A 15-year SIP of just Rs 10,000 a month turning into nearly Rs 1.2 crore may sound exceptional—but in India’s mutual fund universe, only two schemes have managed to deliver this kind of performance over such a long period in their regular plans.
In a market where long-term investing is often rewarded but consistency is hard to sustain, Nippon India Small Cap Fund and Edelweiss Mid Cap Fund stand out for delivering over 20% annualised SIP returns over 15 years in their regular plans.
An important note: This analysis uses regular plans rather than direct plans. Regular plans charge higher fees but have longer track records—the direct plans of these funds haven’t been around for the full 15 years needed for this comparison. For investors starting fresh today, direct plans typically offer better value due to lower expense ratios.
The rare 20%+ SIP club
Here’s how the two funds stack up:
| Fund | 15-year SIP return (annualised) | Value of Rs 10,000 monthly SIP over 15 years | 15-year lump sum CAGR |
| Nippon India Small Cap Fund | 22.58% | Rs 1,19,91,099 | 21.35% |
| Edelweiss Mid Cap Fund | 20.19% | Rs 97,04,534 | 19.26% |
(Source: Value Research)
The difference between the two may appear small in percentage terms, but compounding over 15 years creates a massive gap in wealth creation. A SIP investor in Nippon India Small Cap Fund would have accumulated over Rs 22 lakh more than one in Edelweiss Mid Cap Fund.
Nippon India Small Cap Fund
Nippon India Small Cap Fund has emerged as the top performer in this list. A Rs 10,000 monthly SIP started 15 years ago would now be worth nearly Rs 1.20 crore.
Launched in September 2010, the open-ended small-cap fund invests primarily in smaller companies with higher growth potential. But that opportunity comes with equally high volatility.
The fund currently manages Rs 72,673 crore in assets, making it one of the largest schemes in the small-cap category. Its expense ratio stands at 1.35%, and it is benchmarked against the NIFTY Smallcap 250 TRI.
Recent performance snapshot
The fund has not just delivered historically strong returns—it has also maintained strong medium- and long-term performance:
3-year return: 20.22%
5-year return: 21.25%
10-year return: 21.15%
Notably, it has outperformed both its benchmark and category averages across these periods.
Risk profile
Nippon India Small Cap Fund is classified under the Very High Risk category.
Its risk metrics tell the story:
Mean return: 21.24%
Standard deviation: 19.77% (measures volatility—higher means larger price swings)
Sharpe ratio: 0.77 (return per unit of risk—higher is better)
Sortino ratio: 1.15 (similar to Sharpe, but focuses on downside risk)
Beta: 0.87 (market sensitivity—below 1 means less volatile than the market)
Alpha: 2.22 (excess return vs benchmark—positive means outperformance)
The high standard deviation signals significant price swings, which is normal for small-cap investing. The positive alpha suggests the fund has generated returns above its benchmark on a risk-adjusted basis.
Portfolio positioning
The fund’s biggest sector bets are:
Industrials: 24.91%
Financials: 15.58%
Consumer discretionary: 14.34%
Materials: 13.46%
Consumer staples: 9.85%
Top holdings include HDFC Bank, MCX, Bharat Heavy Electricals (BHEL), TD Power Systems, and Apar Industries.
Edelweiss Mid Cap Fund
The second fund in this rare list is Edelweiss Mid Cap Fund.
A Rs 10,000 monthly SIP invested 15 years ago would have grown to Rs 97.05 lakh, delivering an annualised SIP return of 20.19%.
Launched in December 2007, the fund focuses on mid-cap companies—businesses often considered to be in the expansion phase, offering a balance between growth potential and risk.
It currently manages Rs 15,911 crore in assets, with an expense ratio of 1.80%, and tracks the NIFTY Midcap 150 TRI.
Recent performance snapshot
The fund has maintained competitive returns over different timeframes:
3-year return: 24.72%
5-year return: 20.12%
10-year return: 19.00%
It has consistently outperformed its benchmark and category averages in these periods.
Risk profile
Like the Nippon fund, this too falls under the Very High Risk category.
Its risk indicators are:
Mean return: 23.91%
Standard deviation: 17.88%
Sharpe ratio: 1.01
Sortino ratio: 1.26
Beta: 0.94
Alpha: 2.81
Compared with the Nippon fund, Edelweiss shows somewhat lower volatility and stronger risk-adjusted return metrics (note the higher Sharpe and Sortino ratios), though both remain aggressive equity bets.
Portfolio positioning
Its key sector allocations are:
Financials: 30.35%
Industrials: 15.59%
Consumer discretionary: 11.81%
Materials: 11.03%
Healthcare: 7.51%
Top holdings include MCX, Federal Bank, BSE, AU Small Finance Bank, and Marico.
A word of caution: Past returns are not a promise
Impressive as these numbers are, they come with a critical caveat.
Stories like these can make it seem that investing in any SIP for long enough guarantees outsized wealth creation. That would be the wrong takeaway.
These are exceptional performers from aggressive categories—small-cap and mid-cap funds—which can also go through long periods of weak performance, sharp corrections, and higher volatility.
The 15-year returns reflect a very specific historical period that included multiple market cycles, economic recoveries, and bull runs. Future returns could be significantly lower.
Also, SIP investing works because of discipline and staying invested through downturns—not because a fund once delivered stellar returns.
What should investors check before starting a long-term SIP?
Rather than chasing past winners alone, investors should evaluate multiple factors:
- Risk appetite
Can you handle 25–40% market corrections without stopping your SIP?
Small-cap and mid-cap funds are not suitable for every investor.
- Investment horizon
For aggressive equity funds, a long holding period matters.
Anything less than 7–10 years may not give enough time to ride out volatility.
- Risk-adjusted performance
High returns alone don’t tell the full story.
Metrics like Sharpe ratio, Sortino ratio, beta, and alpha help assess whether returns came with excessive risk.
- Portfolio quality
Check where the fund is investing.
Sector concentration and top holdings can materially affect performance.
- Expense ratio
Higher costs can erode long-term returns, especially over 10–15 years. Even a difference of 0.5% annually compounds significantly over time.
- Fund size and consistency
A fund should show performance consistency across market cycles, not just during one rally.
Note: Very large AUM in small-cap and mid-cap funds can sometimes limit flexibility—it becomes harder to enter and exit positions without impacting prices.
- Your asset allocation
Even strong funds should fit into your overall financial plan.
Avoid overloading your portfolio with only aggressive equity schemes.
Bottom line
A 15-year SIP journey in the right fund can create substantial wealth—but these examples also show that extraordinary returns often come with extraordinary patience and risk.
For investors, the bigger lesson may not be about finding the next 20% SIP winner, but about choosing funds aligned with their goals, risk tolerance, and time horizon—and having the discipline to stay invested when markets test your conviction.
Disclaimer: Past performance is not indicative of future returns. Mutual fund investments are subject to market risks, and returns can vary depending on market conditions, fund strategy, and investment tenure. The returns mentioned in this article are based on historical data for regular plans and are meant for informational purposes only, not as investment advice or recommendations. Investors should assess their financial goals, risk appetite, and consult a qualified financial advisor before making investment decisions.
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