When we talk about the best SIP for long-term investment, our focus is on choosing a SIP for the long term that can give stable returns. It is not just an investment, but a strategy – be it best mutual fund for long term sip or the top 5 sip for long term. In this article, we will know the best SIP options for 20 years, steps to launch and smart ways to make the most of long term sip investment.
Top 5 Sip For Long Term – Which funds are the best?
Below are some reliable SIP plans for 20 years:
Kotak Bluechip Fund: Annualized returns of around 15‑16% in the last 10 years. For example, a monthly SIP of ₹1,000 has made around ₹2.5 lakh in 10 years.
ICICI Prudential Value Discovery Fund: Around 14.9% annualised return over 10 years, and around ₹3.2 lakhs in 10 years on SIP.
Canara Robeco Bluechip Equity Fund, Nippon India Large Cap Fund, and HDFC Flexi Cap Fund also give good returns – average 14-17% annualised return over 10 years (as per data provided).
Among these, Kotak and ICICI Prudential are strong options as the best mutual fund for long term SIP.
Initial steps for Long term SIP
Define Objectives: Set clear goals – like retirement, children’s education, etc.
Quantify Goals: Estimate expenses and decide the SIP amount.
Assess Risk Tolerance: Determine the risk, taking into account your age and income.
Choose Right SIP Plan: Choose from the funds given above – look at their performance, management, and expense ratio.
Tax Benefits: Some SIPs are covered under Section 80C.
Be consistent: Only regular investment for 20 years gives good returns.
Scientific Reason Behind Long-Term SIP Investment
Investing in SIP over a long period has the advantage of rupee cost averaging (when the market falls, units are available at a lower price and when it rises, at a higher price). Also, compounding multiplies your profit in the long run, giving a bigger return even with a low investment of ₹100.
Tips to maximize returns
Regular Reviews: Compare fund performance with peer beans every 6–12 months.
Increase SIP Amount: As your income increases, increase the SIP amount as well.
Portfolio Rebalancing: Balance between equity, debt, gold, etc. over time.
Diversify: Don’t just rely on large‑cap. Also participate in Flexi‑cap and value‑oriented SIPs.
Top 5 Sip For Long Term In India Shortlist
Kotak Bluechip Fund
ICICI Prudential Value Discovery Fund
Canara Robeco Bluechip Equip Fund
Nippon India Large Cap Fund
HDFC Flexi Cap Fund
These funds come with the most reliable performance history and a profile suitable for the long term.
Conclusion
In short, sip for long term investment is one that can give you balanced returns, stability and compounding benefits in long term investment. Among the top 5 sip for long term funds mentioned above, especially Kotak Bluechip and ICICI Prudential Value Discovery Fund have proven to be the best choices in the mutual fund for long term space. If you have a plan for sip for 20 years, then these funds can form the foundation of your investment journey. By investing regularly and increasing the amount over time, you can almost move towards financial freedom.
Disclaimer:
This blog on best sip for long term investment and other investment plans is for educational purposes only. Investments based on the information given in it are subject to exchange risks. Past returns are not a guarantee of future results. Consult your financial advisor before investing.
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