Best 1-Year SIP Investment Options in India for 2025

Introduction

In today’s dynamic market, even short-term investments require smart planning. If you're aiming to meet a financial goal within the next 12 months, the best SIP plans for 1 year can offer the right blend of discipline, flexibility, and potential returns. Whether you seek the stability of debt funds or the higher growth potential of equities, 2025 presents several promising options. In this article, we explore the best SIP plans for 1 year to help you invest confidently and wisely.

What Is a Systematic Investment Plan (SIP)?

A Systematic Investment Plan (SIP) is a method of investing in mutual funds through fixed, regular contributions—usually monthly. It allows you to invest gradually instead of committing a lump sum, making it ideal for managing risk, especially over a short period like one year.

SIPs encourage disciplined saving by automating your investments, helping you stay consistent with your financial goals.

They help you take advantage of rupee cost averaging by spreading investments over time. When markets fall, you buy more units; when markets rise, you buy fewer, balancing out your overall investment cost.

Another advantage is flexibility. SIPs allow you to begin investing with just Rs. 500 per month, giving you the flexibility to scale up or take a break whenever your finances demand.

Even in a year’s time, SIPs can benefit from compounding, where returns start earning additional returns, boosting your overall growth.

Best-Performing SIPs in India for 1-Year Investment Returns (2025)

If you're looking for the best SIP plans for 1 year based on high returns, reviewing recent fund performance is essential. Below is a list of top-performing SIP mutual funds in India for 2025, ranked by their 1-year returns. These options span various equity categories and offer a mix of growth potential, flexibility, and low entry points for investors.

An Overview of 1-Year SIP Investments in India

Motilal Oswal Midcap Fund

Motilal Oswal Midcap Fund – Direct Growth is a mid-cap mutual fund launched in February 2014, with over Rs. 30,400 Cr in AUM (as of March 2025). With an expense ratio of 0.7%, it’s competitively priced for its category. The fund has delivered 10.47% in the past year and an impressive 24.22% CAGR since inception, doubling investments roughly every 3 years.

It maintains strong exposure to sectors like Technology, Capital Goods, and Consumer Discretionary, while keeping volatility in check during downturns. Its return consistency aligns well with peers, making it a solid option among the best SIP plans for 1 year in the mid-cap space.

ICICI Prudential Infrastructure Fund

ICICI Prudential Infrastructure Fund – Direct Growth is a sectoral fund launched in January 2013, with Rs. 7,920 Cr in AUM as of March 2025. As of June 2025, the fund's NAV was Rs. 209.44, with an expense ratio of 1.14%, which is on the higher side compared to peers.

Over the past year, it returned 3.99%, while its long-term CAGR since inception is a solid 17.42%, doubling investments roughly every 3 years. The fund has strong downside protection and primarily invests in Construction, Energy, Capital Goods, and Metals & Mining sectors. Its performance consistency and risk control make it a contender among short-term SIPs for 1 year in the infrastructure category.

SBI PSU Fund

SBI PSU Fund – Direct Growth, launched in Jan 2013, focuses on investments in public sector enterprises. By March 2025, it oversaw assets worth Rs. 5,259 Cr, with a NAV of Rs. 35.04 as of June 2025 and a moderate expense ratio of 0.81%.

While its 1-year return stands at -1.74%, the fund has delivered a long-term average return of 12.07% since inception, doubling investments approximately every 3 years. It invests heavily in sectors like Energy, Capital Goods, and Metals & Mining. With better-than-average loss control, it remains a suitable SIP investment for 1 year for those looking to tap into the PSU growth theme with moderate risk.

Aditya Birla Sun Life PSU Equity Fund

Aditya Birla Sun Life PSU Equity Fund – Direct Growth is a thematic PSU fund launched in December 2019. With Rs. 5,582 Cr in AUM as of March 2025 and a NAV of Rs. 35.89 (June 2025), it stands out for its low expense ratio of 0.53%.

Despite a -5.15% return over the past year, the fund has posted a strong average return of 26.24% since launch, doubling investments roughly every 3 years. It focuses on sectors like Energy, Capital Goods, and Metals & Mining. While its downside protection is limited, its long-term growth potential places it among the best SIP for 1 year with high return prospects for aggressive investors.

HDFC Infrastructure Fund

HDFC Infrastructure Fund – Direct Growth is a sectoral fund launched in January 2013, managing Rs. 2,540 Cr in AUM (as of March 2025). Its NAV stood at Rs. 51.96 (June 2025), with a standard expense ratio of 1.02% for its category.

Though its 1-year return is -1.26%, the fund has delivered an average return of 13.12% annually since inception, doubling investments every 3 years. It invests mainly in Financial, Capital Goods, and Construction sectors. With strong return consistency and solid downside control, it can be considered for a short term SIP for 1 year by investors seeking exposure to India’s infrastructure growth story.

Why Opting for 1-Year SIPs Makes Sense for Short-Term Goals

A 1-year SIP is ideal for conservative investors seeking low-risk returns over a short horizon. Many of the best SIP plans for 1 year invest in high-quality debt instruments, ensuring capital safety while offering better returns than regular savings accounts.

These SIPs also provide high liquidity—funds can be easily redeemed when needed, making them perfect for emergencies or planned expenses. Additionally, they offer flexibility; you can begin with small monthly amounts and scale up as your income grows.

Short-term SIPs may also offer tax advantages. For some investors, short-term capital gains are taxed more favorably than interest income from traditional deposits. For instance, a Rs. 10,000 SIP for 12 months at 7% annual return could yield about Rs. 4,500 in gains—more than a typical savings account.

How 1-Year SIPs Offer a Smart Path to Short-Term Financial Goals

A 1-year SIP can help you meet short-term goals—whether it’s a holiday, a new gadget, or an emergency fund—while instilling consistent saving habits. It’s also a great way for new investors to get familiar with mutual funds without locking in money long-term.

Since investments are spread out monthly, the impact of market fluctuations is minimized, giving you smoother returns. After the year ends, you have the flexibility to reassess and adjust your strategy based on new goals.

For example, saving Rs. 2,500 a month for 12 months in a liquid fund could help you comfortably reach a Rs. 30,000 target for a future purchase—plus earn some extra returns along the way.

Choosing the Best SIP Plans for 1 Year Returns: What to Look For

When picking the best SIP plans for 1 year, check if the fund’s objective matches your short-term goals—focus on capital preservation and liquidity.

Go for funds with a low to moderate risk profile, and review recent performance to gauge reliability. A low expense ratio matters—it ensures a larger portion of your investment continues working for you. Be aware of exit loads, as they can reduce your net returns if you withdraw early.

It’s also wise to look at the fund’s size and the track record of its manager before investing. Larger funds tend to be more stable, and experienced managers are better equipped to navigate short-term volatility.

For instance, if one fund charges an expense ratio of 0.20% and another 0.40%, the former saves you Rs. 200 per Rs. 1,00,000 invested—an important edge over just one year.

Conclusion

Investing in the best SIP plans for 1 year offers a simple, flexible, and potentially more rewarding alternative to savings accounts or fixed deposits. Whether you're planning a purchase, building an emergency fund, or just exploring mutual fund investing, 1-year SIPs strike the right balance between safety, returns, and liquidity.

Evaluate your financial goals and risk appetite carefully before choosing a plan—and review your investments regularly to stay on track.

Enrich Money helps you discover the best SIP plans for 1 year with ease, backed by expert recommendations and real-time insights. Start your investment journey today with Enrich Money’s secure and seamless platform.

Frequently Asked Questions

1. Are There Tax Implications for SIP Investment for 1 Year?

Yes. Gains from SIP investment for 1 year in debt funds are taxed as short-term capital gains, based on your income tax slab.

2. Is the Best SIP to Invest for 1 Year Suitable for Beginners?

Yes. The best SIP to invest for 1 year is ideal for beginners as it offers low risk, short-term commitment, and hands-on investing experience.

3. What Are the Benefits of a One Year SIP Plan?

A one year SIP plan offers flexibility, liquidity, and better returns than savings accounts—ideal for short-term financial goals.

4. Can I Earn Good Returns from a SIP for One Year?

Yes. A SIP for one year can deliver moderate returns, especially if you choose a stable or hybrid fund.

5. Which Funds Offer a High Return SIP for 1 Year?

Debt and hybrid funds with strong recent performance are considered a high return SIP for 1 year, but returns vary.

 

Disclaimer:  This blog is dedicated exclusively for educational purposes. Please note that the securities and investments mentioned here are provided for informative purposes only and should not be construed as recommendations. Kindly ensure thorough research prior to making any investment decisions. Participation in the securities market carries inherent risks, and it's important to carefully review all associated documents before committing to investments. Please be aware that the attainment of investment objectives is not guaranteed. It's important to note that the past performance of securities and instruments does not reliably predict future performance.