Best SIP Plan for 20 Years
Systematic Investment Plans (SIPs) are among the most effective ways to build wealth over time. For those looking to invest for a long period of 20 years or more, SIPs provide an excellent opportunity to benefit from the power of compounding, cost averaging, and disciplined investing. In this guide, ...read more
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Qualified Policybazaar expert will assist you Why Choose SIP for 20 Years?
SIPs allow you to regularly invest a fixed amount of money in mutual funds. This lets you take advantage of market fluctuations and create wealth over the long term. When you invest for 20 years, you unlock the potential for long-term growth.
The key benefits of choosing an SIP for this time frame are —
- Compounding Growth: Reinvesting returns helps grow your corpus exponentially
- Rupee Cost Averaging: SIPs help mitigate the impact of short-term market volatility, reducing the risks associated with timing the market
- Discipline in Investing: Regular, automatic investments promote financial discipline
Best SIP Plan for 20 Years
Here’s a curated list of the best SIPs to invest for 20 years that may bring strong returns and align well with long-term investment objectives —
| Best SIP for 20 Years | Expense Ratio | Annualised Return (3 Yrs) |
|---|---|---|
| LIC MF Infrastructure Fund-Direct Plan-Growth | 1.06% | 34.82% |
| Kotak Bluechip Fund-Direct Plan-Growth | 1.75% | 14.2% |
| HDFC Flexi Cap Fund-Direct Plan-Growth | 0.76% | 25.6% |
| Invesco India Large & Mid Cap Fund - Growth | 1.81% | 22.78% |
| Canara Robeco Bluechip Equity Fund-Direct Plan-Growth | 0.51% | 15.49% |
| Parag Parikh Flexi Cap Fund-Direct Plan-Growth | 0.63% | 17.75% |
| Bandhan Core Equity Fund-Direct Plan-Growth | 0.61% | 25.71% |
| Nippon India Large Cap Fund-Direct Plan-Growth | 0.66% | 22.18% |
Overview of the Best SIPs to Invest for 20 Years
Here’s a detailed overview of some of the highest return SIPs for 20 years —
1. LIC MF Infrastructure Fund-Direct Plan-Growth
Type: Sectoral Infrastructure Fund
Investment Breakdown*: 94.61% in domestic equities, divided as follows:
- 9.22% in Large Cap stocks
- 19.93% in Mid Cap stocks
- 34.97% in Small Cap stocks
Suitable For: Those who can make selective investments based on specific sectors (such as infrastructure) and are willing to accept higher risk and potential volatility in exchange for higher returns
Exit Load: A 1% exit load is charged on redemptions within 90 days for units exceeding 12% of the initial investment
Returns
- Since Launch: 17.26% average annual return
- Doubling Time: The fund has doubled its investment every 2 years
Top Holdings
- Garware Hi-Tech Films Ltd.
- Shakti Pumps (India) Ltd.
- REC Ltd.
2. Kotak Bluechip Fund-Direct Plan-Growth
Type: Large Cap Fund
Investment Breakdown: 96.53% in domestic equities, categorised as follows —
- 67.65% in Large Cap stocks
- 10.88% in Mid Cap stocks
- 3.39% in Small Cap stocks
Suitable For: Investors looking to invest for a long duration for high returns
Note: As an investor, you should be prepared for moderate risk.
Expense Ratio: This varies based on the plan chosen, but performance details are based on the Direct Plan
Returns
- Since Launch: 15.43% average annual return
Top Holdings
- Reliance Industries Ltd.
- HDFC Bank Ltd.
- Infosys Ltd.
3. HDFC Flexi Cap Fund-Direct Plan-Growth
Type: Flexi Cap Fund
Investment Breakdown: 87.39% in domestic equities:
- 56.7% in Large Cap stocks
- 4.78% in Mid Cap stocks
- 3.9% in Small Cap stocks
Note: The fund also has 0.76% of its investment in debt (Government securities)
Suitable For: This is one of the best SIP plans for 20 years for investors who are looking for high returns but are also prepared for moderate risk
Exit Load: 1% for redemptions within 1 year
Returns
- Since Launch: 17.34% average annual return
- Doubling Time: The fund has doubled the money invested in it every 3 years
Top Holdings
- HDFC Bank Ltd.
- ICICI Bank Ltd.
- Axis Bank Ltd.
4. Invesco India Large & Mid Cap Fund-Direct Plan-Growth
Type: Large & Mid Cap Fund
Investment Breakdown: 98.54% in domestic equities:
- 15.75% in Large Cap stocks
- 24.6% in Mid Cap stocks
- 19.58% in Small Cap stocks
Suitable For: Investors who have an eye on high returns but are also prepared for some moderate volatility
Exit Load: 1% exit load for redemptions above 10% of the investment within 1 year
Returns
- Since Launch: 19.14% average annual return
- Doubling Time: The fund has doubled its money every 2 years
Top Holdings
- Trent Ltd.
- Interglobe Aviation Ltd.
- ICICI Bank Ltd.
5. Canara Robeco Bluechip Equity Fund-Direct Plan-Growth
Type: Bluechip Equity Fund
Investment Breakdown: 97.22% in domestic equities —
- 67.38% in Large Cap stocks
- 10.69% in Mid Cap stocks
- 0.99% in Small Cap stocks
Suitable For: Those seeking stable returns and lower risk, particularly those focused on large-cap stocks
Exit Load: 1% exit load for redemptions within 1 year — applicable to SIPs as well
Returns
- Since Launch: 15.66% average annual return
- Doubling Time: The fund has doubled the money invested in it every 5 years
Top Holdings
- HDFC Bank Ltd.
- ICICI Bank Ltd.
- Infosys Ltd.
6. Parag Parikh Flexi Cap Fund-Direct Plan-Growth
Type: Flexi-Cap Fund
Investment Breakdown: 66.85% in Domestic Equities in the following categories —
- 49.29% in Large Cap stocks
- 2.47% in Mid Cap stocks
- 5% in Small Cap stocks
6.46% in Debt Investments, including:
- 1.23% in Government Securities
- 5.23% in Low-Risk Securities
Suitable For: Investors aiming for long-term growth with the potential for high returns but also prepared for moderate losses in volatile markets
Exit Load
- 2% exit load if redeemed within 365 days for amounts above 10% of the investment
- 1% exit load if redeemed after 365 days but on or before 730 days
Recent Performance
- Since Launch: 20.57% average annual return
- Doubling Time: Every 4 years
Top Holdings
- HDFC Bank Ltd.
- Power Grid Corporation of India Ltd.
- Bajaj Holdings & Investment Ltd.
7. Bandhan Core Equity Fund-Direct-Growth
Type: Large & Mid-Cap Equity Fund
Investment Breakdown: 92.43% in Domestic Equities, distributed as:
- 32.3% in Large Cap stocks
- 23.43% in Mid Cap stocks
- 12.54% in Small Cap stocks
Suitable For: Investors seeking high returns but prepared for volatility
Exit Load: 1% exit load if redeemed within 1 year for units exceeding 10% of the investment
Recent Performance
- Since Launch: 16.97% average annual return
- Doubling Time: Every 3 years
Top 3 Holdings
- ICICI Bank Ltd.
- HDFC Bank Ltd.
- Infosys Ltd.
8. Nippon India Large Cap Fund-Direct Plan-Growth
Type: Large-Cap Fund
Investment Breakdown: 98.76% in Domestic Equities, with:
- 64.6% in Large Cap stocks
- 11.39% in Mid Cap stocks
- 3.34% in Small Cap stocks
Suitable For: Investors seeking relatively safer, long-term capital appreciation through large-cap stocks
Exit Load: 1% exit load if redeemed within 7 days for units exceeding 10% of the investment
Recent Performance
- Since Launch: 16.90% average annual return
- Doubling Time: Every 4 years
Top Holdings
- HDFC Bank Ltd.
- ICICI Bank Ltd.
- Reliance Industries Ltd.
Criteria for Choosing the Best SIP Plan for 20 Years
When selecting the best SIP plan to invest for 20 years, it’s crucial to focus on the following factors —
1. Historical Performance Analysis
Evaluate the returns over the last 20 years. A fund with a proven track record of delivering high returns during different market cycles is likely to continue performing well.
2. Fund Manager Expertise
A fund manager with a strong track record in managing equity investments and weathering market fluctuations can ensure consistent growth.
3. Consistency in Performance
Consistency in returns is more important than occasional high returns. Choose a fund that has demonstrated steady growth, especially during market downturns.
4. Risk Management
Long-term investors should choose funds with lower volatility to avoid large swings in value. Assess how the fund manages risks through diversification and asset allocation.
5. Investment Philosophy
Understanding the fund's approach to stock selection and asset allocation helps predict future performance. A well-diversified portfolio that aligns with your risk profile is crucial.
SIP Calculator
How to Invest in the Best SIP for 20 Years?
Investing in a SIP for 20 years in India is quite straightforward. Here’s how you can start —
- Open a Demat and Trading Account: To invest in mutual funds, you need a Demat and trading account. You can open one with any registered bank or financial institution.
- Complete the KYC Process: Submit the necessary documents like identity proof, address proof, and a passport-sized photo. This is mandatory for all mutual fund investments.
- Select the Mutual Fund Scheme: Based on your investment goals, risk tolerance, and time horizon, choose a SIP scheme that best fits your needs. You can consult a financial advisor for personalised recommendations.
- Decide on the Investment Amount and Frequency: Determine how much you want to invest monthly and the frequency of your SIP (monthly, quarterly, or yearly).
- Set Up the SIP: Once you’ve selected the fund, you can set up the SIP online through your trading account or by visiting the mutual fund house. You’ll need to provide your bank details for automatic debits.
- Track and Review: Monitor the performance of your SIP regularly. Periodic reviews ensure that your investments remain aligned with your financial goals.
Important: For NRIs investing in Indian mutual funds or SIPs, additional documents and steps may be involved.
Frequently Asked Questions
Yes, SIPs are a great way to build wealth over 20 years. The long duration allows you to benefit from compounding, mitigate market volatility through cost averaging, and build disciplined investing.
Yes, SIPs are mostly flexible. You can increase, decrease, or stop your SIP contributions anytime by cancelling the existing mandate and providing a revised one.
Some of the best SIP plans for 20 years include —
- Axis Bluechip Fund
- Parag Parikh Flexi Cap Fund
- ICICI Prudential Bluechip Fund
- Kotak Standard Multicap Fund
- Nippon India Multi Cap Fund
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