Investing through a Systematic Investment Plan (SIP) has become increasingly popular compared to lump sum investing in mutual funds. Monthly data from the Association of Mutual Funds in India (AMFI) confirms this trend, as many investors prefer the convenience of phased investments rather than committing a large sum at once. One key advantage of SIPs is their ability to mitigate market volatility through rupee cost averaging. This means that when the market is down and Net Asset Value (NAV) is low, SIP investors acquire more units, and vice versa. Here, we highlight the top 7 mutual funds offering the highest annualised SIP returns (XIRR) and show how a monthly SIP of ₹20,000 in each fund has performed over the last 10 years.
1. Quant Small Cap Fund – Direct Plan
- Annualised SIP Return: 29.34%
- Assets Under Management (AUM): ₹24,530 crore
- NAV: ₹291.2632
- Benchmark: NIFTY Smallcap 250 TRI
- Investment Composition: 87.09% in equity, 12.31% in cash and cash equivalents
- Top Holdings: Reliance Industries (RIL), Jio Financial Services, Aegis Logistics, Aditya Birla Fashion
- 10-Year SIP Growth: ₹20,000 monthly SIP turned into ₹1,14,03,798
2. Quant Infrastructure Fund – Direct Plan
- Annualised SIP Return: 28.35%
- AUM: ₹4,104 crore
- NAV: ₹45.5227
- Benchmark: NIFTY Infrastructure TRI
- Investment Composition: 97.16% in equity
- Top Holdings: HDFC Bank, RIL, Samvardhana Motherson, Tata Power, LIC
- 10-Year SIP Growth: ₹20,000 monthly SIP grew to ₹1,08,10,883
3. Nippon India Small Cap Fund – Direct Plan
- Annualised SIP Return: 27.96%
- AUM: ₹60,373 crore
- NAV: ₹193.6156
- Benchmark: NIFTY Smallcap 250 TRI
- Investment Composition: 95.93% in equity
- Top Holdings: HDFC Bank, Kirloskar Brothers, Tube Investments, Voltamp Transformers
- 10-Year SIP Growth: ₹20,000 monthly SIP resulted in ₹1,05,86,921
4. Quant ELSS Tax Saver Fund – Direct Plan
- Annualised SIP Return: 27.58%
- AUM: ₹11,065 crore
- NAV: ₹441.2563
- Benchmark: NIFTY 500 TRI
- Investment Composition: 95.02% in equity
- Top Holdings: Adani Power, RIL, HDFC Bank, Samvardhana Motherson, Jio Financial Services
- 10-Year SIP Growth: ₹20,000 monthly SIP turned into ₹1,03,69,488
Also Read: Top 5 Stocks in India You Should Invest in for Long-Term Success
5. Quant Mid Cap Fund – Direct Plan
- Annualised SIP Return: 26.58%
- AUM: ₹9,283 crore
- NAV: ₹268.1138
- Benchmark: NIFTY Midcap 150 TRI
- Investment Composition: 87.99% in equity, 8.53% in cash and cash equivalents
- Top Holdings: Aurobindo Pharma, RIL, CONCOR, IRB Infra Developers
- 10-Year SIP Growth: ₹20,000 monthly SIP accumulated to ₹98,27,092
6. Motilal Oswal Midcap Fund – Direct Plan
- Annualised SIP Return: 25.54%
- AUM: ₹14,446 crore
- NAV: ₹112.9577
- Benchmark: NIFTY Midcap 150 TRI
- Investment Composition: 83.17% in equity
- Top Holdings: Polycab India, Persistent Systems, Kalyan Jewellers, Jio Financial Services, Coforge
- 10-Year SIP Growth: ₹20,000 monthly SIP yielded ₹92,90,287
7. Invesco India Infrastructure Fund – Direct Plan
- Annualised SIP Return: 25.45%
- AUM: ₹1,653 crore
- NAV: ₹78.4600
- Benchmark: BSE India Infrastructure TRI
- Investment Composition: 97.82% in equity
- Top Holdings: Power Grid, L&T, Jyoti CNC, Suzlon Energy, NTPC
- 10-Year SIP Growth: ₹20,000 monthly SIP amassed ₹92,43,442
These funds demonstrate the potential of long-term SIP investments in building substantial wealth, even with moderate monthly contributions.