Best SIP for Long Term Investment in 2024

by Anjali Sharma
28 June 202414 min read
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Best SIP for Long Term Investment in 2024Best SIP for Long Term Investment in 2024
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We’ve all experienced the thrill of saving money with a piggy bank in our childhood to buy something we fancied. This was a straightforward model that helped us save and maintain discipline. An SIP or systematic investment plan similarly helps us invest in mutual funds at regular intervals with discipline and consistency. In this article, we have taken a look at the top 10 best SIPs for the long term in 2024. Keep reading to find out more!

Best SIPs for the Long Term

When it comes to starting a SIP in a mutual fund, an Indian investor will have a plethora of options to choose from. These can vary depending on the type of scheme and the type of AMC that offers these schemes. To come up with a list of the best funds to start an SIP in, we have considered funds across different sizes that would be suitable for the long term. Keeping this in mind we have considered Large-cap, Mid-cap, Multi-cap and Thematic funds. Our analysis takes into account both the returns and risks of these mutual funds. 

LARGE CAP

Kotak Bluechip Fund

Kotak Bluechip invests in companies with large market capitalization across sectors and are relatively stable compared to the broader market. The fund has 73% corpus invested in large cap stocks, 10% in mid cap and 3% in small cap stocks.

Founded in 1994, the scheme has a portfolio of 61 stocks with sectoral allocation of 21% towards banks, 10% to IT & software, 7% to auto, 6.75% to petroleum products, and 5.7% to auto components. The top holdings are ICICI Bank, HDFC Bank, Reliance Industries, Infosys Ltd, and L&T Ltd.

Fund AUM
Rs. 8,200 Cr
Standard Deviation
11.58%
5-Year CAGR
19.54%
Sharpe Ratio
0.93
10-Year CAGR
15.84%
Beta
0.88
Since Inception CAGR
15.87%
Alpha
1.77
Expense Ratio
0.6%

 

SIP of Rs. 10,000 per month in this scheme for five years would yield Rs. 10,20,915.

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Here’s a guide on how to analyse the risk parameters:

Standard Deviation: Measured as a percentage, standard deviation indicates how much the returns of a mutual fund scheme are likely to deviate from its average annual returns. In effect, Standard deviation measures the volatility of the fund when compared to historical returns over time. Higher value denotes higher volatility.

Beta: Beta gives an idea of how volatile fund performance has been compared to benchmark. It’s a marker of the fund’s sensitivity to market changes. A lower Beta indicates more predictable performance and lower risk. Beta over 1 indicates the fund is more volatile than the market.

Sharpe Ratio: Sharpe ratio indicates how much risk was taken to generate the returns. Higher value means the fund has been able to give better returns per unit of risk taken. Higher the value of this ratio, the better the performance. 

Alpha: A positive alpha indicates that the fund has outperformed the market after adjusting for volatility. Alpha above zero suggests that the fund manager has managed to outperform the benchmark returns.

Compare fund risk with Riskometer on Rupeezy Invest.

ICICI Pru Bluechip Fund

As the name suggests, this is a large cap fund with 81% corpus invested in large cap stocks, 4% in mid cap stocks and 0.74% invested in small cap stocks. The fund is aimed at long term appreciation from large cap equity portfolio. 

Incepted in 2008, the fund has 66 stocks with 21% exposure to financial and insurance sector, 11% to IT, 11% to infrastructure, 9% to petroleum, and 6.4% to automobiles. The fund’s top holdings are ICICI Bank, Reliance Industries, L&T Ltd, Maruti Suzuki India Ltd, Axis Bank Ltd. 

Fund AUM
Rs. 55,460 Cr
Standard Deviation
11.32%
5-Year CAGR
19.83%
Sharpe Ratio
1.26
10-Year CAGR
15.92%
Beta
0.84
Since Inception CAGR
16%
Alpha
5.62
Expense Ratio
0.9%

An SIP of Rs. 10,000 per month for five years in this scheme would yield Rs. 10,29,455.

Start the best SIP for long term for an amount as low as Rs 100, choose from 1500+ schemes, over 40 AMCs.

HDFC Top 100 Fund

This scheme has minimum 80% portfolio invested in large cap stocks which are currently the largest 100 companies in India by market capitalisation, diversified across key sectors. 

Incepted in 1996, the fund has 46 stocks with sectoral allocation of 24% in financials, 9.4% in IT, 8% in private sector banks, 8% in energy, and 7.7% in consumer staples. Fund’s top holdings are ICICI Bank, HDFC Bank, Reliance Industries, NTPC Ltd, L&T Ltd. 

Fund AUM
Rs. 33488 Cr
Standard Deviation
12.14%
5-Year CAGR
17.24%
Sharpe Ratio
1.17
10-Year CAGR
14.10%
Since Inception CAGR
14.19%
Beta
0.92
Expense Ratio
1.04%
Alpha
5.18

SIP of Rs. 10,000 per month in this scheme for five years would yield Rs. 9,55,650.

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MULTICAP

Nippon India Multi Cap Fund

This fund invests 33% in large cap stocks, 25% in midcap stocks, and 23% in small cap stocks. The fund’s strategy is to identify opportunities ahead of the market and it is focused on growth at reasonable valuations.

The fund has 46 stocks with sectoral allocation of 24% in financials, 9.4% in IT, 8% in private sector banks, 8% in energy, and 7.7% in consumer staples. Fund’s top holdings are ICICI Bank, HDFC Bank, Reliance Industries, NTPC Ltd, L&T Ltd. 

Fund AUM
Rs. 31,963 Cr
Standard Deviation
13.13%
5-Year CAGR
25.11%
Sharpe Ratio
12.39
10-Year CAGR
17.93%
Beta
0.90
Since Inception CAGR
17.96%
Alpha
8.55
Expense Ratio
0.81%

SIP of Rs. 10,000 per month in this scheme for five years would yield Rs. 12,02,515.

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Quant Active Fund.

The fund invests in a diversified portfolio of large, medium and small cap companies. It has 28% exposure in mid cap and 11.22% in small cap stocks and remaining 60% exposure in large cap stocks. 

Incepted in 2013, the fund has 63 stocks with 18% exposure to energy, 14% to metal and mining, 13% to financials, 9.3% to services and 9% to capital goods. The top holdings in the scheme are Reliance Industries, Jio Financial Services, IRB Infrastructure Developers, Aurobindo Pharma, and Punjab National Bank.

Fund AUM
Rs. 10,204 Cr
Standard Deviation
15.97%
5-Year CAGR
33.17%
Sharpe Ratio
0.93
10-Year CAGR
22.71%
Beta
1.10
Since Inception CAGR
22.77%
Alpha
3.86
Expense Ratio
0.62%

SIP of Rs. 10,000 per month in this fund for five years would yield Rs. 15,37,193.

ICICI Prudential Multicap Fund 

This fund invests in a diversified portfolio of large, medium and small cap companies. Allocation wise, it has 42% exposure in large cap stocks, 21% exposure in mid cap and 15% in small cap stocks.

The fund has 115 stocks with 18% exposure to financials, 9.3% to energy, 9.2% to healthcare, 9% to technology. The top holdings in the scheme are ICICI Bank, Infosys Ltd, Reliance Industries, HDFC Bank and Bharti Airtel.

Fund AUM
Rs. 12.048 Cr
Standard Deviation
11.92%
5-Year CAGR
21.57%
Sharpe Ratio
1.01
10-Year CAGR
17.24%
Beta
0.86
Since Inception CAGR
17.35%
Alpha
3.59
Expense Ratio
0.96%

SIP of Rs. 10,000 per month in this scheme for five years would yield Rs. 10,83,035.

THEMATIC FUNDS

ICICI Prudential Value Discovery Fund

This fund follows a value investing method of selecting stocks that are available at a much lower price than their actual worth and are likely to deliver above average return in future. If we look at  allocation, 62% of the corpus is invested in large-cap stocks, 7% in mid-cap stocks, and 3% in small-cap stocks. It is suitable for investors looking to invest for a 5 year+ time horizon. 

The scheme has 69 stocks. The top 5 holdings are HDFC Bank, ICICI Bank, Reliance Industries  Ltd, Infosys Ltd, and Sun Pharma. The portfolio is concentrated in sectors like financials 29%, energy & utilities 16%, technology 14%, healthcare 11.5% and consumer staples 8.4%

Fund AUM
Rs. 42,670 Cr
Standard Deviation
10.80%
5-Year CAGR
24.58%
Sharpe Ratio
1.66
10-Year CAGR
17.93%
Beta
0.76
Since Inception CAGR
17.96%
Alpha
8.67
Expense Ratio
1.03%

SIP of Rs. 10,000 per month in last five years would yield Rs. 12,06,810.

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ICICI Prudential Infrastructure Fund

This is a sectoral infrastructure mutual fund scheme in existence for 11 years with 44% corpus invested in large cap stocks, 12% in midcap stocks, and 17.36% invested in small cap stocks. 

Incepted in 2005, the fund has 62 stocks with 29% allocation in industrials, 23% in energies and utilities, 19% in materials, and 16% in financials.

The top holdings in this fund are NTPC, L&T Ltd, ICICI Bank, HDFC Bank and Kalpataru Project.

Fund AUM
Rs. 5,034 Cr
Standard Deviation
13.24%
5-Year CAGR
30.15%
Sharpe Ratio
2.16
10-Year CAGR
17.93%
Beta
0.56
Since Inception CAGR
18.34%
Alpha
11.48
Expense Ratio
1.13%

SIP of Rs. 10,000 done in the scheme for five years would yield a sum of Rs. 14,00,538.

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MIDCAP 

HDFC Mid-Cap Opportunities Fund

This fund focussed on mid and small-cap stocks with 52% of the corpus invested in mid-cap stocks, 15% in small-cap stocks, 5% in large-cap stocks, and 19% in others. It is suitable for investors looking for high returns in the long term along with the possibility of losses in the short term.

Incepted in 2015, the scheme has 71 stocks. The top 5 holdings are Indian Hotels Company Limited, Apollo Tyres Limited, Max Financial Services Limited, Federal Bank Ltd, and Ipca Laboratories Ltd.

The fund’s portfolio is diversified in sectors like Financials 24%, Consumer 16%, Industrials 12%, Healthcare 12% and Materials 11.4%

Fund AUM
Rs. 65,394 Cr
Standard Deviation
12.95%
5-Year CAGR
28.47%
Sharpe Ratio
1.60
10-Year CAGR
21.20%
Beta
0.85
Since Inception CAGR
21.29%
Alpha
4.30
Expense Ratio
0.76%

SIP of Rs. 10,000 per month in last five years would yield Rs. 13,30,220.

Kotak Emerging Equity Fund

Launched in 2013, Kotak Emerging Equity Fund is a medium sized fund focussed on midcap stocks with 55.44% of the corpus invested in mid cap stocks, 19% in small cap stocks, 4.6% in large cap stocks. It is suitable for investors looking to generate higher than average returns from medium sized businesses with growth potential.  

The scheme has 72 stocks with top 5 holdings as Cummins India, Solar Industries India, Supreme Industries Limited, Schaeffler India Ltd, Bharat Electronics Ltd.

The fund’s portfolio is diversified in sectors like capital goods 21.37%, financials 12.94%, chemicals 10.41%, materials 9.15%

Fund AUM
Rs. 45,018 Cr
Standard Deviation
12.09%
5-Year CAGR
28.75%
Sharpe Ratio
1.36
10-Year CAGR
23.03%
Beta
0.78
Since Inception CAGR
23.09%
Alpha
1.44
Expense Ratio
0.38%

SIP of Rs. 10,000 per month in this scheme five years would yield Rs. 13,41,560.

Quant Midcap Fund

Launched in 2013, Quant midcap is a medium sized fund focussed on mid and small-cap stocks with 37.48% of the corpus invested in large cap stocks, 32% in mid-cap stocks, 16% in small-cap stocks, and 13% in others. It is suitable for investors with a time horizon of 4-5 years and chance of  moderate losses in the short term.  

This scheme has 32 stocks, while, the top 5 holdings are Reliance Industries, Aurobindo Pharma, Linde India, Container Corporation of India Ltd, Motherson Sumi Systems Ltd.

The fund’s portfolio is diversified in sectors like energy 16.15%, services 14.7%, financials 12.5%, Healthcare 10.56%

Fund AUM
Rs. 7,953 Cr
Standard Deviation
15.85%
5-Year CAGR
38.17%
Sharpe Ratio
1.66
10-Year CAGR
22.23%
Beta
0.96
Since Inception CAGR
22.30%
Alpha
8.87
Expense Ratio
0.62%

SIP of Rs. 10,000 per month in last five years would yield Rs. 17,99,082.

HYBRID FUNDS

Hybrid funds are a combination of equity and debt and suitable for investors who’d like a mix of stability of debt instruments with equity’s potential to outperform debt. The risk in hybrid funds is low compared to pure equity funds.

SBI Conservative Hybrid Fund

Launched in 2013, SBI Conservative Hybrid fund has 72% investment in debt of which 28.64% is in government securities and 43% in low risk securities. 23% of the fund’s corpus is invested in equities of which 9% is in large cap stocks, 3% in midcap and 5% in small caps.

In equities, the fund has 43 stocks with top holdings of ICICI Bank, HDFC Asset Management Co, Aavas Financiers Ltd and Infosys Ltd. 

Fund AUM
Rs. 9,824 Cr
Standard Deviation
3.10%
5-Year CAGR
11.66%
Sharpe Ratio
1.20
10-Year CAGR
10.67%
Beta
0.18
Since Inception CAGR
10.70%
Alpha
2.32
Expense Ratio
0.61%

SIP of Rs. 10,000 per month in last five years would yield Rs. 8,17,218.

ICICI Prudential Equity and Debt Fund

Launched in 2013, SBI Conservative Hybrid fund has 73.34% investment allocation in equities and 20.45% allocation in debt. Of the equity allocation, 55.38% of the fund’s corpus is invested in large cap stocks, 6.24% in mid cap stocks, 2.29% in small cap stocks.

In equities, the fund has 43 stocks with top holdings of NTPC, ICICI Bank, Maruti Suzuki India Ltd, Bharti Airtel and HDFC Bank.

Fund AUM
Rs. 35,122 Cr
Standard Deviation
9.15%
5-Year CAGR
22.10%
Sharpe Ratio
1.84
10-Year CAGR
17.59%
Beta
0.63
Since Inception CAGR
17.62%
Alpha
12.34
Expense Ratio
1.02%

SIP of Rs. 10,000 per month in last five years would yield Rs. 10,99,908.

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How to Select a Mutual Fund for SIP?

Here are the top metrics to analyse before investing in a mutual fund.

  • Investment Objective: Every fund scheme clearly states the objective, do check the fund’s goal and fund manager’s philosophy while investing.
  • Fund Allocation: Check the allocation of funds assets across sectors and stocks market capitalization to ascertain if your risk and return expectation is aligned.
  • Return: Check fund’s return over the years and how it compares with benchmark index and similar funds. Do check returns in tandem with fund’s risk profile
  • Risk Profile: Check the risk parameters of the fund and match it with your risk tolerance levels. 
  • Fund Manager: Check the history of the fund house, its track record. Also check fund manager’s credentials, past funds managed, track record, investing style etc before investing. 

Advantages of Investing in SIPs

  • Disciplined Approach: SIPs help you save and invest in autopilot mode with a fixed schedule irrespective of market conditions. 
  • Rupee Cost Averaging: With your SIP installments spread out over various market days, you end up buying more units when markets are down and lesser units when there is an upswing. The overall cost of purchase is thus averaged over several years.
  • The Power of Compounding: Long term regular investments benefit from the power of compounding rather than waiting for right market levels or a lump sum saving to invest.
  • Simple Process: Investing in SIPs is simple, you can easily set up SIPs online, monitor them periodically and also make changes in a jiffy. Checkout Rupeezy Invest, a one stop platform for mutual funds investment and smart mutual fund analysis tools. 
  • Choice: There are several mutual funds and categories to choose from to set up SIPs. Invest in over 1500 schemes with Rupeezy Invest. 
  • Risk Mitigation: Mutual funds are run by professionals who invest the corpus in a bouquet of stocks. The portfolio risk is thus diversified across sectors and companies compared to direct stocks. For equity investors who lack time or expertise, mutual fund SIPs are a safe and convenient option to invest in markets. 

Conclusion

To conclude, mutual fund SIPs are an efficient investment tool to save regularly and create wealth over a period of time even with small contributions. However it is very important to understand what you are doing and have a good understanding of both the risks and rewards before starting an SIP. Rupeezy Invest helps you do just that by focusing on both the risks and returns. Their other features like Impact Analysis, MF Lab and access to direct mutual funds set them apart. Set up a SIP by downloading the Rupeezy Invest app today.

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