How To Build A 10 Year Sip Portfolio For Any Market

TITLE: How to Build a 10-Year SIP Portfolio for Any Market | Investors’ Hangout CHANNEL: Value Research DATE: 2026-05-29 ---TRANSCRIPT--- Investing in equities, it’s an act of faith. It’s faith in the future. If in next 10 years, we believe we will be a better world. Make sure that you don’t run away.

Hello and welcome to Investors Hangout brought to you by Aditya Sun Life Mutual Fund and Value Research. Now, a 10-year SIP starting today will end in 2036. And between now and then, we’ll see multiple recessions, maybe a war that no one expected, and multiple corrections. We know this because we’ve seen all of this pan out through the last 10 years and despite that a 10,000 rupee SIP in 2016 turned into something around 28 lakhs over an investment of 12 lakh rupees. So today the SRP plan that survives all of that three funds one step up and one role. Dire welcome to this discussion. Thank you. So let’s begin with the most basic question. Why is 10 year a magic figure? If you look at most 10 years, 10 year time frames, uh you see a full cycle. You have, you know, if you look at the recent uh past 10 years, you have seen COVID. If you see, look at the block of the previous 10 year uh you would have seen the global financial crisis, some calamity. It would have gone through a recession. It would have gone through good times, bad times and some horrible times. and the market would have come to a point in between in any any 10ear phase where it looks like it is the end of the world. Things will never be the same again. Despite all these in any given 10ear period you have not only earned positive returns you have never lost money and uh on any given 10-ear period in the history of Sensex and uh that is about 40 years not only you have earned uh positive return mostly you have also beaten the fix the then prevailing fixed income return so this is the magic of compounding this is the magic of equity this is the magic of beating fixed income despite all odds despite all upheavalss, you still win. Mhm. Okay. So, 10 years because that’s a full market cycle. That is a full market cycle and investing in equity is a matter of uh it’s an act of belief. It’s an act of faith. It’s faith in the future. But 10-ear period, you generally end up being well off, right? So, if someone is starting today with a 10-year period in mind, what goes into it? tenure itself it creates a great advantage for you. I am reminded of a very unusual answer by Warren Buffett. Jeff Bezos asked him once that your strategy is so simple why not too many people follow it. Warren Buffett coolly and smilingly and wittly you know with a wink he said that because nobody wants to get rich slowly. And that is the whole story for the 10ear SIP. All right. So SIP for 10 years is a guaranteed way to get rich slowly. But where should one invest? I’ll give you two three plans. One is the simplest one and uh that is the that’s a foolproof one. The first plan is primarily to acclimatize yourself making sure that you will stick around for 10 years because 10 years and so many people know but it’s it gets very hard for people to stick around for 10 years. For anybody who is 35 40 years old and has never invested and is a scared person and is with great difficulties is going to invest start with an aggressive hybrid fund. Start a SIP do it for 3 years then add another aggressive hybrid fund that that’s the way and you are getting 75% equity 25% fixed income and every time the market falls the fund rebalances no tax incidents keep it simple. This is the simplest way of achieving this and every three year add another fund and and stop at third fund. Don’t add more than three and uh so you will be able to achieve this goal. Second is that uh there’s a person who is getting started and he’s young and he’s very confident and is you know very confident of of his income his growth and future and will not be very upset is generally uh venture sum. uh he can well start with a multicap fund and keep it simple. Choose a good multicap fund and be at it. Uh same thing keep it to one fund after one one and a half years add another one and after two three years add another one and if these three funds remain good keep investing more in these adding more than two three funds will not is not going to add any meaningful value. Multicaps all of them all of them. Okay. And uh so here you are getting a full market exposure and you are choosing carefully. You are looking for funds which have the potential or are have the track record of beating the benchmark and that is what I’m aspiring for. And if you can’t do any of these two, if you can’t choose a good aggressive hybrid fund, if you can’t choose this one uh multicap fund, then uh look for one index fund, a Nifty50 or a BAC 500 and invest half of your money there and the other half look for a multicap fund. you’ll be getting a full market exposure and every two three years try and in you know add uh add that multicap fund and increase the amount in the index fund because the second index fund is not going to add any meaningful value. It will be the same index fund just an entry will change. So these are the simplest plan to build a portfolio for the long term. These are very lowmaintenance portfolio and uh this will be uh this is also a very tax efficient portfolio. The beauty of mutual fund is that whatever the mutual fund manager does, he grows your money, he buys and sells stocks, does whatever. You don’t pay any taxes till you realize it and and you need it after 10 years. Yeah. So ideally what amount and how does a step up work? As much as you can for the long term. The simplest way of doing as much as you can is that do your budget and invest before you start spending. Yeah. The day you get your salary, if you have something in your mind that you are earning 100 rupee and you’re going to spend something like 70 70 rupees, invest the 30 rupees and do some liberal estimate of your spending and invest that money because the money lying in the bank account is accessible. It is tempting and then you tend to get little impulsive with your spending and there are just too many avenues to spend. Not to say that inflation is also a big tax on everyone. You always have more needs than the than the resources. So unless you are able to discipline yourself with a preset investment ahead of expenses, uh you will never get started. And what is the case for step-up SIPs? Step up formula should be the minimum of your growth in income. If you are earning if you are getting get a 20% raise or 15% raise then make sure that investment also rises. Okay. Now we’re talking about a 10-year period there will come a time when the markets will fall by 20% or 30%. What does one do then? Whenever the market will go down and when you have preset your goal that it is 10 years away, it is 15 years away, it is 20 years away, any market fall should make you happy because uh that is when you are buying cheap and you should be hopeful that uh when you need the money, the market will be up which generally is. All you have to do is the first fall which you encounter after your money has grown something meaningful is that you have to stop looking at the market. Make sure that you don’t run away because stopping your SIP, taking your money out is ensuring that you’ll be thrown out of out of the market uh at the most inopportune time never to come back again and it’ll leave a sar taste which will ensure that you never come back again. You have to overcome that first crisis and if you are able to stick around then you will act it’ll become self-evident to you that market is like this only and it’s going to remain like that. So one crash if you stick around after that you’re likely to stick around for that 10 years you’ll get over it you’ll get over it. Now coming closer to the goal if there are if just two years left for uh you to reach the goal what should one do then as you get closer to your goal the whole idea of this market is not a bankable thing in the short run. If you are investing generally that you invested for 10 years but it can still stick around. You can stick around and you don’t need the money for a goal then let it let it be there. Carry on with your plan. If you can invest more, carry on, continue. It’s not a 10 year deposit that you have done a 10 year SIP. But if it is if the money was set for a year mark for a goal, then you have to prepare methodically. Make sure that your first year expend expenditure expenses, estimated expenses, budgeted expenses has been taken off from the equity two years ahead and kept in a fixed income fund so that you can mount your SWP from that fixed income fund. You can’t depend on equity for the last moment. And that is what most individual investors should do. For everybody who is doing some careful planning, accumulating and you know putting some managing your cash flows, investing and turning it into a capital, you should have that capital turn into a supporting cash flow for you well before you need it, not for the last day because uh you could be in for a big surprise. If you think that you need it in March 2026 or you know March 2027 and uh you will take your money out in January uh that could that could throw up uh completely off balance. But what if the markets are booming in the eighth year that is where your discipline comes in. You have to be focused on your goal and if it is not for a goal then then write the boom. But if it is for a goal you can’t have your firm plan based on something which is unpredictable. So markets are unpredictable in the short run, but if you stick around for 10 years, you’re likely to come out triumphant. That’s all we have for you in this episode. Keep watching the space for more information. Thanks for watching. Bye for now.