A Systematic Investment Plan (SIP) is a sensible investment strategy that entails committing a modest sum of money at regular intervals into a chosen mutual fund, typically with a focus on equity investments. This approach empowers individuals to steadily accumulate substantial savings over an extended period by consistently contributing smaller amounts.

In this blog, we will explore the world of best SIP plans for long-term investment.

SIPs offer an accessible and well-organized method for wealth accumulation over time, leveraging the benefits of compounding while also acting as a safeguard against market volatility through the practice of disciplined and periodic investment endeavours.

Table of Contents

1. Best Large-Cap Funds for Long-Term SIPs

Best Large-Cap Funds for Long-Term SIPs” refer to mutual fund options tailored for systematic, extended investments in large-cap stocks. These funds primarily allocate resources to financially robust, well-established companies with substantial market capitalization.

a. Axis Bluechip Fund – Growth

The fund’s main objective is to achieve consistent long-term capital growth by investing in a diversified portfolio consisting of equities and associated securities of established large-cap or blue-chip companies. It is indeed one of the best SIP plans for long-term investment.

The fund is associated with a moderately high-risk profile.
No entry load is applied to investments in this fund.
The minimum investment limit for Systematic Investment Plan (SIP) participation in this fund is Rs 500.
The Compound Annual Growth Rate (CAGR) since the inception of the fund stands at 14.2%.

b. Canara Robeco Bluechip Equity Fund – Growth

The fund’s goal is to increase capital by investing in companies with substantial market capitalization.

It is an open-ended large-cap equity fund.
The fund is associated with a moderate level of risk.
There are no Entry Load charges for investments in this fund.
The minimum investment limit for Systematic Investment Plan (SIP) participation in this fund is Rs 1000.
The Annualized Returns since the inception of the fund stand at 13.9%.

2. Best Mid-Cap Funds for Long-Term SIPs

“Best Mid-Cap Funds for Long-Term SIPs” denote mutual fund options designed for systematic, extended investments in mid-cap stocks. These funds prioritize mid-sized companies, providing a balanced approach that combines growth potential with risk management.

a. Axis Mid-Cap Fund – Growth

The primary goal of the fund is to realize long-term capital appreciation by investing in equity and equity-related instruments of mid-sized companies, with a particular emphasis on the larger entities within this category.

It is an open-ended mid-cap equity fund.
The fund carries a moderately high-risk profile.
There are no entry load charges for investments in this fund.
The minimum investment limit for Systematic Investment Plan (SIP) participation in this fund is Rs 500.
The Compound Annual Growth Rate (CAGR) since the inception of the fund stands at 20.3%.

b. PGIM India Mid-Cap Opportunities Fund-Growth

One of the best SIP plans for long-term investment is PGIM India Mid-Cap Opportunities Fund-Growth and the primary goal of the fund is to achieve long-term capital appreciation by investing in equity and equity-related instruments of mid-cap companies within the mid-cap segment.

This fund operates as an open-ended mid-cap equity fund.
It falls under the classification of being highly risky.
There are no entry load charges for investments in this fund.
The minimum investment limit for Systematic Investment Plan (SIP) participation in this fund is Rs 1000.
The Compound Annual Growth Rate (CAGR) since the inception of the fund stands at 20.9%.

3. Best Small-Cap Funds for Long-Term SIPs

Best Small-Cap Funds for Long-Term SIPs” are mutual fund choices well-suited for systematic and extended investments in small-cap stocks. These funds focus on smaller companies, often characterized by substantial growth potential but higher risk.

a. Kotak Small-Cap Fund- Growth

The central investment goal of the fund is to achieve capital growth through the maintenance of a diversified portfolio comprising equity and related securities. It is indeed one of the best SIP plans for long-term investment.

This fund operates as an open-ended small-cap equity fund.
It carries a moderately high-risk profile.
There are no entry load charges for investments in this fund.
The minimum investment limit for Systematic Investment Plan (SIP) participation in this fund is Rs 1000.
The Compound Annual Growth Rate (CAGR) since the inception of the fund is recorded at 18.5%.

b. SBI Small-Cap Fund – Growth

The scheme’s primary objective is to generate income and promote long-term capital growth by investing in a portfolio that includes equity and related securities from both small and mid-cap companies.

This fund operates as an open-ended small-cap equity fund.
It carries a moderate risk rating on the risk meter.
There are no entry load charges for investments in this fund.
The minimum investment limit for Systematic Investment Plan (SIP) participation in this fund is Rs 500.
The Compound Annual Growth Rate (CAGR) since the inception of the fund is recorded at 21.6%.

4. Best Diversified Funds for Long-Term SIPs

One of the best SIP plans for long-term investment is Diversified Funds for Long-Term SIPs” which are mutual fund options well-suited for systematic and extended investments in a diversified portfolio of assets. These funds allocate investments across various asset classes, such as stocks, bonds, and other securities, to mitigate risk and optimize returns over the long term.

a. Parag Parikh Long Term Equity Fund – Growth

The fund’s primary objective is to attain long-term capital growth through a meticulously managed portfolio primarily comprising equity and equity-related investment securities.

This fund operates as an open-ended multi-cap equity fund.
It is associated with a moderately high-risk factor.
There are no entry load charges for investments in this fund.
The minimum investment limit for Systematic Investment Plan (SIP) participation in this fund is Rs 1000.
The Compound Annual Growth Rate (CAGR) since the inception of the fund is recorded at 21.5%.

b. UTI Equity Fund – Growth

The fund’s primary goal is to invest in a portfolio consisting of equity and equity-related securities, as well as fixed-income securities, with the objective of generating regular income along with capital appreciation.

This fund operates as an open-ended hybrid equity fund.
It carries a moderately high-risk factor.
There are no entry load charges for investments in this fund.
The minimum investment limit for Systematic Investment Plan (SIP) participation in this fund is Rs 500.
The Compound Annual Growth Rate (CAGR) since the inception of the fund is recorded at 15.4%.

5. Best Sector Fund for Long-Term SIPs

Best Sector Fund for Long-Term SIPs” refers to mutual fund schemes specialized in a specific sector or industry, designed for systematic and extended investments to build wealth over the long term. These funds concentrate their investments within a particular sector, such as technology or healthcare, with the aim of leveraging its growth potential.

a. IDFC Infrastructure Fund – Growth

The fund’s central objective is to attain long-term capital growth through the active management of a diversified portfolio, encompassing equity and equity-related instruments from companies actively engaged in and deriving benefits from the expansion of Indian infrastructure and related infrastructural activities.

This fund operates as an open-ended sectoral equity fund.
It is associated with a high-risk factor.
No entry load charges apply for investments in this fund.
The minimum investment limit for Systematic Investment Plan (SIP) participation in this fund is Rs 100.
The Compound Annual Growth Rate (CAGR) since the inception of the fund is recorded at 9.2%.

Summing Up

Before committing to a SIP scheme, it is crucial to conduct thorough research to identify the best options available in the market. Now you have the list of best SIP plans for long-term investment. You can also make use of online SIP calculators to assess potential returns. From the list of recommended choices, you can then select a scheme that aligns with your specific financial goals. By scrutinizing the fundamental details of these schemes, you can make an informed decision regarding the type of investment plan that best suits your needs and preferences.

Frequently Asked Questions

How does SIP work for long-term investment?

Answer – A Systematic Investment Plan, entails individuals contributing a fixed sum of money at regular intervals, typically on a monthly basis. The central goal of SIP is to amass wealth over an extended period through methodical and consistent investments. SIPs leverage the advantages of rupee cost averaging and the compounding effect to assist investors in realizing their financial objectives.

What are the advantages of investing in SIPs for long-term goals?

Answer – Systematic Investment Plans (SIPs) offer several advantages, including disciplined investing, flexibility in contribution amounts, and the potential for long-term wealth accumulation. They serve as a strategy to reduce the impact of market volatility by spreading investments over time.

What is the ideal investment duration for SIPs for long-term goals?

Answer – The suitable investment duration for SIPs varies based on your financial objectives. Typically, for long-term wealth accumulation, it is advisable to have a duration of 5 to 10 years or even longer.