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12 Best SIPs For The Long Term (10-20 Year Investment Time Frame Starting 2021)

Looking for long term SIP mutual funds? Read this blog to know more about the best SIPs for 10 to 20 years from the world of equity, debt, international, and liquid mutual funds. Find out how Cube Wealth makes it super simple to invest in SIPs online.
March 15, 2021

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The best Systematic Investment Plans (SIPs) have the potential to grow your wealth over the long term while simultaneously weathering the impact of short term fluctuations. 

In this blog, we’re going to tell you the 10 SIP mutual funds handpicked by our advisor, Wealth First. But before we jump in, let’s look at the benefits of investing using SIPs.  

Why Should You Invest In SIP Or Systematic Investment Plan?

1. High Returns

The best SIPs in equity or international mutual funds have the potential to compound. This can help investors accumulate a large sum of money in the future. These funds have been known to generate close to 10-18% returns over 5+ years.

For example, here’s a hypothetical example of what could happen if you invested ₹10,000 per month each in an equity (@12%) or an international fund (@15%) for 10+ years. 

 

Fund Type

10-Year SIP Returns

20-Year SIP Returns

Equity

₹11,23,390

₹75,91,479

International

₹15,86,572

₹1,27,59, 549

2. Rupee Cost Averaging

Rupee cost averaging ensures you buy: 

  • More shares when the markets are down
  • Fewer shares when the markets are up

This will average out the impact of short term fluctuations and save you from the hassle of choosing the right time to invest. Here’s a hypothetical example of rupee cost averaging at work in SIPs Vs lump sum:

 

Name

Mr X

Mr Y

Month

NAV

Invested

Units

NAV

Invested

Units

Jan

20

₹2000

100

20

₹6000

300

Feb

40

₹2000

50

-

-

-

March

10

₹2000

200

-

-

-

Total

-

₹6000

350

-

₹6000

300

3. Affordable

A SIP is affordable because you don’t have to invest a large sum of money or lump sum. Instead, you invest a small amount of money, as low as ₹1000, every month or quarter.

12 Best SIPs For 10-20 Year Investment In FY 21 - 22

Here’s a sneak peek into SIPs currently being recommended by Cube’s mutual fund advisor, Wealth First and are perhaps the best SIPs to invest in for 10 to 20 years.

Best Equity Fund SIPs For 10-20 Years

Equity funds primarily invest in the shares of Indian companies with the aim of generating lucrative long term returns.

1. Mirae Asset Large Cap Fund

  • Type: Large-cap fund
  • 1-year returns: 56.11%
  • 3-year returns: 14.54%
  • 5-year returns: 15.87%

2. Canara Robeco Emerging Equities Fund

  • Type: Large & mid-cap fund
  • 1-year returns: 63.35%
  • 3-year returns: 15.01%
  • 5-year returns: 18.08%

3. Axis Focused 25 Fund

  • Type: Flexi-cap (focused) fund
  • 1-year returns: 56.04%
  • 3-year returns: 14.48%
  • 5-year returns: 17.70%

Best Debt Fund SIPs For 10-20 years

Debt funds are generally considered to fall under the low risk, predictable rewards category. They invest in debt instruments like government bonds, corporate bonds, money market instruments, and more.

1. IDFC Banking & PSU Debt Fund

  • Type: Banking & PSU fund
  • 1-year returns: 6.70%
  • 3-year returns: 9.69%
  • 5-year returns: 8.09%

2. ICICI Prudential Corporate Bond Fund

  • Type: Corporate bond fund
  • 1-year returns: 8.47%
  • 3-year returns: 8.51%
  • 5-year returns: 8.07%

3. HDFC Money Market Fund

  • Type: Money market fund
  • 1-year returns: 4.57%
  • 3-year returns: 6.90%
  • 5-year returns: 6.81%

Best International Fund SIPs For 10-20 years

International funds are Indian mutual funds that invest in the shares of foreign companies like Apple, Amazon, Novartis, etc. They may even invest in the units of foreign mutual funds and ETFs.

Given their investment type, international funds are a high-risk, high-reward category of mutual funds that are suitable for the long term.

1. Edelweiss Greater China Equity Off-shore Fund

  • Type: Fund of fund
  • 1-Year Returns: 50.31%
  • 3-Year Returns: 23.00%
  • 5-Year Returns: 24.75%

2. Franklin India Feeder - Franklin U.S. Opportunities Fund

  • Type: Feeder fund
  • 1-Year Returns: 29.13%
  • 3-Year Returns: 21.72%
  • 5-Year Returns: 20.83%

3. PGIM India Global Equity Opportunities Fund

  • Type: Fund of fund
  • 1-Year Returns: 31.20%
  • 3-Year Returns: 27.03%
  • 5-Year Returns: 10.51%

Best Liquid Fund SIPs For 10-20 years

Liquid funds fall under the category of debt funds. However, they're known to be relatively safer than other mutual funds and certain debt funds because their portfolio matures in 60-91 days.

1. Nippon India Liquid Fund

  • Type: Liquid fund
  • 1-Year Returns: 3.23%
  • 3-Year Returns: 5.55%
  • 5-Year Returns: 6.09%

2. Invesco India Liquid Fund

  • Type: Liquid fund
  • 1-Year Returns: 3.20%
  • 3-Year Returns: 5.41%
  • 5-Year Returns: 6.01%

3. Kotak Liquid Fund

  • Type: Liquid fund
  • 1-Year Returns: 3.22%
  • 3-Year Returns: 5.41%
  • 5-Year Returns: 5.99%

Who Is The Right Advisor For Investing In SIP Online?

A leading advisor like Wealth First on the Cube Wealth app focuses on what is right for you, unlike a bank salesperson who’s looking to sell you mutual funds based on their sales target.

WF curates a list of the best mutual funds for Cube users based on their risk profile and investment goals. This helps you because you:

  • Don’t have to research and analyse 1000+ mutual funds
  • Get access to mutual funds that are right for you
  • Receive advice on when to sell a mutual fund

Wealth First has a track record of beating the market by ~50% over the past decade.

Best Long Term SIPs At A Glance

Watch this video to learn more about handpicked mutual funds on Cube Wealth

[Updated on July 16th 2021]


Shriram Shekhar
Shriram is a Consultant at CubeWealth. He has developed cutting edge IT products for over 2 years before turning to his passion for the written word. His love for philosophy, developing products, and empowering people through quality content is what got him to CubeWealth.

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