Best SIP Plan for 10 Year to Invest in February 2025

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SIP is an option for investors who prefer to invest small amounts over the long term to achieve their financial goals. Typically, a long-term investment horizon is preferable when investing in equity schemes. You can invest in these funds to purchase a house, a child’s higher education, retirement, etc. The article covers the Best SIP plan for a 10-year investment.

Recommended: To Check Best Mutual Funds for SIP 2025

What is SIP and How it Works

A Systematic Investment Plan (SIP) allows you to invest a fixed amount of money in a mutual fund scheme at regular intervals, such as weekly, monthly, or quarterly. This type of investment plan is ideal for those who want to invest a small amount of money regularly rather than a large lump sum.

Here’s how SIP works:

You choose a mutual fund scheme and decide on the amount you want to invest at regular intervals.
You set up a systematic investment plan with the mutual fund house or through an online platform.
On the designated date, the fixed amount is debited from your bank account and invested in the chosen mutual fund scheme.
The mutual fund house allocates units to you based on the fund’s net asset value (NAV) on that particular date.
The units are credited to your account, and you can track your investment portfolio online.

SIPs offer several benefits, including:

Rupee Cost Averaging: By investing a fixed amount at regular intervals, you can reduce the impact of market volatility on your investment.
The Power of Compounding: SIPs can help you earn higher returns over the long term, thanks to the power of compounding.
Flexibility: SIPs allow you to invest a small amount of money regularly, making it easier to invest in mutual funds.

Best SIP Plan for 10 Year in February 2025

Fund Name	10 Year Returns	Expense Ratio
Mirae Asset Large Cap Fund	16%	1.54%
Baroda BNP Paribas Large Cap Fund	14.10%	2.12%
SBI Bluechip Fund	15.10%	1.59%
Nippon India Large Cap Fund	16.50%	1.71%
UTI Mastershare Unit	13.40%	1.73%

1. Mirae Asset Large Cap Fund

The Mirae Asset Large Cap Fund is a large-cap equity scheme primarily investing in equity stocks with a long-term wealth creation aim. This fund is suitable for investors with a long-term investment horizon of 10 years. Due to the nature of the asset class, you should anticipate short-term volatility in your investments.

Scripbox experts rank Mirae Asset Large Cap Fund as a top-ranked fund. Over the past 14 years, the fund has consistently performed well and given its investors inflation-beating returns.

Fund Details

Minimum SIP Amount: ₹1,000
Minimum Lumpsum: ₹5,000
Expense Ratio: 1.54%
Benchmark: IISL Nifty 100 TR INR
Risk Level: Very High Risk
AMC: Mirae Asset Mutual Funds

2. Baroda BNP Paribas Large Cap Fund

Baroda BNP Paribas large cap fund investment objective is to produce long-term capital growth from a diversified and actively managed portfolio. It invests in equities and equity-related instruments by investing primarily in companies with a large market capitalization. Due to the nature of the fund, you should anticipate short-term volatility in your investments. Baroda BNP Paribas Large Cap Fund is a Top-Rated fund.

Fund Details

Minimum SIP Amount: ₹1,000
Minimum Lumpsum: ₹5,000
Expense Ratio: 2.12%
Benchmark: Nifty 100 TR INR
Risk Level: Very High Risk
AMC: Baroda Mutual Funds

3. SBI Bluechip Fund

SBI Bluechip Equity Fund seeks to offer long-term growth and capital appreciation by investing primarily in large market capitalization companies. A long-term investment horizon of 10 years or more is advisable while investing in this fund.

Scripbox ratted SBI Bluechip Fund as top fund for a long-term investment within the large-cap mutual fund category. With a strong 12-year track record, the fund has generated inflation-beating returns. With the current AUM, the fund is among the top 10 most significant funds by AUM in its category.

Fund Details

Minimum SIP Amount: ₹1,000
Minimum Lumpsum: ₹5,000
Expense Ratio: 1.59%
Benchmark: S&P BSE 100 India TR INR
Risk Level: Very High Risk
AMC: SBI Mutual Funds

4. Nippon India Large Cap Fund

Nippon India large-cap fund aims to offer investors capital appreciation and stable returns. The scheme invests in value equities from various market capitalizations and industries. Financial services, healthcare, technology, and consumer services are examples of some of the industries it invests in.

Scripbox suggests investing in the Nippon large cap fund within the equity large cap category. These funds have the potential for value appreciation. In addition, the fund is ideal for a 10-year investment duration. The fund has the category’s highest information ratio. Nippon India Large Cap Fund has a standard deviation of 21.30%, beta 1.07% and sharpe ratio of 0.367%.

Fund Details

Minimum SIP Amount: ₹1,000
Minimum Lumpsum: ₹5,000
Expense Ratio: 1.71%
Benchmark: IISL Nifty 500 TR INR
Risk Level: Very High Risk
AMC: Nippon Mutual Funds

5. UTI Mastershare Unit

The investment objective of the UTI Mastershare Unit fund is long-term wealth creation. This large-cap equity scheme primarily invests in stocks of large-cap companies. According to the experts at Scripbox, the UTI Mastershare Unit fund is a Top-Ranked fund. The suitable investment horizon for the UTI Mastershare Unit is 10 years. Due to the nature of the equity asset class, short-term volatility is inevitable with the investment.

Fund Details

Minimum SIP Amount: ₹1,000
Minimum Lumpsum: ₹5,000
Expense Ratio: 1.73%
Benchmark: IISL Nifty 100 TR INR
Risk Level: Very High Risk
AMC: UTI Mutual Fund

Who Should Consider SIP Investments for 10 Years in India?

Investing in a Systematic Investment Plan (SIP) for 10 years is perfect for anyone with long-term financial goals like planning for retirement, funding your child’s education, or building a substantial savings corpus for the future. A 10-year horizon gives your investment enough time to weather market ups and downs, while allowing you to enjoy the benefits of compounding over the long term.

Why Investing in SIPs for 10 Years is a Smart Move

There are several reasons why SIPs are a popular choice for long-term investments:

Rupee Cost Averaging: SIPs help you average out the cost of your investments by investing a fixed amount at regular intervals. This means you buy more units when the market is down and fewer when it’s high, minimizing the impact of market volatility.
Power of Compounding: Over 10 years, compounding has worked its magic. Your returns are reinvested, which helps your money grow exponentially.
Disciplined Investing: SIPs make it easier to stay consistent. You’re committing to regular investments, no matter the market conditions, which instills a disciplined approach to saving and investing.
Long-Term Wealth Creation: With exposure to equity markets and the benefits of compounding, a 10-year SIP can help you build significant wealth to meet your financial aspirations.
Flexibility: SIPs allow you to adjust your investment amount and frequency or even pause or stop your contributions if needed, making them adaptable to your changing financial circumstances.

How to Invest in a Mutual Fund SIP

Investing in a mutual fund SIP is a straightforward process. Here’s a step-by-step guide:

Choose a Mutual Fund Scheme: Select a mutual fund scheme that aligns with your investment goals and risk tolerance.
Set Up a Systematic Investment Plan: You can set up a SIP online or through a mutual fund house.
Decide on the Investment Amount and Frequency: Choose the amount you want to invest and the frequency of investment, such as weekly, monthly, or quarterly.
Provide Your Bank Details: You’ll need to provide your bank account details to set up the SIP.
Start Investing: Once you’ve set up the SIP, the fixed amount will be debited from your bank account at regular intervals, and the units will be allocated to you.

Start SIP investing with Scripbox

Factors to Consider Before Investing in a 10 years SIP Plan

When the investment horizon is at least 10 years, the SIP form of investing will help you earn substantial profits. Investing in equity mutual funds via SIP would allow you to smooth out market volatility and reap the benefits of rupee cost averaging. Flexi-cap funds, which invest across multiple market capitalizations including large, mid, and small-cap stocks, are particularly suitable for long-term investors. A flexi cap fund, such as the Parag Parikh Flexi Cap Fund or HDFC Flexi Cap Fund, offers flexible investment allocations in large, mid, and small-cap stocks, catering to different risk tolerances and investment durations.

In addition, Scripbox’s SIP Calculator can be used to assess the prospective returns of a fund. Based on the fund’s historical performance, the calculator computes the returns for the duration of your investment. The calculator provides graphical and tabular return estimations to assist with return analysis. For instance, a mid-cap fund like the HDFC Mid-Cap Opportunities Fund allocates a portion of its investments to mid-cap stocks, aiming for high returns over a 3-4 year period. Small cap stocks, while high-risk, offer potential high returns and can be part of a diversified investment strategy.

Furthermore, the calculator forecasts returns based on three growth scenarios: above-average, average, and below-average. You may utilize the calculator to evaluate multiple investing possibilities and make more informed selections.

Tax Implications of SIP Investments

SIP investments are subject to tax implications, just like any other mutual fund investment. Here are some key points to consider:

Capital Gains Tax: SIP investments are subject to capital gains tax, which is levied on the profit made from selling mutual fund units.
Short-Term Capital Gains Tax: If you sell mutual fund units within 12 months of investment, the gains are considered short-term capital gains and are taxed at a rate of 15%.
Long-Term Capital Gains Tax: If you sell mutual fund units after 12 months of investment, the gains are considered long-term capital gains and are taxed at a rate of 10% if the gains exceed Rs. 1 lakh.

Consult with a tax advisor to understand the tax implications of SIP investments and plan your investments accordingly.

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