Best SIP to Invest for 1 Year in India

Most investors are told that SIPs (Systematic Investment Plans) are meant for the long run. And that’s true, if you’re investing for 5-10 years, equity SIPs can help you grow wealth. But what if your goal is short term? What if you only want to invest for 12 months?

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That’s where the confusion begins. Many first-time investors ask,

• “Can I invest in SIP for only 1 year?”
• “Is SIP good for the short term?”
• “Which SIP is safe for 12 months?”

The reality is simple: not all SIPs are created equal. For short horizons, your focus should shift from high returns to safety, liquidity, and steady growth. In this article, we’ll explore the best SIP for 1 year in India (2025), compare short-term options, and share practical tips to make smarter investment choices.

Top SIP Options for 1 Year in India

Here’s a quick comparison of popular short-term SIP investment plans offered by leading fund houses. These are designed for safety and modest returns, ideal if your investment window is only a year.

Is SIP Good for Short Term?

The honest answer: Yes, but only in the right funds.

If you put money in an equity SIP for just one year, there’s a good chance you’ll face volatility. Equity markets don’t guarantee stability in the short run.

If you choose liquid or debt mutual fund SIPs, your capital stays safer while you earn 5-7%, a good alternative to fixed deposits. So, for a short term SIP investment plan, the safer choice is debt-oriented funds.

Detailed Overview of Top SIP Options for 1 Year in India (2025)

HDFC Mutual Fund – Short Duration & Liquid SIPs

For investors seeking the best SIP for 1 year in India, HDFC Mutual Fund offers reliable options in the liquid and ultra-short-term categories. These funds focus on high-quality debt securities, which makes them suitable for a safe mutual fund investment for 1 year. With expected returns of around 6-7% and easy liquidity, they serve as a smart alternative to savings accounts or fixed deposits. Ideal for conservative investors, these plans work well when stability is more important than chasing high growth.

ICICI Prudential Mutual Fund – Debt Mutual Funds SIP 1 Year

If your priority is capital protection with slightly higher yields, ICICI Prudential’s short-term debt mutual funds SIP for 1 year can be a good fit. The fund house has a strong track record in fixed income categories, making it one of the top mutual funds for 1 year SIP in 2025. Compared to liquid funds, these debt-oriented SIPs carry a small amount of risk but often deliver better returns in the range of 6.5-7.5%.

Kotak AMC – Liquid Fund SIP 1 Year

Kotak Asset Management Company provides well-managed liquid fund SIP 1 year options, which are among the safest short-term investments available. These funds park money in treasury bills, government securities, and money market instruments, ensuring near-zero credit risk. For investors who want flexibility, liquidity, and predictable returns, Kotak AMC’s short-duration SIPs are one of the best low-risk SIPs in India 2025.

Nippon India Mutual Fund – Short Duration SIP

The Nippon India Mutual Fund range includes short duration SIPs that strike a balance between safety and modest growth. Designed for investors with a short term SIP investment plan, these funds usually invest in bonds and money market instruments with maturities up to 3 years. While your horizon is just 12 months, they can still deliver competitive returns of 6-7% without exposing you to the volatility of equities.

Axis Mutual Fund – Best SIP for Short Horizon

Axis Mutual Fund has emerged as a popular choice for retail investors, due to its consistent fund management practices. For short-term investors, Axis offers safe mutual fund investment 1 year options under liquid and ultra-short categories. If you’re someone looking for the best SIP for short horizon goals like wedding expenses, emergency funds, or parking surplus cash, Axis short-duration SIPs provide stability, decent returns, and easy withdrawals.

Final Thoughts

If your investment horizon is just 12 months, the best SIP for 1 year in India is one that prioritises safety and liquidity over aggressive growth. Options like liquid funds and short-term debt SIPs are far more suitable than equities. They offer:

• Capital Protection – Your money stays safe.
• Steady Growth – 5-7.5% returns in 2025.
• Flexibility – Easier withdrawals compared to FDs.

For goals like parking a bonus, saving for near term expenses, or building an emergency fund, a short term SIP investment plan makes perfect sense.