Best SIP Funds That Delivered Strong 5-Year Returns
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Planning to start a SIP? These three mutual funds generated annualised returns of over 20 per cent over the past five years, but there's an important factor investors should not overlook.
✨ Key Takeaways
Systematic Investment Plans (SIPs) remain one of the most popular ways to build long-term wealth through Mutual Funds. By investing a fixed amount at regular intervals, investors can benefit from rupee cost averaging and the power of compounding, while reducing the impact of market volatility.
For investors with a long investment horizon of five years or more, choosing funds that have consistently generated strong SIP returns can make a meaningful difference. Funds that remain disciplined during market corrections and stay committed to their investment strategy often deliver superior long-term outcomes.
Based on five-year SIP performance, the following mutual funds have emerged as the top performers in their respective categories.
Top SIP Mutual Funds Based on Five-Year Returns
|
Fund |
Category |
AUM |
Minimum SIP |
Value of Rs 10,000 Monthly SIP (5 Years) |
Annualised SIP Return |
Expense Ratio |
Fund Age |
|
DSP India T.I.G.E.R. Fund |
Sectoral – Infrastructure |
Rs 6,264 crore |
Rs 3,000 |
Rs 10.27 lakh (Investment: Rs 6 lakh) |
21.25 per cent |
2.02 per cent |
22+ years |
|
SBI PSU Fund |
Thematic – PSU |
Rs 6,684 crore |
Rs 3,000 |
Rs 10.23 lakh (Investment: Rs 6 lakh) |
21.08 per cent |
1.86 per cent |
16+ years |
|
Nippon India Power & Infra Fund |
Sectoral – Infrastructure |
Rs 8,043 crore |
Rs 3,000 |
Rs 9.99 lakh (Investment: Rs 6 lakh) |
20.11 per cent |
1.99 per cent |
22+ years |
What Should Investors Keep in Mind?
While these funds have delivered impressive SIP returns over the past five years, investors should avoid making investment decisions based solely on historical performance. Sectoral and thematic funds can experience higher volatility than diversified Equity Funds because their portfolios are concentrated in specific industries.
Before investing, investors should evaluate their financial goals, risk appetite, investment horizon and asset allocation. Past performance is not a guarantee of future returns, and fund performance may vary depending on market conditions.
Also Read - Top Hybrid Mutual Funds That Delivered Up to 21.15% Returns
Disclaimer: The article is for informational purposes only and not investment advice.