Mutual Fund SIP Plans for 5 Years: Best Monthly SIP Plans
A Systematic Investment Plan (SIP) lets you invest a fixed amount in a mutual fund at regular intervals, typically monthly. For a 5-year goal, selecting the right fund category matters as much as the discipline of investing regularly. This article covers how to approach fund selection, what risks and benefits come with a 5-year SIP, and what to check before you start.
Best SIP Plans for 5 Years
The following table highlights some of the best-performing SIPs in the last 5 years, based on their 5-year CAGR.
| Mutual Fund | AUM(₹ in cr.) | CAGR 3Y(%) | Expense Ratio(%) | CAGR 5Y(%) | Absolute Returns - 1Y(%) | Alpha(%) | NAV(₹ per unit) | Exit Load(%) | Volatility(%) |
|---|---|---|---|---|---|---|---|---|---|
| SBI Children's Fund-Investment Plan | 6114.10 | 24.12 | 0.84 | 26.19 | 15.26 | 5.92 | 49.00 | 3.00 | 11.75 |
| SBI Gold | 15691.06 | 36.4 | 0.24 | 26.11 | 66.27 | 20.81 | 48.57 | 1.00 | 30.05 |
| LIC MF Gold ETF FoF | 779.49 | 35.68 | 0.37 | 26.11 | 63.90 | 21.42 | 42.77 | 1.00 | 35.49 |
| Aditya Birla SL Gold Fund | 1731.63 | 36.44 | 0.18 | 26.11 | 66.76 | 20.24 | 47.99 | 1.00 | 31.29 |
| ICICI Pru Gold ETF FOF | 6164.38 | 36.45 | 0.16 | 26.09 | 67.02 | 20.73 | 51.01 | 1.00 | 31.25 |
| ICICI Pru Bharat 22 FOF | 2584.85 | 24.28 | 0.1 | 26.05 | 12.51 | 1.51 | 35.36 | - | 13.73 |
| Quantum Gold Saving Fund | 504.91 | 36.37 | 0.04 | 26.03 | 66.49 | 21.11 | 60.72 | - | 30.29 |
| Aditya Birla SL PSU Equity Fund | 6043.99 | 29.23 | 0.56 | 26.02 | 15.15 | 7.70 | 40.21 | 1.00 | 15.50 |
| HDFC Gold ETF FoF | 11464.35 | 36.21 | 0.18 | 25.99 | 65.96 | 20.41 | 49.55 | 1.00 | 31.30 |
| Axis Gold Fund | 2941.95 | 36.12 | 0.15 | 25.96 | 66.06 | 20.56 | 50.21 | 1.00 | 34.49 |
Disclaimer: Please note that the above list of the best return SIP plans is for educational purposes only and is not recommended. 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 monthly best SIP plans is from 14th May, 2026. This data is derived from the Tickertape Mutual Funds Screener.
- 5Y CAGR: 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 the Best Mutual Fund for 5 Years
SBI Children’s Fund – Investment Plan
SBI Children’s Fund – Investment Plan is a solution-oriented hybrid fund that invests predominantly in equity and equity-related instruments across sectors and market caps, with some debt allocation. Designed for long-term capital appreciation, it comes with a mandatory 5-year lock-in period per instalment.
SBI Gold Fund
SBI Gold Fund is a Fund of Funds that invests in units of SBI Gold ETF, which holds physical gold. It aims to provide returns closely tracking domestic gold prices without requiring a demat account, making it accessible for investors who want gold exposure through the SIP route.
LIC MF Gold ETF FoF
LIC MF Gold ETF FoF is a passively managed Fund of Funds that invests in units of LIC MF Gold ETF, which holds physical gold. It tracks domestic gold price returns and allows investors to take SIP-based gold exposure without needing a demat account or worrying about storage.
Aditya Birla Sun Life Gold Fund
Aditya Birla Sun Life Gold Fund is an open-ended Fund of Funds that invests in units of the Aditya Birla Sun Life Gold ETF, which holds physical gold. It is designed to closely track domestic gold price performance and can be accessed via SIP without a demat account.
ICICI Prudential Gold ETF FoF
ICICI Prudential Gold ETF FoF is an open-ended Fund of Funds that invests in units of ICICI Prudential Gold ETF, which holds physical gold. It tracks gold price returns without requiring a demat account, benchmarked against the domestic price of gold.
ICICI Prudential Bharat 22 FOF
ICICI Prudential Bharat 22 FOF is a Fund of Funds that invests in units of the Bharat 22 ETF, which tracks the S&P BSE Bharat 22 Index. The index covers 22 public sector and government-backed companies across energy, utilities, finance, and industrials, offering passive exposure to India’s PSU economy.
Quantum Gold Savings Fund
Quantum Gold Savings Fund is a Fund of Funds that invests in units of Quantum Gold Fund ETF, which holds physical gold. It enables SIP-based gold investing without a demat account and is known for its notably low expense ratio relative to the gold FoF category.
Aditya Birla Sun Life PSU Equity Fund
Aditya Birla Sun Life PSU Equity Fund is an open-ended thematic equity fund that invests at least 80% of its assets in equity and equity-related instruments of Public Sector Undertakings. It targets long-term capital appreciation by focusing exclusively on government-owned companies across sectors like energy, finance, and industrials.
HDFC Gold ETF FoF
HDFC Gold ETF FoF is a Fund of Funds that invests in units of HDFC Gold ETF, which holds gold bullion of 0.995 fineness. It tracks domestic gold price performance and allows investors to gain gold exposure through SIP without needing a demat account or managing physical storage.
Axis Gold Fund
Axis Gold Fund is an open-ended Fund of Funds that invests in units of Axis Gold ETF. It aims to track the returns of the underlying gold ETF, providing gold exposure without storage concerns or a demat account requirement, with SIP investments available from a low minimum amount.
What is a SIP?
A SIP, or Systematic Investment Plan, is a method of investing in mutual funds where you commit to investing a fixed amount at regular intervals, usually monthly. Each instalment buys units of the chosen mutual fund scheme at the prevailing Net Asset Value (NAV) on the investment date.
SIPs work on two core principles. The first is rupee cost averaging: because you invest a fixed amount every month regardless of market levels, you automatically buy more units when markets are down and fewer when they are up. Over time, this averages out your purchase cost. The second is compounding: returns earned on your investment generate their own returns over time, which can meaningfully grow your corpus over a multi-year horizon.
SIPs can be started with as little as Rs. 100 per month in some funds, making them accessible to investors across income levels. They can be paused, modified, or stopped at any time, unlike fixed deposits or recurring deposits, which come with penalties for early withdrawal in most cases.
5-Year Horizon for SIP Investing
Five years sit at an important intersection for equity mutual fund investing. It is long enough for rupee cost averaging to smooth out the impact of short-term market volatility, but short enough to remain relevant to near-term financial goals like building a down payment, funding higher education, or creating an emergency reserve.
Historically, the longer an equity fund SIP runs, the higher the probability of generating positive returns. While individual year-on-year returns can vary widely, five-year rolling SIP returns across diversified equity funds have shown greater consistency than shorter horizons such as 1 or 3 years. Markets can decline significantly over one or two years; five years provides more room for recovery.
At the same time, five years is not a guaranteed safe zone. A sharp market correction in year four or five can still dent returns if you redeem at the wrong time. This is why the choice of fund category and a clear exit plan matter as much as the holding period itself.
Which Type of Fund Works Best for a 5-Year SIP?
There are different types of mutual funds, each with its own risk-return profile. So, which SIP may suit a 5-year investment horizon? Here is how the major equity and hybrid fund categories generally compare for this time frame:
| Fund Category | Why It Works for 5 Years |
|---|---|
| Large Cap Funds | Invests in the top 100 companies by market cap. Lower volatility than mid and small caps. Slower growth but more predictable returns over 5 years. |
| Flexi Cap Funds | A fund manager can move freely across large, mid, and small caps. Provides diversification while allowing tactical allocation. Good core holding for a 5-year SIP. |
| Large and Mid Cap Funds | Mandated to hold at least 35% each in large and mid caps. Captures growth from mid-caps while the large-cap portion provides stability. |
| Balanced Advantage Funds | Dynamically manages equity and debt allocation based on market valuations. Cushions downside in volatile markets. Lower returns ceiling but steadier ride over 5 years. |
| Mid Cap Funds | Higher growth potential but significant short-term volatility. Can deliver strong returns over 5 years if you can hold through corrections without redeeming. |
| Small Cap Funds | Small caps need 7-10 years to adequately smooth out volatility. A 5-year horizon may not be sufficient to recover from a mid-cycle correction in this category. |
| Sectoral/Thematic Funds | Concentrated in one sector. High conviction required. Not suitable as a core 5-year SIP holding unless you have strong views on the sector’s long-term outlook. |
Disclaimer: The suitability of any mutual fund category depends on factors such as risk appetite, financial goals, investment horizon, and market conditions. Investors should conduct thorough research and/or consult a financial advisor before making investment decisions.
What is a Step-Up SIP and Should You Use One?
A step-up SIP (also called a top-up SIP) is a feature that automatically increases your monthly SIP amount by a fixed percentage or fixed amount at a predetermined interval, typically annually.
For example, if you start a SIP of Rs. 5,000 per month with a 10% annual step-up, your SIP amount becomes Rs. 5,500 in year two, Rs. 6,050 in year three, and so on. Over 5 years, this means your total investment grows meaningfully compared to a flat SIP.
Tax on SIP Returns After 5 Years
When you redeem from a SIP after 5 years, the units purchased earliest (the first SIP instalment) are redeemed first. In a 5-year SIP, most units will have been held for more than 12 months by the time you redeem at the end of year five. Only the final 12 months of instalments (months 49 to 60) will qualify as short-term if you redeem all at once at the end of year 5. This means a large proportion of gains will attract the lower LTCG rate of 12.5%.
| Fund Type | Holding Period | Tax Rate |
|---|---|---|
| Equity funds (>65% equity) | >12 months (LTCG) | 12.5% on gains above Rs. 1.25 lakh/year |
| Equity funds (>65% equity) | <=12 months (STCG) | 20% |
| Debt funds / hybrid funds (<65% equity) | Any | As per the income tax slab |
How to Invest in the SIP Plan for 5 Years?
You can easily start to invest in the best SIP plan for 5 years by following these steps:
- To invest in the best SIP for 5 years, you can visit an equity investment platform such as smallcase
- The next step is to research and identify the best SIP for 5 years that matches your financial goals. 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 lump sum or a 5-year SIP plan, and complete the process.
Advantages of Investing in the Best SIP for 5 Years
- Rupee Cost Averaging: By investing a fixed amount every month, you buy more units when markets are down and fewer when they are up. Over 60 months, this smooths out your average purchase cost and reduces the impact of trying to time the market.
- Compounding Over Time: Returns on your invested capital generate their own returns. Over 5 years, the compounding effect becomes increasingly visible in the later years of the SIP. The longer you stay invested, the more this accelerates.
- Financial Discipline: A SIP requires no active decision-making after the initial setup. The fixed monthly instalment is auto-debited, removing the temptation to pause during downturns or chase performance during rallies.
- Flexibility: Unlike fixed deposits or recurring deposits, most mutual fund SIPs carry no lock-in period (except ELSS funds). You can pause, reduce, increase, or stop a SIP without penalties.
- Low Entry Barrier: Most mutual funds allow SIPs starting from Rs. 100 to Rs. 500 per month. This makes it possible to start investing even with a modest surplus, and gradually increase the amount as income grows. A step-up SIP feature, available in many funds, allows you to automate this annual increase.
Risks of Investing in SIP for 5 Years
- Market Risk: Equity mutual funds are subject to market fluctuations. The value of your investment can fall below the total amount invested, particularly if you evaluate it midway through the SIP tenure or redeem during a market downturn.
- Sequence of Returns Risk: If markets perform poorly in the final year or two of your SIP when your corpus is at its largest, the impact on your total wealth can be significant. This is the reverse of the early-year benefit of rupee cost averaging.
- Inflation Risk in Conservative Funds: Balanced advantage funds and hybrid funds with high debt allocations may not generate returns significantly above inflation over a 5-year period, especially after tax.
- Fund Manager and Scheme Risk: Actively managed funds carry the risk of underperformance if the fund manager makes poor allocation decisions, changes strategy, or leaves the fund house. This is distinct from market risk.
Factors to Consider Before Investing in SIP for 5 Years
- Risk Appetite: Different categories of funds bring different levels of risk. To find the best SIP for 5 years, it’s essential for investors to understand the risk factors associated with various types of funds and adjust their investment strategy accordingly.
- Fund Costs: When exploring the best SIP to invest for 5 years, investors need to consider expense ratios and exit loads as they vary across schemes and directly affect net returns. Even small differences in cost can influence outcomes in a 5-year SIP plan, especially over a long investment journey.
- Tax Implications: Gains after five years are taxed under long-term capital gains rules. Investors need to stay updated with the latest tax implications for equity, debt, and hybrid funds, as this impacts the effective returns from a SIP plan.
- Market Trends: The market moves in cycles, and a 5-year SIP will experience both highs and lows. Understanding the trend helps investors set realistic expectations and helps them review the best SIP to invest for 5 years.
Who Should Consider a SIP for 5 Years?
- Medium-Term Goal Planners: A 5-year SIP often suits investors aiming for medium-term goals, with a timeline that is neither too short nor too long.
- Goal-Oriented Investors: Certain financial milestones often fall within a five-year horizon. In such cases, SIPs may align with these specific objectives while still allowing exposure to market growth.
- Investors Seeking Structure: Regular contributions through SIPs provide a disciplined framework. A 5-year period may appeal to those who value consistency and want a defined investment window.
- Balanced Risk Takers: Some investors may prefer balancing growth with caution. A 5-year SIP plan can expose them to equities while still keeping the horizon manageable compared to very long-term commitments.
To Wrap It Up…
A 5-year SIP works best when the fund category matches your risk profile, the investment amount remains consistent regardless of market conditions, and redemptions are planned thoughtfully rather than triggered by short-term performance.
Investors need to stay updated on fund performance, track expense ratios, and analyse market conditions that will influence SIP returns over the next 5 years. By understanding these aspects, it becomes easier to set realistic expectations and plan accordingly.
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Frequently Asked Questions on SIP for 5 Years
A SIP for 5 years means investing a fixed amount in a mutual fund every month for five years. It is a medium-term investment approach that allows disciplined savings and potential market-linked returns.
The average SIP return in 5 years depends on the fund category. Equity funds may deliver higher but volatile returns, while hybrid or debt funds may provide more stable outcomes.
Equity fund SIP units held for more than 12 months are taxed as Long-Term Capital Gains (LTCG) at 12.5% on gains exceeding Rs. 1.25 lakh per financial year. Units held for 12 months or less attract Short-Term Capital Gains (STCG) tax at 20%. In a 5-year SIP redeemed at maturity, most units will qualify as long-term, but the final 12 months of instalments may attract STCG if all units are redeemed at once. Staggering redemptions over two financial years can help optimise the LTCG exemption limit.
Yes, SIPs are flexible, and investors can pause or stop contributions anytime, though doing so may reduce the benefits of compounding and rupee cost averaging.
There is no single “best” SIP plan for 5 years for all investors. Performance varies across categories like large-cap, mid-cap, small-cap, or hybrid funds, influenced by factors such as market conditions, government policies, sectoral growth, and fund management strategies. The right choice for the best SIP plan for 5 years depends on individual goals, risk tolerance, and investment horizon.
The investment amount varies from person to person. Since SIPs allow small contributions, investors can choose amounts based on their budget and financial planning needs.
Yes, investors can switch from one SIP plan to another before completing five years. However, switching may affect the final SIP 5 year return, as each fund has different performance patterns, costs, and risk factors.
A SIP for 5 years is generally seen as a medium-term commitment. While it may help meet certain goals, long-term investing often requires horizons longer than five years. The suitability depends on category, market cycles, and individual planning.
Disclaimer: This information is provided only for educational purposes and should not be considered investment advice or a recommendation.
The minimum investment in a 5-year SIP plan depends on the fund house. Many mutual fund investment plans allow starting with as little as ₹500 per month, making SIPs accessible to a wide range of investors.
To find the best SIP mutual fund for 5 years, investors can use tools like the Tickertape Mutual Fund Screener. It allows investors to check funds that delivered high returns in the last five years. However, since past performance does not guarantee future results, it is important to conduct thorough research before selecting a fund.
Disclaimer: This information is provided only for educational purposes and should not be considered investment advice or a recommendation. Investors should conduct their own research and/or consult a financial advisor before making investment decisions.
Most equity mutual funds allow a monthly SIP starting at Rs. 100 or Rs. 500. There is no regulatory minimum for 5-year SIPs. The amount you choose should be consistent and sustainable across all market conditions, including downturns, to avoid stopping prematurely.
Direct plans have lower expense ratios than regular plans because there is no distributor commission. Over a 5-year SIP, the difference in expense ratio compounds into a meaningful gap in the final corpus. Direct plans are suitable for investors who are comfortable making their own fund selection decisions. If you require ongoing advisory support or personalised financial planning, a regular plan through a SEBI-registered advisor may be justified.
Disclaimer: This information is provided only for educational purposes and should not be considered investment advice or a recommendation. Investors should conduct their own research and/or consult a financial advisor before making investment decisions.
The SIP best suited for 5 years depends on factors such as risk appetite, financial goals, and return expectations. When comparing the best mutual fund for 5 years, investors often evaluate categories like large-cap, flexi-cap, hybrid, and index funds based on consistency, volatility, and long-term performance across market cycles.
Disclaimer: This information is provided only for educational purposes and should not be considered investment advice or a recommendation. Investors should conduct their own research and/or consult a financial advisor before making investment decisions.
