Invest in Best SIP Plan for 20 years
Explore the top-performing SIP plans for a 20-year investment horizon in India for 2024. Learn how these plans can help you build substantial wealth over the long term.
Best SIP Plans for 20 Years
| Fund Name | AUM (₹ Cr) | Expense Ratio | NAV (₹) | Risk Level | 20-Year Returns (%) |
|---|---|---|---|---|---|
| HDFC Equity Fund | 26,000 | 1.80% | ₹945.52 | High | 15–17% |
| SBI Bluechip Fund | 35,000 | 1.65% | ₹70.85 | Moderately High | 14–16% |
| ICICI Prudential Bluechip Fund | 31,000 | 1.55% | ₹58.43 | Moderately High | 14–16% |
| Aditya Birla Sun Life Frontline Equity Fund | 21,000 | 1.70% | ₹350.10 | High | 14–16% |
| Franklin India Bluechip Fund | 8,000 | 1.80% | ₹620.23 | Moderately High | 13–15% |
| Nippon India Growth Fund | 16,000 | 1.80% | ₹200.15 | High | 15–17% |
What is an SIP?
SIP stands for Systematic Investment Plan, a way of investing in mutual funds by making regular, fixed payments over an investment horizon. It’s like a savings plan that allows you to accumulate wealth gradually. SIPs are beneficial because they benefit from the power of compounding. Everyone should consider SIPs as they offer a simple, disciplined way to build wealth over the long term, even with small, regular contributions.
Invest in SIP for 20 years
Investing in a Systematic Investment Plan (SIP) for a decade can be a great financial decision over a period of time. Over a period of 20 years, the power of compounding can yield long term benefits. Long-term SIPs can help you yield mitigate short-term volatility and harness good wealth.
Benefits of Investing in SIP for 20 Years
- Maximize the power of compounding: The extended investment period allows you to significantly enhance your returns with the power of compounding
- Wealth Creation: Consistently investing money over a period of 20 years would allow you to build a significant corpus
- Rupee Cost Averaging: Long-term SIPs benefit from rupee cost averaging reducing the impact of market volatility by spreading your investment across various timelines
- Financial Discipline: A 20 year investment horizon would instill financial discipline by making savings a habit. It will also allow you to meet your long term goals
- Tax Efficiency: The returns from Long-term investments in equity funds are taxed at 12.5% compared to short term gains which are taxed at 20% making this investment option much more profitable
SIP Calculator
SIP Calculator
Things to Consider While Investing in SIP for 20 Years
Fund Selection: Choose a fund with a strong track record and consistent performance. Select a fund that has performed well and has a good rating
Risk Tolerance: Consider your risk appetite and funds that align with your risk taking ability. Equity funds can be volatile but can yield great returns over the end of investment tenure
Diversification: Diversify your investments across different types of mutual funds (e.g., large-cap, mid-cap, small-cap, and hybrid funds)
Periodically Review: Periodically review your SIP investments to make sure that your investment aligns your investment goals
Expense Ratio: Pay attention to the expense ratio of the funds you choose. Lower expense ratios mean lesser deductions and more money in your hand
FAQ on SIP Investment for 20 years
1. Why should I invest in SIP for 20 years?
A 20-year SIP investment leverages the power of compounding, benefits from rupee cost averaging, and providing significant wealth accumulation
2. What are the funds best for 20 years SIP?
The main objective of a fund is to build long term wealth. Equity funds especially mid and small cap with a good potential for growth
3. Can I increase my SIP amount in these 20 years SIP?
Yes, you can increase or decrease your SIP contribution based on your current financial situation
4. How can you track your investment in SIP?
You can track your SIP performance through the AMC app, also through our Mutual Fund Aggregator sites like Fincover, which will give you a complete detailing about your investment
5. What happens if I miss a SIP payment?
Missing an SIP payment does not incur penalties, but it’s important to maintain consistency to fully benefit from the power of compounding and rupee cost averaging