Best SIP to Invest in 2026 for 1 Year in India

Selecting the best 1-year SIP mutual fund requires more than just considering returns. Before choosing where to invest, investors must consider risk levels, asset allocation, fund category behavior, manager experience, AUM size, and market conditions. Because they lessen exposure to market volatility, debt funds or hybrid funds are typically preferred for short-term horizons like a year. Conversely, pure equity mutual funds are far more vulnerable to capital fluctuations, particularly in the event of a market downturn that could result in losses.

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To help simplify the landscape, in this blog, we have gone through debt and hybrid fund categories that have recently shown attractive performance over the last 1 year. Here is an overview of some of the leading options in India, along with their 1-year SIP outcomes and return numbers.

Overview of Best 1-Year SIP Mutual Funds

DSP Credit Risk Fund

Co-Managed by Vivekanand Ramakrishnan and Shalini Vasanta, DSP Credit Risk Fund is one of the oldest offerings in the segment, launched on May 13, 2003. With an AUM of ₹208.6 crore, the fund aims to generate superior yields by taking on more credit exposure than traditional debt strategies. It primarily invests in lower-rated corporate debt instruments and balances this with some allocation to government and money market assets.

The fund has delivered an impressive 21.09% return over the past year, making it one of the strongest recent performers in the debt category. A 1-year SIP of ₹1,000 in this fund would today be worth ₹13,779.20.

HSBC Credit Risk Fund

Managed by Shriram Ramanathan, this fund combines corporate debt exposure (with ratings AA and below) along with measured allocations to money market instruments and government securities. Its objective is to generate high yields while controlling interest rate risk through duration and maturity management. The fund was launched on October 8, 2009, and today holds an AUM of ₹523.5 crore. Over the last year, it has produced a strong 20.3% return, while a ₹1,000 SIP over the same period would have grown to ₹13,707.46.

DSP Multi Asset Allocation Fund

With an AUM of ₹5,586.9 crore, DSP Multi Asset Allocation Fund is managed by Aparna Karnik, Shantanu Godambe and Ravi Gehani. The fund was launched on September 27, 2023. It spreads investments across Indian and foreign equities, debt assets, money market instruments, and gold ETFs. The structure adjusts dynamically based on market behaviour and valuation trends. It has posted a robust 20.88% 1-year return, while a 1-year SIP of ₹1,000 has grown to ₹13,760.09, making it one of the top-ranked performers among diversified hybrid funds.

Invesco India Multi Asset Allocation Fund

Launched on December 17, 2024, this fund is led by Taher Badshah, Krishna Venkat Cheemalapati and Amey Sathe, as of November 2025, managing ₹594.6 crore. It holds equity (domestic + global), debt instruments, and commodity exposure, adjusting allocations actively. Designed for aggressive long-term investing, this fund accepts higher volatility in exchange for potential capital growth. The fund delivered 20.63% returns over the past year, with a 1-year SIP(₹1,000 per month) value of ₹13,737.38.

ICICI Prudential Equity & Debt Fund

ICICI Prudential Equity & Debt Fund is a hybrid scheme designed to offer long-term capital appreciation along with an element of income stability. It follows an asset mix that typically keeps around three-fourths of the portfolio in equities and the remaining portion in debt and money-market instruments. The equity allocation is well diversified across established companies in sectors like financial services, energy, healthcare, technology, and consumer businesses. Meanwhile, the debt exposure adds balance to the portfolio by reducing volatility and helping smooth out return behaviour.

This structure makes the fund suitable for investors who want a return potential higher than pure debt products, but who are not comfortable investing in a 100% equity portfolio. Managed by Mittul Kalawadia, Manish Banthia, Sankaran Naren, Sri Sharma, Akhil Kakkar, Sharmila D'Silva and Nitya Mishra. The scheme has an AUM of ₹49,222.5 crore and has delivered a 1-year return of 11.95%. A ₹1,000 SIP over the same period would today be worth ₹12,974.19.

ICICI Prudential Balanced Advantage Fund

ICICI Prudential Balanced Advantage Fund is a dynamic asset-allocation fund that adjusts its equity and debt exposure depending on market conditions. Using internal valuation models, the fund increases equity exposure when markets appear attractive and reduces it, often through derivatives or debt positioning, when valuations seem expensive. The strategy aims to deliver equity-linked growth while managing volatility more effectively than a traditional equity fund.

Managed by Rajat Chandak, Manish Banthia, Ihab Dalwai, Akhil Kakkar and Sri Sharma, the fund today manages an AUM of ₹69,867.9 crore, has produced 11.22% returns over the past 1 year, and a ₹1,000 SIP would now be valued at ₹12,912.19.

SBI Equity Hybrid Fund

SBI Equity Hybrid Fund is an aggressive hybrid fund that usually allocates 65%–80% of its portfolio to equities with the balance in debt and money-market instruments. The debt allocation, meanwhile, offers added income potential. It demands tolerance for short-term volatility but rewards investors with a more stable structure than pure equity funds. The fund is managed by R. Srinivasan, Rajeev Radhakrishnan and Mansi Sajeja, has an AUM of ₹82,958.2 crore, recorded 11.1% returns in the last 1 year, and a ₹1,000 SIP stands at ₹12,902.04.

Aditya Birla Sun Life Medium Term Plan

Aditya Birla Sun Life Medium Term Plan is a medium-duration debt scheme investing primarily in fixed-income securities that mature within a medium-term horizon. The strategy is to generate income and moderate levels of capital appreciation through a diversified portfolio of corporate bonds and other debt assets.

This fund suits investors seeking returns higher than traditional bank deposits, but who are comfortable accepting moderate interest-rate and credit risk. It is ideal for someone seeking stability and income generation without excessive volatility. Managed by Sunaina da Cunha and Mohit Sharma, the fund has an AUM of ₹2,863.8 crore. It has delivered 10.88% over the past 1 year, and a ₹1,000 SIP now totals ₹12,883.43.

Note: Data is as of December 19, 2025

Conclusion

To conclude, the selection process for a one-year SIP investment in 2026 calls for a disciplined and realistic approach which takes into account current market conditions. Short-term SIPs are less about chasing high returns and more about managing volatility while staying invested through market ups and downs. Funds with a focus on stability, liquidity and quality holdings tend to be better suited for such timeframes. Investors need to select their SIP based on their risk tolerance and their financial requirements and the current state of the market instead of choosing based on historical returns. A one-year SIP used correctly enables investors to develop their investment skills by making market entries during short timeframes while protecting them from major market fluctuations.