SIP Plan For 20 years

best sip plan for 20 years

Ever dreamt of effortlessly growing your wealth while sticking to your morning routine. Then you should think Systematic Investment Plans (SIPs). Over the past few years, SIPs have become the most popular method for individuals seeking a convenient and disciplined approach to investing in mutual funds.

Over the past few years, SIPs have become the most popular method for individuals seeking a convenient and disciplined approach to investing in mutual funds.

To make your job easy, in this blog, we will discuss the SIP plans for 20 years that you can add to your portfolio. 

1. Quant Large And Mid-Cap Fund Direct-Growth

Investing in the Quant Large and Mid-Cap Fund Direct-Growth could be a strategic move for you. With a robust presence of 10 years and 11 months since its establishment on 01/01/2013, this medium-sized fund has shown steady growth. 

  • Returns since inception: 19.49%
  • Minimum investment: ₹ 1,000
  • Lock-in period: No lock-in 
  • Returns (p.a): 23.17%
  • Risk: Very High
  • Assets under management(AUM): ₹ 1,296 Crores
  • Current Value: ₹ 101.61

2. ICICI Prudential Technology Fund

If you’re keen on investing in tech-led companies but strapped for time, consider the ICICI Prudential Technology Direct Plan-Growth. This sectoral mutual fund, with over a decade of experience, focuses on the Technology, Communication, Services, and Capital Goods sectors.

  • Returns since inception: 22.25%
  • Minimum investment: ₹ 100
  • Lock-in period: No Lock-in
  • Returns (p.a): 14.87%
  • Risk: Very High
  • Assets under management (AUM): ₹ 10,868 Crores
  • Current Value: ₹ 175.46

3. HDFC Flexi Cap Fund

With an existence of more than 29 years, the HDFC Flexi Cap Fund Growth stands out. Launched on 08/12/1994, it has consistently outperformed its peers.

  • Returns since inception: 19.07%
  • Minimum investment:  ₹ 100
  • Lock-in period: No Lock-in
  • Returns (p.a): 23.91%
  • Risk: Very High
  • Assets under management (AUM):  ₹ 42,270 Crores
  • Current Value:  ₹ 1,572

4. Quant Tax Plan- Direct-Growth Fund

Looking for tax-saving options? The Quant Tax Plan-Direct Growth Fund could be your answer. This Fund was established on 01/01/2013 and focused the majority of its investment in the Energy, Healthcare, Financial, Metals & Mining, and Materials sectors.

  • Returns since inception: 21.74%
  • Minimum investment: ₹ 500
  • Lock-in period: 3 years
  • Returns (p.a): 20.04%
  • Risk: Very High
  • Assets under management (AUM): ₹ 5,615 Crores
  • Current Value: ₹ 336.08

5. Axis Blue-chip Fund Direct Plan-Growth

Axis Blue-chip Fund Direct Plan-Growth was launched on 01/01/2013. The fund has the majority of its money invested in the Financial, Automobile, Services, Technology, and Construction sectors. It has taken less exposure in the Financial and automobile sectors compared to other funds in the category.

  • Returns since inception: 14.92%
  • Minimum investment:  ₹ 100
  • Lock-in period:  No Lock-in
  • Returns (p.a): 11.79%
  • Risk: Very High
  • Assets under management (AUM): ₹ 30,733 Crores
  • Current value: ₹ 56.13

6. Mirae Asset Emerging Blue-chip Fund Direct-Growth

For a fund with an expense ratio of 0.64%, lower than most Large and midcap funds, the Mirae Asset Emerging Blue-chip Fund is worth considering. It focuses on the Financial, Technology, Healthcare, Services, and Energy sectors.

  • Returns since inception: 22.89%
  • Minimum investment: ₹ 1,000 
  • Lock-in period: No lock-in
  • Returns (p.a): 22.47%
  • Risk: Very High
  • Assets under management (AUM): ₹ 28,104 Crores
  • Current Value: ₹ 133.62

7. Canara Robeco Emerging Equities Fund

This fund invests the majority of its money in the Financial, Automobile, Capital Goods, Services, and Healthcare sectors. However, it takes a conservative approach in the Financial and automobile sectors compared to other funds in the category.

Canara Robeco Emerging Equities Fund Direct-Growth has been in existence for more than a decade and was launched on 01/01/2013.

  • Returns since inception: 20.81%
  • Minimum investment: ₹ 1,000
  • Lock-in period: No Lock-in
  • Returns (p.a): 18.18%
  • Risk: Very High
  • Assets under management(AUM): ₹ 18,845 Crores
  • Current Value: ₹ 220.29

8. Sundaram Midcap Fund

This fund, established on January 1, 2013, has a track record spanning 10 years and 11 months. Federal Bank Ltd., Power Finance Corporation. Ltd., Shriram Finance Ltd, TI Financial Holdings Ltd., and Kalyan Jewellers India Ltd. are some of its top holdings. 

However, its expense ratio stands at 0.98%, surpassing the average fees levied by the majority of Mid-Cap funds.

  • Returns since inception: 18.38%
  • Minimum investment: ₹ 100
  • Lock-in period: No Lock-in
  • Returns (p.a): 32.67%
  • Risk: Very High
  • Assets under management (AUM): ₹ 8,663 Crores
  • Current Value: ₹ 1,086.67

9. Nippon India Growth Fund

Having been launched on 01/01/2013, the Nippon India Growth Fund Direct-Growth has provided phenomenal returns over the decade.

Its top 5 holdings include Power Finance Corporation. Ltd., Tube Investments Of India Ltd., Varun Beverages Ltd., Supreme Industries Ltd., and AU Small Finance Bank Ltd.

  • Returns since inception: 18.79%
  • Minimum investment: ₹ 100
  • Lock-in period: No lock-in
  • Returns (p.a): 38.27%
  • Risk: Very high
  • Assets under management(AUM): ₹ 21,380 Crores
  • Current Value: ₹ 3,335.37

10. ICICI Prudential Gilt Fund Direct-Growth Plan

If you prefer a less risky investment, the ICICI Prudential Gilt Fund Direct Plan-Growth is a mutual fund predominantly investing in money market instruments. With a focus on securities with strong credit ratings, it’s considered one of the least risky funds on this list.

  • Returns since inception: 9.47%
  • Minimum investment: ₹ 1,000
  • Lock-in period: No Lock-in
  • Returns (p.a): 8.46%
  • Risk: Low to Moderate
  • Assets under management (AUM): ₹ 4,142.88 Crores 
  • Current Value: ₹ 90.22

Factors to consider before investing in SIP

No doubt, investing in SIP can be a game-changer for achieving your financial goals. But only if done correctly. 

It’s crucial to navigate through the myriad of options wisely before you embark on your investment journey.

Let’s explore the key factors that should be kept in mind before zeroing in on a particular SIP scheme:

1. Your Objective 

Before you start investing in any SIP scheme, take a step back and define your financial goals clearly. Whether it’s saving for your children’s education, planning for a dream wedding, or purchasing a house – knowing your “WHY” is the cornerstone. 

2. Credentials of the Fund House

The backbone of any SIP investment lies in the credibility of the fund house. Opting for a fund house with a robust, process-driven approach often translates to consistent performance over the long term.

3. Historical Performance

When choosing the SIP for 20 years to invest, it’s essential to study the historical performance of the returns of those funds. It would be better to look over the trends for the past 5 to 10 years and compare the funds to understand whether they can withstand market volatility or not.

4. Risk Appetite

Understanding your risk tolerance is paramount in SIP investments. SIP schemes come in varying risk categories – low, medium, and high. Assess your own risk appetite and decide on a scheme that aligns with it.

Conclusion

As Mr. Charlie Munger said, “The big money is not in the buying and selling, but in the waiting.” Similarly, the key to SIP success lies in making informed decisions and staying committed to your long-term objectives.

Investing in SIP is a marathon, not a sprint. It is a long term decision which should be done with proper due diligence. Therefore, before making any decisions, consider consulting with a financial advisor.

FAQs

1. Can I alter my SIP investment amount over the next 20 years?

Yes, you can modify or temporarily halt your SIP at any time, and fund houses impose no penalties for such changes.

2. What are the tax implications of SIP investments over 20 years?

If you cash in your units sooner, you might face Short-Term Capital Gains Tax, while holding on longer could lead to Long-Term Capital Gains Tax. The rates of taxation and the duration varies depending on the type of fund.

3. Is it possible to make a one-time investment in a scheme while simultaneously having an SIP in progress?

Certainly, you have the flexibility to contribute a lump sum to the identical scheme where you currently have an SIP without any impact on the SIP itself.

LenDenClub is India’s largest alternate investment platform which started operations in India in 2015. We have been helping investors diversify their investments beyond traditional investment instruments ever since.


LenDenClub is India’s largest alternate investment platform which started operations in India in 2015. We have been helping lenders diversify their investments beyond traditional investment instruments ever since.

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