Top SIP Funds Beat 20% Annual Returns: 5-Year Growth
By Market Desk
Explore top SIP mutual funds delivering over 20% annual returns in 5 years. See how ₹6 lakh grew to over ₹10 lakh. Essential for your financial planning.
If you’re looking to grow your money through mutual funds, you’ll be interested to know that several top Systematic Investment Plan (SIP) funds have shown impressive growth over the last five years.
These funds have delivered annualised returns exceeding 20%, turning a ₹6 lakh investment into over ₹10 lakh for many investors.
Understanding SIPs for Long-Term Growth
SIPs are a smart way to invest in mutual funds regularly, helping you build wealth over time by leveraging rupee cost averaging and compounding.
This strategy can help smooth out market ups and downs, making it a popular choice for those with an investment horizon of five years or more.
Top-Performing SIP Funds Over Five Years
Among the standout performers, the DSP India T.I.G.E.R. Fund, a sectoral infrastructure fund, has truly shined.
With an Asset Under Management (AUM) of ₹6,264 crore, a ₹10,000 monthly SIP for five years—a total investment of ₹6 lakh—grew to an impressive ₹10.27 lakh.
This translates to an annualised SIP return of 21.25% over more than 22 years of the fund’s existence.
Another strong contender is the SBI PSU Fund, a thematic fund focusing on Public Sector Undertakings.
This fund, holding an AUM of ₹6,684 crore, transformed the same ₹6 lakh investment into ₹10.23 lakh.
It achieved an annualised SIP return of 21.08% over its 16-plus year history.
The Nippon India Power & Infra Fund, another sectoral infrastructure option, also delivered robust results.
Managing an AUM of ₹8,043 crore, a ₹6 lakh investment in this fund appreciated to ₹9.99 lakh.
Its annualised SIP return stood at 20.11% across its 22-year operational span.
What You Need to Consider Before Investing
While these returns are exciting, it’s crucial to remember that historical performance doesn’t guarantee future results.
Sectoral and thematic funds, like some of these, can be more volatile than diversified equity funds because their portfolios are concentrated in specific industries.
Always align your investment decisions with your financial goals, personal risk tolerance, and investment horizon.
Making sure your asset allocation fits your overall strategy is also a key step before you commit your hard-earned money.
Understanding these factors will help you make informed choices as you navigate your investment journey.