which is best systematic ivestment plan to invest for 5 years

Before selecting funds for your SIP, you need to define your investment objectives. Your investment objectives should also be based on your risk tolerance. Based on your investment objectives, you can select funds for your SIP investments. For example, if your investment is capital appreciation then you can select top performing diversified equity funds. You can add a few small and midcap funds to your portfolio. If you want capital appreciation with limited downside risk then you can go for balanced funds and monthly income plans. While balanced funds are equity oriented funds, monthly income plans are debt oriented funds with lower risk. We have discussed and reviewed top funds across various mutual fund categories in our Articles section. Depending on your risk profile and investment horizon, you can select the right investment option in consultation with a financial advisor. You can split your monthly SIPs among 2 – 3 different funds, but it is not advisable to invest small SIP amounts in a large number of funds. Investing in a large number of funds does not necessarily mean you are diversifying your risks.