Find The 10 Best Sip Plans For 3-year Investment Growth

When it comes to investing your hard-earned money, one of the most common challenges you may face is uncertainty, especially when you're starting with SIP plans. You may be uncertain about where to begin, what to choose, and how to ensure your investments grow effectively in the short term. These dilemmas often stem from a lack of adequate knowledge about the best SIPs for three-year investment growth.

In this article, we aim to quell these uncertainties and help you navigate the world of SIPs, all while setting you up for a future of financial growth.

Understanding SIPs: An Overview

Before diving into the specific SIP plans that are best for three years, it's crucial to understand what SIPs are. SIP, or Systematic Investment Plan, is a way to invest in mutual funds wherein you can invest a fixed sum regularly, say, monthly or quarterly. Here's why they are significant:

• Wealth Creation: Over time, your small, consistent investments can accumulate and generate substantial returns, leading to wealth creation.
• Power of Compounding: If you start investing early, even with a small amount, it can yield significant returns over time due to the power of compounding.
• Market Volatility: As you're investing at regular intervals, SIPs help you average out the cost of your investments, reducing the risk associated with market volatility.

Key factors to consider when choosing a SIP plan

Even before you open your free Demat account and choose a SIP plan, you must consider certain factors impacting your returns. Here are the critical factors:

• Financial Goals: Determine your financial objectives before choosing an SIP plan. Are you saving for a house? Retirement? The plan you choose should align with these goals.
• Risk Appetite: Each SIP plan comes with a certain degree of risk. Understand your risk tolerance before choosing a plan.
• Past Performance of the Fund: Though past performance doesn't guarantee future results, it gives an indication of how the fund has performed over a similar period in the past.

Top 10 SIPs for 3-Year Investment Growth

Now that we've understood what SIPs are and what to consider when choosing one let's look at the top 10 SIPs that promise good returns over a three-year period (based on past 3-year performance).

1. Nippon India Large Cap Fund: This fund primarily invests in large-cap stocks, typically more stable than mid and small-cap stocks. It has consistently given good returns in the past.
2. HDFC Top 100: As the name suggests, this fund invests in the top 100 companies in India by market capitalisation. It has a track record of strong performance and stability.
3. SBI Bluechip Fund: This fund is one of the most popular large-cap funds. It primarily invests in well-established companies with a large market capitalisation.
4. Tata Large Cap Fund - Direct Plan - Growth: This large-cap fund from Tata Mutual Fund aims to provide long-term capital growth and income distribution to unitholders.
5. Kotak Bluechip Fund: This fund from Kotak Mahindra Mutual Fund is a popular choice for investors seeking long-term growth and stability.
6. Edelweiss Large Cap Fund: This fund primarily invests in large-cap stocks with a strong track record and a high potential for growth.
7. Baroda BNP Paribas Large Cap Fund: Managed by Baroda BNP Paribas Mutual Fund, this fund focuses on large-cap stocks with potential for growth and stability.
8. Mirae Asset Large Cap Funds: This fund has consistently outperformed its benchmark over a three-year period. It invests in large-cap stocks across sectors.
9. Sundaram Large Cap Funds: This fund from Sundaram Mutual Fund focuses on companies with a large market capitalisation, aiming for stability and growth.
10. Indiabulls Bluechip Fund: This large-cap fund from Indiabulls Mutual Fund aims to provide investors with long-term growth opportunities.

Fund nameAUM (crores)NAVExpense ratioMinimum SIP investmentCategoryRisk3-year returnNippon India Large Cap Fund12524.5354.111.85%1000Large capVery high33.26%HDFC Top 10022139.22739.411.79%100Large capVery high31.09%SBI Bluechip Fund33987.0761.951.64%1000Large capVery high30.12%Tata Large Cap Fund- Direct Plan- Growth1365.71370.011.24%150Large capVery high30.20%Kotak Bluechip Fund5259.24371.921.92%100Large capVery high29.24%Edelweiss Large Cap Fund399.3655.342.45%500Large capVery high20.57%Baroda BNP Paribas Large Cap Fund1347.24141.032.15%500Large capVery high25.44%Mirae Asset Large Cap Funds32910.5876.951.59%1000Large capVery high28.05%Sundaram Large Cap Funds2855.0514.681.95%100Large capVery highNA

Remember, you can start these SIPs directly by demat account opening online. Investing in SIP plans is a disciplined and effective way of growing your wealth over time. Choosing the right SIP based on your risk tolerance and financial goals is crucial.

Conclusion

As mentioned above, the top 10 SIPs for 3-year investment growth are an excellent starting point. But, always remember to do thorough research and maybe even consult a financial advisor before making a decision.

Disclaimer: The SIP plans mentioned in the article are based on past performance. Investors should make their decisions based on their risk profile, investment horizon, and financial goals. Investments in mutual funds carry risks. Investors should read all scheme-related documents carefully. Read more blogs on our website.