Best SIP For Long Term: High Risk

By Gullak Team
Jan 12, 2023
5 min read
The journey towards financial independence is never a straight path. Among the many routes you can take, investing in a systematic investment plan (SIP) for the long term stands out as one of the most promising ways for wealth creation.
While every investment comes with its share of risk, some have higher levels of uncertainty but also offer potentially higher returns. If you're not afraid to navigate such turbulent waters, this guide will enlighten you about the best SIP for long-term high-risk investments.
Our primary focus here is on high-risk funds, which have a significant risk-reward dynamic when compared to most other mutual funds. Despite this risk, seasoned investors refer to high-risk funds as Best SIP For Long Term due to their potential for generating substantial returns over time.
Let's delve deeper into understanding these high-risk mutual funds and how they can serve as an effective vehicle for achieving your long-term financial goals.

Understanding Best SIP For Long Term: High Risk

Primarily, mutual funds are classified into various categories based on their risk profiles - low, moderate, and high. High-risk mutual funds are those that carry the highest level of risk but also offer potentially higher returns – making them an attractive choice for investors who have a strong appetite for risk and want to yield substantial profits.
These funds predominantly invest in stocks or bonds of developing or growing companies. The specific asset allocation depends on the type of high-risk mutual fund. They come in various types including balanced advantage schemes, credit risk fund schemes, and equity hybrid fund schemes among others.
High-risk mutual funds are subject to significant market volatility; however, they can offer sizable returns if you choose the best ones and stay invested for a long period, often spanning up to 10 years or more.

Best SIP For Long Term: Who Should Invest in High-Risk SIPs?

High-risk funds are most suitable for investors who have a good understanding of the market and macroeconomic trends. These investors generally have a strong risk appetite and do not mind exposing their portfolios to volatility to generate higher earnings while choosing the best sip for long term. If you're an individual who can stomach short-term market fluctuations and stay focused on your long-term financial goals, high-risk SIPs are the Best SIPs For Long Term for your investment needs.
Before parking your money in high-risk mutual funds, consider specific factors such as your investment goal, risk tolerance, the fund’s past performance and expense ratio.

Best SIP For Long Term: Benefits of Investing in High-Risk Mutual Funds

Despite the risks involved, high-risk mutual funds offer several benefits:
  • Higher Returns: These funds can generate significantly higher returns compared to other investment options, often yielding 20-22% returns pa.

  • Long-Term Capital Appreciation: Over a 5-7-year period, if carefully chosen these funds can yield substantial growth.

  • Opportunity to Beat Benchmarks: During positive market cycles, these funds often outperform benchmarks & provide higher returns than the index.
Investments into high-risk mutual funds can be made using two methods- Systematic Investment Plan (SIP) or lump sum. In SIPs, you have the flexibility to invest fixed amounts at regular intervals based on your financial standing.

Best SIP For Long Term: Exploring the Top High-Risk SIPs for Long-Term Investment

Now let's look at some top-performing high-risk mutual fund schemes suitable for SIP:
  1. High risk Best SIP For Long Term - Quant Multi Asset Fund Direct Growth: This fund has given annualised returns of 29.32% over the past three years and 25.01% in the last five years. You can invest a minimum of ₹5,000 as a lump sum or start a SIP with ₹1,000.

  2. High risk Best SIP For Long Term- ICICI Prudential Asset Allocator Fund (FOF) Direct Growth: With annualised returns of 15.5% in the past three years and 14.35% in the last five years, this fund accepts lump sum investments from ₹5,000 and SIPs from ₹1,000.

  3. High risk Best SIP For Long Term: Axis Gold Direct Plan Growth: Despite being a gold-oriented fund, it has given annualised returns of 7.22% over the past three years and 14.03% in the last five years. The minimum investment amount is quite affordable at ₹100 for both lump sum and SIP investments.

Alternative Best sip for long term - High returns but low risk

What if there's a way to get the best of both worlds - High returns but low risk SIPs for the long term? This is where Gullak Gold+ comes into the picture. Gullak Gold+ provides investors with extra 5% gold every year on top of Gold’s annual returns. On an average, gold as an investment has given approximately 11% returns per annum. With the guaranteed extra 5% from Gullak Gold+, investors get the chance to unlock ~16% returns per annum. This is the highest return gold asset in India & beats 90% mutual funds in returns.
Gullak Gold+ delivers stellar returns, while being a low risk investment:
  • Underlying asset is Gold: Considered a safe haven for investors & has been known to deliver good returns historically.

  • Gullak provides the extra 5% by leasing investors' gold to India's Biggest jewellers. These jewellers provide investors with the extra 5% gold every year.

  • All jewellers are vetted by Augmont(India's 3rd largest Gold refinery & Gullak's gold partner) for annual turnover, creditworthiness & experience in the market.

  • Gullak provides a 100% bank guarantee on all the Gullak Gold+ investments, hence your investments are always secure.
Hence, if you're looking for a High returns but low risk, Gullak Gold+ can be considered among the best sip for long term.
Concluding Best SIP For Long Term - High risk
While high-risk mutual funds come with their share of uncertainties, they can be highly rewarding if you make informed decisions and stay invested for an extended period. It's crucial to assess your risk appetite, financial goals and market conditions before investing.
If you're looking for an asset that provides high returns but is a low risk option at the same time, consider exploring Gullak Gold+.
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Frequently Asked Questions
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