Best SIP Plans for 1 year

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Are you wondering how to grow your money in just one year? SIPs (Systematic Investment Plans) make it simple to save and invest small amounts regularly.

In this blog, you will analyse the Best SIP Plans for 1 Year in 2025 that can help you reach your short-term goals, whether it’s saving for something special or building a small financial cushion for you. These best SIP plan are easy to start, flexible and perfect for anyone looking to make their money work harder. Let’s find the right plan for you.

What is Meant by SIP?

A Systematic Investment Plan (SIP) is a way to invest in Mutual Funds by putting in a specific amount of money regularly, usually every month. Instead of putting all your money in one go, SIPs let you invest small amounts regularly, usually every month.

Here's why starting a SIP in mutual funds is a good idea:

• It Helps You Save Consistently:Like setting aside money for a rainy day, SIPs encourage you to invest regularly. Automating it makes it easier to stick to the plan.
• You Buy More When Prices are Low:When the market goes down, your money buys more units of the investment. This helps you buy at a lower average cost.
• You can Start Small and Adjust:You don't need a lot of money to begin. You can start with a small amount and increase it as you earn more.
• Your Money Grows Faster:The money you earn from your investment starts earning more money, making your investment grow faster over time.
• It's for Everyone:Even if you have a small budget, you can start investing with SIPs.
• Long-term Growth:By investing regularly and consistently, you can see significant growth in your investments over the long term.

For example: If you invest Rs.5,000 every month for a year, you will have invested Rs.60,000. Depending on how well the fund performs, your investment could be worth more than Rs.60,000 at the end of the year.

In simple words, SIPs are a smart way to invest your money gradually and watch it grow over time.

Let’s move on to a list that describes which SIP is best for 1 year in detail for you.

5 Best SIP Plans to Invest  for 1 Year in 2025

Selecting the right SIP plan for a one-year investment duration needs an expert's help. So, here are the 5 top-performing SIP plans, along with their 3 and 5-year SIP returns:

Don’t Miss: How to Make 1 Crore from SIP of Rupee 5000?

Insights into Best SIP Plans for 1 Year in India

Here is an expert’s analysis of the 5 best SIP plans for 1 year to invest in 2025:

ICICI Prudential Liquid Fund

 After being launched on 1st November 2005, the ICICI Prudential Liquid Fund has delivered 7.01% SIP returns in 3 years, beating its benchmark returns of 6.65% with close margins. This shows it has solidly followed its investment style, generating reasonable returns with low risk and high liquidity, which means easy buy and sell of your investment anytime you need.

This fund invests in debt and money market securities with a short maturity of up to 91 days. In addition, it allocated approx. 80% of the money to market security and the remaining money is invested in high-quality debt instruments.

This makes it a perfect investment option if having stable returns with minimum risk is what you are after.  Let’s check the below graph for a side-by-side comparison of the SIP returns it made:

Now imagine if you had started a SIP of Rs.3000 five years ago, you would have invested Rs.1,80,000 on which your profits on today’s date would be Rs.2,09,002 lakh.

Pro Tip: Crosscheck the returns using the SIP Calculator tool for free. 

ICICI Prudential Short Term Fund 

This fund follows a disciplined investment approach that focuses strongly on safety, liquidity and returns. This broader investing style has helped the ICICI Prudential Short Term Fund achieve 7.43% SIP returns in just three years, outperforming its benchmark returns of 6.99%. You can see the below graph for data:

Now imagine if you had started a SIP of Rs.3000 in this short term fund 5 years ago, your total investment would be Rs.1,80,000 on which your gain would be Rs.2,11,772 as of now.

You can also say that this fund is in safer hands, with Mr Manish Banthia taking a contrarian investment approach, adjusting time duration as per the market conditions, and leveraging liquid assets like government securities and state loans to manage risk more easily.

HDFC Short Term Debt Fund 

The HDFC Short Term Debt Fund was introduced on 5th June 2010 and is currently managing an AUM (Asset Under Management) of Rs.14,816 Crores, speaking in favor of this fund's trust amongst investors. This fund has outstandingly delivered 7.49% SIP returns, beating its benchmark of 7.04% in 3 years. It is an ideal choice for you if fulfilling your short-term goals with minimal risk is what you are after.

Let's see the 3 and 5-year SIP returns with the help of a bar graph:

Nippon India Ultra Short 

The Nippon India Ultra Short Fund aims to provide a balance between yielding higher returns and lowering risk by investing in short-term debt securities with a focus on higher-yielding investments that maximize the profits for your SIP plans for 1 year.

Refer to the below graph for a 3 and 5-year comparison of SIP returns:

As shown in the above bar graph, the Nippon India Ultra Short Fund has delivered 6.78% SIP returns in 3 years beating the benchmark with very close margins. However, its past performance in the last five years is 6.50% SIP returns in comparison the benchmark was only at 5.92%.

Overall, if you have a 1-year investment plan, this fund will be your best SIP to invest for a year in the ultra-short fund category.

ICICI Prudential Savings Fund

This fund follows a well-defined investing strategy with a focus on security selection that prioritizes the safety and liquidity of your investments. The ICICI Prudential Savings Fund maintains a low duration of 6 to 12 months to minimize the interest rate risk and great emphasis on credit quality, with a strong preference for AAA-rated securities.

Time to check out the performance before including this fund in your 1-year investment plan:

This brings you back to if you had started a SIP of Rs.3000 in this savings fund that too 3 years ago, total investments to date would be Rs.1,08,000 on which you would have made a whopping total of Rs.1,20,375 lakh as of now.

Benefits of Investing in SIPs for 1 Year

The below points highlight how investing in SIP for 1 year is beneficial for you:

1. Low Risk: SIPs in short-term debt funds mean investing in high-quality, low-risk instruments. This makes them suitable investment options for conservative investors.
2. High Liquidity: These funds give you flexibility to easily buy and sell your investments, giving you quick access to your money when needed.
3. Better Returns: SIPs in short-term funds can offer higher returns compared to a regular savings account.
4. Flexibility: You can start with a small amount and increase your investment based on your financial situation.
5. Tax Efficiency: Short-term capital gains from debt funds are taxed at your income tax slab rate, which might be more favourable than the tax on the interest income from fixed deposits.

For example, imagine you started a SIP of Rs.10,000 per month in an SIP with a 7% annual return, which can generate around Rs.4,500 in returns over a year, offering better returns than a savings account.

Why Choose a 1 Year SIP Plan in 2025?

Choosing a 1-year SIP plan in 2025 can be a smart decision for a variety of reasons:

1. Short-Term Goals: If you have a financial target within the year, like saving for a vacation or a down payment, a 1-year SIP helps you work towards that goal in a disciplined way.
2. Learning Opportunity: A 1-year SIP is a smart way for beginner investors to get started with mutual funds while committing for a shorter duration, helping you to get a good understanding on how mutual funds work.
3. Building an Emergency Fund: A one-year SIP can help you build or enhance your emergency fund, ensuring you have liquid assets available when needed.
4. Managing Market Volatility: You can divide your money across market caps like large cap, mid cap and small cap, which minimizes the risk of market ups and downs, giving your money the potential to grow steadily.
5. Flexibility: After a year, you can reassess your financial situation and adjust your investment strategy based on your needs and goals.

For example, if you plan to buy a smartphone worth Rs.30,000 next year, you could start an SIP of Rs.2,500 per month in a liquid fund. This systematic approach helps you accumulate the amount you need while also earning good returns on your investments.

Factors to Consider Before Investing in Best SIP Plans for 1 Year

If you’re planning to invest in a SIP for just one year, here are some simple things to think about before choosing the right plan:

1. What the Fund Aims to Do

Make sure the fund’s goal matches what you need. For example, if you want to save money with less risk, pick funds like debt or liquid funds that focus on safety and allow you to withdraw money easily.

2. How Much Risk You’re Comfortable With

For a short time, like a year, it’s better to avoid risky options like equity funds. Go for safer ones like debt funds that are more stable and less likely to lose value.

3. How the Fund Has Done Before

Even though past results don’t guarantee future performance, it’s still good to check how the fund has performed. Look for steady returns and see how well it managed during tough times in the market.

4. Fees

Funds charge a fee called an expense ratio. Lower fees mean more of your money stays invested, which is important if you’re investing for a short period.

6. Exit Charges

Some funds charge a fee if you take your money out early. This can reduce your returns, so pick a fund with little or no exit charges if you might need to withdraw before the year is up.

7. Size of the Fund

Large cap funds are more stable and make it easier for you to withdraw your money when needed, using the SWP Calculator to do your calculation in minutes. They’re a safer choice for short-term investments.

8. Consistency of the Fund Manager

A fund manager’s experience matters and speaks to their ability to manage your investments. Look for someone with a good history of managing short-term funds well. They’re more likely to keep things steady.

For example, if two funds give similar returns but one charges lower fees, go with the cheaper one. It will save you money and boost your returns.

By keeping these points in mind, you can pick a SIP that helps you grow your money without much risk or hassle over the year.

To Conclude on the Best SIP Plans for 1 Year

In short, this analysis gave you the 5 best SIP for 1 year that will help you achieve your short-term goals.

Are you thinking of growing your savings in just one year? A 1-year SIP plan can help you reach your financial goals without much hassle. It’s a smart way to save and invest regularly while earning better returns than just letting your money sit idle.

Whether it’s for a special purchase or to start building your financial cushion, these plans are a good option for short term SIP for 1 year.

Frequently Asked Questions on Best SIP Plans India

Here are the most commonly asked queries regarding the best SIP plans for 1 year:

1. Which SIP plans are best for short-term goals in 2025?
   

   Debt funds, liquid funds and ultra-short-term funds are ideal for short-term goals as they focus on stability and liquidity.

2. Can you earn good returns from SIPs in just one year?
   

   Yes, but the returns are generally moderate as most short-term SIPs prioritize safety over high growth.

3. What should you look at before choosing a SIP for one year?
   

   Check the fund’s objective, risk level, past performance, fees (expense ratio) and exit load for early withdrawals.

4. Is SIP better than a fixed deposit for one year?
   

   SIPs can offer higher returns but carry some risk, while fixed deposits provide guaranteed returns with no risk.

5. What are the benefits and risks of investing in a SIP for one year?
   

   Benefits include flexibility, better returns than savings accounts and disciplined investing. Risks include market volatility and uncertain returns.