The Systematic Investment Plan, commonly known as SIP, is a financial strategy that empowers investors to select a mutual fund plan and commit to investing a fixed sum at regular intervals. These intervals can be as flexible as monthly, quarterly, half-yearly, or yearly, with the investment starting as low as INR 500. SIPs offer investors a distinct advantage in navigating the ever-changing dynamics of the market, making it a preferred choice for long-term wealth creation. Here in this blog, we will delve into the best SIP plans for 10 years in 2023.
What are the Best SIPs to Invest in for 10 Years
1) Aditya Birla Sun Life Digital India Fund
- The Aditya Birla Sun Life Digital India Fund is a multi-sector, open-ended growth scheme that prioritizes the achievement of long-term capital growth.
Aditya Birla Sun Life Digital India Fund dedicates its entire portfolio to achieving long-term capital growth, comprising 100% of its investments.
- The fund’s primary focus is on investments within the expansive technology and technology-related sectors, which include hardware, software, telecom, media, internet, e-commerce, peripherals, components, and various related industries.
- In addition to its core objective of capital growth, the scheme integrates a secondary aim of generating income and actively distributing dividends to its investors.
- This dual-pronged investment approach offers investors a comprehensive and adaptable strategy that accommodates both long-term growth objectives and the need for regular income, rendering the Aditya Birla Sun Life Digital India Fund a compelling choice for a diverse range of investment goals.
Aditya Birla Sun Life Digital India Fund, introduced on January 15, 2000, falls under the equity-sector-based scheme category.
- This fund is characterized by a high level of risk, primarily due to its emphasis on equity investments.
- Since its inception, the fund has demonstrated an annualized return of 12.9%, signifying its potential for substantial returns over time.
- In the sectoral category, the fund holds a ranking of 33, offering a comparative perspective on its performance within its sector when compared to other funds.
2) Franklin India Technology Fund
- Investment Objective: The primary objective is to achieve long-term capital appreciation.
- Investment Focus: The fund primarily allocates investments to equity and equity-based securities.
- Sectoral Focus: The fund concentrates its investments in technology and technology-related companies.
- Strategy: The fund’s strategy centres around capitalizing on growth opportunities within the technology sector.
- Long-Term Goal: The ultimate goal is to generate significant long-term capital appreciation for investors.
- Franklin India Technology Fund is indeed one of the best SIP plans for 10 years in 2023
3) ICICI Prudential Technology Fund
- The investment objective is to achieve long-term capital growth through a portfolio comprising equity and equity-related securities of technology-intensive companies. It is indeed one of the best best SIP plans for 10 years in 2023.
- Fund Launch: ICICI Prudential Technology Fund was introduced on March 3, 2000.
- Risk Profile: Due to its focus on the technology sector, the fund is associated with a high level of risk.
- Performance: Since its inception, the fund has delivered an annualized return of 13.8%, indicating its potential for substantial returns over time.
- Sectorial Ranking: In the sectorial category, the fund holds a ranking of 37, providing insight into its performance relative to other funds in the same sector.
- Equity-Sectorial: ICICI Prudential Technology Fund falls under the category of an equity-sectorial fund, emphasizing its focus on technology-related investments.
4) PGIM India Global Agribusiness Offshore Fund
The primary goal of this scheme is to attain long-term capital growth. It achieves this goal by predominantly investing in units of overseas mutual funds. These chosen international mutual funds have a strategic focus on the agriculture and agriculture-based business and development sectors.
- Risk Profile: PGIM India Global Agribusiness Offshore Fund carries a high level of risk, primarily due to its focus on the agribusiness sector.
- Performance: Since its May 14, 2010, inception, the fund has steadily provided a 12.9% annualized return, indicating long-term return potential.
- Category Ranking: In the fund of fund category, it ranks 33rd, providing insight into its performance compared to peers.
5) SBI Technology Opportunities Fund
SBI Technology Opportunities Fund is strategically designed to primarily focus on equity investments, providing investors with the highest potential for growth. This fund strongly emphasizes the selection of stocks from sectors known for their growth-oriented characteristics within the economy.
- Fund Launch: The SBI Technology Opportunities Fund was launched on January 9, 2013.
- Risk Profile: This fund carries a high level of risk due to its focus on the technology sector.
- Consistent Performance: Since inception, the fund has maintained a 24.5% annualized return, indicating strong potential for substantial returns.
- Equity-Sectoral: Categorized as an equity-sectoral fund, SBI Technology Opportunities Fund highlights its concentration on technology-related investments.
6) TATA Digital India Fund
- One of the best SIP plans for 10 years in 2023 is TATA Digital India Fund. The primary investment objective of the scheme is to achieve long-term capital appreciation by deploying a minimum of approximately 80% of its net assets in equity or equity-related instruments within the Information Technology sector. This strategic allocation reflects the scheme’s commitment to capitalizing on the growth potential offered by the Information Technology sector.
- Fund Launch: They introduced TATA Digital India Fund on December 28, 2015.
- Risk Profile: Its focus on the technology sector associates this fund with a high level of risk.
- Performance: Since its inception, the fund has delivered an annualized return of 26%, highlighting its potential for substantial returns over time.
- Equity-Sectoral: TATA Digital India Fund falls within the equity-sectoral fund category, emphasizing its focus on technology-related investments.
How to Choose the SIP to Invest in?
Here are some of the parameters that you need to look into before choosing a scheme through –
Investment objective – Whether your financial objectives are geared toward short-term or long-term goals, there exist suitable investment avenues designed to align with your specific aspirations. For short-term financial goals, debt and money market funds emerge as prudent choices, offering stability and predictable returns.
Know the fund house – When choosing investment options, it’s imperative to develop a thorough understanding of the fund houses or financial institutions responsible for managing these investments. This step holds tremendous significance because these entities take on the responsibility of making investment decisions on your behalf.
Performance of the fund – The ultimate goal in investing is to achieve favorable outcomes. To achieve this, carefully analyze historical returns of investment options and compare with available funds in the market. This assessment helps investors evaluate fund past performance, track record, and responses to diverse market conditions.
The preceding discussion has provided insights into the best SIP plans for 10 years in 2023 offering excellent SIP options for a 10-year investment horizon, along with details about their investment objectives, fund types, and notable features. To evaluate fund performance, analyzing benchmark indices is recommended for informed investor decisions. SIPs offer a convenient and straightforward means of investing in funds that align with individual financial goals.