The Best SIP Plans for Long-Term Growth in 2024: A Detailed Guide

Looking for the optimal SIP (Systematic Investment Plan) to secure your investments over the next decade? Here's an in-depth look at the best SIP plans available in India based on performance, expense ratios, and a comprehensive analysis of mutual fund schemes. This guide will help you make an informed decision for your long-term financial goals.

TOP 5 SIP Plans for 10-Year Investments

After thorough research and analysis, we have identified the top 5 mutual fund schemes as outstanding SIP plans for a 10-year investment horizon. These funds are selected based on their past performance, consistency, and expense ratios, providing a balanced approach to growth and stability.

1. Quant Small Cap Fund - Direct Plan-Growth

Category Name: Small Cap Fund
Asset Under Management (AuM): INR 26,645 Crore
3-Year Returns: 29%
5-Year Returns: 50%
10-Year Returns: 22%
Expense Ratio: 0.64%

2. Quant ELSS Tax Saver Fund - Direct Plan-Growth

Category Name: ELSS
Asset Under Management (AuM): INR 11,561 Crore
3-Year Returns: 24%
5-Year Returns: 38%
10-Year Returns: 25%
Expense Ratio: 0.77%

3. Quant Mid Cap Fund - Direct Plan-Growth

Category Name: Mid Cap Fund
Asset Under Management (AuM): INR 9,501 Crore
3-Year Returns: 29%
5-Year Returns: 39%
10-Year Returns: 21%
Expense Ratio: 0.62%

4. Quant Large and Mid Cap Fund - Direct Plan-Growth

Category Name: Large Mid Cap Fund
Asset Under Management (AuM): INR 3,828 Crore
3-Year Returns: 26%
5-Year Returns: 31%
10-Year Returns: 22%
Expense Ratio: 0.66%

5. Bank of India Manufacturing Infrastructure Fund - Direct Plan-Growth

Category Name: Sectoral/Thematic
Asset Under Management (AuM): INR 528.69 Crore
3-Year Returns: 29%
5-Year Returns: N/A (As of June 2023)
10-Year Returns: N/A (As of June 2023)
Expense Ratio: 0.0%

Comprehensive SIP Recommendations for 2024

Based on a detailed examination of various mutual funds, we recommend the following SIP plans to diversify your portfolio:

1. UTI Nifty Index Fund - ?25

Index funds like UTI Nifty Index Fund are ideal for long-term growth, offering balanced?market exposure and lower risk.

2. ICICI Pru Discovery Fund - ?15

This fund is known for its balanced approach, combining equity and debt assets to ensure diversified growth.

3. SBI Large and MidCap Fund - ?20

A strong bet on large and mid-cap companies, providing exposure to diverse sectors and industries in India.

4. Parag Parikh Flexi Cap Fund - ?20

Flexi-cap funds offer flexibility in investment, allowing for dynamic management of assets between large, mid, and small-cap segments.

5. Motilal Oswal Nasdaq 100 FoF - ?10

This fund invests in the US market, including the Nasdaq 100, providing access to international growth and technology trends.

6. Nippon Smallcap Fund - ?10

For exposure to small-cap segments, which historically offer higher growth potential but with higher volatility.

A Special Mention: HDFC Defence Fund Direct Growth

One of the best SIP plans for thematic investments is HDFC Defence Fund Direct Growth. Given the focuses on defence manufacturing and exports, this fund stands out as a strong choice for diversification into thematic sectors.

The defence sector in India has witnessed remarkable growth, with significant contributions to the gross domestic product (GDP). For instance, defence exports have nearly quadrupled from Rs 15,920 crore in 2013-14 to Rs 21,083 crore in 2023-24, reflecting a 31-time increase over a decade. The Indian government's emphasis on 'Make in India' has further fueled this growth, making it a compelling addition to any SIP portfolio.

Conclusion

Selecting the best SIP plans requires a thorough understanding of various parameters, including performance, expense ratios, and strategic diversification. Whether you opt for domestic or international funds, it's essential to align your SIP plans with your financial goals and risk tolerance. For detailed insights and recommendations, consult with a financial advisor or use resources like CRISIL and Value Research for higher-rated funds.