SIP for Long-Term

SIP Plans^† with Life Cover for Long-Term

Disclaimer: † Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is based on past 10 years’ fund performance (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in

What is an SIP? 

The full form of SIP is a Systematic Investment Plan. It is a systematic approach towards investing in various funds available in the market. It allows you to invest a fixed amount of money at regular intervals, like monthly or quarterly, instead of a lump sum. This is a great option for those who want to start investing with a small amount and gradually build their wealth over time. SIPs encourage disciplined investing and help average out the impact of market volatility. Investing in the SIP plans for 20 years can be beneficial as it allows your money to grow over time. That’s why you should always try to stay invested for a long time. 

SIPs for Long-Term

Some of the SIPs for the long term in India are listed below:

Large-Cap Funds for Long-Term SIPs

Insurance Funds 

1. Tata AIA Life Insurance Top 200 Fund

   The Top 200 fund will invest primarily in select stocks and equity-linked instruments, which are a part of the BSE 200 Index with a focus on generating long-term capital appreciation. The fund will not replicate the index but aim to attain better performance than the index's performance. As a defensive strategy arising from market conditions, the scheme may also invest in debt and money market instruments.

   • This is an open-ended large-cap fund.

   • The fund is moderately risky.

   • The NAV of the fund is  ₹182.11 (as of 14 October 2024).

   • The minimum limit for SIP investment is ₹1000.

   • The last 10-year annualised return is 20.3% (as of 14 October 2024).

2. HDFC Life BlueChip Fund

   The fund aims to provide medium to long-term capital appreciation by investing in a portfolio of predominantly large-cap companies which can perform through economic and market cycles. The fund will invest at least 80% of the AUM in companies which have a market capitalization greater than the company with the least weight in the BSE100 index. The fund may also invest up to 20% in money market instruments/cash.

   • This is an open-ended large-cap fund.

   • The fund is moderately risky.

   • The NAV of the fund is ₹52.03 (as of 14 October 2024).

   • The minimum limit for SIP investment is ₹1000.

   • Annualized Returns since inception is 13.05% (as of 14 October 2024). 

Mid-Cap Funds for Long-Term SIPs

Insurance Funds 

1. Tata AIA Whole Life Mid Cap Equity Fund

   The primary investment objective of the Fund is to generate long-term capital appreciation from a portfolio that is invested predominantly in Mid Cap Equity and Mid Cap Equity-linked securities. Investments in large-cap equity shares will be restricted to not more than 20%.

   • This is an open-ended mid-cap equity fund.

   • The fund is categorized as highly risky.

   • NAV of the fund is ₹162.2183  (as of 14 October 2024).

   • The minimum SIP investment limit is ₹1000.

   • 10 years returns of the fund 19.8% (as of 14 October 2024).

2. Max Life Insurance High Growth Fund

   The fund is a multi-cap fund focusing on mid-cap equities, where predominant investments are equities of companies with high growth potential in the long term (to target high growth in capital value assets). At least 70% of the Fund corpus is invested in equities at all times. However, the remaining is invested in government securities, corporate bonds, and money market instruments; hence, the risk involved is relatively high.

   • This is an open-ended mid-cap equity fund.

   • The fund is categorized as highly risky.

   • NAV of the fund is ₹121.19 (as of 14 October 2024).

   • The minimum SIP investment limit is ₹1000.

   • Annualized Returns since inception is 20.50% (as of 14 October 2024).

Small-Cap Funds for Long Term SIPs

Insurance Funds for Long Term SIP

1. Kotak Small-Cap Fund- Growth:

   The fund’s investment objective is to have capital growth from a diversified portfolio of equity and related securities.

   • This is an open-ended small-cap equity fund.

   • The fund’s risk profile is moderately high.

   • The Fund’s NAV is ₹286.348 (as of 14 October 2024).

   • The minimum limit for SIP investment is ₹100.

   • 10-year return of the fund is 20.68%.

2. SBI Small-Cap Fund-Growth:

   The scheme seeks to generate income and long-term capital growth by investing in a portfolio of equity and related securities of small and mid-cap companies.

   • This is an open-ended small-cap equity fund.

   • The fund is highly risky.

   • NAV for the fund is ₹187.10 (as of 14 October 2024).

   • The minimum SIP investment limit is ₹500.

   • Returns since the inception of the fund is 29.66%.

Debt Funds for Long-Term SIP

Insurance Funds for Long Term SIP

1. Tata AIA Whole Life Income Fund

   The primary investment objective of the Fund is to generate income through investing in a range of debt and money market instruments of various maturities with a view to maximizing the optimal balance between yield, safety and liquidity. The Fund will have no investments in equity or equity-linked

   instruments at any point in time

   • This is an open-ended debt fund.

   • The fund is highly risky.

   • NAV for the fund is ₹38.31 (as of 14 October 2024).

   • 10-year returns of the fund is 8.2%.

2. SBI Life Equity Fund

   SBI Life Equity Fund aims to provide high equity exposure targeting higher returns in the long term.

   • This is an open-ended debt fund.

   • The fund is highly risky.

   • NAV for the fund is ₹211.98  (as of 14 October 2024).

   • 10 year return of the fund is 13.24%

How to Calculate Returns on Your Investments? 

Calculating returns on your investments is important for evaluating their performance and making informed decisions about your financial goals. One common method to calculate returns, especially for systematic investment plans (SIPs), is by using an SIP calculator. An SIP return calculator is a financial tool used to estimate the future value of investments. It takes inputs such as the investment amount, duration, expected rate of return, and compounding frequency to calculate potential returns and help investors plan their financial goals effectively.

Conclusion

Selecting the SIP Plan for long-term investment goals requires careful consideration of factors such as investment horizon, risk tolerance, and financial objectives. Diversifying across asset classes, staying committed to regular investments, and reviewing portfolio performance periodically are key strategies to achieve long-term wealth creation and financial success through SIPs.