Best SIP Plans for Long Term: How and Where to Invest

Long Term SIP: What and Why

A systematic investment plan is a financial strategy in which an investor puts a particular sum of money periodically as a mutual fund calculator to generate maximum growth. For each stipulated time period, you should put the same amount of money for maximum benefits.

SIPs let you get long term gains and give you the privilege of regular savings. It does not put a burden on the investor as the minimum investment for a year can be as low as INR 500 or 100. SIPs are one of the most popular forms of investing in mutual funds. It is also perfect for beginners as you can start with a small amount and gradually increase your savings systematically. A systematic investment plan calculator helps individuals estimate the future value of their monthly investments by considering factors such as investment amount, duration, and expected return rate.

There are several benefits to investing in an SIP for the long term.

• It offers long-term gains and helps you accumulate a lump sum amount of savings for the future.
• It creates the habit of regular savings, which can only be beneficial for an individual or family.
• It provides diversification, along with the benefits of averaging rupee cost.
• It offers the flexibility to withdraw your money in times of need.
• It lets you increase or decrease the investment amount according to your convenience. 

5 Best SIP Plans for Long Term to Invest Your Money In

Now that you know how beneficial a long term SIP is, here’s a list of the five best SIP plans that you can choose to make long-term investments into.

Axis Bluechip Fund

Axis Bluechip Fund is one of the best large-cap equity mutual fund plans. It invests your money in stocks of companies that have a large market capitalization, that is ₹1,000 Cr or more. This is a good long term investment option as it has the possibility and record of showing steady growth every year.

Axis Bluechip is considered a safe and less volatile investment, irrespective of Sensex performance, with returns of 37.8% in one year.

SBI Small Cap Fund

This long term SIP plan invests your money in emerging companies, which have a market capitalization amount of around INR 500 Cr. It has the potential to fetch good returns in the long term. As these emerging companies grow and evolve in the market, so will your money.

SBI Small Cap Fund has a positive past record, producing returns of around 62.2% in a year. What’s more, it requires you to invest a minimum of only ₹500 each year. 

PGIM India Diversified Equity Fund

PGIM is one of the best performing diversified equity funds in India. These funds are invested across companies with varying market capitalization, i.e. large-cap, small-cap, and mid-cap funds. Diversified funds give you the most balanced portfolio, which helps to keep your money safer. 

PGIM India Diversified Equity Fund can give you returns of 66.4% in a year, with a track record of showing steady growth in years of the recent past.

Parag Parikh Long Term Equity Fund

Parag Parikh’s funds have become one of the investors’ favourites in recent years. This is also a diversified mutual fund SIP plan that invests your money safely in a variety of large-cap, mid-cap, and small-cap companies.

Parag Parikh Long Term Equity Fund seeks to generate long-term financial growth for you by actively managing your investment in various equity and equity-related securities. It has shown a growth of 57.1% over a year.

IDFC Infrastructure Fund

IDFC Infrastructure Fund is a long term SIP sector fund. It invests your money in companies of a specific sector, like banking, pharmaceuticals, infrastructure, telecom, etc. You can choose a sector that seems likely to show the most growth in the long term.

Since infrastructure is a safe bet for growth and development in the future, this IDFC fund has the capability of giving you high returns, like 103.1% over a year.

Start Investing Now!

Long term SIP plans work best when you begin at the right time and keep investing regularly, without getting anxious about the ups and downs of the market. While Nifty keeps showing highs and lows, the best SIP plans for the long term will help keep your money safe and give ample returns to secure your future.