Do you also want to invest in mutual funds, but are unable to save a large lump sum amount? Then do not worry. SIP i.e. Systematic Investment Plan, is an easy solution to your problem. In this, you invest small amounts every month according to your pocket, and over time, this small amount becomes a big fund, i.e., a good corpus. In this write-up, we will pick 10 mutual funds based on their last 10 years of SIP performance. Among these 10 top SIP performers, two funds are from the small-cap space, four are from the mid-cap category, three are sectoral funds and one tax-saver fund. This variety shows that all categories of mutual funds have the potential to create long-term wealth if invested in with patience.
Here are top 10 SIP mutual funds with more than 20% CAGR in the last 10 years:
1. Quant Small Cap Fund – Direct Plan
10-year SIP returns: 26.62% CAGR
With this rate of return, an SIP of Rs 10,000 a month would have turned into Rs 49.14 lakh in 10 years.
10-year returns (lump sum investment): 20.73% CAGR
An investment of Rs 1 lakh in this fund made 10 years ago would be worth now Rs 6.58 lakh.
2. Nippon India Small Cap Fund – Direct Plan
10-year SIP returns: 25.01% CAGR
With this rate of return, Rs 10,000 SIP per month would have been Rs 45.05 lakh after 10 years.
10-year returns (lump sum investment): 22.96% CAGR
An investment of Rs 1 lakh in this fund would be worth Rs 7.90 lakh after 10 years.
Also read: Highest returns large cap funds for portfolio stability
3. Motilal Oswal Midcap Fund – Direct Plan
10-year SIP returns: 23.93% CAGR
A Rs 10,000 SIP per month in this fund started 10 years ago would be worth Rs 42.51 lakh.
10-year returns (lump sum investment): 19.04% CAGR
A lump sum investment of Rs 1 lakh in this fund would be worth Rs 5.71 lakh after 10 years.
4.Quant ELSS Tax Saver Fund – Direct Plan
10-year SIP returns: 23.61% CAGR
With this rate of return, an SIP of Rs 10,000 a month would have turned into Rs 41.76 lakh in 10 years.
10-year returns (lump sum investment): 21.72% CAGR
An investment of Rs 1 lakh in this fund made 10 years ago would be worth now Rs 7.13 lakh.
5. Edelweiss Mid Cap Fund – Direct Plan
10-year SIP returns: 23.53% CAGR
A Rs 10,000 SIP per month in this fund started 10 years ago would be worth Rs 41.58 lakh.
10-year returns (lump sum investment): 19.64% CAGR
A lump sum investment of Rs 1 lakh in this fund would be worth Rs 6 lakh after 10 years.
Also read: THESE 5 defence mutual funds gave over 30% returns in just 6 months – Best to invest in 2025
6. ICICI Prudential Infrastructure Fund – Direct Plan
10-year SIP returns: 23.51% CAGR
With this rate of return, an SIP of Rs 10,000 a month would have turned into Rs 41.53 lakh in 10 years.
10-year returns (lump sum investment): 17.70% CAGR
An investment of Rs 1 lakh in this fund made 10 years ago would be worth now Rs 5.10 lakh.
7. Invesco India Mid Cap Fund – Direct Plan
10-year SIP returns: 23.34% CAGR
The fund would have turned an SIP of Rs 10,000 a month into Rs 41.16 lakh in 10 years.
10-year returns (lump sum investment): 19.76% CAGR
An investment of Rs 1 lakh made in this scheme 10 years ago would have given investors Rs 6.06 lakh after 10 years.
8. Nippon India Growth Mid Cap Fund – Direct Plan
10-year SIP returns: 22.61% CAGR
A Rs 10,000 SIP per month in this fund started 10 years ago would be worth Rs 39.56 lakh.
10-year returns (lump sum investment): 18.90% CAGR
A lump sum investment of Rs 1 lakh in this fund would be worth Rs 5.64 lakh after 10 years.
9. Franklin Build India Fund – Direct Plan
10-year SIP returns: 22.50% CAGR
With this rate of return, an SIP of Rs 10,000 a month would have turned into Rs 39.33 lakh in 10 years.
10-year returns (lump sum investment): 18.54% CAGR
An investment of Rs 1 lakh in this fund made 10 years ago would be worth now Rs 5.47 lakh.
10. LIC MF Infrastructure Fund – Direct Plan
10-year SIP returns: 22.33% CAGR
The fund would have turned an SIP of Rs 10,000 a month into Rs 38.98 lakh in 10 years.
10-year returns (lump sum investment): 16.54% CAGR
An investment of Rs 1 lakh made in this scheme 10 years ago would have given investors Rs 4.61 lakh after 10 years.
(Data: Value Research)
Also read: Best sectoral mutual funds to invest in 2025
SIP assets reach Rs 14.61 lakh crore in May 2025
Investors’ interest for SIP investment continues to rise with total amount collected through SIP during May 2025 was Rs 26,688 crore. With this, total assets under management (AUM) of mutual funds through SIPs reached a record Rs 14.61 lakh crore in May 2025.
What’s driving investor interest for SIPs?
The beauty of SIP is that you do not have to invest a lot of money at once – just keep investing little by little and see how your wealth builds up over time. There is neither the hassle of market timing in this, nor the tension of too much research. And yes, the real magic of SIP is seen when the market goes up and down. When the market falls, you get more units, and when the market goes up, the value of those units increases. This whole process is called rupee cost averaging, which is very beneficial in the long term. Also, the effect of compounding makes SIP even more powerful.
Who is SIP for?
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. However, keep in mind that 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.
Keep these things in mind before starting SIP:
-First of all, decide your financial goals and the investment period
-Do check the past record of that fund – especially 5 to 10 years
-Also understand who is the fund manager and what is his strategy
-It will be good if the expense ratio of the fund is low
-Choose large cap, mid cap or multi cap fund according to your risk taking capacity
-And most importantly – do not stop SIP in between. Its real benefits are seen only in the long term
Overall, SIP is a way of investing that teaches you financial discipline and helps you build wealth slowly but steadily. If you want to achieve your financial goals without getting into the hustle and bustle of the market, SIP can be a great start. Just be patient, keep investing regularly and the benefits will show themselves in the long run.
Disclaimer: The above content is for informational purposes only. Mutual Fund investments are subject to market risks. Please consult your financial advisor before investing.