5 Mins

SIP way of investing and a longterm investment horizon is a combination that will help you generate significant returns by averaging out market volatility. While investing in equity mutual funds, a longterm investment tenure is advisable since the markets are highly volatile. Thus, investing in mutual funds for the long term will help you realize your financial goals in a disciplined manner.

Recommended: To Check Best Mutual Funds for SIP

Best SIP Plan for Longterm Investment in 2022

Fund Name5 Yr CAGRExpense Ratio
Nippon India Value Fund12.00%1.98%
Canara Robeco Emerging Equities Fund12.10%1.84%
Canara Robeco Bluechip Equity Fund13.00%1.9%
Parag Parikh Flexi Cap Fund17.80%1.94%
Franklin India Feeder Franklin U S Opportunities Fund14.50%1.56%

1. Nippon India Value Fund for SIP

The Nippon India Value Fund aims to offer investors capital appreciation and steady returns. The fund invests in value equities across industries and market capitalizations. It invests in several industries, including financial services, healthcare, technology, and consumer services.

Scripbox recommends investing in the Nippon India Value Fund within the category of value funds. These funds have the potential to appreciate in value. Additionally, the fund is excellent for long-term investing. The fund’s information ratio is the highest in its category. The information ratio measures a portfolio manager’s ability to generate returns in excess of the benchmark. In accordance with its investment objectives, the fund has produced an above-inflation return on investment throughout the years.

Fund Details

  • Minimum SIP: Rs 1000/-
  • Minimum Lumpsum:
  • Expense Ratio: 1.98%
  • Benchmark: IISL Nifty 500 TR INR
  • Risk Level: Very High
  • Fund House: Nippon India Mutual Funds

2. Canara Robeco Emerging Equities Fund for SIP

The Canara Robeco Emerging Equities Fund invests in a diversified portfolio of large and mid-cap companies from numerous industries. Diversified investment strategies have the potential to generate greater returns than large-cap mutual funds. This investment technique selects large and mid-cap stocks using a bottom-up methodology. Scripbox recommends investing in the Canara Robeco Emerging Equities Fund in the large and mid-cap funds category. By outperforming its benchmark and developing a portfolio of stocks with various market capitalizations, this fund has the ability to generate stable returns. The fund has exceeded their respective benchmarks and generated inflation-beating returns over time.

Fund Details

Minimum SIP: Rs 1000/-
Minimum Lumpsum: Rs 5000/-
Expense Ratio: 1.84%
Benchmark: IISL Nifty 250 TR INR
Risk Level: Very High
Fund House: Canara Robeco Mutual Funds

3. Canara Robeco Bluechip Equity Fund for SIP

Canara Robeco Bluechip Equity Fund seeks capital appreciation and long-term growth by investing primarily in companies with large market capitalizations. It is advisable to have a long-term investment horizon while investing in this scheme.

Scripbox recommends the Canara Robeco Bluechip Equity Fund as a long-term investment within the area of large-cap mutual funds. The fund has generated returns that have exceeded inflation. As per the current AUM, the fund is among the top ten largest funds in its category.

Fund Details

Minimum SIP: Rs 1000/-
Minimum Lumpsum: Rs. 5000/-
Expense Ratio: 1.90%
Benchmark: S&P BSE 100 India TR INR
Risk Level: Very High
Fund House: Canara Robeco Mutual Funds

4. Parag Parikh Flexi Cap Fund for SIP

The Parag Parikh Flexi Cap Fund invests in large-cap, mid-cap, and small-cap Indian and international equities. On average, the fund invests 65% of its total assets in listed Indian company equities. Furthermore, the fund invests in a diversified portfolio across industries, sectors, and/or market capitalization. It does not limit or restrict its investments based on market capitalization, industry, or location.

Scripbox recommends the Parag Parikh Flexi Cap Fund within the category of diversified mutual funds. Diversified mutual funds offer inflation-beating growth over the long run and are suited for capital appreciation-oriented investments. Thus, the fund is ideal for an investment period of 10 to 15 years or more in order to achieve significant returns.

Fund Details

Minimum SIP: Rs 1000/-
Minimum Lumpsum: Rs. 5000/-
Expense Ratio: 1.94%
Benchmark: IISL Nifty 500 TR INR
Risk Level: Very High
Fund House: Parag Parikh Mutual Funds

5. Franklin India Feeder Franklin U S Opportunities Fund for SIP

Franklin India Feeder Franklin US Opportunities Fund is a global FoF. It invests primarily in leading companies with different market capitalizations, industries, and sectors in the United States. Indian investors have the opportunity to invest in U.S. enterprises through the fund. A long-term investment horizon is recommended while investing in this fund.

Over a period of time, the plan has performed well. The fund has the highest AUM compared to its peers. The fund has successfully generated benchmark beating returns over the years. Scripbox, therefore, recommends investing in this fund. This fund offers geographical diversification as well as opportunities to invest in industries that are inaccessible in India.

Fund Details

Minimum SIP: Rs 1000/-
Minimum Lumpsum: 5000/-
Expense Ratio: 1.98%
Benchmark: Russell 3000 Growth TR USD
Risk Level: Very High
Fund House: Franklin India Mutual Funds

Things to Consider While Choosing SIP Plans for Long Term

Under a SIP, you invest a small amount of money at regular intervals in a mutual fund scheme of your choice. The majority of investments are made in equity-based mutual fund schemes. SIPs provide the opportunity for long-term gains and consistent savings. You will save a substantial amount of money by making recurring investments. It does not strain the investor, as the annual minimum investment is as little as INR 1,000.
SIPs are among the most common ways to invest in mutual funds. It is also ideal for novices because you may start with a small amount and expand your savings gradually and methodically.
Through long-term investing, you can generate long-term returns that help you create a significant corpus.
You can use Scripbox’s SIP calculator to estimate the potential returns from an investment. The calculator helps you make more informed decisions as it helps in determining the returns across different growth scenarios. The calculator is available online, and you can use it to test multiple scenarios. 

Discover More