Sip For 1 Year

8 Best SIP Plans for 1 Year

Here are some of the best SIP to invest for 1 year horizon, offering a range of risk levels and potential returns —

Overview of SIP Investment Plans for 1 Year

Investors today have access to a wide range of mutual funds, ranging from high-growth equity funds to capital-preserving debt funds. However, choosing the right fund depends on risk appetite, investment horizon, and financial goals. 

1. PGIM India Midcap Opportunities Fund Direct-Growth

PGIM India Midcap Opportunities Fund is an open-ended equity mutual fund that primarily invests in mid-cap companies, typically ranked between 101 and 250 by market capitalisation. These companies are often in a growth phase, with the potential to become large-cap leaders over time.

The fund aims to deliver long-term capital appreciation by investing in equity and equity-related instruments of mid-cap companies. 

Risk & Suitability

• Risk Level: Very High
• Why consider it: Mid-cap companies can offer higher growth than large caps, with relatively lower risk than small caps
• Minimum SIP: Rs. 1,000 (AED 43)*
• Exit Load: 0.5% if redeemed within 90 days
• Fund Manager: PGIM India

This fund works well as a core growth component in a diversified equity portfolio for long-term investors.

2. Nippon India Small Cap Fund Direct-Growth

Nippon India Small Cap Fund is one of the most popular small-cap equity funds in India. It focuses on companies with smaller market capitalisation but high growth potential. This makes it a high-risk, high-reward investment option.

The fund aims to generate long-term capital appreciation by investing predominantly in small-cap equities, all while maintaining limited exposure to debt and money market instruments for liquidity. The investment strategy focuses on identifying emerging businesses that could scale into mid-cap companies in the future.

Risk & Suitability

• Risk Level: Very High
• Why consider it: Potential for superior returns during economic expansions
• Minimum SIP: Rs. 5,000 (AED 215)*
• Exit Load: No exit load, but long-term commitment is advised for maximum benefit
• Fund Manager: Samir Rachh
• Inception: Sep 2010

3. Aditya Birla Sun Life Money Manager Fund

This is a money market mutual fund designed for capital preservation and short-term liquidity rather than long-term wealth creation.

The fund invests in short-term debt and money market instruments with maturities of up to one year. The objective is to generate stable, low-risk returns that are slightly higher than a traditional savings account.

Risk & Suitability

• Risk Level: Low to Moderate
• Why consider it: Low volatility and high liquidity
• Minimum SIP: Rs. 1,000 (AED 43)*
• Exit Load: None

This fund is not suitable for long-term goals but works well as a temporary holding option.

4. Baroda BNP Paribas Credit Risk Fund - Direct Plan-Growth

Baroda BNP Paribas Credit Risk Fund invests across the credit spectrum — including lower-rated corporate debt — to generate higher returns than traditional debt funds.

The fund aims to generate returns by investing in debt and money market instruments, including papers with higher credit risk. Returns are enhanced through careful credit selection, though this also increases default risk.

Risk & Suitability

• Risk Level: Moderately High
• Why consider it: Potential for higher yields in stable credit environments
• Minimum SIP: Rs. 500 (AED 22)*
• Exit Load: 1% for redemptions within 1 year

This fund should form only a limited portion of a debt portfolio.

5. ICICI Prudential Pharma Healthcare and Diagnostics (P.H.D) Fund Direct-Growth

This is a sectoral/thematic equity fund focused exclusively on pharmaceutical, healthcare, diagnostics, and wellness companies.

The fund invests at least 80% of its assets in healthcare-related companies, aiming for long-term capital appreciation driven by sectoral growth trends such as ageing populations, medical innovation, and rising healthcare demand.

Risk & Suitability

• Risk Level: Very High
• Minimum SIP: Rs. 100 (AED 4.3)*
• Exit Load: 1% if redeemed within 15 days
• Important note: Sector funds carry concentration risk and can underperform during unfavourable cycles

If investing, it is advisable to:

• Use SIPs
• Maintain a 7+ year horizon
• Limit exposure within the overall portfolio

6. Bandhan Small Cap Fund Direct-Growth

Bandhan Small Cap Fund focuses on high-growth small-cap companies with strong fundamentals and scalability potential.

The fund invests at least 65% in small-cap equities. It targets companies with strong earnings visibility, capable management, and long-term growth prospects.

Risk & Suitability

• Risk Level: Very High
• Minimum SIP: Rs. 100 (AED 4.3)*
• Exit Load: 1% if redeemed within 1 year
• Fund Manager: Anoop Bhaskar
• Why consider it: Strong wealth creation potential over market cycles

Given the volatility, SIP investing is strongly recommended.

7. DSP Bond Fund - Direct Plan-Growth

DSP Bond Fund is a medium-duration debt fund that primarily invests in high-quality corporate and government bonds.

The fund aims to deliver stable returns with controlled risk. It invests in medium-term debt securities while maintaining liquidity through money market exposure.

Risk & Suitability

• Risk Level: Low to Moderate
• Minimum SIP: Rs. 100 (AED 4.3)*
• Exit Load: None
• Why consider it: Suitable alternative to fixed deposits over medium horizons

This fund fits well into a balanced or conservative portfolio.

8. HDFC Overnight Fund - Direct-Growth

HDFC Overnight Fund is among the safest mutual fund categories, investing in instruments with overnight maturity.

The fund invests in debt securities that mature within one day, aiming to deliver returns aligned with overnight call money rates.

Risk & Suitability

• Risk Level: Very Low
• Minimum SIP: Rs. 100 (AED 4.3)*
• Exit Load: None
• Why consider it: Minimal interest rate and credit risk

This fund is not meant for wealth creation but for capital protection and liquidity management.

Note: *AED to INR exchange rates are subject to change

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Things to Consider for 1 Year SIP Plan

• Liquidity: Choose funds that allow easy access to your money in case you need it urgently
• Historical returns: Look for funds with consistent and good returns over the past year to set realistic expectations
• Stability: Opt for funds that have shown consistent performance, avoiding those with extreme ups and downs
• Fund category: For a 1-year SIP plan, debt funds or liquid funds are generally safer, as they carry lower risk than equity funds
• Fund manager experience: A skilled fund manager can help provide more stable returns, even in volatile markets
• Expense ratio: Lower expense ratios mean you keep more of your returns

Key Factors for Choosing the Right 1-Year SIP Plan

To choose the best SIP investment plan for 1 year, consider the following —

• Fund objective: Make sure the fund's goal matches yours, such as focusing on preserving capital or offering liquidity
• Risk profile: For short-term investments, go for low-risk options like debt funds
• Past performance: While past results aren’t guaranteed, funds with stable returns over the past year are usually more reliable
• Expense ratio: A lower expense ratio generally results in better net returns
• Exit load: Check if the fund charges a penalty for early withdrawal, as this can affect your returns
• Fund size: Larger funds tend to offer better stability and liquidity
• Fund manager’s track record: A manager with a strong history of managing similar short-term funds can help ensure better results

Note: When investing in small-cap or actively managed funds, the expense ratio may be higher. However, a high expense ratio doesn't automatically mean the fund is a bad investment. It’s just one of the many factors to consider, alongside other important aspects like performance and management.

Start Your SIP for 1 Year with PolicyBazaar.ae

Planning to start an SIP for 1 year in UAE, but unsure which fund suits your goals? That’s where Policybazaar.ae makes investing simple.

Why Invest Through Policybazaar.ae?

✅ Compare the best SIP plans for 1 year across top fund houses

✅ Get expert guidance based on your risk profile and time horizon

✅ Start SIPs with as low as AED 100

✅ Transparent comparisons with no hidden charges

✅ Dedicated support for UAE residents & NRIs

Explore SIP & Investment Plans on Policybazaar.ae and choose an SIP plan for 1 year in UAE that aligns with your short-term financial goals — smart, simple, and stress-free.

Final Thoughts: How to Choose the Right Fund

• Equity funds (Mid-cap & Small-cap): Suitable for long-term wealth creation with high risk tolerance
• Sector funds: Tactical tools, not core portfolio holdings
• Debt & money market funds: Best for stability, liquidity, and short-term goals

A well-diversified portfolio typically combines equity for growth and debt for stability, aligned with your time horizon and risk appetite.

Disclaimer: Mutual fund investments are subject to market risks. Past performance does not guarantee future returns. Always consult a financial advisor before investing.

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