Many Indian investors prefer SIPs (Systematic Investment Plans) as a safer and disciplined way to invest in equity mutual funds. Instead of investing a lump sum amount, SIP allows monthly investments, which helps reduce market timing risk and builds wealth over the long term.
If you had invested Rs.10,000 every month for the last five years in the right equity mutual funds, you could have turned Rs.6 lakh into over Rs.13 lakh. Some mutual funds delivered 30% to 32% annualised returns on SIPs, outperforming market benchmarks and other investment options.
Let’s explore 7 top-rated equity mutual funds that gave high returns on SIPs in the last 5 years, according to data from Value Research.
ICICI Prudential Infrastructure Fund – Direct Plan (Growth)
- Rating: 5 stars (Value Research)
- SIP Annualised Return (5 Years): 32.86%
- Total SIP Investment (Rs.10,000/month): Rs.6,00,000
- Final Fund Value after 5 Years: Rs.13,16,064
- Lump Sum CAGR (5 Years): 38.03%
- Lump Sum Value of Rs.1 Lakh: Rs.5,00,970
- Expense Ratio: 1.14%
This infrastructure-focused fund has seen a strong rally in the last five years, thanks to government’s push on capital expenditure and road, power, and transport projects.
Motilal Oswal Midcap Fund – Direct Plan (Growth)
- Rating: 5 stars
- SIP Annualised Return (5 Years): 32.31%
- Total SIP Investment: Rs.6,00,000
- Fund Value after 5 Years: Rs.12,99,648
- Lump Sum CAGR: 37.44%
- Value of Rs.1 Lakh Lump Sum: Rs.4,90,431
- Expense Ratio: 0.68%
This fund has focused on quality midcap companies with long-term growth potential. It has outperformed due to smart stock picking and strong earnings in mid-sized firms.
Bandhan Small Cap Fund – Direct Plan (Growth)
- Rating: 5 stars
- SIP Annualised Return: 31.48%
- Total SIP Amount: Rs.6,00,000
- SIP Value after 5 Years: Rs.12,74,986
- CAGR on Lump Sum Investment: 38.04%
- Rs.1 Lakh Lump Sum Grown to: Rs.5,01,139
- Expense Ratio: 0.39%
This small cap fund has delivered impressive gains with lower expense ratio. It has invested in emerging companies that benefited from post-COVID recovery and consumption growth.
LIC MF Infrastructure Fund – Direct Plan (Growth)
- Rating: 4 stars
- SIP Annualised Return: 31.33%
- 5-Year SIP Investment: Rs.6,00,000
- Fund Value after 5 Years: Rs.12,70,705
- Lump Sum CAGR: 34.27%
- Rs.1 Lakh Lump Sum Becomes: Rs.4,36,380
- Expense Ratio: 0.50%
LIC’s infrastructure fund has also performed well, focusing on stocks in construction, engineering, and capital goods. The lower expense ratio helped improve investor returns.
Franklin Build India Fund – Direct Plan (Growth)
- Rating: 5 stars
- SIP Return (5 Years): 30.22%
- Total SIP Investment: Rs.6,00,000
- Fund Value after 5 Years: Rs.12,38,504
- Lump Sum CAGR: 34.76%
- Rs.1 Lakh Lump Sum Value: Rs.4,44,468
- Expense Ratio: 0.95%
Focused on India’s infrastructure and industrial growth, this fund picked quality companies in sectors like cement, logistics, and steel that benefited from high capex spending.
Canara Robeco Infrastructure Fund – Direct Plan (Growth)
- Rating: 4 stars
- SIP Return: 30.04%
- SIP Investment: Rs.6,00,000
- Final Fund Value: Rs.12,33,294
- Lump Sum CAGR: 34.36%
- Rs.1 Lakh Value after 5 Years: Rs.4,37,892
- Expense Ratio: 0.98%
This fund’s performance shows that even relatively lesser-known funds can deliver high returns if the sector allocation is done right. Infrastructure revival has helped its holdings.
Nippon India Power & Infra Fund – Direct Plan (Growth)
- Rating: 4 stars
- SIP Annualised Return: 30.04%
- Investment through SIP: Rs.6,00,000
- Fund Value after 5 Years: Rs.12,32,801
- Lump Sum CAGR: 33.43%
- Rs.1 Lakh Lump Sum Value: Rs.4,22,969
- Expense Ratio: 0.94%
Nippon India’s power and infrastructure fund benefited from the rally in energy, engineering, and core industries. Strong sector tailwinds supported its returns.
What These Returns Tell Investors About Long-Term SIP Growth
These funds show that even small, consistent monthly investments can create significant wealth over a few years when invested in the right funds. All these top-performing funds share one thing in common — focus on either infrastructure, midcap, or small cap stocks.
While these sectors come with higher risk, SIP investing helps average out the cost over time. When the market dips, your SIP buys more units; when the market rises, the value of those units increases.
Things to Remember Before You Invest
- High returns come with high risk. All the above funds invest in volatile sectors or smaller companies.
- SIP helps reduce risk but does not eliminate it. You should assess your risk appetite before investing.
- Past returns are not a guarantee of future performance. Market cycles, sector rotation, and economic changes can impact future returns.
- Always look at fund ratings, consistency, and portfolio quality before choosing a SIP fund.
- Make sure your investment horizon is long-term (at least 5–7 years) to enjoy the benefits of compounding and market recovery after dips.
Disclaimer: This article is meant for informational purposes only. Mutual fund investments are subject to market risks. Please consult a SEBI-registered financial advisor before investing.
Source: Financial Express, Value Research
