Best SIP Plan for 20 Years: With Equity, Debt & Hybrid Funds

Do you know that by simply investing Rs 10,000 per month through an SIP for 20 years, you could build a corpus of Rs 1 crore or even more?

As the old idiom goes, “Time in the market beats timing the market.” And that’s exactly what a disciplined SIP strategy can do.

But this led to the question, how do you choose the Best SIP plan for 20 years in India? Should you go for equity, debt or hybrid mutual funds?

Let's break it down, think of SIP as a smart piggy bank that invests your money each month into mutual funds based on your goals and risk profile.

What Is SIP with an Example of 20 Years?

A Systematic Investment Plan (SIP) is one of the most disciplined and smart ways to invest in mutual funds. Instead of putting a large lumpsum at once, SIP helps you to invest a fixed amount at a regular interval, with the benefit of a value averaging investment plan that helps you grow money.

Now, a common question pops up, “Where does this money go?”

To solve the doubt, let’s take a real-life example:

If you invest Rs 5,000 per month in an SIP for 20 years, your total investment will be:

 Rs 5,000 × 12 months × 20 years = Rs 12 lakhs

Now, this Rs 12 lakhs is not just invested like it would be in a savings account. Instead, it is actively working for you.

Assuming an average annual return of 12%, your Rs 12 lakh investment could grow to Rs 50–55 lakhs by the end of 20 years.

This is due to the power of compounding and market-linked returns.

Pro Tip: Know your compounding returns using the SIP Calculator in just a few steps. 

Start SIP today with a small amount.

Let’s explore how SIP really works.

How Does SIP Work?

SIP works when you invest your hard-earned money to buy mutual fund units at the current Net Asset Value (NAV), you get a part of a share of the fund’s portfolio. But where your money goes depends on the fund type.

So, when you invest in equity funds, it goes into company stocks for long-term growth, while debt funds allocate your money to bonds & fixed-income assets for stability and hybrid funds combine both, offering a balanced mix of growth & safety.

Your SIP instalment is auto-debited from your demat account on a fixed date. When markets are low, you get more units and when markets are higher, you get fewer units. This is known as rupee cost averaging. It helps you by the cost over time, minimizing the effect of volatility.

Also Read: Best SIP plans for 3 years’ equity, debt and hybrid categories.

Let us move forward on how to choose the right SIP plans for 20 years.

How to Select the Best SIP Plan for 20 Years

Here is how you select the best SIP plans in India step-by-step:

• Step 1: Define your short-term financial goaland check your risk capacity, as choosing for 20-year plan is a long-term game.
• Step 2: Pick SIPs in low-risk Mutual Funds, like debt funds or ultra-short-duration funds.
• Step 3: Track the past 5-10 years' performance and consistency of returns.
• Step 4: Review the diversificationacross your portfolio, try to avoid high-exposure funds for volatility.
• Step 5: Check for a low expense ratio to get more returns over a short horizon.
• Step 6: Check the exit loadand lock-in period, make sure it allows flexibility.

This approach of SIP is aligned with stability, liquidity and goals.

Pro Tip: Use a SWP Calculator to get withdrawal calculations in minutes.

Now, let us look at a real-life example of how a SIP plan helped build a Rs 1 crore corpus over time.

How did you get an Rs 1 Crore Corpus by Investing through an SIP Plan?

Here is how you get a Rs 1 crore corpus with an example.

Let’s say you invest Rs 15,000/month for 20 years in a Flexi Cap Mutual Fund,

Your total investment will be: Rs 36,00,000

If the market performs well at an average 12% annual return, the fund could grow to around Rs 1 crore to Rs 1.1 crore.

Now, this brings a doubt: “What if my investment loses value during a crash?”

Let’s answer this, in the short term, your portfolio value may fluctuate. But, over time, especially in a 20-year SIP plan, market downturns benefit you.

Due to downturns, your SIP buys more units at a lower NAV, which helps boost returns when the market recovers. Over time, this averages out costs and enhances your overall corpus growth.

Also Read: 11 common mistakes to avoid while investing in mutual funds.

Let’s now explore the best SIP plans in India right now.

Connect with experts for personalized advice.

Best SIP Plans for 20 Years (2025): Equity, Debt & Hybrid

Here's how each fund category plays out in real life with SIP planning scenarios:

1. Best SIP Plans for 20 Years – Equity Mutual Fund

In equity MFs, your money is invested in shares of listed companies in sectors. This is ideal for long-term capital appreciation and wealth creation. It has a moderate to high market risk.

Now let's take a real example: you are a 30-year-old investor planning to build a retirement corpus through growth-focused investments. You start a SIP of Rs 10,000/month in a flexi-cap equity mutual fund.

Then,

• Your Total Investment: Rs 24,00,000 over 20 years
• Expected Return (at 12%): Rs 1 crore+

Here is the list of the best SIP Plans for 20 years: 

Date as of 05.08.25, source MySIPonline

Do You Know: Equity Mutual Funds have delivered the highest 30% SIP return.

2. Best SIP Plans for 20 Years for Debt Mutual Fund 

In this debt fund, the market risk is low as it focuses on quality fixed-income instruments, government securities. It is suitable for stability, low volatility or an income preserver.

Let's take an example, suppose you are a conservative investor planning for a child’s wedding and want capital protection with stable returns. You invest Rs 10,000/month in a Corporate Bond or Gilt Fund.

Then,

• Your Total Investment: Rs 24,00,000 over 20 years
• Estimated Return (at 7%): Rs 50–Rs 52 lakhs

The table below covers a variety of 5 debt mutual funds to invest in 20-year SIP plans:

Date as of 05.08.25, source MySIPonline

3. Best SIP Plans for 20 Years for Hybrid Mutual Fund

In Hybrid Mutual Funds, you get a mix of both equity and debt. The market risk is moderate, so it is perfect for balanced risk rewards or first-time investors.

Now, assume you are 35 and want a balanced investment that manages volatility better than equity but performs better than debt. You invest Rs 10,000/month in an aggressive hybrid fund.

Then,

• Your Total Investment: Rs 24,00,000 over 20 years
• Estimated Return (at 10%): Rs 75–Rs 80 lakhs

You can find out the best hybrid mutual funds list in the table below:

Date as of 05.08.25, source MySIPonline

Pro Tip: Try the best Mutual Funds Screener to find your perfect match in seconds.

This brings us to the next important point: why SIPs are your best bet when it comes to wealth creation over decades.

Why Choose SIP Investment Plans for Long-Term Wealth Creation?

SIP is considered ideal for long-term wealth creation, especially over the long term. Here is why:

1. Compounding Over Time
   

   One of the biggest reasons to choose a SIP for long-term wealth is the power of compounding.  The longer your money stays invested, the more exponential your wealth growth over time. As you get a 1 Crore corpus by the power of compounding.

2. Volatility
   

   In the long term, market fluctuation is common. But over 20 years, those ups and downs average out with the help of the SIP calculator smart tool to ride out volatility and avoid the stress of redemption.

3. Cost averaging
   

   SIPs help you buy more units when the market is down & fewer when it is high. Over 20 years, this rupee cost averaging mitigates your purchase cost and investment risk.

4. Discipline pays off
   

   Discipline is the key to financial stability. Sticking to your SIP through all market cycles, crashes and corrections rewards you in the end. It avoids emotional investing and builds consistent wealth creation.

5. Flexibility and Customization
   

   SIPs are highly flexible and accessible. You can start with as low as Rs 500/month, increase your SIP with a Top-Up SIP option or pause/stop whenever you need. This is mostly preferable for investors with changing income levels or growing financial goals.

To wrap it all up, here’s a final review of the Best SIP Plan for 20 Years.

Conclusion

To wrap up, investing in mutual funds through the best SIP for 20 years is not just a financial decision; it is a disciplined habit. By simply starting with Rs 10 to 15 thousand /month, you could build a corpus of over Rs 1 crore, due to the power of compounding, market appreciation and long-term investing discipline.

Moreover, you can start planning for the future by SIP for retirement, a child’s education or wealth creation. Remember, “The best time to plant a tree was 20 years ago. The second-best time is now.” So, start your SIP today and let time and discipline grow your finances.

Frequently Asked Questions

1. Can I change or stop my SIP in between?

   Yes, SIPs are flexible. You can pause, modify or stop them anytime without penalties.

2. Is SIP better than FDfor long-term investment?

   Yes, SIPs generally offer higher long-term returns than FDs, especially in equity or hybrid funds.

3. Is it safe to invest in SIP for 20 years?

   Yes, SIPs in mutual funds regulated by SEBI are safe. Long-term investment also reduces market risk.

4. How does an SIP Calculator work?

   It uses the compound interest formula to calculate how much wealth your monthly SIP can generate over time, factoring in returns and duration.

5. How can an SIP return calculatorhelp you?

   It gives a clear picture of your potential corpus and the monthly commitment needed to reach a goal.

6. How are SIP investment returns calculated?

   SIP returns are calculated using the XIRR (Extended Internal Rate of Return) method, which considers multiple cash flows over time.