Best SIP Plans for Long Term Investment 2023 (2024)

Updated on August 10, 2023 , 26510 views

The concept of Systematic Investment plan (SIP) has been gaining a lot of popularity amongst Indian investors since last few years. It is an excellent way to create a long-term savings habit. It helps in creating a large corpus for the future Financial goals. In a SIP, a fixed amount is invested monthly in a fund on a specific date by the investor. Once you begin Investing monthly in a SIP for a longer period of time, your money starts growing every day (being invested in the stock Market). Systematic Investment Plan helps you to average your purchase cost and maximise returns. When an investor invests regularly over a period, irrespective of the market conditions, he would get more units when the market is low & less units when the market is high. This averages out the purchase cost of your mutual fund units. Similarly, let’s check some of the most important benefits of a SIP in the long-run.

Benefits of Long Term SIP Investment

Some of the important benefits of a SIP are:

Power of Compounding

When you invest over a longer duration, your investment starts compounding. This means that when you earn returns on the returns earned by your investment, your money would start compounding. This helps you to build a large corpus over the long run with regular small investments.

Helps in Achieving Goals

SIP is a smart way to achieve all your long-term financial goals like retirement, marriage, purchase of a house/car, etc. Investors can simply start investing in Mutual Funds as per their financial goals and attain them at certain period of time. If one starts investing at an early age, there is enough time for their SIP to grow. In this way it also becomes easier to fulfil all their goals on time.


One of the most attractive parts of a systematic investment plan is its affordability. One can invest an amount as low as INR 500, which enables a route to a large number of Indians to initiate into investments. So, one who can’t make a lump sum payment, can invest via a SIP in Mutual Funds.

Why SIP is Best for Long Term Investment?

Investors often wonder of how SIPs are more profitable in the long-run than lump sum mode. Well, the historical data says so! Let’s check the data of the worst period of the stock market.

The worst period to start investing was around September 1994 (this was the time when the stock market had peaked). If one looks at the market data, the investor who had invested a lump sum sat on negative returns for 59 months (nearly 5 years!). The investor broke even in about July of 1999. The next year though some returns were generated, these returns were short lived due to the 2000 stock market crash subsequently. After suffering for another 4 years (with negative returns) and the investor finally became positive in October 2003. This was possibly the worst time to have invested a lump sum.

Best SIP Plans for Long Term Investment 2023 (1)

What happened to the SIP investor? The systematic Investment Plan investor was negative for only 19 months and started posting profits, however, these were short-lived. The SIP investors were up again by May 1999 after suffering interim losses. While the journey still continued to be shaky, SIP investors showed profits in the Portfolio much earlier.

So, who made better profits? The maximum loss for the lump sum investor was nearly 40%, whereas for the SIP investor was 23%. The systematic investment plan investor had a faster recovery period as well as a lower loss in the portfolio.

Best Mutual Funds for Long Term SIP Investment

Some of the best mutual funds SIP for a long-term are as follows-

Best Large Cap Funds for Long Term SIP

Large cap funds are a type of Equity Mutual Funds where the corpus is invested in the stocks of companies with large market capitalization. These companies are mainly large firms with large businesses & big teams. The market capitalization of these companies is INR 1000 Cr & more. Since, the investments are made in big companies, these firms have more possibility of showing year on year steady growth, which in turns also offers stability over a time. These funds are considered to be safe & less volatile to the market fluctuations compared to mid & Small cap funds.

FundNAVNet Assets (Cr)Min SIP Investment3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2022 (%)
Nippon India Large Cap Fund Growth ₹64.1156
↓ -0.20
₹14,769 100 1116.320.828.113.811.3
HDFC Top 100 Fund Growth ₹844.596
↓ -4.77
₹24,819 300 9.112.416.924.512.410.6
ICICI Prudential Bluechip Fund Growth ₹77.38
↓ -0.23
₹38,734 100 9.412.216.523.5136.9
SBI Bluechip Fund Growth ₹70.3006
↓ -0.42
₹38,338 500 6.810.613.621.812.44.4
Franklin India Bluechip Fund Growth ₹762.843
↓ -3.60
₹6,722 500 8.110.410.521.710.2-2.2
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 11 Aug 23

Best Mid & Small Cap Funds for Long Term SIP

Mid cap and small cap funds are a type of equity mutual fund that invests in emerging companies in India. mid cap funds invest in companies which have a market capitalization of INR 500 to 1000 Cr. And, small caps are typically defined as firms with a market cap of around INR 500 Crore. These firms are called the future leader of the market. If the company does well in the future, these funds have a great potential to deliver good returns in the long-run. But, the risk is higher in mid & small cap funds. So, when an investor is investing in these funds, they should invest for a longer duration.

FundNAVNet Assets (Cr)Min SIP Investment3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2022 (%)
Nippon India Small Cap Fund Growth ₹116.609
↓ -0.13
₹31,945 100
Kotak Small Cap Fund Growth ₹192.128
↓ -0.39
₹10,830 1,000 14.718.218.138.720.7-3.1
ICICI Prudential Smallcap Fund Growth ₹64.47
↓ -0.32
₹6,047 100 14.719.822.839.9205.7
PGIM India Midcap Opportunities Fund Growth ₹47.53
↓ -0.13
₹8,965 1,000
SBI Small Cap Fund Growth ₹129.505
↑ 0.10
₹18,625 500 11.515.71833.718.68.1
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 11 Aug 23

Best Diversified Funds for Long Term SIP

Diversified Funds are a class of equity mutual funds. These are the funds that invest across market capitalization, i.e., in large, mid & small cap funds. As, diversified funds invest across market caps, they master in balancing the portfolio. Investors can create a good balance in their portfolio by investing in diversified funds. However, they would still be affected by the Volatility of equities during an unstable market condition.

FundNAVNet Assets (Cr)Min SIP Investment3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2022 (%)
Nippon India Multi Cap Fund Growth ₹202.611
↓ -0.54
₹17,441 100 16.22228.636.816.814.1
HDFC Equity Fund Growth ₹1,302.44
↓ -4.26
₹36,345 300 10.714.220.53115.218.3
Mahindra Badhat Yojana Growth ₹24.2513
↑ 0.05
₹1,845 500 15.419.520.228.617.11.6
JM Multicap Fund Growth ₹65.8456
↑ 0.03
₹397 500 15.619.724.
Franklin India Equity Fund Growth ₹1,131.97
↓ -1.51
₹11,137 500 11.814.417.327.713.55.3
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 11 Aug 23

Best Sector Funds for SIP Long Term

sector funds invests in securities of specific sectors of the Economy, such as telecom, banking, FMCG, Information Technology (IT), pharmaceutical, and infrastructure, etc. For instance, a pharma fund can invest only in stocks of pharma companies and a banking sector fund can invest in banks. Being a sector-specific fund, the risk in such funds is higher. Thus, an investor should have an in-depth knowledge about the specific sector before investing in the fund.

FundNAVNet Assets (Cr)Min SIP Investment3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2022 (%)
IDFC Infrastructure Fund Growth ₹31.603
↑ 0.01
₹712 100 16.726.334.138.414.11.7
Franklin Build India Fund Growth ₹86.1493
↓ -0.09
₹1,365 500 14.621.330.836.415.911.2
DSP BlackRock Natural Resources and New Energy Fund Growth ₹62.968
↑ 0.02
₹683 500 6.810.721.92813.39.8
Aditya Birla Sun Life Banking And Financial Services Fund Growth ₹46.46
↓ -0.25
₹2,744 1,000 11.415.420.9278.611.5
ICICI Prudential Banking and Financial Services Fund Growth ₹98.35
↓ -0.62
₹6,961 100 6.310.915.425.29.111.9
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 11 Aug 23

Best SIP Plans for Long Term Investment 2023 (2024)


Best SIP Plans for Long Term Investment 2023? ›

Mutual Fund Investment: Still A Smart Choice In 2023

Mutual funds offer investors exposure to a diversified portfolio of such stocks and bonds, reducing the risk of investing in a single company or sector.

Which SIP should I invest in 2023? ›

Top 10 Mutual Funds for SIP to Invest in 2023
Fund NameCategory3 Years Return
Parag Parikh Flexi Cap fundFlexi Cap27.90%
HDFC Balanced Advantage FundHybrid24.4%
SBI Bluechip FundLarge-Cap20.70%
Nippon India Growth FundMid-Cap25.30%
6 more rows

Which mutual funds will do well in 2023? ›

The Best Mutual Funds of August 2023
  • The Hartford Core Equity Fund (HGIYX) ...
  • Schwab S&P 500 Index Fund (SWPPX) ...
  • Dodge & Cox Income Fund (DODIX) ...
  • Schwab U.S. Large-Cap Growth Index Fund (SWLGX) ...
  • Vanguard Mid-Cap Value Index Fund (VMVAX) ...
  • The Hartford Short Duration Fund (HSDIX) ...
  • Vanguard International Growth Fund (VWIGX)
Aug 1, 2023

Which mutual fund is best for lumpsum 2023? ›

Here is a list of the top 10 mutual funds that are considered the best mutual funds for lumpsum investments in 2023:
  • ICICI Prudential Bluechip Fund.
  • Mirae Asset Large Cap Fund.
  • Aditya Birla Sun Life Frontline Equity Fund.
  • Kotak Standard Multicap Fund.
  • Franklin India Prima Fund.
  • DSP Midcap Fund.
  • Tata Digital India Fund.
Jul 4, 2023

Is 2023 a good time to invest in mutual funds? ›

Mutual Fund Investment: Still A Smart Choice In 2023

Mutual funds offer investors exposure to a diversified portfolio of such stocks and bonds, reducing the risk of investing in a single company or sector.

What if I invest $10,000 in SIP for 3 years? ›

The mutual fund SIP calculator shows that a monthly investment of Rs 10,000 in this fund would have grown to approx. Rs 10.9 lakh in three years. The regular plan of the scheme has given a return of 62.19% in three years. A SIP of Rs 10,000 under the regular plan of this scheme would have grown to approx.

Will 2023 be a good year for investors? ›

2023 is a great time to start investing. But so was 2022. The key point is that over the long term, investments generally do grow in value, even if there is some early volatility. It is far better to invest now, whenever now happens to be, rather than waiting for some ideal future opportunity.

What is the best way to invest my money in 2023? ›

10 best investments in 2023
  1. High-yield savings accounts.
  2. Short-term certificates of deposit.
  3. Series I bonds.
  4. Short-term corporate bond funds.
  5. Dividend stock funds.
  6. Value stock funds.
  7. REIT index funds.
  8. S&P 500 index funds.
Aug 1, 2023

How to invest wisely in 2023? ›

12 best investments right now
  1. High-yield savings accounts.
  2. Certificates of deposit (CDs)
  3. Money market funds.
  4. Government bonds.
  5. Corporate bonds.
  6. Mutual funds.
  7. Index funds.
  8. Exchange-traded funds (ETFs)
Jul 27, 2023

Which MF is best for 10 years? ›

Equity Funds with Best Returns in a 10 Years
Equity Funds10-year Return
Mirae Asset Large Cap Fund17.61%
ICICI Prudential Bluechip Fund14.76%
HDFC Equity Fund14.76%
Reliance Multi Cap Fund17.33%
4 more rows

What is investing prediction for 2023? ›

Wall Street analysts are expecting earnings to stabilize in the second half of 2023, projecting a 0.2% increase in S&P 500 earnings in the third quarter and another 7.5% growth in the fourth quarter. U.S. regulators unveiled a new set of capital requirements for large U.S. banks in late July.

What not to invest in in 2023? ›

3Selected luxury goodsLouis Vuitton Moët Hennessy, Kering and Dior
4ShippingZIM Integrated Shipping
5Crypto meme coinsDogecoin and Shiba Inu
6Cruise linesCarnival Corporation, Royal Caribbean and Norwegian Cruise Lines
3 more rows
Jan 20, 2023

What are the best sectors to invest in 2023? ›

According to NASDAQ's “June, Mid-Year 2023 Review and Outlook” report, in the first half of 2023, 7 out of 11 sectors recorded gains, with Technology, Communications, and Discretionary sectors being market leaders. Technology stocks neared their previous all-time high from December 2021.

What do I invest in in 2023? ›

12 best investments right now
  • High-yield savings accounts.
  • Certificates of deposit (CDs)
  • Money market funds.
  • Government bonds.
  • Corporate bonds.
  • Mutual funds.
  • Index funds.
  • Exchange-traded funds (ETFs)
Jul 27, 2023

What is the return of SIP in 2023? ›

The minimum SIP investment is Rs 1,000 per month, and the expense ratio as on February 2023 for a direct plan is 0.7% and for the regular plan is 1.83%. The annualized returns for 1 year, 3 years, and 5 years are 6.38%, 39.38%, and 15.6%, respectively.

What are the best funds for 2023? ›

Best performing Elite Rated funds so far in 2023*
Fund namePercentage returns so far in 2023*
Invesco Global Focus20.1%
Fidelity Global Technology18.1%
AXA Framlington Global Technology18.0%
Guinness Global Innovators17.8%
16 more rows
Jun 28, 2023

What is the best asset class to invest in 2023? ›

Top Performing Assets In 2023 So Far
  • Bitcoin, up 80%
  • Information Technology, up 40%
  • Nasdaq 100, up 38%
  • Communication Services, up 36%
  • Consumer Discretionary, up 31%
  • Russell 1000 Growth, up 27%
Jul 3, 2023

Top Articles
Latest Posts
Article information

Author: Carlyn Walter

Last Updated:

Views: 5656

Rating: 5 / 5 (50 voted)

Reviews: 89% of readers found this page helpful

Author information

Name: Carlyn Walter

Birthday: 1996-01-03

Address: Suite 452 40815 Denyse Extensions, Sengermouth, OR 42374

Phone: +8501809515404

Job: Manufacturing Technician

Hobby: Table tennis, Archery, Vacation, Metal detecting, Yo-yoing, Crocheting, Creative writing

Introduction: My name is Carlyn Walter, I am a lively, glamorous, healthy, clean, powerful, calm, combative person who loves writing and wants to share my knowledge and understanding with you.