How Does SIP for 5 Years Work?
SIP simply means systematically investing a fixed amount on a regular basis in a mutual fund.
Let’s assume:
Your Monthly Investment: Rs. 5,000
Total Investment Years: 5 Years
Total Invested Amount: ₹5,000 x 60 months = ₹ 3,00,000
Assuming an average annual return of 18%, you can accumulate around 4.7 lakhs in just 5 years. You can use the SIP Calculator and calculate the returns yourself easily without any hassle.
Best SIP Plans for 5 Years
Below are some of the best SIP plans that you can consider investing in for 5 years:
Details of Best SIP for 5 Years
Here are some of the details of the SIP plans by various mutual fund houses for 5 years:
-
Parag Parikh Flexi Cap Fund Regular-Growth
The investment objective of Parag Parikh Flexi Cap Fund Regular-Growth is to generate long term capital growth. The scheme actively invests in equity and equity related securities. It also invests in Foreign equities, India equities, and debt securities to meet its objective.
-
Motilal Oswal Midcap Fund Regular-Growth
The investment objective of Motilal Oswal Midcap Fund Regular-Growth is to achieve long-term capital gain by investing in mid-cap companies having high potential for growth.
-
HDFC Infrastructure Fund Regular-Growth
HDFC Infrastructure Fund Regular-Growth aims to achieve long-term capital appreciation by investing in equity and equity-related securities of companies. The fund prioritises companies engaged in the growth and development of infrastructure in the Indian economy.
-
Mirae Asset Large & Midcap Fund Regular-Growth
The main objective of Mirae Asset Large & Midcap Fund Regular-Growth is to generate income and capital appreciation. The fund predominantly invests in equity and equity related securities of large and mid cap companies.
-
Edelweiss Large & Mid Cap Fund Regular-Growth
Edelweiss Large & Mid Cap Fund Regular-Growth focuses on income and long-term capital growth. It diversifies the portfolio by investing in large and mid cap equity and equity related securities.
-
Canara Robeco Infrastructure Fund Regular-Growth
The main objective of Canara Robeco Infrastructure Fund Regular-Growth is to generate income by investing in equity and equity related instruments of the infrastructure sector companies.
- Insurance Companies
- Mutual Funds
|
Returns |
| Fund Name |
5 Years |
7 Years |
10 Years |
| SBI Life |
14.78% |
13.48% |
|
| HDFC Life |
20.06% |
16.49% |
|
| Axis Max Life |
27.44% |
22.83% |
|
| ICICI Prudential Life |
17.84% |
15.21% |
|
| Tata AIA Life |
23.67% |
22.56% |
|
| Bajaj Life |
19.57% |
14.6% |
|
| Birla Sun Life |
21.69% |
16.94% |
|
| PNB MetLife |
31.41% |
24.68% |
|
| Canara HSBC Life |
14.46% |
12.01% |
|
| Star Union Dai-ichi Life |
16.95% |
- |
|
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: October 2025
Benefits of Investing in SIP for 5 Years
Investing in a SIP for 5 years offers several key advantages:
-
Power of Compounding: Even small monthly investments can grow significantly over a 5 year period thanks to the power of compounding.
-
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.
-
Disciplined Investing: Regular monthly investments in the best SIP for 5 years reduce emotional decisions and build investment discipline.
-
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.
-
Inflation-Beating Returns: Especially with equity SIPs, the returns over 5 years often surpass inflation rates, helping maintain purchasing power.
-
Low Barrier to Entry: You can start with as low as ₹500 per month and scale up as your income grows.
SIP Calculator
Monthly Investment
₹22.4 L
Top Funds with High Returns (Past 7 Years)
13.18%
Equity Pension
15.49%
Global Equity Index Funds Strategy
19.45%
High Growth Fund
13.46%
Opportunities Fund
21.07%
Multi Cap Fund
14.77%
Accelerator Mid-Cap Fund II
16.26%
Multiplier
14.85%
Frontline Equity Fund
18.41%
Pension Mid Cap Fund
11.35%
Equity II Fund
14.82%
US Equity Fund
15.26%
Growth Opportunities Plus Fund
12.04%
Equity Top 250 Fund
14.31%
Future Apex Fund
12.12%
Pension Dynamic Equity Fund
14.52%
Accelerator Fund
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. It is important to study the market carefully, diversify your portfolio across asset classes, and maintain a long-term perspective, to build wealth over a period of 5-years.
