Systematic Investment Plans (SIPs) are one of the most disciplined, low-barrier, and high-potential ways to grow your wealth over time. Whether you’re a UPSC aspirant planning long-term savings or a professional aiming for financial freedom, choosing the right SIP can make a huge difference.
Top Performing Systematic Investment Plans Mutual Funds in India (2025)
| Mutual Fund Scheme | Category | Avg. 5-Year Returns | Risk Level |
|---|---|---|---|
| Quant Small Cap Fund | Small Cap | ~30% | High |
| Nippon India Small Cap Fund | Small Cap | ~28% | High |
| Parag Parikh Flexi Cap Fund | Flexi Cap | ~18% | Medium |
| Axis Growth Opportunities Fund | Large & Mid Cap | ~17% | Medium |
| SBI Bluechip Fund | Large Cap | ~14% | Low-Medium |
| HDFC Hybrid Equity Fund | Hybrid (Equity + Debt) | ~12% | Low |
How to Choose the Best SIP for You
1. Define Your Goal
- Are you saving for UPSC preparation, marriage, house, or retirement?
- Short-Term (<3 yrs): Debt Funds
- Medium-Term (3–5 yrs): Hybrid Funds
- Long-Term (5+ yrs): Equity Systematic Investment Plans
2. Understand Your Risk Appetite
- High risk = Small/Mid Cap Funds (High returns, high volatility)
- Medium = Flexi Cap or Large & Mid Cap Funds
- Low = Hybrid or Debt Funds
3. Use SIP Calculator
- A ₹1000/month SIP for 10 years at 12% annual return = ₹2.3 lakhs
(Investment: ₹1.2 lakh + Profit: ₹1.1 lakh)
Best Apps to Start SIP
- Zerodha Coin
- Groww
- ET Money
- Paytm Money
- Kuvera
These apps allow paperless SIP investment and portfolio tracking
SIP
UPSC Relevance
Understanding SIPs is crucial for:
- Economy & Financial Literacy GS Paper 3
- Essay on Savings Culture in India
- Interviews – Personal financial planning awareness
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VARIOUS PYQ RELATED TO THIS TOPIC
1. In the context of finance, the term ‘beta’ refers to
[UPSC CSE – 2023 Prelims](a) the process of simultaneous buying and selling of an asset from different platforms(b) an investment strategy of a portfolio manager to balance risk versus reward(c) a type of systemic risk that arises where perfect hedging is not possible(d) a numeric value that measures the fluctuations of a stock to changes in the overall stock market
2. With reference to the Indian economy, what are the advantages of “Inflation-Indexed Bonds (IIBs)”?
- Government can reduce the coupon rates on its borrowing by way of IIBs.
- IIBS provide protection to the investors from uncertainty regarding inflation.
- The interest received as well as capital gains on IIBs are not taxable.
Which of the statements given above are correct?
[UPSC Civil Services Exam – 2022 Prelims](a) 1 and 2 only(b) 2 and 3 only
(c) 1 and 3 only(d) 1, 2 and 3
3. With reference to Convertible Bonds, consider the following statements:
- As there is an option to exchange the bond for equity, Convertible Bonds pay a lower rate of interest.
- The option to convert to equity affords the bondholder a degree of indexation to rising consumer prices.
Which of the statements given above is/are correct?
[UPSC Civil Services Exam – 2022 Prelims](a) 1 only(b) 2 only(c) Both 1 and 2(d) Neither 1 nor 2
4. With reference to India, consider the following statements:
- Retail investors through demat account can invest in ‘Treasury Bills’ and ‘Government of India Debt Bonds’ in primary market.
- The ‘Negotiated Dealing System-Order Matching’ is a government securities trading platform of the Reserve Bank of India.
- The ‘Central Depository Services Ltd.’ is jointly promoted by the Reserve Bank of India and the Bombay Stock Exchange.
Which of the statements given above is/are correct?
[UPSC Civil Services Exam – 2021 Prelims](a) 1 only(b) 1 and 2 only(c) 3 only(d) 2 and 3 only
5. In the context of the Indian economy, non-financial debt includes which of the following?
- Housing loans owed by households
- Amounts outstanding on credit cards
- Treasury bills
Select the correct answer using the code given below:
[UPSC Civil Services Exam – 2020 Prelims](a) 1 only(b) 1 and 2 only(c) 3 only(d) 1, 2 and 3
6. Which of the following phrases defines the nature of the ‘Hundi’ generally referred to in the sources of the post-Harsha period?
[UPSC CSE – 2020 Prelims](a) An advisory issued by the king to his subordinates(b) A diary to be maintained for daily accounts(c) A bill of exchange(d) An order from the feudal lord to his subordinates
7. With reference to the Indian economy, consider the following statements:
- ‘Commercial Paper’ is a short-term unsecured promissory note.
- ‘Certificate of Deposit’ is a long-term instrument issued by the Reserve Bank of India to a corporation.
- ‘Call Money’ is a short-term finance used for interbank transactions.
- ‘Zero-Coupon Bonds’ are the interest bearing short-term bonds issued by the Scheduled Commercial Banks to corporations.
Which of the statements given above is/are correct?
[UPSC Civil Services Exam – 2020 Prelims](a) 1 and 2 only(b) 4 only(c) 1 and 3 only(d) 2, 3 and 4 only
8. Which of the following is issued by registered foreign portfolio investors to overseas investors who want to be part of the Indian stock market without registering themselves directly?
[UPSC Civil Services Exam – 2019 Prelims](a) Certificate of Deposit(b) Commercial Paper(c) Promissory Note(d) Participatory Note
9. Consider the following statements:
- The Reserve Bank of India manages and services Government of India Securities but not any State Government Securities.
- Treasury bills are issued by the Government of India and there are no treasury bills issued by the State Governments.
- Treasury bills offer are issued at a discount from the par value.
Which of the statements given above is/are correct?
[UPSC Civil Services Exam – 2018 Prelims](a) 1 and 2 only(b) 3 only(c) 2 and 3 only(d) 1, 2 and 3
10. With reference to `IFC Masala Bonds’, sometimes seen in the news, which of the statements given below is/are correct?
- The International Finance Corporation, which offers these bonds, is an arm of the World Bank.
- They are the rupee-denominated bonds and are a source of debt financing for the public and private sector.
Select the correct answer using the code given below
[UPSC Civil Services Exam – 2016 Prelims](a) 1 only(b) 2 only(c) Both 1 and 2(d) Neither1 nor 2
11. With reference to ‘Financial Stability and Development Council’, consider the following statements:
- It is an organ of NITI Aayog.
- It is headed by the Union Finance Minister
- It monitors macro-prudential supervision of the economy.
Which of the statements given above is/ are correct?
[UPSC Civil Services Exam – 2016 Prelims](a) 1 and 2 only(b) 3 only(c) 2 and 3 only(d) 1, 2 and 3
12. What does venture capital mean?
[UPSC Civil Services Exam – 2014 Prelims](a) A short-term capital provided to industries(b) A long-term start-up capital provided to new entrepreneurs(c) Funds provided to industries at times of incurring losses(d) Funds provided for replacement and renovation of industries