Investing through a Systematic Investment Plan (SIP) is one of the most effective ways to achieve long-term financial goals, be it retirement, children’s education, travel, or building a robust emergency fund.
Here are the top 5 SIP plans that are especially useful because they allow you to invest regularly in a disciplined manner, without the need to time the market. These funds offer a balanced mix of global exposure, regional strength, risk diversification, and long-term potential, making them ideal for both beginner and seasoned investors.
Mutual funds are essentially a portfolio of stocks, bonds, and other market-linked securities and are purchased using pooled capital of investors. These portfolios are managed by professional fund managers.
You can invest in mutual funds either by paying a lump sum amount or via a Systematic Investment Plan (SIP). This is an investment mechanism that involves contributing a small fixed investment amount towards mutual funds at regular intervals, such as, monthly, weekly, or quarterly.
Let’s start with the Top 5 SIP plans for investment in UAE, covering both short-term and long-term options. Whether you're looking for stability, aggressive growth, or region-specific investments, these top 5 SIP funds have something for every type of investor.
Some of the best Investment quotes in UAE & Dubai are:
The following are the top 5 SIP plans for investment in UAE for short-term holdings -
This is one of the top 5 SIP to invest and a long/short global equity fund that aims for long-term capital growth by investing in global stocks. It uses behavioural insights to avoid market biases from company managers, analysts, and investors, focusing instead on factual analysis like stock prices, forecasts, and company reports.
The minimum holding for Ardevora Global Equity Funds is 5 years. This global equity fund uses a bottom-up approach. The majority of the mutual fund’s investments are done in the United States. The remaining funds are split between Europe, Japan, and other parts of the world.
This top 5 SIP fund aims to outperform the Bloomberg Global Aggregate Index over 5 years by investing in global debt and asset-backed securities. It focuses on bonds from governments, agencies, and companies worldwide, including emerging markets to offer growth and income with macroeconomic insight.
This is a ‘Go-anywhere’ bond fund that invests in any bonds issued by governments or companies worldwide and can be invested in any global currency. The investments are made after considering the macroeconomic conditions, creating a portfolio that is designed to capitalise on short-term tactical investments.
Schroder US Mid Cap fund is one of the best SIP plans and aims to provide capital growth and income through investment in the Russell 2500 Total Return Logged index. The investment tenure is at least 3 to 5 years into equity and equity-related securities of medium-sized US companies.
This makes it one of the top 5 SIP funds that actively manages investment in high-potential medium-sized U.S. companies using deep fundamental research. It strategically balances growth, stability, and turnaround opportunities to deliver capital growth and income over 3–5 years, aiming to outperform the Russell 2500 index.
Three-Bucket Investment ApproachThe savings strategy uses three virtual buckets to manage your finances - Bucket 1: Emergency and Short-Term Goals This bucket is for immediate needs and short-term goals. It should contain liquid assets like cash or easily accessible investments. Aim to save 3-6 months of income here to cover emergencies. Once that’s set, you can use the funds for short-term goals like vacations or electronics. Bucket 2: Financial Well-Being This bucket focuses on medium-term goals like a down payment or paying off debt. It includes less liquid assets like stocks or bonds, with a time frame of 1-5 years. Allocate 10-30% of your savings here. Bucket 3: Financial Independence The long-term bucket is for goals like retirement or children’s education, with a time frame of 5+ years. Invest 50-70% of your savings here for future security. |
This is one of the best mutual funds for SIP, investing in the equities of large-sized companies in the United States within the Russell 1000 Growth Index. Approximately, 80% of the funds are invested in companies with opportunistic business momentum, valuations with growth potential, and market recognition.
It tracks large U.S. companies with strong long-term growth potential, focusing on firms with solid cash flows and sustainable advantages. This top 5 SIP plan aims for capital growth by closely mirroring the performance of the Russell Large-Cap Growth Index.
The Voya Russell Large-Cap Growth Index Fund offers the following -
This is another one of the top 5 SIP to invest in for the short term. With a minimum investment tenure requirement of 5 years, this fund invests assets in emerging markets. The focus is on quality, high cash flow generation, positive incremental return on invested capital, and top-notch corporate governance.
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The following are the best 5 mutual funds for SIP for long-term holdings -
This is the best mutual fund for SIP that actively invests in equities and helps to earn high returns on investment in the long term. The fund focuses on identifying market leaders across diverse sectors and geographies, leveraging strong management teams and disruptive innovation as key selection criteria.
Its portfolio typically consists of 50 to 100 stocks, offering investors a curated mix of public equities and up to 30% exposure in private companies. This blend allows the trust to capture early-stage growth alongside established market performers.
The Fundsmith Equity Fund is designed for long-term investors seeking consistent capital growth over a period of five years or more. This top 5 SIP fund takes a global approach to equity investing, but instead of frequent trading, it follows a disciplined “buy and hold” strategy, focusing on a small number of high-quality companies.
This is the best SIP for AED 1,000 per month especially for long-term investors. The Fundsmith Equity Fund invests globally in stocks with a long-term and avoids short-term trading.
Key Investment Criteria:
The Fidelity Emerging Market Fund offers investors access to a concentrated portfolio of 30 to 50 high-conviction stocks across emerging markets. This fund is one of the top 5 SIP plans for investment in UAE and stands out for its disciplined bottom-up stock selection process.
One of the key strengths of this fund is Fidelity’s extensive on-the-ground research team, with 47 analysts located in key emerging economies such as China and India. This local presence provides deep insights into market dynamics and business fundamentals, helping the fund identify opportunities early and make informed investment decisions.
The investment takes the following factors into account -
The Invesco Perpetual Asian Fund is another long-term SIP of AED 20,000 per month in the UAE focusing on capital growth. It aims to achieve long-term capital growth over a period of 5 years or more. This is done by investing at least 80% of its assets in shares and equity-related securities of companies based in Asia and Australasia, excluding Japan.
While its core focus remains on Asia-Pacific markets, the fund manager retains the flexibility to invest in a broader range of transferable securities, including global companies, as well as money market instruments, collective investment schemes, deposits, and cash. This approach allows the fund to capture diverse growth opportunities while maintaining its primary regional strategy.
The Fidelity Global Dividend Fund focuses on investing in high-quality global companies with strong potential to maintain and grow their dividends over time. Aimed at providing both income and capital growth, this top 5 SIP fund seeks to outperform the MSCI All Country World Index by offering at least 25% more income than the companies included in the index, while also aiming for lower volatility.
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Systematic Investment Plans (SIPs) are a great option for various types of investors due to their flexibility, convenience, and potential for long-term wealth growth. Here's who should consider the best SIP Plans -
What are the Different Investment Options for Expats in UAE? |
Choosing the right SIP (Systematic Investment Plan) of AED 20,000 per month in the UAE involves several steps to match your financial goals, risk tolerance, and preferences. Here are some tips to help you -
Set Your Financial Goals | Decide what you want to achieve - wealth accumulation, retirement, education funding, etc. Determine how much you can invest regularly and establish your investment timeframe. |
Assess Your Risk Tolerance | Consider your risk tolerance based on age, income, and financial responsibilities. If you can handle higher risks, equity SIPs might be suitable. For lower risk, consider debt-oriented SIPs. |
Which SIP to Invest in | Understand different SIP types like equity, debt, balanced, or sector-specific funds. Choose funds that fit your risk level and goals. |
Check Fund Performance | Look at past performance, consistency, and volatility, but remember that past results don't guarantee future returns. |
Diversify | Choose SIPs that diversify investments across asset classes, sectors, and regions to reduce risk. |
Read Scheme Documents | Carefully review the scheme’s objectives, strategy, and risks by reading the offer documents. |
Get Professional Advice | If you're unsure, consult financial experts like Dhanguard for personalized recommendations. |
Some of the top SIP investment plans in the UAE include Ardevora Global Equity Fund, Schroder US Mid Cap Fund, Voya Russell Large-Cap Growth Index Fund, and M&G Global Macro Bond Fund. These offer global diversification and solid long-term growth potential.
Yes, SIPs typically offer higher long-term returns than fixed deposits, which average around 3–4% annually. SIPs also benefit from market-linked growth and the power of compounding.
Yes, expatriates living in the UAE can easily invest in SIPs through licensed financial advisors or global investment platforms.
For best results, you should stay invested for at least 5 years. Longer durations allow compounding to work effectively and help you ride out market fluctuations.