Systematic Investment Plans (SIP) have been one of the best ways to invest in mutual funds, especially for long-term wealth creation. Investing in equity mutual funds via SIP helps in mitigating short-term market volatility through rupee cost averaging and ensures disciplined investment. While short-term returns may be unpredictable, looking at a fund’s performance over a 10-year SIP period provides a clearer picture of its consistency and ability to generate wealth. In this article we would explore Top 10 Equity Mutual Funds Based on 10-Year SIP Returns, where these funds invests and to whom such funds are suitable.
What is an SIP?
SIP, or Systematic Investment Plan, is a way of investing in mutual funds by contributing a fixed amount at regular intervals (monthly, quarterly, etc.). This method reduces the impact of market fluctuations and allows investors to accumulate wealth in a disciplined manner. If you are new to this world, first understand how mutual funds work.
Why Check the Last 10-Year SIP Performance?
Markets can be highly volatile in the short term, and many investors get influenced by short-term market movements. However, over a period of 10 years, the impact of volatility is reduced, and SIP returns stabilize. Factors like rupee cost averaging, compounding, and disciplined investments contribute to wealth creation over the long run. Even there are several Mutual Funds that tripled investors weealth in 5 years time frame.
Benefits of SIP Returns
- Rupee Cost Averaging: Helps in averaging out the purchase cost as investments are made at different market levels.
- Compounding: Long-term investments in SIP benefit from compounding, where returns are reinvested to generate additional returns.
- Disciplined Investing: SIP encourages regular investing, preventing impulsive decisions based on market fluctuations.
- Lower Market Timing Risk: Investing through SIP eliminates the need to time the market, which is difficult even for experts.
- Wealth Creation: Over a long-term period, SIPs in well-performing equity funds have the potential to generate significant wealth.
List of Top 10 Equity Mutual Funds Based on 10-Year SIP Returns
Here are the 10 equity mutual funds with highest SIP returns in the last 10 year time frame.
Top 10 Equity Mutual Funds with Highest SIP Returns in 10 years – Performance and Who can invest
Small Cap Funds
#1 – Quant Small Cap Fund
- Annualized Returns:
- 3 Years: 15.6%
- 5 Years: 30.0%
- 10 Years: 24.0%
- Where it invests: Primarily in small-cap stocks with high growth potential.
- Risk Profile: High-risk, high-return investment.
- Who should invest? Investors with a high-risk appetite looking for aggressive capital appreciation.
#2 – Nippon India Small Cap Fund
- Annualized Returns:
- 3 Years: 14.5%
- 5 Years: 26.0%
- 10 Years: 22.2%
- Where it invests: A diversified portfolio of small-cap companies across sectors.
- Risk Profile: High-risk, suitable for long-term investors.
- Who should invest? Suitable for investors willing to stay invested for a longer period to ride out volatility.
If you observe, this fund is part of Some of the Best Mutual Funds recommended by ChatGPT, Gemini and Deepseek AI.
#3 – Axis Small Cap Fund
- Annualized Returns:
- 3 Years: 12.9%
- 5 Years: 21.0%
- 10 Years: 20.3%
- Where it invests: Focuses on quality small-cap stocks with strong growth potential.
- Risk Profile: Moderately high risk.
- Who should invest? Ideal for investors seeking high-growth opportunities in the small-cap segment with patience to withstand market volatility.
Mid Cap Funds
#4 – Motilal Oswal Midcap Fund
- Annualized Returns:
- 3 Years: 25.9%
- 5 Years: 31.1%
- 10 Years: 21.9%
- Where it invests: Primarily in mid-sized companies with strong fundamentals and growth potential.
- Risk Profile: Moderately high risk.
- Who should invest? Investors seeking a balance between high growth and stability compared to small caps.
Since stock markets have taken huge correction in the last 6 months, we have recommended this fund as par to Best Mutual Funds for Lumpsum Investments in 2025 too.
#5 – Quant Mid Cap Fund
- Annualized Returns:
- 3 Years: 11.2%
- 5 Years: 22.8%
- 10 Years: 20.5%
- Where it invests: Focuses on mid-cap stocks with high growth potential.
- Risk Profile: High risk, high reward.
- Who should invest? Suitable for investors with a long-term view looking for a mix of stability and growth.
#6 – Edelweiss Mid Cap Fund
- Annualized Returns:
- 3 Years: 20.2%
- 5 Years: 25.0%
- 10 Years: 20.4%
- Where it invests: Primarily in mid-cap companies with strong growth potential.
- Risk Profile: Moderately high risk.
- Who should invest? Suitable for investors looking for higher-than-large-cap returns with lower risk than small caps.
#7 – Invesco India Mid Cap Fund
- Annualized Returns:
- 3 Years: 21.0%
- 5 Years: 23.5%
- 10 Years: 19.8%
- Where it invests: Focuses on mid-sized companies with a good mix of stability and growth.
- Risk Profile: Moderately high risk.
- Who should invest? Ideal for investors looking for exposure to mid-cap stocks with high return potential.
Flexi Cap Funds
#8 – Quant Flexi Cap Fund
- Annualized Returns:
- 3 Years: 10.8%
- 5 Years: 21.1%
- 10 Years: 20.3%
- Where it invests: Across large, mid, and small-cap stocks, dynamically allocating assets.
- Risk Profile: Moderate risk.
- Who should invest? Investors seeking diversified exposure across market caps with active management.
#9 – Parag Parikh Flexi Cap Fund
- Annualized Returns:
- 3 Years: 19.3%
- 5 Years: 21.2%
- 10 Years: 19.8%
- Where it invests: Mix of domestic and international stocks for diversification.
- Risk Profile: Moderate risk.
- Who should invest? Ideal for investors looking for global diversification along with Indian equity exposure.
This fund was among the 10 Mutual that fell the least in the last 6 months inspite of the huge market correction.
ELSS Fund
#10 – Quant ELSS Tax Saver Fund
- Annualized Returns:
- 3 Years: 7.4%
- 5 Years: 19.9%
- 10 Years: 21.1%
- Where it invests: Primarily in equity with a tax-saving benefit under Section 80C.
- Risk Profile: Moderately high risk.
- Who should invest? Investors looking for tax savings along with long-term wealth creation.
What is the CAGR Returns of These Mutual Funds?
|
Funds |
3 Yr Ret (%) | 5 Yr Ret (%) | 10 Yr Ret (%) |
|---|---|---|---|
| Quant Small Cap Fund – Direct Plan | 23.4 | 42.6 | 19.2 |
| Nippon India Small Cap Fund – Direct Plan | 23.8 | 31.9 | 20.3 |
| Motilal Oswal Midcap Fund – Direct Plan | 30.6 | 28.9 | 17.5 |
| Quant ELSS Tax Saver Fund – Direct Plan | 17.4 | 31.3 | 19.2 |
| Quant Mid Cap Fund – Direct Plan | 22.3 | 31.1 | 17.0 |
| Edelweiss Mid Cap Fund – Direct Plan | 24.4 | 27.7 | 17.2 |
| Quant Flexi Cap Fund – Direct Plan | 19.9 | 31.3 | 18.2 |
| Axis Small Cap Fund – Direct Plan | 18.1 | 24.2 | 18.1 |
| Invesco India Mid Cap Fund – Direct Plan | 23.9 | 24.7 | 16.8 |
| Parag Parikh Flexi Cap Fund – Direct Plan | 19.2 | 25.0 | 17.3 |
Conclusion
These mutual funds have demonstrated strong performance over the past 10 years through SIP investments. Small-cap funds have the potential for the highest growth but come with higher risks. Mid-cap funds provide a balance between risk and return, while flexi-cap funds offer diversification. Investors should choose funds based on their risk appetite and financial goals, keeping in mind that past performance does not guarantee future results.
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