SIP Plans for 12 Years

In the recent times of everyday increasing financial needs, saving your money and investing it in the right place has become a necessity for every individual to have a decent financial corpus at the hour of need. With so many investment options in the market these days, people tend to get confused and often fall prey to various scams.

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SIP Benefits
Start SIP with as low as ₹1000
Start SIP with as low as ₹1000
No hidden charges
No hidden charges
Save upto ₹46,800 in Tax
Save upto ₹46,800 in Taxunder section 80 C
Zero LTCG Tax
Zero LTCG Tax^ (Unlike 10% in Mutual Funds)
Disciplined & worry-free investing
Disciplined & worry-free investing

SIP Investment have become quite famous amongst the investors and have emerged as the new investment option in India that possesses great potential in increasing the financial corpus.

Top Performing SIP Mutual Funds in India for 12 years

  1. Best Equity Funds

    Mutual fund 5 Year Returns Minimum Investment
    Aditya Birla Sun Life Digital India Fund - Growth - Direct Plan 31.47% Rs. 1,000
    Aditya Birla Sun Life Digital India Fund Growth 33.13% -
    BOI AXA SMALL CAP FUND Direct Plan - Growth -- Rs. 5,000
    ICICI Prudential Technology Fund - Direct Plan - Growth 32.37% Rs. 5,000
    Kotak Small Cap Fund - Direct Plan - Growth 21.39% Rs. 5,000
    PGIM India Midcap Opportunities Fund - Direct Plan - Growth 21.77% Rs. 5,000
    Quant Infrastructure Fund - Direct Plan - Growth 24.71% Rs. 5,000
    Quant Infrastructure Fund Growth 26.20% -
    Quant Small Cap Fund - Direct Plan - Growth 22.92% Rs. 5,000
    Tata Digital India Fund Regular Growth 34.23% --

    Disclaimer: Policybazaar does not endorse, rate, or recommend any particular insurer or insurance product offered by an insurer. The tax benefit is subject to changes in tax laws. *Standard T&C Apply

  2. Best Debt Funds

    Mutual fund 5 Years Returns Minimum Investment
    Aditya Birla Sun Life CEF - Global Agri Plan - Growth-Direct Plan 10.24% Rs. 1,000
    DSP Healthcare Fund - Direct - Growth - Rs. 500
    ICICI Prudential BHARAT 22 FOF - Direct - Growth - Rs. 5,000
    ICICI Prudential India Opportunities Fund Direct Plan - Growth - Rs. 5,000
    ICICI Prudential Multicap Fund - Dividend 11.91% Rs. 5,000
    ICICI Prudential Ultra Short Term Fund - Direct Plan - Daily IDCW Payout - Rs. 5,000
    IDFC Government Securities Fund - Constant Maturity Regular - Growth 9.56% -
    IDFC Government Securities Fund - Investment Plan - Regular Plan - Growth 8.11% -
    Nippon India Gilt Securities Fund - Direct Plan Defined Maturity Date Option - Growth 8.73% -
    Nippon India Nivesh Lakshya Fund - Regular Plan - Growth - -

    Disclaimer: Policybazaar does not endorse, rate, or recommend any particular insurer or insurance product offered by an insurer. The tax benefit is subject to changes in tax laws. *Standard T&C Apply

  3. Best Hybrid Funds

    Mutual fund 5 Yr. Returns Min. Investment
    BOI AXA Mid & Small Cap Equity & Debt Fund - Direct Plan - Growth 16.92% Rs. 5,000
    BOI AXA Mid & Small Cap Equity & Debt Fund Regular Growth 17.61% -
    ICICI Prudential Pharma Healthcare and Diagnostics (P.H.D) Fund Direct Plan - Growth - Rs. 5,000
    ICICI Prudential Thematic Advantage Fund (FOF) - Direct Plan - Growth 15.90% Rs. 5,000
    ICICI Prudential Thematic Advantage Fund(FOF) Growth 17.96% -
    Motilal Oswal Nasdaq 100 Fund of Fund - Direct Plan - Growth - Rs. 500
    Quant Absolute Fund - Direct Plan-Growth 20.49% Rs. 5,000
    Quant Absolute Fund Growth 20.35% -
    Quant Multi Asset Fund - Direct Plan-Growth 19.30% Rs. 5,000
    Quant Multi Asset Fund Growth 18.66% -

    Disclaimer: Policybazaar does not endorse, rate, or recommend any particular insurer or insurance product offered by an insurer. The tax benefit is subject to changes in tax laws. *Standard T&C Apply

People Also Read: Systematic Withdrawal Plan (SWP)

Why You Should Invest in SIP?

benefits-sip benefits-sip

If an investor does not want to engage in high risk-taking investments and at the same time wishes to create a financial corpus after retirement, SIP investment can be considered as one of the smartest ways of investing. Here are some reasons why investing in a SIP will work wonders for you in the long term future:

  1. Higher Returns

    If the investor studies the history of a mutual fund^^ carefully before buying SIPs and purchases them accordingly, higher returns are guaranteed after a significant time period, say 12 years. The top performing SIPs these days have shown a remarkable growth of 18% to sometimes even more than 20% in a span of 12 years or 15 years which is way more than any other investment option available in the market.

  2. Rupee Cost Averaging

    As it is a known fact that the financial market is volatile in nature hence, rupee cost averaging allows investors to buy:

    • A limited number of shares when the market is super high

    • A higher number of shares when the market witnesses a low

    SIPs are beneficial for investors who invest in more shares at less price rather than investors who invest a large sum in just one share.

  3. Affordable

    Systematic Investment Plans are considered affordable as one can invest an amount as low as Rs. 500 monthly. These regular investments as per the investors’ wish and affordability, do not cause a hole in their pocket unlike in the case of the Lump Sum method of investment where the investor deposits the complete amount at once.

  4. Portfolio Diversification

    A SIP investor can put their money in multiple SIP plans for 20 years or 10 years instead of putting all the money in just 1 investment option. This kind of investment helps in the portfolio diversification of the investor and also increases the probability of better and higher returns after the long term period.

Let us understand in detail the Systematic Investment Plans, how they work, their features and benefits.

What is SIP (Systematic Investment Plan)?

Investors new to the concept of investment in Mutual Funds often get confused as to what is SIP and how mutual funds are different from SIPs. Well, the answer is very simple if we understand the concept from the basics.

So, Mutual Funds are a pool of accumulated investments by various investors and institutions clubbed together to earn capital over a long term period. To invest in a mutual fund, investors are provided with 2 types of options:

  • Mutual Fund investment through Lump Sum method

  • Mutual Fund investment through Systematic Investment Plan method

  1. Lump Sum Method:

    In the lump sum method, as the name suggests, the total investment is invested in the mutual fund at a one-time. An investor has to put in a significant amount at once creating a little financial pressure thus becoming a less preferred choice.

  2. Systematic Investment Plan Method:

    One of the significant reasons why SIPs are the trending method of investment and gaining popularity amongst the masses is the fact that a fixed amount is deposited in a Mutual Fund scheme of the investors’ choice at regular intervals for a pre-defined period of time. If investments are made wisely after understanding the background of the mutual fund in SIP, great returns are expected in the long term.

    Some of the main reasons why an investor should consider investing in a SIP rather than any other investment options are:

    • It develops a regular savings habit and brings financial discipline in an investor’s life

    • It is an investment plus savings scheme

    • Sometimes some of the Systematic Investment Plan’s monthly minimum installment is as low as Rs. 500

    • Helps in managing the financial burden during the crisis

    • It helps in building a significant financial corpus even after retirement

To get a better idea of SIP plans, it is suggested to study the best SIP plans in the market before investing.

People Also Read: XIRR Meaning

In The End!

One can easily invest in SIPs online these days from any reputed company. It is very important to have a piece of in-depth knowledge about the SIP the investor is planning to purchase. SIP calculator online tool can be used to analyse the SIP returns. From low risk to high risk, from short term to long term, every SIP is available in the market but the question arises as to what factors should be taken into consideration before making the buy? So, an investor should always:

  • Research about the reputation of the fund house of the desired SIP

  • The net asset value

  • The historic returns of the chosen Systematic Investment Plan

  • The risk involved in the SIP

People Also Read: Which Bank has the Highest Interest Rate for Fixed Deposit?

+For Mutual Fund midcap category Returns https://www.morningstar.in/tools/mutual-fund-category-performance.aspx & for Insurance midcap fund category Returns- https://www.morningstar.in/tools/insurance-fund-category-performance.aspx
*Past 10 Year annualised returns as on 01-12-2023
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.

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