Key Details Of Best SIPs For 5 Years In Equity Funds

1. Axis Focused 25 Fund

Axis Focused 25 Fund is an open-ended equity scheme that invests in up to 25 stocks. It falls under the 'Flexi-cap' category which means the fund manager has the freedom to invest across categories like:

• Large-cap companies
• Mid-cap companies
• Small-cap companies 
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This flexibility and versatility of Axis Focused 25 fund may be suitable for long term investors who are looking to invest in SIP plans for 5 years or more. 

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2. Mirae Asset Large Cap Fund
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Mirae Asset Large Cap Fund is an open-ended equity scheme that primarily invests in stocks of large-cap companies. A large-cap company is generally stable, consistent, and reliable.  
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Mirae Asset Large Cap Fund looks to leverage these benefits to generate returns for its investors. Thus, the fund may be suitable for patient investors who want to stay locked-in for 5+ years. 

3. Motilal Oswal Midcap 30 Fund

Motilal Oswal Midcap 30 Fund is an open-ended equity scheme that invests in up to 30 of the best mid-cap stocks. Mid-cap companies are not nascent companies or industry leaders, they're in the middle. 

Because of this, mid-cap stocks have the potential to generate better returns than large-cap stocks while being less volatile than small-cap stocks. 

Thus, the fund may be suitable for investors who are ready to deal with short term fluctuations for potential long term gains over 5+ years.

4. HDFC Flexi Cap Fund

As the name suggests, HDFC Flexi Cap Fund has the flexibility or freedom to invest in stocks from across market caps. This fund has been operating since January 1995.

Key Details Of Best SIPs For 5 Years In Debt Funds

1. IDFC Banking & PSU Debt Fund

The IDFC Banking & PSU Debt Fund is an open-ended debt scheme that invests in the money market and debt assets from the banking and PSU sector. 

Banking & PSU debt funds invest in the high-quality bonds of companies with a high credit rating (AAA). This implies that the fund carries low volatility but can be prone to interest rate fluctuations.

Thus, the IDFC Banking & PSU Debt Fund may be suitable for investors who want to leverage the benefits of the banking & PSU sector for generating wealth over 5+ years. 

2. ICICI Prudential Corporate Bond Fund

ICICI Prudential Corporate Bond Fund is an open-ended debt scheme that primarily invests in corporate bonds with a high credit rating (AA+). Corporate bonds pay a fixed interest that these funds look to leverage. 

Corporate bond funds carry a low risk of default and generate better returns than your average bank fixed deposit. Thus, the fund may be suitable for conservative investors looking for long term wealth creation with a SIP plan for 5 years.

3. HDFC Money Market Fund

HDFC Money Market Fund is an open-ended debt scheme. It primarily invests in top-quality money market instruments that mature in approximately a year. 

Money market funds carry a low interest rate risk and volatility due to the average maturity duration of their portfolio. Thus, the fund may be suitable for investors looking to add debt funds to their portfolio for the long run. 

4. IDFC Dynamic Bond Fund

Dynamic bond funds like IDFC Dynamic Bond Fund can adjust their investment strategy based on interest rate fluctuations. This simply means that the fund manager can buy bonds that they deem fit - for the long or short term - based on RBI's interest rate changes.

Key Details Of Best SIPs For 5 Years In International Funds

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

Franklin India Feeder - Franklin U.S. Opportunities Fund is an open-ended equity scheme. It is a feeder fund which means it invests its capital in an offshore fund - Franklin U.S. Opportunities Fund.

Franklin U.S. Opportunities Fund uses the capital to invest in high growth US stocks with the potential to generate long term wealth for its investors. There are two benefits to this:

1. You get the benefits of US stocks without having to pick them on your own
2. You don't have to pay taxes in the US
   

Thus the fund can be beneficial for investors looking to geographically diversify their portfolio with a SIP plan for 5+ years. 

2. Edelweiss Greater China Equity Off-shore Fund

Edelweiss Greater China Equity Off-shore Fund is an open-ended 'fund of funds' scheme. Fund of funds don't invest in stocks or bonds, they invest in other mutual funds. 

Edelweiss Greater China Equity Off-shore Fund invests in JPMorgan Fund’s - Greater China Fund which invests in stocks of high growth companies in the Greater China region.

This fund may be suitable for investors with a long term outlook (5+ years) and the patience to bear short term fluctuations. 

3. PGIM India Global Equity Opportunities Fund

This international fund is a fund of funds (FoFs) scheme that invests in the units of PGIM Jennison Global Equity Opportunities Fund.

Note: All facts and figures in the tables above are updated as of 16/07/2021 and are taken from publicly available sources.

Q. Which SIP is best for 5 years?

Ans. The answer is to build a perfect portfolio of SIP mutual funds for 5+ years based on your investment goals and risk appetite. Cube's perfect portfolio philosophy sets you up for the short term, medium term, and long term with diversified investments within and across mutual fund categories.

This could include SIPs in liquid funds for emergencies, debt mutual funds for the short and medium term along with conservative, moderate, aggressive, and international SIP mutual funds for 5+ years. You may download the Cube Wealth App to begin your investment journey.

Q. Why Should You Make A Long-Term SIP Investment?

Ans. A long-term SIP investment is investing regularly in smaller amounts. This helps you save a larger amount over the long term with small investments at regular intervals. It has the power to compound and accumulate into a large corpus. This consistency can transform your future financial health.

Q. What Is The Power Of Compounding?

Ans. Compounding is reinvesting your returns. You also gain returns on your investments with the principal amount invested. This very effect is called the compounding effect. It is often compared to the snowball effect; small actions over time can lead to big gains.

Q. What is the minimum SIP amount?

Ans. The minimum investment amount on the Cube Wealth app is ₹1000

Q. Which SIP is best for long term investment?

Ans. Equity funds, international funds, and ELSS funds are known to be suitable for long term SIP investments. The reason behind this lies in the nature of their investment portfolio.