Top 10 SIP Mutual Funds Delivering Up to 27% Annualized Returns in the Last 10 Years

Strategic Insights -

Investors' interest in SIP (Systematic Investment Plan) continues to rise, with total assets under management (AUM) through SIPs reaching a record Rs 14.61 lakh crore in May 2025. The beauty of SIP lies in its ability to build wealth over time, making it an attractive option for those who want to invest by saving something from their income every month. However, it's essential to consider factors such as the past record of the fund, fund manager, expense ratio, and risk-taking capacity before starting SIP.

Key Takeaways:

  • The top 10 SIP mutual funds delivered up to 27% annualized returns in the last 10 years, with Quant Small Cap Fund -- Direct Plan leading the pack with 26.62% CAGR.
  • An SIP of Rs 10,000 a month in these funds could have grown to Rs 49 lakh in 10 years, highlighting the power of compounding and rupee cost averaging.
  • The list includes two small-cap funds, four mid-cap funds, three sectoral funds, and one tax-saver fund, showcasing the potential of various categories of mutual funds to create long-term wealth.
  • Investors' interest in SIP continues to rise, with total assets under management through SIPs reaching Rs 14.61 lakh crore in May 2025.
  • The cumulative SIP collections rose to Rs 26,688 crore in May 2025, with the total amount collected through SIP during the month being the highest ever at Rs 1.38 lakh crore.
  • The real magic of SIP is seen when the market goes up and down, with rupee cost averaging and the effect of compounding making it even more powerful.
  • SIP is especially beneficial for those who want to invest by saving something from their income every month,whether they are employed, freelancers, or doing a small business.
  • Mutual funds are linked to the market, so there are fluctuations in them. There is no guarantee of returns, but if you stay for a long time, the chances of getting good returns increase.

Statistics:

  • Quant Small Cap Fund -- Direct Plan delivered 26.62% CAGR over the last 10 years, with a 10-year SIP return of Rs 49.14 lakh.
  • Nippon India Small Cap Fund -- Direct Plan delivered 25.01% CAGR over the last 10 years, with a 10-year SIP return of Rs 45.05 lakh.
  • Total assets under management through SIPs reached a record Rs 14.61 lakh crore in May 2025.
  • The cumulative SIP collections rose to Rs 26,688 crore in May 2025, with the total amount collected through SIP during the month being the highest ever at Rs 1.38 lakh crore.
  • The expense ratio of the fund should be low, and it's essential to choose a fund according to one's risk-taking capacity.

Sources:

  • Value Research
  • IE Online Media Services Pvt. Ltd.