Best SIP Plan for Long Term Investment

Remember this important thing: investing is a marathon, not a sprint, and the secret weapon for long-term wealth creation? SIPs (Systematic Investment Plans). But with so many options out there, choosing the right SIP can feel overwhelming. But you don’t have to worry! This comprehensive guide explores the secrets to picking the perfect SIP plan for your unique needs and aspirations.

We will break down key factors like investment goals, risk appetite, budget, and fund performance, which will help you make informed decisions. 

Let us delve deeper into each SIP plan and break down their key features for easier comparison.

Best SIP Plans for Long Term

1. Parag Parikh Flexi Cap Fund Direct-Growth

This fund offers strong, consistent returns across market phases with diversified holdings and reasonable fees. Consider it for a long-term, multi-cap approach.

Track Record

• Launched in 2013 with a consistent 10-year track record.
• Strong returns: Averaged 20.29% p.a. since launch, doubling investor money every 4 years.
• Consistent performance: Matches category average in up markets, with average downside protection in down markets.

Key Features

• Medium-sized fund: Manages over ₹52,007 Cr. in assets.
• Competitive expense ratio: 0.6%, lower than most peers.
• Sector focus: Invests heavily in Financials, Services, Technology, Automobiles, and Consumer Staples.
• Top holdings: Bajaj Holdings, ITC, HCL Technologies, Power Grid, Coal India.

Fund Overview

• Returns since inception: 20.29%
• Minimum investment: SIP ₹1000 & Lump. ₹1000
• Lock-in period: None
• Returns (p.a.): 38.88% for 2023
• Risk: Very High
• AUM: Rs. 52,007 crore
• Current value: NAV as of Jan 12, 2024 is ₹71.28

2. Quant Large And Mid Cap Fund Direct-Growth

This fund shines with consistent outperformance and risk management, focusing on quality companies across established and high-growth segments. Consider it for a balanced, large, and mid-cap growth strategy.

Track Record

• Solid 11-year history: Launched in 2013 with steady performance.
• Impressive returns: Averaged 20.02% p.a. since launch, doubling investor money every 3 years.
• Consistent outperformance: Matches category average returns but minimises losses in downturns.

Key Features

• Medium-sized fund: Manages over ₹1,486 Cr. in assets.
• Moderate expense ratio: 0.75%, aligned with Large & Midcap category.
• Sector focus: Invests heavily in Metals & Mining, Energy, Healthcare, Financials, and Consumer Staples, with lower exposure compared to peers in Metals & Mining and Energy.
• Top holdings: Reliance Industries, NMDC, Adani Power, RBI, Tata Communications.

Fund Overview

• Returns since inception: 20.02%
• Minimum investment: SIP ₹1000 & Lump. ₹5000
• Lock-in period: None
• Returns (p.a.): 37.44%
• Risk: Very High
• AUM: Rs. 1,486 crore
• Current value: NAV as of Jan 12, 2024 is ₹108.51

3. Edelweiss Large & Mid Cap Direct Plan-Growth

This fund offers a stable blend of established blue chips and mid-cap growth possibilities while managing downside risk effectively. Consider it for long-term wealth creation with moderate risk tolerance.

Track Record

• Established history: Launched in 2013 with a steady 11-year journey.
• Balanced returns: Averaged 17.02% p.a. since launch, doubling investor money every 4 years.
• Consistent performance: Matches category average returns with above-average downside protection.

Key Features

• Medium-sized fund: Manages over ₹2,628 Cr. in assets.
• Competitive expense ratio: 0.45%, lower than most Large & Midcap peers.
• Sector focus: Invests heavily in Financials, Capital Goods, Technology, Materials, and Automobiles, with lower exposure compared to peers in Financials and Capital Goods.
• Top holdings: HDFC Bank, ICICI Bank, Larsen & Toubro, Persistent Systems, KPIT Technologies.

Fund Overview

• Returns since inception: 17.02%
• Minimum investment: SIP ₹500 & Lump ₹5000
• Lock-in period: None
• Returns (p.a.): 34.84%
• Risk: Very High
• AUM: Rs. 2,628 crore
• Current value: NAV as of Jan 15, 2024 is ₹81.67

4. Quant ELSS Tax Saver Fund

This ELSS fund provides a compelling option for combining tax savings with capital growth potential. Its consistent performance, moderate risk profile, and diversified holdings make it a strong contender for your tax-saving investments.

Track Record

• Seasoned performer: Launched in 2013 with a stable 11-year history.
• Tax-efficient growth: Averaged 22.47% p.a. returns since launch, doubling investor money every 3 years.
• Category-aligned performance: Delivers returns in line with most ELSS funds, with average downside protection.

Key Features

• Medium-sized fund: Manages over ₹6,416 Cr. in assets.
• Competitive expense ratio: 0.76%, lower than most Elss peers.
• Sector focus: Invests heavily in Energy, Metals & Mining, Financials, Healthcare, and Capital Goods, with lower exposure compared to peers in Energy and Metals & Mining.
• Top holdings: Reliance Industries, Adani Power, Aurobindo Pharma, Hindalco Industries, Sun Pharma.

Fund Overview

• Returns since inception: 22.47%
• Minimum investment: SIP ₹500 & Lump ₹500
• Lock-in period: 3 years
• Returns (p.a.): 36.62%
• Risk: Very High
• AUM: Rs. 6,416 crore
• Current value: NAV as of Jan 15, 2024 is ₹365.9

5. Canara Robeco Emerging Equities Fund- Direct Plan

This fund offers exposure to high-growth mid-cap stocks while maintaining a balanced blend across established sectors. Its consistent performance and moderate risk profile make it suitable for investors seeking long-term capital appreciation with a higher appetite for growth.

Track Record

• Proven performance: Launched in 2013 with a solid 11-year history.
• Attractive returns: Averaged 21.05% p.a. since launch, doubling investor money every 4 years.
• Category-aligned consistency: Delivers returns in line with most Large & Midcap funds, with average downside protection.

Key Features

• Medium-sized fund: Manages over ₹19,904 Cr. in assets.
• Competitive expense ratio: 0.63%, lower than most Large & Midcap peers.
• Sector focus: Invests heavily in Financials, Automobiles, Capital Goods, Services, and Healthcare, with lower exposure compared to peers in Financials and Automobiles.
• Top holdings: ICICI Bank, HDFC Bank, Bharat Electronics, UNO Minda, Trent Ltd.

Fund Overview

• Returns since inception: 21.05%
• Minimum investment: SIP ₹1000 & Lump ₹5000
• Lock-in period: None
• Returns (p.a.): 28.09%
• Risk: Very High
• AUM: Rs. 19,904 crore
• Current value: NAV as of Jan 15, 2024 is ₹229.63

6. Mirae Asset Balanced Advantage Fund

This young fund offers a unique approach to managing risk and seeking growth via dynamic asset allocation. Its early performance is promising, but limited data warrants careful evaluation. Consider it for a balanced long-term strategy if comfortable with its dynamic nature and lower credit quality debt exposure.

Track Record

• Relatively young: Launched in 2022, with a brief 1.5-year history.
• Promising start: Delivered 16.93% average annual returns since launch and 21.75% in the past year.
• Limited data: Early track record requires cautious interpretation, as performance might not be fully representative.

Key Features

• Moderate-sized fund: Manages over ₹1,478 Cr. in assets.
• Competitive expense ratio: 0.69%, aligning with Dynamic Asset Allocation peers.
• Current asset allocation: 50.47% equities (Financial, Technology, Automobile, Services, Consumer Staples) and 25.78% debt (low credit quality).
• Top holdings: Mix of government bonds, bank stocks, and blue-chip companies like GOI, ICICI Bank, SBI, Reliance Industries, and Infosys.

Fund Overview

• Returns since inception: 16.93%
• Minimum investment: SIP ₹1000 & Lump. ₹5000
• Lock-in period: None
• Returns (p.a.): 21.75%
• Risk: Very High
• AUM: Rs. 1,478 crore
• Current value: NAV as of Jan 15, 2024 is ₹12.51

7. Kotak Equity Opportunities Fund Direct-Growth

This fund offers a valuable option for investors seeking value and growth potential across market caps. Its consistent performance, diversified holdings, and moderate risk profile make it suitable for long-term wealth creation with exposure to potentially undervalued companies.

Track Record

• Seasoned player: Launched in 2013 with a solid 11-year history.
• Steady returns: Averaged 17.66% p.a. since launch, doubling investor money every 4 years.
• Category-aligned performance: Delivers returns in line with most Large & Midcap funds, with average downside protection.

Key Features

• Medium-sized fund: Manages over ₹17,783 Cr. in assets.
• Competitive expense ratio: 0.53%, lower than most Large & Midcap peers.
• Sector focus: Invests in diverse sectors like Financials, Automobiles, Capital Goods, Energy, and Chemicals, with lower exposure compared to peers in Financials and Automobiles.
• Top holdings: A mix of established leaders (HDFC Bank, SBI, Axis Bank) and promising mid-caps (Maruti Suzuki, Larsen & Toubro).

Fund Overview

• Returns since inception: 17.66%
• Minimum investment: SIP ₹500 & Lump. ₹5000
• Lock-in period: None
• Returns (p.a.): 32.86%
• Risk: Very High
• AUM: Rs. 17,783 crore
• Current value: NAV as of Jan 15, 2024 is ₹308.16

8. HDFC Retirement Savings Fund Equity Plan Direct-Growth

This fund provides a compelling option for building a retirement corpus through equity-driven growth. Its consistent performance, balanced risk management, and diversified portfolio with lower exposure to certain sectors make it a suitable choice for long-term financial planning.

Track Record

• Moderate maturity: Launched in 2016 with a 7.5-year history.
• Impressive returns: Averaged 21.88% p.a. since launch, doubling investor money every 3 years.
• Category-competitive performance: Delivers returns in line with most Retirement Solutions funds, with above-average downside protection.

Key Features

• Medium-sized fund: Manages over ₹4,378 Cr. in assets.
• Competitive expense ratio: 0.7%, lower than most Retirement Solutions peers.
• Sector focus: Invests strategically in Financials, Healthcare, Capital Goods, Services, and Technology, with lower exposure compared to peers in Financials and Healthcare.
• Top holdings: A blend of established financial leaders (HDFC Bank, ICICI Bank, SBI) and growth-oriented companies like Infosys and Reliance Industries.

Fund Overview

• Returns since inception: 21.88%
• Minimum investment: SIP ₹300 & Lump. ₹5000
• Lock-in period: 5 years
• Returns (p.a.): 37.27%
• Risk: Very High
• AUM: Rs. 4,378 crore
• Current value: NAV as of Jan 15, 2024 is ₹47.67

9. Motilal Oswal Focused Fund Direct-Growth

This fund offers a concentrated approach to potential high-growth stocks but with lower consistency compared to its category and limited downside protection. Its higher expense ratio adds to the consideration. While it might appeal to experienced investors seeking alpha through selective bets, a cautious approach is recommended due to its risk profile.

Track Record

• Established presence: Launched in 2013 with a 10.5-year track record.
• Moderate historical returns: Averaged 15.56% p.a. since launch, doubling investor money every 4 years.
• Below-category consistency: Delivers returns lower than most Focused funds on average, with limited downside protection.

Key Features

• Medium-sized fund: Manages over ₹1,784 Cr. in assets.
• Higher expense ratio: 0.94%, exceeding most Focused peers.
• Sector focus: Invests heavily in Financials, Services, Technology, Insurance, and Capital Goods, with lower exposure compared to peers in Financials and Services.
• Top holdings: A mix of mid-cap growth stories (Samvardhana Motherson, FSN E-Commerce) and established players (Star Health, BSE, ABB).

Fund Overview

• Returns since inception: 15.56%
• Minimum investment: SIP ₹500 & Lump. ₹500
• Lock-in period: None
• Returns (p.a.): 25.16%
• Risk: Very High
• AUM: Rs. 1,784 crore
• Current value: NAV as of Jan 15, 2024 is ₹46.88

10. ICICI Prudential Passive Strategy Fun (FOF)- Direct

This fund offers a low-cost way to mirror the broader market through professionally managed underlying ETFs. Its consistent performance, diversified holdings, and competitive expense ratio make it suitable for long-term wealth creation with minimal active management involvement.

Track Record

• Established Presence: Launched in 2013 with a solid 11-year history.
• Moderate Historical Returns: Averaged 13.29% p.a. since launch, doubling investor money every 4 years.
• Category-Aligned Performance: Delivers returns in line with most Equity FoF funds, with average downside protection.

Key Features

• Moderate-Sized Fund: Manages over ₹139 Cr. in assets.
• Competitive Expense Ratio: 0.13%, closely aligned with typical Equity FoF peers.
• Unclassified Sector Allocation: Primarily invests in ICICI Prudential Nifty-themed ETFs (banks, infrastructure, private banks, healthcare, IT), with lower exposure compared to other Equity FoF funds.
• Top Holdings: Reflect the underlying ETF focus, encompassing diverse market segments (Nifty Bank, Infrastructure, Private Bank, Healthcare, IT).

Fund Overview

• Returns since inception: 13.29%
• Minimum investment: SIP ₹1000 & Lump. ₹5000
• Lock-in period: None
• Returns (p.a.): 32.36%
• Risk: Very High
• AUM: Rs. 139 crore
• Current value: NAV as of Jan 15, 2024 is ₹142.18

Conclusion

SIPs are your gateway to a brighter financial future. By understanding your goals, choosing the right plan, and staying invested for the long run, you’re putting your money to work for you. Remember, consistent investing, not timing the market, is the key to success.