Best SIP Plans for 15 Years: Top Mutual Funds for Long-Term Wealth Creation

What Are Long-Duration Mutual Funds?

Long-duration mutual funds are well-suited for investors who can afford to stay invested for many years, such as those opting for a 15-year SIP. They are investment vehicles that are focused on high returns over a longer period, usually involving higher risks. These funds invest in a diversified portfolio of stocks, bonds, or other assets, aiming to generate higher returns compared to short-term investments.

The value of these funds fluctuates based on market conditions, but over time, they have the potential to offer substantial returns. Let’s look at some of the best SIPs to invest in for 15 years.

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Best SIP Plan for 15 Years

SIP Plans	Expense Ratio (%)	1 Yr Annualised Return (%)
Quant Large and Mid Cap Fund - Direct Plan-Growth	0.62	21.29
Mirae Asset Emerging Bluechip Fund Direct-Growth	0.61	19.02
JM Flexicap Fund Direct Plan-Growth	0.52	36.29
Edelweiss Large & Mid Cap Direct Plan-Growth	0.44	27.77
Parag Parikh Flexi Cap Fund Direct-Growth	0.63	24.41
Kotak Infrastructure and Economic Reform Fund Direct Growth	0.62	37.12
Canara Robeco Emerging Equities Fund Direct-Growth	0.57	28.94
SBI Focused Equity Fund Direct Plan-Growth	0.74	19.6

An Overview of the Best SIP for Long Term 15 Years

Here's a breakdown of some of the best SIP plans for long-term investors, each with a unique approach to maximising returns while managing risks —

1. Quant Large and Mid Cap Fund-Direct Plan-Growth

This is one of the best SIP plans for 15 years, investing in large and mid-cap stocks, offering exposure to both established and emerging companies. With 93.95% of its assets in equities, it aims for capital appreciation, making it a strong choice for high-risk investors. However, you should be aware that due to its equity-heavy nature, it comes with the potential for moderate losses, especially in the short term.

Suitable For: Investors looking for high returns and are willing to accept moderate risk
Top Holdings: Infosys, HDFC Bank, ICICI Bank

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2. Mirae Asset Emerging Bluechip Fund Direct-Growth

A large and mid-cap fund, Mirae Asset has been around for almost 12 years and consistently delivers strong returns. It focuses on sectors like finance, healthcare, and technology. This fund has delivered a 22.69% average annual return since inception, making it one of the top performers in its category.

Suitable For: Investors seeking long-term growth (5+ years) with a moderate risk appetite
Top Holdings: HDFC Bank, Axis Bank, ICICI Bank

3. JM Flexicap Fund Direct Plan-Growth

Known for its consistent performance, the JM Flexicap Fund is one of the best SIPs to invest for 15 years. It has been one of the best performers in the flexicap category over the past decade. With 36.54% returns in the last year alone, it has doubled investments every 2 years. This fund focuses on diverse sectors like finance, healthcare, and technology, and is ideal for risk-tolerant investors.

Suitable For: Investors who want high returns with a medium risk tolerance
Top Holdings: HDFC Bank, ICICI Bank, Infosys

4. Edelweiss Large & Mid Cap Direct Plan-Growth

This fund aims for capital appreciation by investing in large and mid-cap stocks. With a balanced risk approach, it offers a moderate risk-to-reward ratio. The fund has returned 17.65% annually since launch and is a good fit for investors seeking long-term growth without taking on extreme risk.

Suitable For: Investors who prefer a more balanced approach to risk and return over a long period
Top Holdings: HDFC Bank, ICICI Bank, Dixon Technologies

5. Parag Parikh Flexi Cap Fund Direct-Growth

Among the best SIPs to invest for 15 years, it offers a balanced exposure to both Indian and international equity. Known for its impressive 20.52% average annual return, it is among the top choices for investors seeking high-growth opportunities. It excels in volatility protection and outperforms its category, making it a solid choice for long-term wealth building.

Suitable For: Investors who want consistent returns with moderate to high-risk
Top Holdings: HDFC Bank, Power Grid Corporation, Bajaj Holdings

6. Kotak Infrastructure and Economic Reform Fund Direct-Growth

Focusing on companies involved in infrastructure and economic reforms, this fund primarily invests in small to mid-cap stocks. With 99.17% of its investments in domestic equities, it's ideal for investors who understand macroeconomic trends and are willing to accept higher risk for potential returns.

Suitable For: Investors with advanced knowledge of economic trends who are willing to accept moderate to high losses
Top Holdings: Larsen & Toubro, State Bank of India, ICICI Bank

7. Canara Robeco Emerging Equities Fund Direct-Growth

As one of the best SIP plans for 15 years, it focuses on emerging sectors like finance, healthcare, and capital goods, offering high returns with a slightly higher risk. It has delivered an impressive 21.52% average annual return, making it one of the top performers in the large & mid-cap category.

Suitable For: Investors seeking high returns with a medium risk appetite
Top Holdings: ICICI Bank, Bharat Electronics, Trent Ltd.

8. SBI Focused Equity Fund Direct Plan-Growth

A focused equity fund with a strong emphasis on the financial and healthcare sectors, SBI's fund has delivered 16.06% annual returns since inception. It’s ideal for investors looking for targeted exposure to a smaller set of high-potential stocks but with lower risk protection during market downturns.

Suitable For: Investors who prefer a concentrated portfolio but are comfortable with more volatility
Top Holdings: Alphabet Inc., Bharti Airtel, State Bank of India

Difference Between Long-Term and Short-Term Investment

Long-term investments are made with a time horizon of several years, while short-term investments are held for a year or less. The primary objective of long-term investments is to grow wealth gradually over time and the goal of short term aim is to capitalise on immediate changes in the market.

Here’s a table to help you compare and choose the best option for yourself —

Long-Term Investments

Advantages	Disadvantages
Strategies are easy to follow. You invest in assets expected to increase over time	Hard to access funds quickly when needed
Benefit from compounding, where returns generate further returns over time	If financial situations change, it may not be easy to adjust investments
Less impacted by short-term market fluctuations, as time helps smooth out volatility	No guaranteed returns; market conditions can affect long-term results

Short-Term Investments

Advantages	Disadvantages
Easy to access funds when needed	Lack of compound growth reduces wealth-building potential
Investment strategy can be adjusted quickly based on changing financial circumstances	Requires active management and monitoring to spot profitable opportunities
Potential for fast profits due to immediate market changes

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Why Invest in SIPs for 15 Years?

If you're considering a Systematic Investment Plan (SIP), a 15-year time horizon offers several benefits, allowing your money to grow significantly over time.

Advantages of SIPs for 15 Years

Disciplined Saving: SIPs enforce a disciplined approach to saving, with fixed contributions at regular intervals
Rupee Cost Averaging: By investing the same amount regularly, you benefit from buying more units when prices are low and fewer units when prices are high
Compounding Returns: The longer you invest, the more your money can grow through compounding
Diversification: SIPs allow you to invest in a diversified portfolio, which helps balance risk and reward
Flexibility: Many SIP plans for 15 years allow you to adjust contributions, pause investments, or even increase your investment amount based on your financial goals

Risks and Challenges

Market Volatility: Prolonged market downturns can impact your returns, especially if you’re invested in equity funds
Inflation Risk: Debt-oriented funds may not keep pace with inflation, reducing your purchasing power
Psychological Barriers: Investors may panic during market drops and exit prematurely, hindering their long-term returns
Commitment: A 15-year investment is a long commitment, and sticking to the plan can sometimes be challenging

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How to Choose the Best SIP Plan for 15 Years

When investing in SIPs for the long term, it's important to choose the right plan that aligns with your financial goals and risk tolerance. Here’s how —

Investment Objective: Determine whether the SIP’s objective—capital appreciation, regular income, or a combination—aligns with your long-term goals
Risk Profile: Choose a fund based on your tolerance for risk. Equity funds offer higher returns but come with more volatility. Debt funds, on the other hand, are more stable but may deliver lower returns
Fund Category: Decide whether an equity, debt, or hybrid fund best suits your investment horizon
Expense Ratio: Lower fees lead to higher net returns over the long term. Compare expense ratios across different SIPs
Fund Performance: Past performance isn't a guarantee of future results, but it can give you insight into how the fund has navigated different market conditions
Taxation: Understand how taxes will impact your returns, especially if you're investing in tax-saving schemes like ELSS funds
Exit Load and Lock-In Period: Ensure there are no restrictive lock-in periods, or if there are, they align with your financial plans

Frequently Asked Questions

Yes, SIPs are ideal for long-term investments as they help in compounding returns and benefit from cost averaging. A 15-year SIP can help you build significant wealth over time. However, as with any other investment instrument type, take your own finances and goals into consideration before starting.

For a 15-year horizon, Public Provident funds (PPF) are generally recommended. PPF offers a fixed rate of return, which is determined by the government. The rate of return is generally higher than regular savings accounts, making it an attractive option for long-term investment.

While no fund can guarantee a fixed return, equity funds that focus on high-growth sectors have historically delivered average returns of around 15% over the long term. However, returns vary based on market conditions and fund performance.

An average SIP return in 15 years can go over 15%, which is notably higher than other traditional investment avenues like fixed deposits, bonds, or savings accounts.

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