Savings play a vital role in our life. But we always tend to forget the importance of savings. Each and every one of us would have planned many things for our future, but we tend to skip over the most important step that is savings. We tend to give more importance to earning but not savings. Both earnings and savings are mutually complement of each they are indispensable. Through savings we can have a wide range of benefits we can fulfil our goals, educational purposes, tourism, urgent health care or any other financial emergency
What is investment?
Investment is nothing but savings for a particular period of time. Most of us give importance to earnings rather than savings. We often fail to save our earnings. But in today’s busy world the price of each and everything is on peak, so we must also save certain amount for a period of time which can be used to achieve our short term and long term goals.
What are SIP plans?
SIP is systematic investment plan. This is useful for investors who invest small amount for a long period of time. This amount can be used in higher education, construction of house and retirement. In this article let us see the best SIP plans for 10 year investment.
Types of investment plans
There are four types of investment plans with unique features they are
- Conservative investment plan- this type of investment is also called defensive investment, this involves low risk. This can be used to achieve capital security. For examples, treasury bills, bonds and market securities.
- Balanced investment plan- this type of investment involves moderate to low fund. This consists of 60% stock and 40% bond. This type of plan balances your security and income
- Diversified investment- this plan has moderate risk. The amount is invested in various industrial sectors and financial instruments
- Aggressive investment- this type of investment involves high risk factors. Eg high yield bonds, small cap funds.
Best SIP plans for 10-year investment
| Fund Name | 5 Yr CAGR | Expense Ratio |
| Nippon India Value Fund | 12.00% | 1.98 |
| Canara Robeco Blue-chip Equity Fund | 13.00% | 1.9 |
| Mirae Asset Large Cap Fund | 11.90% | 1.57 |
| Kotak Bluechip Fund | 11.20% | 2.14 |
| ICICI Prudential US Bluechip Equity Fund | 15.50% | 2.25 |
Nippon India value fund
This fund offers capital appreciation and stable returns. This fund is invested in various equities like financial services, health, IT and customer services. This provides value appreciation. This is the best choice for 10 year duration and has high information ratio. You can measure the portfolio manager capacity and you can receive maximum returns. The key features of this plan
- The minimum SIP amount- RS.1000
- Minimum lump sum- RS. 5000
- Expense ratio- 1.98%
- This plan has very high risk rate
- Benchmark- IISL nifty and 500 TR INR
Canara Robeco Blue chip fund
This type of fund provides long term growth and the fund is invested in large market companies. This fund offers inflation beating returns. The key features of this plan are
- The minimum SIP amount- RS.1000
- Minimum lump sum- RS. 5000
- Expense ratio- 1.90%
- This plan has very high risk rate
- Benchmark- BSE 100 TR INR
Mirae Asset blue ship fund
This fund is a large cap equity scheme which is invested in equity stocks and long term wealth. This fund has been producing the best returns for the past 14 years.
- The minimum SIP amount- RS.1000
- Minimum lump sum- RS. 5000
- Expense ratio- 1.57%
- This plan has very high risk rate
- Benchmark- IISL nifty and 500 TR INR
Kotak blue chip fund
This fund is best suited for long term investment. The investment is mainly done in large cap stock companies. This fund is equity based funds. With this investment short term volatility is inevitable. The key features of this plan are
- The minimum SIP amount- RS.1000
- Minimum lump sum- RS. 5000
- Expense ratio- 1.57%
- This plan has very high risk rate
- Benchmark- IISL nifty and 500 TR INR
ICICI prudential blue chip equity fund
ICICI prudential blue chip invests in US companies. In this type of Indian investors can invest in US companies. The funds which are invested in large market are called blue-chip funds. This plan provides inflation beating returns and international exposure. But this plan is well suited for experienced investors and not for beginner because this involves foreign currency management, which requires prior experience.
- The minimum SIP amount- RS.1000
- Minimum lump sum- RS. 5000
- Expense ratio- 1.57%
- This plan has very high risk rate
- Benchmark- S&D 500 TR USD
Benefits of long term investments
The assets include bonds, stocks and exchange rated funds. This plan requires more patience compared to any other plan and in involves high risk
- They provide high returns after 10 years
- The eliminate highs and lows in the financial market
- Maintains consistency
- Less expensive compared to any other plan
- Can be used to fulfil long term goals like child’s education, marriage, travelling abroad, purchase of house and much more
- Dividends are share of corporate profits; these dividends are compounded together, for additional benefit.
Summary
In this article we are now much aware of investment for 10 years; this investment is very much useful for long term goals and offers you financial assistance during any unforeseen situation. We have learnt about various investment plans their key features and the importance of investment.