Here is the detailed information about what is SIP, the benefits of investing in a SIP, and what are the best SIP Plans for 15 years in India.
What Is SIP and How Does It Work?
SIP or Systematic Investment Plan is one of the two ways of investing in Mutual Funds, the other being the Lump Sum method of Mutual Fund investment. SIPs have gained huge popularity in the past decade and are provided by various mutual fund houses, banks, and other financial institutions to investors. One of the main reasons why SIP is considered better than the Lump Sum method of Mutual Fund investment and is gaining huge credibility these days is the fact that a fixed amount is deposited in a SIP scheme of the investors’ choice at regular intervals for a pre-defined tenure. if invested wisely 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:
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It develops a savings habit and brings financial discipline in an investor’s life
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It is a savings cum investment scheme
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Sometimes some of the Systematic Investment Plan’s monthly minimum installment is as low as Rs. 500
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Helps in managing the financial burden during the crisis
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It helps in building a decent financial corpus even after retirement
Best SIP Plans
Below are some best SIP Plans for 15 years that an investor can think of putting their money in. The current 5 years and 3 years’ return are depicted under the various categories of SIP Mutual Funds, that is, Equity, Debt, and Hybrid Funds:
Best 15 Year Equity SIP Funds:
A SIP equity fund investment is considered low in risk when compared to direct investment in stocks and considered lucrative in the long term returns. Under Equity SIP funds, investments are generally made in shares of Indian companies.
| Equity Mutual fund |
5 Year Returns |
3 Year Returns |
Investment (Minimum) |
| BOI AXA Small Cap Fund Direct Plan - Growth |
- |
41.40% |
Rs. 5000 |
| Aditya Birla Sun Life Digital India Fund - Growth - Direct Plan |
32.54% |
39.64% |
Rs. 1000 |
| Aditya Birla Sun Life Digital India Fund Growth |
33.13% |
39.80% |
- |
| ICICI Prudential Technology Fund |
32.50% |
38.69% |
Rs. 5000 |
| ICICI Prudential Technology Fund - Direct Plan - Growth |
33.65% |
39.91% |
Rs. 5000 |
| PGIM India Midcap Opportunities Fund - Direct Plan - Growth |
23.37% |
38.40% |
Rs. 5000 |
| Quant Infrastructure Fund - Direct Plan - Growth |
0.2562 |
0.3901 |
Rs. 5000 |
| Quant Small Cap Fund - Direct Plan - Growth |
23.23% |
40.08% |
Rs. 5000 |
| TATA Digital India Fund - Direct Plan - Growth |
34.58% |
38.46% |
Rs. 5000 |
| Tata Digital India Fund Regular Growth |
34.23% |
39.65% |
- |
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
Best 15 Year Debt SIP Funds:
Debt funds are considered low risk taking funds. Under Debt SIP funds, investments are generally made in government bonds, money market instruments, corporate bonds, etc.
| Debt Mutual fund |
5 Year Returns |
3 Year Returns |
Investment (Minimum) |
| Aditya Birla Sun Life CEF - Global Agri Plan – Growth - Direct Plan |
8.67% |
13.93% |
Rs. 1,000 |
| DSP Healthcare Fund - Direct - Growth |
-- |
31.54% |
Rs. 500 |
| ICICI Prudential BHARAT 22 FOF - Direct Growth |
-- |
10.92% |
Rs. 5,000 |
| ICICI Prudential India Opportunities Fund Direct Plan - Growth |
-- |
22.64% |
Rs. 5,000 |
| ICICI Prudential Multicap Fund - Dividend |
12.94% |
15.88% |
Rs. 5,000 |
| ICICI Prudential Ultra Short Term Fund - Direct Plan - Daily IDCW Payout |
-- |
21.69% |
Rs. 5,000 |
| IDFC Government Securities Fund - Constant Maturity Regular - Growth |
9.56% |
11.15% |
-- |
| IDFC Government Securities Fund - Investment Plan - Regular Plan - Growth |
8.11% |
10.69% |
-- |
| Nippon India Gilt Securities Fund - Direct Plan Defined Maturity Date Option - Growth |
8.73% |
10.57% |
-- |
| Nippon India Nivesh Lakshya Fund - Regular Plan - Growth |
-- |
11.16% |
-- |
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
Best 15 Year Hybrid SIP Funds:
Hybrid is a combination of both Debt Funds and Equity Funds and hence has a moderate risk taking ability.
| Hybrid Mutual fund |
5 Year Returns |
3 Year Returns |
Investment (Minimum) |
| BOI AXA Mid & Small Cap Equity & Debt Fund - Direct Plan - Growth |
18.29% |
25.38% |
Rs. 5,000 |
| BOI AXA Mid & Small Cap Equity & Debt Fund Regular - Growth |
17.61% |
23.63% |
- |
| ICICI Prudential Pharma Healthcare and Diagnostics (P.H.D) Fund - Direct Plan - Growth |
- |
27.50% |
Rs. 5,000 |
| ICICI Prudential Thematic Advantage Fund (FOF) - Direct Plan - Growth |
16.40% |
23.85% |
Rs. 5,000 |
| ICICI Prudential Thematic Advantage Fund(FOF) Growth |
17.96% |
23.97% |
- |
| Motilal Oswal Nasdaq 100 Fund of Fund - Direct Plan - Growth |
- |
30.63% |
Rs. 500 |
| Quant Absolute Fund - Direct Plan - Growth |
0.1545 |
0.2955 |
Rs. 5,000 |
| Quant Absolute Fund Growth |
15.35% |
30.04% |
- |
| Quant Multi Asset Fund - Direct Plan - Growth |
18.77% |
30.71% |
Rs. 5,000 |
| Quant Multi Asset Fund Growth |
18.66% |
29.99% |
- |
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
Why You Should Invest in SIP?
These days, SIP investment is considered 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:
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Higher Returns
If the investor carries out deep research before buying SIPs and purchase them wisely, higher returns are guaranteed after a long term period, say 15 years. The top performing SIPs these days have shown a remarkable growth of 18% to sometimes even more than 15% in a span of 15 years which is way more than any other investment option available in the market.
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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:
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.
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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.
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Portfolio Diversification
A SIP investor can put their money in multiple SIP plans for 15 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.
Things to Remember
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:
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Research about the reputation of the fund house of the desired SIP
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The net asset value
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The historic returns of the chosen Systematic Investment Plan
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The risk involved in the SIP
