The study reviewed SIP performance across top high-assets-under-management (AUM) funds, assuming a monthly investment of ₹10,000. It found consistent growth across equity categories, with some funds outperforming others.
Category-wise performance
- Large-cap funds: 17.62% annualised returns over five years, corpus of ~₹9.31 lakh; 15.98% over 10 years, corpus of ~₹27.70 lakh.
- Large & mid-cap funds: 19.40% over five years (₹9.72 lakh); 17.71% over 10 years (₹30.41 lakh).
- Flexi-cap funds: 20.40% over five years (₹9.96 lakh); 20.50% over 10 years (₹35.36 lakh).
- Multi-cap/value-oriented funds (e.g., ICICI Prudential Value Fund): 21.40% over five years (₹10.21 lakh); 18.40% over 10 years (₹31.57 lakh).
Among individual schemes, the SBI Contra Fund recorded the highest returns among the large schemes analysed—22.82% over five years (₹10.56 lakh) and 20.27% over 10 years (₹34.92 lakh).
How SIPs work
A SIP allows investors to put in a fixed amount at regular intervals—typically monthly—into a mutual fund scheme. This approach averages out the purchase cost over time, a process known as rupee-cost averaging.
It also encourages disciplined investing, as contributions continue regardless of market conditions.
Who should consider SIPs?
Financial planners generally view SIPs as suitable for investors looking to build wealth gradually over the medium to long term. They are often recommended for individuals who prefer to invest smaller amounts regularly rather than making lump-sum investments. SIPs can be used for various goals such as retirement planning, children’s education, or building a down payment for a home.