Best SIP to Invest - Top SIP Mutual Funds Plans in India 2025

Investing wisely to achieve your financial goals is a crucial aspect of financial planning. One of the popular investment options in India is the Systematic Investment Plan (SIP) which allows investors to make regular contributions towards Mutual Funds. While SIPs are often associated with long-term financial planning, they can also be valuable for short-term goals and objectives.

In this guide, we will explore the concept of short-term SIPs and list the top 10 short-term SIPs of ICICI Bank, one of India's leading financial institutions, to consider for your investment portfolio.

Understanding short-term SIPs

The Systematic Investment Plan is a disciplined approach to investing in Mutual Funds, where investors contribute a fixed amount of money at regular intervals. Typically, SIPs are associated with long-term financial goals such as retirement planning or wealth creation over several years. However, SIPs can also be a smart choice for short-term objectives like:

• Building an emergency fund
• Saving for a vacation
• Funding your child's education
• Accumulating a down payment for a home
• Preparing for an upcoming expense.

Short-term SIPs allow you to invest with flexibility and liquidity, making them suitable for goals that require financial resources within a few months or a few years.

Advantages of short-term SIPs

Disciplined saving: SIPs encourage regular saving, helping you to set aside money consistently for your short-term goals.

Rupee cost averaging: Similar to long-term SIPs, short-term SIPs benefit from rupee cost averaging. You buy more units when the market is down and fewer units when it is up, potentially reducing the impact of market volatility.

Liquidity: Short-term SIPs offer liquidity, allowing you to redeem your investments partially or in full when needed without significant penalties.

Risk mitigation: Short-term SIPs are less exposed to market fluctuations, making them relatively less risky for short-term objectives.

Best SIPs for short term goals

Now, let's delve into the top 8 short-term SIPs that you can consider for your investment needs with a perspective from ICICI Bank.

1. ICICI Prudential Ultra Short Term Fund

Geared toward conservative investors, this debt fund holds high-quality bonds and money-market instruments. Short modified duration 0.45 years means minimal interest rate risk. With ₹1,000 SIP and no exit load, it's ideal for safe short‑to‑medium goals.

2. ICICI Prudential Short Term Fund

Invests in quality corporate bonds, maturity 3.8 years. The fund provides better yield than ultra-short with moderate interest rate risk. ₹1,000 SIP minimum needed which is suitable for a 1–3 year financial goal, seeking higher returns with acceptable stability.

3. ICICI Prudential Bluechip Fund

Large-cap equity fund investing in top 100 companies like ICICI Bank. The fund offers stable long-term growth 16% CAGR since inception. Moderate volatility and is ideal for disciplined investors via 5‑year SIPs.

4. ICICI Prudential Value Discovery Fund

Focuses on undervalued mid-to-large-cap stocks. Strong multi-year return track records 14% over 5 years. Higher risk due to value-based stock picks. Suitable for investors who can stay invested through market cycles for long-term growth.

5. ICICI Prudential Equity & Debt Fund

Hybrid aggressive fund with 65–80% equity and rest in debt. Delivers balanced returns 11–12% CAGR with lower volatility than pure equity. Ideal for moderate-risk investors seeking a mixed exposure and growth with some income cushion.

6. ICICI Prudential Balanced Advantage Fund

Dynamic allocation fund that shifts between equity and debt based on market. Offers around 10% annualised returns and smoother ride than equity funds. Great for investors seeking automated risk management with moderate long-term growth.

7. ICICI Prudential Technology Fund

Sector fund focusing on Indian tech companies. High growth potential 20%+ returns during bullish tech cycles. High volatility due to sector concentration. Best for aggressive investors with a strong belief in technology trends.

8. ICICI Prudential ELSS Tax Saver Fund

Equity-linked tax-saving fund with a 3-year lock-in under Section 80C. It offers 12–14% long-term returns. Ideal for first-time investors and those seeking tax benefits with equity exposure. Good for long-term wealth creation with added tax savings.

These short-term SIP options from ICICI Bank Mutual Fund offerings cater to a wide range of financial goals and risk appetites. Before selecting an SIP, it is essential to assess your specific financial objectives, time horizon and risk tolerance. Additionally, consider consulting a financial advisor to ensure that your short-term investment choices align with your overall financial plan.

The importance of regular review

While short-term SIPs offer flexibility and liquidity, it is equally important to review your investments periodically. Here are some key factors to consider:

Goal progress: Regularly assess whether your short-term financial goals are on track. If your goals change or you need to adjust the timeline, your SIP strategy may need modifications.

Market conditions: Keep an eye on market conditions and interest rates as they can impact the returns on your investments. Your fund's performance may vary in different market scenarios.

Risk Tolerance: As your financial situation evolves, your risk tolerance may change. Ensure that your short-term SIP aligns with your current risk appetite and financial objectives.

Tax implications: Understand the tax implications of your SIP investments. Short-term capital gains are taxed differently from long-term gains. Consider the tax efficiency of your chosen funds.

Fund performance: Monitor the performance of the Mutual Funds you have invested in. While past performance is not indicative of future results, it can provide insights into fund management.

Diversification: Review the diversification within your SIP portfolio. Diversifying across different fund categories can help manage risk.

Professional guidance: Consider seeking advice from a financial advisor or investment professional. They can provide personalised guidance based on your financial situation and goals.

Short-term SIPs are a versatile investment tool that can help you achieve your financial goals, whether you are planning for a vacation, building an emergency fund or preparing for a significant expense. ICICI Bank offers a range of short-term SIP options to cater to various investment needs and risk profiles. By carefully selecting the right SIP and staying disciplined in your investments, you can effectively work towards your short-term financial objectives. Remember that all investments carry some level of risk, so it is essential to make informed decisions based on your individual circumstances and goals.

Things to Consider While Choosing Short Term SIP Plans

1. Know your goal: Before starting a short-term SIP, think about your goal. Are you saving for a vacation, a gadget, or an emergency fund? Short-term SIPs usually have lower risks, but returns may also be moderate.

2. Analyse the fund: Choose funds with good past performance, low expense ratios, and strong ratings. Also, make sure the fund matches your risk level, and don’t take unnecessary chances for short-term needs.

3. Consider liquidity: Liquidity is important, so pick funds you can easily exit. If you’re unsure, start small and review regularly. You can use SIP calculators to get help and plan how much to invest.

Risks Involved While Investing in Ultra Short Funds

Ultra short-term funds may seem safer than equity, but they’re not risk-free. Below are the common risks involved:

• These funds invest in short-term debt instruments that can be affected by interest rate changes and credit issues.

• If the market sees a sudden rate hike, your fund's returns might drop slightly. Also, if a company in the fund's portfolio defaults, it can affect your money.

Although these risks are usually low, they still exist.

How to Invest in Short Term SIP?

Investing in a short-term SIP is simple. Here are the steps:

• Start by selecting a digital platform from ICICI Bank, like the iMobile app or Internet Banking.

• Choose a short-duration debt fund that matches your goal.

• Decide how much you want to invest every month and for how long, like 6 months to 2 years.

• Complete your KYC if you’re new.

• Set up auto-debit to make sure your SIP continues without delay. 

FAQs

What is a short‑term SIP?

A short-term SIP is a Systematic Investment Plan where you invest regularly for a brief period, usually less than 1 year.

Can I have a SIP for 6 months?

You can start an SIP for just 6 months. It’s flexible and lets you invest small amounts regularly, even for a short period, depending on your financial planning.

What are the advantages of investing via short‑term SIPs?

Short-term SIPs help build savings gradually, reduce risk through regular investment, and offer decent returns.

Are there tax implications on short‑term SIPs?

Short-term capital gains from equity mutual fund SIPs held for less than 12 months are taxed at a flat rate of 20% plus surcharge and cess (increased from 15% since July 2024). For debt mutual funds, short-term gains (held less than 36 months) are taxed as per your income slab rate.