List of the Best SIP for 3 Years – Top SIP Plans in India
With ₹10.3 lakh crore invested through SIPs as of mid-2025, mutual funds remain a preferred choice for disciplined wealth building. Investors seeking the best SIP for 3 years can access several factors before choosing which fund to start an SIP in. This article will explore a list of funds with the top CAGR over 3 years, how to invest in them and more!
Best SIP for 3 Years in Mutual Funds
| Name | Sub Category | AUM (Rs. in cr.) | CAGR 3Y (%) | Expense Ratio (%) | SIP Investment |
|---|---|---|---|---|---|
| Motilal Oswal BSE Enhanced Value Index Fund | Index Fund | 822.00 | 32.75 | 0.41 | Allowed |
| Edelweiss US Technology Equity FOF | FoFs (Overseas) | 3,222.37 | 32.53 | 1.49 | Allowed |
| Aditya Birla SL Silver ETF FOF | FoFs (Domestic) - Silver | 321.28 | 30.66 | 0.3 | Allowed |
| ICICI Pru Silver ETF FOF | FoFs (Domestic) - Silver | 1,834.84 | 30.61 | 0.12 | Allowed |
| SBI PSU Fund | Thematic Fund | 5,179.37 | 30.52 | 0.84 | Allowed |
| Nippon India Silver ETF FOF | FoFs (Domestic) - Silver | 1,025.65 | 30.25 | 0.27 | Allowed |
| Bandhan Small Cap Fund | Small Cap Fund | 14,062.19 | 30.06 | 0.4 | Allowed |
| Invesco India PSU Equity Fund | Thematic Fund | 1,390.50 | 29.96 | 0.9 | Allowed |
| Franklin India Opportunities Fund | Thematic Fund | 7,375.63 | 29.93 | 0.52 | Allowed |
| ICICI Pru Pharma Healthcare & Diagnostics (P.H.D) Fund | Sectoral Fund - Pharma & Health Care | 6,103.96 | 29.38 | 1.04 | Allowed |
Disclaimer: Please note that the above table 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 Stock Screener and is subject to real-time updates.
Note: The data on the list of the best SIP for 3 ywars is from 4th September 2025. It is derived from the Tickertape Mutual Funds Screener using the following filters:
- Plan: Growth
- 3Y CAGR: Sorted from Highest to Lowest
- SIP Investment: Allowed
🚀 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 the Top Funds with the Best SIP for 3 Years
Motilal Oswal BSE Enhanced Value Index Fund
This index fund tracks the S&P BSE Enhanced Value Index, focusing on companies with attractive valuations and strong fundamentals. It offers diversified exposure to undervalued large and mid-cap stocks, making it suitable for investors seeking potential upside from value-oriented equity strategies.
Edelweiss US Technology Equity FOF
A fund of funds investing in the US technology sector through international ETFs and mutual funds. It provides exposure to global tech leaders like Apple, Microsoft, and Alphabet, enabling Indian investors to diversify geographically while participating in the US innovation-driven growth story.
Aditya Birla SL Silver ETF FOF
This fund primarily invests in silver ETFs, providing investors with a convenient way to gain exposure to silver as a commodity. It benefits from price movements in global silver markets and suits investors aiming to diversify portfolios with precious metals.
ICICI Pru Silver ETF FOF
The fund invests in the ICICI Prudential Silver ETF, indirectly tracking silver prices. It offers an easy alternative to owning physical silver, combining liquidity, transparency, and tax efficiency while adding a defensive hedge against equity market volatility.
SBI PSU Fund
An open-ended equity scheme investing primarily in Public Sector Undertakings (PSUs). It focuses on sectors such as energy, banking, and infrastructure, where government-owned enterprises are dominant. Suitable for investors seeking exposure to India’s PSU growth story and potential policy-driven opportunities.
Nippon India Silver ETF FOF
This fund invests in the Nippon India Silver ETF, offering simplified access to silver price movements. It enables investors to diversify into precious metals without the complexities of physical storage and benefits from liquidity and market-linked price transparency.
Bandhan Small Cap Fund
An equity-oriented scheme focusing on small-cap companies with high growth potential. The fund targets emerging businesses across sectors and aims to capitalise on wealth creation opportunities in India’s growing small-cap ecosystem, though with relatively higher volatility risks.
Invesco India PSU Equity Fund
This fund primarily invests in PSU stocks across various sectors, including energy, defence, and finance. It seeks to benefit from government-led reforms and infrastructure spending while providing investors with exposure to stable, dividend-paying enterprises with long-term value potential.
Franklin India Opportunities Fund
A diversified equity fund that focuses on theme-based investments across sectors and market caps. The fund aims to identify emerging trends and capitalise on growth opportunities, making it suitable for investors looking for flexibility and active management in equities.
ICICI Pru Pharma Healthcare & Diagnostics (P.H.D) Fund
A sector-focused fund investing in pharmaceuticals, healthcare, and diagnostics. It targets India’s expanding healthcare industry, driven by rising demand, innovation, and exports, offering investors thematic exposure to one of the country’s fastest-growing sectors.
What are SIPs?
A Systematic Investment Plan (SIP) is a disciplined way of investing in mutual funds by contributing a fixed amount at regular intervals, usually monthly or quarterly. Instead of making a lump-sum investment, SIPs enable investors to accumulate wealth gradually, benefiting from rupee-cost averaging and compounding.
SIPs are available across equity, debt, hybrid, commodity, and international mutual funds, offering flexibility for different financial goals. As of July 2025, SIP contributions in India reached ₹22,660 cr, highlighting their growing popularity among retail investors for both short- and long-term objectives.
How to Invest in the Best SIP for 3 Years?
You can easily invest in the best SIP for 3 years by following these steps:
- To invest in mutual funds, you can visit an equity investment platform such as smallcase or Tickertape.
- The next step would be to research and identify the best mutual funds for SIP to invest in which aligns with your investment thesis. You can easily select and learn more about the best mutual funds for SIP with the help of a financial tool like the Tickertape Mutual Fund Screener. With 50+ pre-loaded filters, it helps you to create a comprehensive list by giving insights about the fund’s performance. Try it now!
- Once you have selected the best SIP plan for 3 years based on different metrics and parameters, go to smallcase.com or the smallcase app, and login via your phone number. Click on ‘Discover‘ and enter the name of the specific mutual fund in the search bar and hit enter. You can click on ‘invest now’ and select whether you want to invest a lump sum amount or start a SIP and start investing!
However, if you’re confused about which stocks to pick, you can explore smallcases:
- smallcases are readymade model portfolios of stocks/ETFs, that are based on a theme idea or strategy
- They’re created and managed by SEBI-registered investment experts (also known as smallcase managers)
- smallcase offers over 500+ stock portfolios, created by 200+ managers
Here are a few popular smallcases among new investors:
Disclosures for aforementioned smallcases
How to Select the Best SIP for 3 Years?
- Fund Categories: SIPs are available in equity, hybrid, debt, commodity, and international funds. Each category carries different levels of risk and return potential. For instance, large-cap equity SIPs tend to offer relatively stable returns, whereas small-cap SIPs are often more volatile.
- Historical Performance: Many investors analyse the 3 yr CAGR to assess how a fund performed across different market cycles. While it provides context, past returns don’t guarantee future results.
- Expense Ratios and Exit Loads: The cost of investing significantly affects overall returns, particularly over shorter time horizons. The best SIP plan for 3 years with higher expense ratios or exit loads can reduce effective gains.
- Risk-Adjusted Metrics: Metrics like Sharpe Ratio, volatility levels, and drawdowns help compare the best SIP plan for 3 years beyond absolute returns and highlight how effectively a fund manages risk.
- Consistency and Portfolio Fit: Some funds with the best SIP return in 3 years demonstrate consistent performance across timeframes and market cycles, which can be relevant when evaluating them for 3-year SIP plans.
Taxation on the Best SIP for 3 Years
Understanding the latest tax regulations on the best SIP for 3 years is essential for making informed investment decisions. The Union Budget 2024 has introduced significant changes to the taxation of the best SIP for 3 years, simplifying the tax structure while altering rates and benefits. Here is a detailed breakdown of the new tax rules:
Equity Funds
| Capital Gains Tax | Holding Period | Old Rate | New Rate |
| Short-Term Capital Gains (STCG) | Less than 12 months | 15% | 20% |
| Long-Term Capital Gains (LTCG) | More than 12 months | 10% | 12.50% |
- No Indexation Benefit: This change affects the overall tax liability, potentially increasing it for long-term investors.
Debt Funds
| Capital Gains Tax | Description |
| Short-Term Capital Gains (STCG) | If you sell your debt fund units within three years (36 months), the tax will be as per your income tax slab. |
| Long-Term Capital Gains (LTCG) | For debt funds held for over three years (36 months), the tax rate is now a flat 12.5% without indexation benefits. |
Hybrid Funds
| Type of Fund | Short-Term Capital Gains (STCG) | Long-Term Capital Gains (LTCG) | Indexation Benefit |
| Equity-Oriented Hybrid Funds | 20% for holdings less than 1 year | 12.5% for holdings over 1 year, with gains up to Rs. 1.25 lakh tax-free | Not available |
| Debt-Oriented Hybrid Funds | Taxed as per income tax slab for holdings less than 3 years | 12.5% for holdings over 3 years | Not available |
Benefits of Investing in the Best SIP for 3 Years
- Disciplined Wealth Building: SIPs encourage regular, systematic investing, making it easier to accumulate wealth gradually without the pressure of lump-sum commitments.
- Rupee Cost Averaging: By investing a fixed amount regularly, investors buy more units when prices are low and fewer when prices are high, potentially averaging out the overall cost.
- Flexibility Across Funds: SIPs allow participation in equity, hybrid, debt, and commodity-based mutual funds, enabling investors to choose options based on their financial goals and risk tolerance.
- Compounding Effect: Returns generated from SIPs are reinvested, allowing potential growth over time. Even within a 3 year horizon, compounding can enhance wealth accumulation.
- Convenience and Accessibility: SIPs are easy to set up, track, and manage digitally. Investors can start with small amounts, making them accessible to a broader audience.
Risks of Investing in the Best SIP for 3 Years
- Market Volatility: Equity-oriented SIPs, including the best mutual funds for 3 years SIPs, are sensitive to short-term market swings. Over a 3-year horizon, sudden corrections can affect portfolio value and returns.
- Limited Time for Recovery: A shorter tenure gives less time for markets to recover from downturns, which can reduce the effectiveness of rupee cost averaging compared to long-term SIPs.
- Inflation Impact: Over 3 years, returns from conservative funds may not always outpace inflation, reducing real wealth creation.
- Fund Management Risk: Actively managed best SIP fund for 3 years may underperform its benchmarks due to stock selection or sector allocation decisions, which can impact SIP performance.
Factors to Consider When Investing in the Best SIP for 3 Years
- Investment Horizon: A 3-year period is relatively short for equity markets, which means SIP performance may be more sensitive to short-term volatility compared to longer tenures.
- Fund Objective: Different mutual funds, including the best mutual fund for 3 years SIP, are designed to achieve different goals. Equity SIPs focus on growth, debt SIPs aim for stability, and hybrid SIPs balance the two. Aligning these objectives with expected outcomes is often a consideration.
- Historical Behaviour: Analysing a fund’s performance across multiple market phases can provide insights into how it handles volatility and downturns, though it doesn’t predict future returns.
- Expense Structure: Costs such as expense ratios and exit loads can influence net gains, especially for shorter SIP durations where compounding has less time to offset costs.
- Liquidity Needs: Some investors prefer the best SIP investment plan for 3 years, offering easier redemption options for near-term goals. Liquidity considerations often play a role when comparing schemes for shorter durations.
- Market Conditions: Economic cycles, policy changes, and sectoral trends can impact returns differently across categories such as equity, debt, and commodities, making it essential to understand prevailing market conditions.
To Wrap It Up
SIPs, including an SIP investment for 3 years, offer a structured way to invest even for shorter horizons. Choosing the best SIP for 3 years involves understanding fund behaviour and risks, but actual returns remain linked to market performance and the chosen fund’s strategy. Diversification across fund categories can cushion volatility. However, short-term gains are never guaranteed.
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Frequently Asked Questions About the Best SIP for 3 Years
There is no fixed minimum duration, but for mutual funds, a 3 year SIP can be chosen for short-term financial goals. However, market performance during this period can influence returns.
SIPs are available in equity, hybrid, debt, and commodity-linked funds. Each category behaves differently based on market cycles, asset allocation, and economic conditions, which in turn influence returns and volatility.
SIPs, including ones in the best SIP mutual fund for 3 years, involve regular contributions, while lump-sum investments require investing a larger amount upfront. The performance of both depends on market phases and timing, making neither inherently better nor worse.
No, SIP returns are not guaranteed. Equity and hybrid funds fluctuate with market trends, while debt and commodity SIPs are influenced by interest rates and global price movements.
Yes, SIP structures allow flexibility. Investors can increase, decrease, pause, or stop contributions without penalties, although such changes can alter the overall investment outcome over time.
