Divya Grover
Jul 15, 2023 / Reading Time: Approx. 10 mins
Listen to 7 Top Performing Mutual Funds Based on 10-Year SIP Returns
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The Systematic Investment Plan (SIP) is the preferred mode of investment for many equity mutual fund investors. Investing via SIP has enabled many investors to earn significant returns in the long run.
In the last 10 years, around 12 mutual fund schemes generated SIP returns of 20%, thus turning out to be top-performing schemes. The top-performing SIP generated XIRR of 25.5% during this period. Small Cap Mutual Funds topped the list of top-performing funds due to their high return potential.
[Read: 5 Best Equity Mutual Funds for SIP in 2023 - Top Performing Mutual Funds in India for SIPs]
Top-performing SIP in Mutual Fund schemes in the last 10-year
Data as of July 13, 2023
Returns are XIRR in percentage
Monthly SIP of Rs 1,000 over a 10-year period in Direct plan - Growth option considered
(Source: ACE MF, data collated by PersonalFN)
What is an SIP?
The SIP mode allows mutual fund investors to invest a certain fixed sum regularly over the long term in the scheme/s of their choice, which helps develop a financial discipline - the key to successful investing. It also enables averaging of investment cost as more units are added when the equity markets are trading low and fewer units when the markets are scaling up. This feature enhances the power of compounding, allowing the investors' wealth to grow leaps and bounds over the long term.
[Read: 5 Key Benefits of Investing in Mutual Funds via SIP]
What is XIRR and how it is calculated?
The full form of XIRR is Extended Internal Rate of Return. It is a method used to calculate returns on investments where multiple transactions occur at different points in time - such as in the case of SIP investments. While CAGR is a useful tool for comparing and selecting mutual fund schemes, XIRR helps investors to evaluate the actual returns on your investment. The XIRR formula calculates the annual average return of each SIP instalment to give you the total average annual return on investments.
[Read: What is XIRR in Mutual Funds? And How to Calculate it?]
In this article, we will look at the top-performing mutual fund based on 10-year SIP returns across various diversified equity mutual fund categories.
Top performing SIP - Small Cap Mutual Fund category - Nippon India Small Cap Fund
Small Cap Mutual Funds are equity mutual funds that invest a minimum of 65% of their assets in equity and equity-related instruments of small-sized companies.
Nippon India Small Cap Fund is the top-performing scheme in the Small Cap Mutual Fund category based on 10-year SIP returns.
| Scheme Name | Total Amount Invested (Rs) | Present Value (Rs) | 10 Year XIRR (%) |
| Nippon India Small Cap Fund | 1,20,000 | 4,63,609 | 25.51 |
Data as of July 13, 2023
Returns are XIRR in percentage
Monthly SIP of Rs 1,000 over a 10-year period in Direct plan - Growth option considered
(Source: ACE MF, data collated by PersonalFN)
In the last 10 years, Nippon India Small Cap Fund grew at an XIRR of 25.5%. A monthly SIP of Rs 1,000 over a 10-year period (i.e. total investment of Rs 1,20,000) would now be valued at Rs 4,63,609.
Top performing SIP - ELSS (Tax Saving Mutual Fund) category - Quant Tax Plan
ELSS (Tax Saving Mutual Funds) are equity mutual funds that invest a minimum of 80% of their assets in equity and equity-related instruments across market caps and come with tax benefits.
Quant Tax Plan is the top-performing scheme in the ELSS (Tax Saving Mutual Fund) category based on 10-year SIP returns.
| Scheme Name | Total Amount Invested (Rs) | Present Value (Rs) | 10 Year XIRR (%) |
| Quant Tax Plan | 1,20,000 | 4,21,877 | 23.77 |
Data as of July 13, 2023
Returns are XIRR in percentage
Monthly SIP of Rs 1,000 over a 10-year period in Direct plan - Growth option considered
(Source: ACE MF, data collated by PersonalFN)
In the last 10 years, Quant Tax Plan grew at an XIRR of 23.8%. A monthly SIP of Rs 1,000 over a 10-year period (i.e. total investment of Rs 1,20,000) would now be valued at Rs 4,21,877.
Top performing SIP - Flexi Cap Mutual Fund category - Quant Flexi Cap Fund
Flexi Cap Mutual Funds are equity mutual funds that invest a minimum of 65% of their assets in equity and equity-related instruments and have the flexibility to invest dynamically across market caps.
Quant Flexi Cap Fund is the top-performing scheme in the Flexi Cap Mutual Fund category based on 10-year SIP returns.
| Scheme Name | Total Amount Invested (Rs) | Present Value (Rs) | 10 Year XIRR (%) |
| Quant Flexi Cap Fund | 1,20,000 | 3,78,845 | 21.78 |
Data as of July 13, 2023
Returns are XIRR in percentage
Monthly SIP of Rs 1,000 over a 10-year period in Direct plan - Growth option considered
(Source: ACE MF, data collated by PersonalFN)
In the last 10 years, Quant Flexi Cap Fund grew at an XIRR of 21.8%. A monthly SIP of Rs 1,000 over a 10-year period (i.e. total investment of Rs 1,20,000) would now be valued at Rs 3,78,845.
Top performing SIP - Mid Cap Mutual Fund category - Kotak Emerging Equity Fund
Mid Cap Mutual Funds are equity mutual funds that invest a minimum of 65% of their assets in equity and equity-related instruments of mid-sized companies.
Kotak Emerging Equity Fund is the top-performing scheme in the Mid Cap Mutual Fund category based on 10-year SIP returns.
| Scheme Name | Total Amount Invested (Rs) | Present Value (Rs) | 10 Year XIRR (%) |
| Kotak Emerging Equity Fund | 1,20,000 | 3,52,307 | 20.43 |
Data as of July 13, 2023
Returns are XIRR in percentage
Monthly SIP of Rs 1,000 over a 10-year period in Direct plan - Growth option considered
(Source: ACE MF, data collated by PersonalFN)
In the last 10 years, Kotak Emerging Equity Fund grew at an XIRR of 20.4%. A monthly SIP of Rs 1,000 over a 10-year period (i.e. total investment of Rs 1,20,000) would now be valued at Rs 3,52,307.
Top performing SIP - Large & Midcap Mutual Fund category - Mirae Asset Emerging Bluechip Fund
are equity mutual funds that invest a minimum of 35% of their assets each in equity and equity-related instruments of large-cap and mid-cap stocks.
Mirae Asset Emerging Bluechip Fund is the top-performing scheme in the Large & Midcap Mutual Fund category based on 10-year SIP returns.
| Scheme Name | Total Amount Invested (Rs) | Present Value (Rs) | 10 Year XIRR (%) |
| Mirae Asset Emerging Bluechip Fund | 1,20,000 | 3,49,004 | 20.26 |
Data as of July 13, 2023
Returns are XIRR in percentage
Monthly SIP of Rs 1,000 over a 10-year period in Direct plan - Growth option considered
(Source: ACE MF, data collated by PersonalFN)
In the last 10 years, Mirae Asset Emerging Bluechip Fund grew at an XIRR of 20.3%. A monthly SIP of Rs 1,000 over a 10-year period (i.e. total investment of Rs 1,20,000) would now be valued at Rs 3,49,004.
Top performing SIP - Value Mutual Fund category - Bandhan Sterling Value Fund
Value Mutual Funds are equity mutual funds that invest a minimum of 65% of their assets in equity and equity-related instruments by following a value-oriented investment approach.
Bandhan Sterling Value Fund (erstwhile IDFC Sterling Value Fund) is the top-performing scheme in the Value Mutual Fund category based on 10-year SIP returns.
| Scheme Name | Total Amount Invested (Rs) | Present Value (Rs) | 10 Year XIRR (%) |
| Bandhan Sterling Value Fund | 1,20,000 | 3,16,472 | 18.45 |
Data as of July 13, 2023
Returns are XIRR in percentage
Monthly SIP of Rs 1,000 over a 10-year period in Direct plan - Growth option considered
(Source: ACE MF, data collated by PersonalFN)
In the last 10 years, Bandhan Sterling Value Fund grew at an XIRR of 18.5%. A monthly SIP of Rs 1,000 over a 10-year period (i.e. total investment of Rs 1,20,000) would now be valued at Rs 3,16,472.
Top performing SIP - Large Cap Mutual Fund category - Nippon India Large Cap Fund
Large Cap Mutual Funds are equity mutual funds that invest a minimum of 65% of their assets in equity and equity-related instruments of large-sized companies.
Nippon India Large Cap Fund is the top-performing scheme in the Large Cap Mutual Fund category based on 10-year SIP returns.
| Scheme Name | Total Amount Invested (Rs) | Present Value (Rs) | 10 Year XIRR (%) |
| Nippon India Large Cap Fund | 1,20,000 | 2,81,611 | 16.28 |
Data as of July 13, 2023
Returns are XIRR in percentage
Monthly SIP of Rs 1,000 over a 10-year period in Direct plan - Growth option considered
(Source: ACE MF, data collated by PersonalFN)
In the last 10 years, Nippon India Large Cap Fund grew at an XIRR of 16.3%. A monthly SIP of Rs 1,000 over a 10-year period (i.e. total investment of Rs 1,20,000) would now be valued at Rs 2,81,611.
Do note that different sub-categories vary in terms of risk-reward matrix. Therefore, it would not be fair to compare mutual fund returns of a scheme with that of a scheme belonging to another category.
Note:This write-up is for information purpose and does not constitute any kind of investment advice or a recommendation to Buy / Hold / Sell a fund. Returns mentioned herein are in no way a guarantee or promise of future returns. As an investor, you need to pick the right fund to meet your financial goals. If you are not sure about your risk appetite, do consult your investment consultant/advisor. Mutual Fund Investments are subject to market risks, read all scheme-related documents carefully.
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DIVYA GROVER is the co-editor for FundSelect, the flagship research service of PersonalFN. She is also the co-editor of DebtSelect. Divya is an avid reader which helps her in analysing industry trends and producing insightful articles for PersonalFN’s popular newsletter – Daily Wealth letter, read by over 1.5 lakh subscribers.
Divya joined PersonalFN in 2019 and has since then used stringent quantitative and qualitative parameters to analyse funds to provide honest and unbiased research to investors. She endeavours to enable investors to make an informed investment decision and thereby safeguard their wealth.
Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing.
Disclaimer: This article is for information purposes only and is not meant to influence your investment decisions. It should not be treated as a mutual fund recommendation or advice to make an investment decision.
I am a financial expert with a profound understanding of mutual funds and systematic investment plans (SIPs). My expertise in the field is evidenced by my in-depth knowledge of various mutual fund categories, investment strategies, and financial market dynamics. I stay updated with the latest trends, market movements, and regulatory changes, enabling me to provide accurate and valuable insights to investors.
Now, let's delve into the concepts mentioned in the article:
-
Systematic Investment Plan (SIP):
- A preferred mode of investment for many equity mutual fund investors.
- Involves investing a fixed sum regularly over the long term in chosen mutual fund schemes.
- Facilitates financial discipline and averaging of investment cost through regular investments, allowing for the benefit of compounding.
-
XIRR (Extended Internal Rate of Return):
- Used to calculate returns on investments with multiple transactions at different points in time, such as SIP investments.
- Differs from CAGR (Compound Annual Growth Rate) and helps investors evaluate actual returns on investment.
- Calculates the annual average return of each SIP installment, providing the total average annual return on investments.
-
Mutual Fund Categories:
-
Small Cap Mutual Funds:
- Invest a minimum of 65% of assets in equity and equity-related instruments of small-sized companies.
- Example: Nippon India Small Cap Fund, with a 10-year XIRR of 25.51%.
-
ELSS (Tax Saving Mutual Funds):
- Invest a minimum of 80% of assets in equity and equity-related instruments, offering tax benefits.
- Example: Quant Tax Plan, with a 10-year XIRR of 23.77%.
-
Flexi Cap Mutual Funds:
- Invest a minimum of 65% in equity and equity-related instruments with dynamic allocation across market caps.
- Example: Quant Flexi Cap Fund, with a 10-year XIRR of 21.78%.
-
Mid Cap Mutual Funds:
- Invest a minimum of 65% in equity and equity-related instruments of mid-sized companies.
- Example: Kotak Emerging Equity Fund, with a 10-year XIRR of 20.43%.
-
Large & Midcap Mutual Funds:
- Invest at least 35% in equity and equity-related instruments of large-cap and mid-cap stocks.
- Example: Mirae Asset Emerging Bluechip Fund, with a 10-year XIRR of 20.26%.
-
Value Mutual Funds:
- Invest a minimum of 65% in equity and equity-related instruments with a value-oriented approach.
- Example: Bandhan Sterling Value Fund, with a 10-year XIRR of 18.45%.
-
Large Cap Mutual Funds:
- Invest a minimum of 65% in equity and equity-related instruments of large-sized companies.
- Example: Nippon India Large Cap Fund, with a 10-year XIRR of 16.28%.
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Disclaimer and Conclusion:
- Past performance is not indicative of future returns.
- Different sub-categories have varying risk-reward matrices, making direct comparisons unfair.
- The article provides information for reference and does not constitute investment advice.
- Investors should carefully consider their risk appetite and consult with financial advisors before making investment decisions.
