Best Mutual Fund SIP for 1 Year
A SIP for 1 year is a short-term investment approach where an investor contributes a fixed amount regularly, usually every month, for a year. Unlike long-term SIPs that ride through market cycles, a 1-year SIP plan focuses on immediate financial goals or short-term opportunities. This article covers the best SIP for 1 year and explains how it works, while highlighting the potential benefits, risks, and tax aspects associated with SIP for 1 year.
List of Top SIP Plans for 1 Year
The table below shows some of the best SIP plans for 1 year, based on their 1-year performance data.
| Name | AUM (Rs. in cr.) | Expense Ratio (%) | Absolute Returns - 1Y (%) | Absolute Returns - 6M (%) | Exit Load | Volatility (%) | NAV (Rs.) | Alpha |
|---|---|---|---|---|---|---|---|---|
| Edelweiss Gold and Silver ETF FoF | 469.17 | 0.24 | 51.37 | 0.1 | 16.39 | 21.21 | 0 | 27.4 |
| Tata Gold ETF FoF | 327.64 | 0.24 | 50.76 | 0.5 | 13.57 | 17.04 | 0 | 25.73 |
| BHARAT Bond FOF - April 2030 | 9637.08 | 0.08 | 8.89 | 0.1 | 2.44 | 15.25 | 0 | 5.06 |
| BHARAT Bond FOF - April 2031 | 4745.87 | 0.08 | 8.77 | 0.1 | 2.5 | 13.62 | 0 | 4.81 |
| BHARAT Bond ETF FOF - April 2032 | 4418.18 | 0.08 | 8.63 | 0.1 | 3.42 | 12.78 | 0 | 4.63 |
| BHARAT Bond ETF FOF - April 2033 | 2269.01 | 0.09 | 8.5 | 0.1 | 2.62 | 12.49 | 0 | 4.76 |
| Tata Arbitrage Fund | 17291.12 | 0.31 | 7.45 | 0.25 | 0.81 | 15.29 | 0.63 | 3.68 |
| WOC Arbitrage Fund | 586.17 | 0.35 | 7.43 | 0.25 | 0.91 | 10.74 | 0 | 3.57 |
| Aditya Birla SL Arbitrage Fund | 23581.2 | 0.31 | 7.41 | 0.25 | 0.84 | 28.96 | 0 | 3.65 |
| Invesco India Arbitrage Fund | 24204.72 | 0.39 | 7.32 | 0.5 | 0.88 | 34.91 | 0.52 | 3.52 |
Disclaimer: Please note that the above list of the best SIP for 1 year is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing. The data is derived from Tickertape Mutual Fund Screener and is subject to real-time updates.
Note: The data on the list of the best 1 year SIP plans from 4th September 2025. This data is derived from the Tickertape Mutual Funds Screener.
- Absolute Returns – 1Y: Sorted from Highest to Lowest
🚀 Pro Tip: You can use Tickertape’s Mutual Fund Screener to research and evaluate funds with over 50+ pre-loaded filters and parameters.
Overview of Best SIP for 1 Year
Edelweiss Gold and Silver ETF FoF
This fund invests in units of Edelweiss Gold and Silver ETFs. It gives exposure to both precious metals through a fund-of-fund route, tracking price changes without requiring physical ownership or direct trading.
Tata Gold ETF FoF
Tata Gold ETF FoF invests in Tata Gold Exchange Traded Fund units. It follows gold price movements and allows participation through a mutual fund structure, offering a simple way to access gold as an asset class.
BHARAT Bond FOF – April 2030
This fund invests in the BHARAT Bond ETF with maturity in April 2030. It holds bonds issued by public sector companies, following a defined maturity approach that aligns with the ETF’s timeline.
BHARAT Bond FOF – April 2031
BHARAT Bond FOF – April 2031 invests in BHARAT Bond ETF units maturing in April 2031. The fund focuses on bonds of public sector entities, tracking performance through the ETF’s underlying holdings.
BHARAT Bond ETF FOF – April 2032
This scheme invests in units of BHARAT Bond ETF with maturity in April 2032. It provides exposure to debt securities of government-backed entities, maintaining alignment with the ETF’s defined maturity structure.
BHARAT Bond ETF FOF – April 2033
BHARAT Bond ETF FOF – April 2033 invests in BHARAT Bond ETF units that mature in April 2033. It mirrors the ETF portfolio of PSU bonds, offering a fund-of-fund structure for access.
Tata Arbitrage Fund
Tata Arbitrage Fund invests in arbitrage opportunities across equity and derivatives markets. It seeks to benefit from price differences between cash and futures segments while allocating the rest to debt or money market instruments.
WOC Arbitrage Fund
This fund follows an arbitrage strategy by investing in equity, derivatives, and debt instruments. It uses price gaps across segments to structure its portfolio, while remaining aligned with the arbitrage category framework.
Aditya Birla SL Arbitrage Fund
Aditya Birla SL Arbitrage Fund participates in arbitrage opportunities between cash and futures markets. It also invests a portion in debt instruments, maintaining the allocation balance typical for arbitrage schemes.
Invesco India Arbitrage Fund
Invesco India Arbitrage Fund invests in equities and derivatives to capture arbitrage spreads. It also invests partly in debt and money market instruments, following the standard approach of arbitrage fund strategies.
What is a SIP for 1 Year?
A SIP for 1 year is a plan where investors invest a fixed amount every month for 12 months in a mutual fund. Most mutual funds in India allow starting a SIP investment for 1 year with as little as ₹100 per month.
Taxation on SIP for 1 Year
Taxation of a SIP investment plan for 1 year depends on the type of mutual fund. Since the holding period is short, most gains are treated as short-term.
Equity Mutual Funds
| Capital Gains Type | Holding Period | Tax Rate (Budget 2024) |
| Short-Term Capital Gains (STCG) | Less than 12 months | 20% (increased from 15%) |
| Long-Term Capital Gains (LTCG) | More than 12 months | 12.5% (₹1.25 lakh gains exempt) |
How to Invest in the Best SIP for 1 Year?
You can easily start to invest in the best SIP for 1 year by following these steps:
- To invest in the best SIP plan for 1 year, you can visit an equity investment platform such as smallcase
- The next step is to research and identify the best SIP plan for 1 year that matches your investment thesis. Tools like the Tickertape Mutual Fund Screener can help you filter and compare funds based on parameters such as returns, expense ratio, and fund size.
- Once you shortlist the funds, visit smallcase, log in, and search for the fund by name. You can then choose the investment mode, either a one-time lumpsum or a SIP for 1 year.
Benefits of Investing in SIP for 1 Year
- Disciplined Savings: A SIP for 1 year builds the habit of consistent saving and investing. Even with small amounts, investors learn discipline while getting exposure to short-term market performance.
- Low Entry Barrier: A SIP investment for 1 year requires smaller, regular contributions instead of a large amount. This makes it accessible to beginners and those who want to explore short-term mutual fund investing.
- Flexibility and Control: A 1-year SIP allows more flexibility compared to longer commitments. Since the duration is short, investors can stop investing or withdraw their money after the term ends without being tied to extended timelines.
Risks of Investing in SIP for 1 Year
- Limited Compounding: Compounding works best when money stays invested for many years. In a SIP for 1 year, each instalment has only a few months to grow. This short period limits the overall benefit of compounding.
- Market Volatility: The stock market moves up and down every day. In just one year, a SIP does not have enough time to recover if the market falls. This means the returns might be lower or even negative.
- Less Averaging Benefit: SIPs work by investing regularly so that purchases happen during both market highs and lows. When the SIP period is only one year, just 12 instalments are made, which limits the extent of averaging compared to longer durations.
Factors to Consider While Investing in SIP for 1 Year
- Market Trends: A SIP for 1 year is more exposed to short-term market cycles. Since the period is limited, sharp fluctuations in the market during that year will have a direct impact on outcomes.
- Risk Appetite: Different fund categories carry varying levels of risk. That’s why understanding types of funds and the risks associated with them can help the investor make better decisions.
- Market Trends: A SIP for 1 year is directly affected by short-term market cycles. While reviewing the best SIP to invest for 1 year, recognising these opportunities helps investors understand how they can influence the returns of such investments.
- Fund Costs: Expense ratios and exit loads differ across mutual funds. Knowing these charges helps investors understand how much of their investment goes toward costs and how it can affect final returns in a 1-year SIP.
Who Should Explore the Best SIP for 1 Year?
- Short-Term Planners: A 1-year SIP matches the duration of short financial timelines. For example, someone who expects a financial requirement in the near future may explore SIP for 1 year.
- First-Time Participants: Investors who are new to the concepts of SIPs can explore 1-year SIPs. It will help them observe how systematic contributions are invested each month, how the fund allocates these contributions, and how unit values change over time and in response to market conditions.
- Goal-Based Contributors: Certain people align investments with specific goals that fall within a year, such as festive spending, short travels, or planned purchases. A 1-year SIP may help in saving money systematically toward such timelines.
To Wrap It Up
Systematic Investment Plans (SIPs) can be structured for different horizons, including one year. Short-duration SIPs are generally used for specific financial goals, short-term liquidity requirements, or as part of a larger portfolio allocation.
There are certain benefits to a one-year SIP, including disciplined investing, a low entry barrier, and flexibility. However, it also comes with some risks, such as the short duration limiting the effect of compounding, and returns may be highly dependent on short-term market cycles. That’s why investors must carefully assess all the factors before exploring and structuring a one-year SIP.
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Frequently Asked Questions on 1-Year SIPs
A one-year SIP is a Systematic Investment Plan where the investor contributes a fixed amount at regular intervals (usually monthly) into a chosen mutual fund scheme for 12 months. The total investment is spread across the year, and returns depend on the fund type, market performance, and other factors.
There isn’t an ideal investor profile for a 1-year SIP. It is a short-term plan with limited compounding and averaging. People who are open to short horizons and aware of related risks may explore it as part of their approach.
Some of the risks with a 1-year SIP plan include market volatility in equity funds, interest rate changes in debt funds, and limited compounding due to the short time frame. Returns may be modest or fluctuate based on market cycles.
For equity mutual funds, gains after one year are considered Long-Term Capital Gains (LTCG). Up to ₹1.25 lakh of gains in a financial year are tax-free, and anything above that is taxed at 12.5% without indexation. Short-term gains (less than one year) are taxed at 20%.
To find the high-return SIP for 1-year, investors can take the help of a mutual fund screener tool like Tickertape, where they can sort the funds based on the last 1 year’s return. In addition, investors can also use more than 200 filters to further analyse these funds based on various metrics.
The 1-year return in SIP refers to the performance of a systematic investment plan over 12 months. It varies from fund to fund, as returns depend on factors like fund category, market conditions, and the scheme’s investment strategy.
The 1-year return in SIP refers to the performance of a systematic investment plan over 12 months. It varies from fund to fund, as returns depend on factors like fund category, market conditions, and the scheme’s investment strategy. Investors can also use a SIP for 1 year calculator to estimate possible outcomes, but such tools only provide indicative numbers and do not guarantee returns.
