Top 5 best SIPs for long term in India

By Gullak Team
Jan 14, 2023
6 min read
Systematic Investment Plans (SIPs) have gained immense popularity in India as the best option for investment, especially for those looking to build wealth over an extended period. As of October 2023, there are over 7.3 crore SIP accounts in India, with people collectively investing over ₹1,00,000 crores in just seven months of 2023!
Investing wisely is crucial for securing your financial future, and understanding the best SIP for long-term growth is key. In this comprehensive guide, we will explore the best SIP for long-term investment strategies, focusing on the high returns SIP plans and why they are considered the best option for investment.

Factors for choosing Best SIPs for Long Term Wealth Creation

The hallmark of a good SIP lies is its ability to leverage 'rupee cost averaging'. This means as you invest consistently over time, you buy more units when prices are low and fewer when prices are high, averaging out the cost of your investment. This strategy, coupled with the long-term growth potential of SIPs, makes them the best option for investment for those looking to build a substantial corpus over time.
Suppose you start a monthly SIP of ₹5,000 in an asset. Incorporating an asset-focused Systematic Investment Plan (SIP) can offer a unique and potentially lucrative way to build wealth over time. With an assumed average return of 16%, here's how this investment can grow:

Returns of best SIP for long-term in India

Duration of SIPTotal InvestmentEstimated Value at 16% Annual Return
10 Years₹6 LakhsApproximately ₹16.24 Lakhs
20 Years₹12 LakhsApproximately ₹1.08 Crores
30 Years₹18 LakhsApproximately ₹6.27 Crores

The 5 best SIPs for Long Term in India

The essence of choosing the best SIP for long term lies in finding high returns SIP plans. These plans are specifically designed to maximise returns, making them the best option for investment for growth-focused investors. The best SIP for long term are those that balance risk with the potential for high rewards, and the below mentioned SIP plans fit this criterion perfectly.

Equity Funds (Balanced and Large Cap Funds)

When considering the best SIP for long-term investment, understanding the different types of funds available is crucial. Equity Funds, including Balanced and Large Cap Funds, are often considered the best SIP for long term for those seeking growth potential.
For instance, Balanced funds like the ICICI Prudential Balanced Advantage Fund, which invests in both equity and debt, are regarded as one of the best SIP for long-term due to their combination of stability and growth. This dual approach makes them the best option for investment for investors who want a balanced risk-return profile.
Large Cap Funds, such as the HDFC Top 100 Fund, also fall under the category of the best SIP for long-term investors who prefer stability. Investing in large, well-established companies, these funds are typically seen as the best option for investment for those aiming for steady growth in the equity market.

Debt Funds

If safety and steady returns are your priorities, Debt Funds are often recommended as the best SIP for the long term. These funds, like the Axis Short Term Fund and HDFC Corporate Bond Fund, invest in government and corporate bonds and are considered the best option for investment for conservative investors. In India, on an average, debt funds give approximately 7-8% returns per annum.

Gold-Based SIPs - Gullak Gold+

You can use platforms such as Gullak to invest in digital Gold & lease it to large jewellers. The Gold leasing option on Gullak is called Gullak Gold+. Here, you get an extra 4-5% on top of Gold's CAGR of 11%. This is the highest returns on Gold in India, this even beats 90% mutual funds in returns. You can invest in Gullak Gold+ with as low as 0.5gm gold. Gullak Gold+ also allows SIPs for consistent wealth creation over the long-term.

Fixed Deposits (FDs)

For those who prefer guaranteed returns, FDs are a perfect choice and the best SIP for long-term wealth preservation. Banks like SBI offer fixed deposits with fixed interest rates over a specified period. They’re one of the safest investment options, ideal for risk-averse individuals. However, FD returns are incomparable to a lot of the assets discussed here. On an average FDs give 8% returns pa in India.

Recurring Deposits (RDs)

RDs are similar to FDs but allow for a fixed amount to be deposited and are considered one of the best SIP for long-term wealth preservation. The HDFC Recurring Deposit is an example of an RD that combines the discipline of regular saving with the security of a fixed deposit.

5 Best SIPs compared against each other

Asset ClassRisk LevelIdeal For
Equity Mutual FundsModerate to HighInvestors seeking growth with readiness for risk.
Debt Mutual FundsLow to ModerateConservative investors focusing on capital preservation.
Gullak Gold+LowInvestors who want stability but also high returns(equivalent to Mutual Funds)
Fixed Deposits (FDs)LowRisk-averse individuals desiring guaranteed returns
Recurring Deposits (RDs)LowInvestors with a disciplined saving approach seeking steady returns.

Conclusion on Best SIPs for long-term

In summary, selecting the right Systematic Investment Plan (SIP) is crucial for long-term financial prosperity and risk management. High-return SIPs are key to leveraging market growth for wealth creation. Among these, Gullak Gold+ stands out, offering a unique blend of gold's stability and higher returns compared to a lot of equity funds or almost all other assets.
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Frequently Asked Questions
What makes SIPs the best investment option for the long term in India, and how do they contribute to wealth creation?
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How do high-return SIP plans play a crucial role in achieving long-term financial goals, and what factors should one consider when selecting the best SIP for sustained growth?
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Can you elaborate on Gullak Gold+ and its significance as a standout option for long-term investment, especially when compared to traditional assets like mutual funds and fixed deposits?
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How do Debt Funds, Gullak Gold+, Fixed Deposits, and Recurring Deposits differ in risk levels, suitability for investors, and returns for long-term wealth creation?
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