5 Best SIPs For Long Term Investment

Even as the Sensex has hit a new record high this week, investors are increasingly looking at hedging risks by way of investing in Systematic Investment Plans (SIPs).

In fact, investors are increasingly choosing this mechanism to invest as they are beginning to give decent returns on investments. We have selected 4 SIPs that could be good bets for long-term investment. The selection is based on the past track record of the fund as well as the portfolio of the fund.

SBI Bluechip Fund

Value Research Online has accorded the fund a 4-star rating. The track record over 1, 3 and 5-year period of SBI Bluechip Fund has been pretty decent. The Fund has generated a return of 12.35 over the last 1 year, while the returns over 5-years has been 9.31 per cent.
The holding of the fund is in bluechip names including the likes of HDFC Bank, ICICI Bank, Larsen and Toubro, ITC and Nestle.

The minimum initial investment is Rs 5,000 and you can invest in a sum of Rs 500 each month after that. This makes the scheme very affordable as well. Though the Sensex is trading at a near record high, it allows you to average by way of SIPs.

Nippon India Large Cap Fund

Nippon India Largecap Fund has been another sterling performer over the last few years. The fund has generated a return of 14.13, while the 5-year returns has been 8.61 per cent.

The fund has holdings in high quality stocks including the likes of State Bank of India, ICICI Bank, HDFC Bank and Larsen and Toubro. You can invest in the fund with a minimum amount of Rs 100 as SIP. This makes it very easy to invest.

The fund is a largecap fund that has assets under management to the tune of nearly Rs 13,000 crores. From a 5 to 10 year SIP plan, this would not be a bad bet.

Mirae Asset Large Cap Fund

This is another fund that has constantly delivered decent returns all along. The Fund has a 5-star rating by Value Research Online and rightly so. 

The portfolio remains high quality with names like HDFC Bank amongst the top holdings, followed by ICICI Bank and Reliance Industries.

The minimum initial investment under the fund is Rs 5,000, while thereafter you can invest with amounts of Rs 1,000 every month.

ICICI Prudential Bluechip Fund

This is another largecap fund, like those mentioned above. The fund again has been a pretty good performer in the last few years. The amount that one can invest is Rs 100 initially and thereafter too a small sum of Rs 100 can be invested every month.

The 1-year return from the fund is 9.27 per cent. Again, the holding of the fund is in most bluechip companies.

A few things to remember when investing in SIPs

It is important to remember that there would be a tax liability in case you sell at a profit. It is also important to remember that you would need to be very patient when trying to generate returns from stock market investments, and there is no magic wand where you will be able to get an instant fix for returns.