their total investment will be ₹3,00,000 (₹5,000 x 60 months). This consistent investment allows them to buy more mutual fund units when the market is low and fewer units when it is high, averaging out the cost over time. Over five years, this disciplined approach can help them achieve significant growth with the help of the power of compounding.
Best SIP Plans in Equity Funds for 5 Years
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Tata Small Cap Fund Direct - Growth:
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With a significant portion in small-cap companies, it carries a very high risk.
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Suitable for investors with a long-term horizon.
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ICICI Prudential Large Cap Fund - Growth:
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Nippon India Multi Cap Fund Direct - Growth:
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A multi-cap fund that holds a diversified portfolio across market capitalizations, with 31.83% in large caps, 20.45% in mid caps, and 15.39% in small caps.
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Parag Parikh Flexi Cap Fund Direct - Growth:
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Also includes a portion of debt (10.79%), which helps provide some stability.
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Suitable for investors willing to get high returns and are comfortable with the fund's very high-risk profile.
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Quant Multi Cap Fund Direct - Growth:
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Quant Large and Mid Cap Fund Direct - Growth:
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Quant Small Cap Fund Direct Plan - Growth:
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Aims to generate very high returns by capitalizing on the growth potential of small-cap companies.
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Suitable for investors seeking very high returns over a long-term horizon, understanding its very high-risk profile.
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Motilal Oswal Midcap Fund Direct - Growth:
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Invesco India PSU Equity Fund Direct - Growth:
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This mutual fund seeks to provide long-term capital appreciation by capitalizing on the growth prospects of PSUs.
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Those looking for growth over an extended period and who are prepared to accept moderate to significant risk should consider this.
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Bandhan Infrastructure Fund Direct Plan - Growth:
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Invests in companies operating in the infrastructure sector, such as construction, power, transportation, and telecom.
- Insurance Companies
- Mutual Funds
|
Returns |
| Fund Name |
5 Years |
7 Years |
10 Years |
| SBI Life |
15.78% |
13.6% |
|
| HDFC Life |
21.9% |
16.66% |
|
| Axis Max Life |
29.3% |
22.69% |
|
| ICICI Prudential Life |
20.5% |
- |
|
| Tata AIA Life |
25.94% |
22.89% |
|
| Bajaj Life |
21.13% |
14.65% |
|
| Birla Sun Life |
23.51% |
17.02% |
|
| PNB MetLife |
31.41% |
24.68% |
|
| Canara HSBC Life |
16.82% |
12.4% |
|
| Star Union Dai-ichi Life |
14.69% |
- |
|
Fund rating powered by
Last updated: Oct 2025
| |
Returns |
| Fund Name |
3 Years |
5 Years |
10 Years |
| QUANT |
23.92% |
31.48% |
|
| PARAG PARIKH |
20.69% |
26.41% |
|
| EDELWEISS |
22.34% |
24.29% |
|
| KOTAK |
24.64% |
25.01% |
|
| MIRAE ASSET |
19.74% |
24.32% |
|
| PGIM INDIA |
14.75% |
23.39% |
|
| DSP |
18.41% |
22.33% |
|
| CANARA ROBECO |
20.05% |
21.80% |
|
| SUNDARAM |
18.27% |
18.22% |
|
Last updated: August 2025
Best SIP for 5 Years in Debt Funds
Best SIP Plans in Debt Funds for 5-Year
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Quant Liquid Direct Fund Growth
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Aditya Birla Sun Life Medium Term Plan Direct-Growth
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Bank of India Short-Term Income Fund Direct-Growth
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Mirae Asset Low Duration Fund Direct-Growth
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Nippon India Credit Risk Fund Direct-Growth
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UTI Dynamic Bond Fund Direct-Growth
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UTI Banking & PSU Fund Direct-Growth
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Invesco India Credit Risk Fund Direct-Growth
SIP Calculator
Monthly Investment
₹22.4 L
Top Funds with High Returns (Past 7 Years)
12.6%
Equity Pension
16.14%
Global Equity Index Funds Strategy
17.8%
High Growth Fund
15.5%
Pension India Consumption Fund
20.52%
Multi Cap Fund
14.53%
Accelerator Mid-Cap Fund II
15.85%
Multiplier
14.41%
Frontline Equity Fund
18.41%
Pension Mid Cap Fund
10.88%
Equity II Fund
13.87%
US Equity Fund
14.74%
Growth Opportunities Plus Fund
11.62%
Equity Top 250 Fund
13.77%
Future Apex Fund
11.51%
Pension Dynamic Equity Fund
14.04%
Accelerator Fund
Benefits of Investing in SIP for 5 Years
Investing in a SIP for 5 years offers several key advantages:
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Power of Compounding: Even small monthly investments can grow significantly over a 5 year period thanks to the power of compounding.
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Rupee Cost Averaging: A mutual fund SIP for 5 years allows you to buy more units during market dips and fewer during highs, averaging the cost.
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Disciplined Investing: Regular monthly investments in the best SIP for 5 years reduce emotional decisions and build investment discipline.
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Achieve Financial Goals: Whether it’s a down payment for a home or building a corpus for your child’s education, SIP for 5 years is a reasonable choice to achieve mid-term goals.
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Inflation-Beating Returns: Especially with equity SIPs, the returns over 5 years often surpass inflation rates, helping maintain purchasing power.
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Low Barrier to Entry: You can start with as low as ₹500 per month and scale up as your income grows.
If you're thinking which SIP is best for 5 years click below to explore
Why Choose the Best SIP Plan for 5 Years Investments?
Here are some reasons why choosing the best SIP plans for 5-year investments can be a smart strategy:
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Power of Compounding: Over a 5-year timeframe, the power of compounding can significantly boost your returns. Regular investments through SIPs allow you to benefit from this effect as your returns earn further returns.
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Rupee Cost Averaging: SIPs help you implement rupee cost averaging, which means you invest a fixed amount at regular intervals. This strategy helps you buy more units when the market is down and fewer units when it's high, potentially lowering your overall average cost.
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Disciplined Investing: SIPs encourage disciplined investing by automating your mutual fund investments. This helps you stay on track with your investment goals and avoid missing out on market opportunities.
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Long-Term Wealth Creation: A best SIP for 5 years investment horizon aligns well with the long-term growth potential of equity markets. By staying invested for the long term, you can potentially ride out market fluctuations and achieve significant wealth creation.
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Inflation-Beating Returns: Equity investments, through SIPs, have the potential to generate returns that outpace inflation over the long term, helping you maintain your purchasing power.
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Goal-Based Investing: SIPs can be a valuable tool for achieving specific financial goals, such as buying a house, funding your child's education, or planning for retirement. By choosing the right SIP mutual fund plans and investing consistently, you can increase your chances of achieving your goals.
Conclusion
Choosing the best SIP plans for 5 years investments requires careful consideration of various factors, including risk tolerance, investment objectives, and the specific characteristics of different mutual fund schemes. By conducting thorough research, diversifying their portfolio across asset classes, and maintaining a long-term perspective, investors can effectively utilize SIPs to build wealth and achieve their financial aspirations over a 5-year timeframe. Remember that investing involves risks, and past performance is not indicative of future results.
FAQs
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How do I choose the best SIP for 5 years?
When selecting the best SIP for a 5-year investment, consider the following factors:
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Your risk appetite (higher returns often come with higher risk)
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Investment goal (wealth creation, tax saving, etc.)
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Fund performance over the last 3-5 years
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Expense ratio and fund manager track record
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Liquidity and exit load of the fund
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What are the benefits of investing in a SIP for 5 years?
Investing in a SIP for 5 years allows you to benefit from rupee cost averaging, compounding, and disciplined investing. It helps mitigate market volatility and can lead to substantial wealth accumulation over time, especially in well-performing equity funds.
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What is the minimum amount required to start a SIP for 5 years?
Many top SIP funds allow you to start with a minimum monthly investment of ₹100 to ₹1,000, making it accessible for most investors.
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Is SIP in equity funds better than debt funds for 5 years?
Equity funds typically offer higher returns than debt funds over 5 years but come with greater risk and volatility. Debt funds provide more stability and lower risk but may not match the long-term growth potential of equities.
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Is a 5-year period long enough for the best SIP investment plan?
Yes, a 5-year period is a reasonable horizon for the best SIP investment plan to benefit from rupee cost averaging and the power of compounding.
