- SIPs build long-term wealth, reducing market volatility impact.
- Top funds delivered impressive five-year SIP returns over 20%.
- Investors should consider goals and risk; past performance varies.
Systematic Investment Plans (SIPs) remain one of the most popular ways to build long-term wealth through Mutual Funds. By investing a fixed amount at regular intervals, investors can benefit from rupee cost averaging and the power of compounding, while reducing the impact of market volatility. For investors with a long investment horizon of five years or more, choosing funds that have consistently generated strong SIP returns can make a meaningful difference.
Funds that remain disciplined during market corrections and stay committed to their investment strategy often deliver superior long-term outcomes. Based on five-year SIP performance, the following mutual funds have emerged as the top performers in their respective categories.
Top SIP Mutual Funds Based on Five-Year Returns
Fund Category AUM Minimum SIP Value of Rs 10,000 Monthly SIP (5 Years) Annualised SIP Return Expense Ratio Fund Age
DSP India T.I.G.E.R. Fund Sectoral – Infrastructure Rs 6,264 crore Rs 3,000 Rs 10.27 lakh (Investment: Rs 6 lakh) 21.25 per cent 2.02 per cent 22+ years
SBI PSU Fund Thematic – PSU Rs 6,684 crore Rs 3,000 Rs 10.23 lakh (Investment: Rs 6 lakh) 21.08 per cent 1.86 per cent 16+ years
Nippon India Power & Infra Fund Sectoral – Infrastructure Rs 8,043 crore Rs 3,000 Rs 9.99 lakh (Investment: Rs 6 lakh) 20.11 per cent 1.99 per cent 22+ years
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What Should Investors Keep in Mind?
While these funds have delivered impressive SIP returns over the past five years, investors should avoid making investment decisions based solely on historical performance. Sectoral and thematic funds can experience higher volatility than diversified Equity Funds because their portfolios are concentrated in specific industries.
Before investing, investors should evaluate their financial goals, risk appetite, investment horizon and asset allocation. Past performance is not a guarantee of future returns, and fund performance may vary depending on market conditions.
(“Disclaimer: This article uses information originally published by Dalal Street Investment Journal (DSIJ). The views expressed are those of the original authors and not necessarily of ABP Network Pvt. Ltd. This content is provided for general informational and educational purposes only and should not be construed as investment, financial, legal or tax advice. Readers are advised to conduct their own research and/or consult a qualified financial advisor before making any investment decisions. This content is for informational purposes only and should not be treated as investment advice. ABP Network, its employees and associates shall not be responsible or liable for any losses or damages arising directly or indirectly from the use of or reliance on this article or any information contained herein.”)