Best SIP plan for 20 Years

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Best SIP plan for 20 Years

Meaning of SIP

A systematic investment plan (SIP), more commonly known as SIP, is a facility offered by mutual funds for investors to invest in a disciplined manner. The SIP facility allows an investor to invest a fixed amount of money at pre-determined intervals in select mutual fund schemes. A fixed amount of Rs can be less than Rs. 500, while the pre-defined SIP interval may be on a weekly / monthly / quarterly / half-yearly or yearly basis. By taking the SIP route for investment, the investor invests in a time bound manner without worrying about market dynamics and stands for long-term gains due to average cost and power of compounding.

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Benefits of SIP Investment

Power of Compounding

When you invest regularly through SIP and invest for a longer period, the compounding effect increases the profit. The compounding effect ensures that you not only make a profit on your principal amount (the actual investment), but also on the profit on the principal amount, that is, your money increases over time because the money you invest earns a return. . And returns also earn returns.

Power of Starting early

The earlier one starts saving and investing regularly, the easier it is to achieve your goals. The graph below shows the effect of beginning a monthly investment of Rs 5000 at various stages of life up to the age of 60 (assuming a return of 12% p.a.).

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Plans

Mirae Asset Bluechip Fund

In the long run, Mirae is considered an investment in property. Its objective is to generate income primarily by investing in Indian equities and equity related securities. Fund managers invest investors’ money in long-cap and mid-cap companies to help investors achieve their financial goals in the long run. Moderate high risk is associated with these funds.

Motilal Oswal Equity Fund (long term)

The rising asset value has helped Motilal Oswal long-term equity fund to gain popularity in the financial market. Fund managers focus on investing in diversified portfolios. However, investors are not given any assurance or guarantee on achieving the objective of the investment plan.

Aditya Birla Sun Life Fund

The objective of the scheme is to generate profit for the unit builders. Fund managers invest money in equities and securities that are engaged in banking and financial services. Assets involve high risk, but returns are reported in comparison to other funds since launch.

ICICI Prudential fund

By investing in this fund, fund managers ensure that they do not take undue exposure of the fund in a stock or sector. They follow extensive research and proceed with an investment plan based on retrieved data and achieve the objective of long-term wealth accumulation. The investment target is a mix of government and corporate sectors. In addition, they invest in mid-cap companies as they offer niche players, outsourcing opportunities and high growth industry presence. However, it is necessary to understand that this is a fund that involves high risk.

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