Investing through SIPs (Systematic Investment Plans) in mutual funds has become a popular way for Indians to grow their wealth, especially over long terms of 7 to 10 years. Financial experts often suggest SIPs as a good option for investors looking for steady returns without needing to time the market. But how much can you grow with a consistent SIP? Here, we look at the top 10 mutual funds that have offered the highest SIP returns over the past decade, achieving annual growth rates of 23% to 27%.
If you’re considering starting a SIP, this list could give you a clear idea of which funds have provided significant returns over time. For each fund listed below, we’ve estimated the returns on a monthly SIP of Rs.10,000, paired with an initial upfront investment of Rs.1 lakh, kept consistent for 10 years.
1. Quant Small Cap Fund: Leading with 27.06% Annual Returns
The Quant Small Cap Fund has delivered an impressive 27.06% annualized return to investors over the last 10 years. With this growth rate, a monthly SIP of Rs.10,000 plus an initial investment of Rs.1 lakh would have turned into approximately Rs.61.4 lakh by the end of the decade.
- Monthly SIP: Rs.10,000
- Upfront Investment: Rs.1 lakh
- Duration: 10 years
- Annualized Return: 27.06%
- Total Invested: Rs.13 lakh
- Value After 10 Years: Rs.61,40,472
2. Nippon India Small Cap Fund: A Close Second with 26.36% Annual Returns
Nippon India Small Cap Fund has achieved a 26.36% annual growth rate, making it one of the top performers in the SIP space. A similar investment plan as above would yield around Rs.60 lakh in 10 years.
- Monthly SIP: Rs.10,000
- Upfront Investment: Rs.1 lakh
- Duration: 10 years
- Annualized Return: 26.36%
- Total Invested: Rs.13 lakh
- Value After 10 Years: Rs.58,95,166
3. Motilal Oswal Midcap Fund: Consistent Performer at 24.97%
With a 24.97% annual return, the Motilal Oswal Midcap Fund is another solid choice. This fund would have grown an investment of Rs.13 lakh to about Rs.54.3 lakh.
- Monthly SIP: Rs.10,000
- Upfront Investment: Rs.1 lakh
- Duration: 10 years
- Annualized Return: 24.97%
- Total Invested: Rs.13 lakh
- Value After 10 Years: Rs.54,34,413
4. Quant ELSS Tax Saver Fund: Tax Saving with High Returns of 24.89%
This fund not only provides high returns but also offers tax-saving benefits. Quant ELSS Tax Saver Fund has yielded an annualized return of 24.89%, turning a Rs.13 lakh investment into around Rs.54 lakh over 10 years.
- Monthly SIP: Rs.10,000
- Upfront Investment: Rs.1 lakh
- Duration: 10 years
- Annualized Return: 24.89%
- Total Invested: Rs.13 lakh
- Value After 10 Years: Rs.54,09,732
5. SBI Small Cap Fund: Strong Growth at 23.32%
The SBI Small Cap Fund has given steady returns of 23.32% annually over the past decade, translating a total investment of Rs.13 lakh into approximately Rs.50 lakh.
- Monthly SIP: Rs.10,000
- Upfront Investment: Rs.1 lakh
- Duration: 10 years
- Annualized Return: 23.32%
- Total Invested: Rs.13 lakh
- Value After 10 Years: Rs.49,33,375
6. Edelweiss Mid Cap Fund: High Returns at 23.39%
The Edelweiss Mid Cap Fund has provided SIP investors with a 23.39% annualized return. Over 10 years, this fund has grown an investment of Rs.13 lakh to about Rs.50 lakh.
- Monthly SIP: Rs.10,000
- Upfront Investment: Rs.1 lakh
- Duration: 10 years
- Annualized Return: 23.39%
- Total Invested: Rs.13 lakh
- Value After 10 Years: Rs.49,54,152
7. Kotak Small Cap Fund: Reliable Growth at 23.30%
Kotak Small Cap Fund has offered steady returns of 23.30% annually over 10 years, turning a Rs.13 lakh investment into around Rs.50 lakh.
- Monthly SIP: Rs.10,000
- Upfront Investment: Rs.1 lakh
- Duration: 10 years
- Annualized Return: 23.30%
- Total Invested: Rs.13 lakh
- Value After 10 Years: Rs.49,28,493
8. Quant Flexi Cap Fund: Flexible Growth at 23.50%
Quant Flexi Cap Fund, with a 23.50% annualized return, has grown an investment of Rs.13 lakh to around Rs.50 lakh over the last 10 years.
- Monthly SIP: Rs.10,000
- Upfront Investment: Rs.1 lakh
- Duration: 10 years
- Annualized Return: 23.50%
- Total Invested: Rs.13 lakh
- Value After 10 Years: Rs.49,84,367
9. Axis Small Cap Fund: Steady Performer at 23.26%
Axis Small Cap Fund has delivered 23.26% annualized returns, making it another top performer for long-term SIP investors. An investment of Rs.13 lakh would have grown to around Rs.49 lakh.
- Monthly SIP: Rs.10,000
- Upfront Investment: Rs.1 lakh
- Duration: 10 years
- Annualized Return: 23.26%
- Total Invested: Rs.13 lakh
- Value After 10 Years: Rs.49,15,201
10. Kotak Emerging Equity Fund: Promising Returns at 22.47%
With a 22.47% annual return, Kotak Emerging Equity Fund rounds out the list, growing a Rs.13 lakh investment into approximately Rs.47 lakh over the past decade.
- Monthly SIP: Rs.10,000
- Upfront Investment: Rs.1 lakh
- Duration: 10 years
- Annualized Return: 22.47%
- Total Invested: Rs.13 lakh
- Value After 10 Years: Rs.46,92,802
Key Insights for SIP Investors
Investing in mutual funds through SIPs provides the benefit of compounding over time, which is why longer commitments, such as 10 years, can yield high returns as shown above. These funds are especially recommended for investors with a high-risk tolerance, as most top-performing funds over the past decade have included small-cap and mid-cap funds, which tend to offer higher returns but also come with greater volatility.
Financial advisors generally recommend SIPs as they encourage disciplined investing and mitigate market timing risks. However, as these funds’ past performance does not guarantee future returns, prospective investors should consult with a financial advisor before making decisions. Each investor’s goals, risk tolerance, and time horizon should be taken into account before choosing a SIP plan.
