Top 5 Mutual Funds With The Highest 5-Year SIP Returns: Check The List

Which 5 equity mutual funds gave the highest returns for a monthly SIP of Rs 10,000 over the last 5 years? We bring you the full list of funds that delivered up to 22% XIRR!

Image Credit : Asianet News

Top 5 mutual funds with highest 5-year SIP returns

Systematic Investment Plan (SIP) lets you invest a fixed amount every month instead of putting a lump sum into mutual funds at one go. Investors who routed their money through SIPs in equity mutual funds over the last 5 years have seen great returns.

A recent study looked at the period from September 1, 2021, to September 1, 2026. It found that 165 out of 219 equity funds delivered double-digit SIP XIRR returns. HSBC Mid Cap Fund grabbed the top spot here. It gave around 22.70% SIP XIRR during this 5-year window.

ITI Small Cap Fund, Bandhan Small Cap Fund, Invesco India Mid Cap Fund, and Bank of India Small Cap Fund took the next four spots.

Image Credit : Getty

HSBC Mid Cap Fund takes the top spot

HSBC Mid Cap Fund sits right at the top as the equity fund with the highest SIP returns over the last 5 years.

5-Year SIP XIRR: 22.70%

You would have invested a total of Rs 6 lakh if you ran a monthly SIP of Rs 10,000 in this fund for 5 straight years. The value of that investment would have jumped to around Rs 10.53 lakh.

This means your Rs 6 lakh investment generated an extra value of about Rs 4.53 lakh. This fund falls under the mid-cap category. Mid-cap companies rank between 101 and 250 based on their market capitalization.

Image Credit : our own

ITI Small Cap Fund secures the second rank

ITI Small Cap Fund holds the second position on this list.

5-Year SIP XIRR: 22.52%

You would have put in a total of Rs 6 lakh if you invested Rs 10,000 every month for 5 years. This fund's 5-year SIP performance also pushed the investment value past the Rs 10 lakh mark.

This belongs to the small-cap fund category. Small-cap companies rank from 251 onwards based on market capitalization. These funds usually offer high growth potential but come with higher market volatility.

Image Credit : Getty

Bandhan Small Cap Fund claims the third spot

Bandhan Small Cap Fund takes the third place.

5-Year SIP XIRR: 22.03%

Your total investment would stand at Rs 6 lakh if you did a monthly SIP of Rs 10,000 for 5 years in this fund. That investment value has grown to roughly Rs 10.36 lakh. This means the fund created an additional value of about Rs 4.36 lakh over your invested amount.

This is also a small-cap fund, so it invests in smaller companies with high growth potential. At the same time, these funds can see sharp price swings during market downturns. You should not expect the exact same 22.03% SIP XIRR in the next 5 years just because it delivered that in the past.

Image Credit : Getty

Invesco India Mid Cap Fund ranks fourth

Invesco India Mid Cap Fund has grabbed the fourth position.

5-Year SIP XIRR: 21.74%

You would have invested Rs 6 lakh in total if you ran a Rs 10,000 monthly SIP over the last 5 years. This fund also belongs to the mid-cap category. This means it focuses on companies ranking between 101 and 250 in market value. You need to understand an important point here.

A 5-year SIP XIRR of 21.74% does not mean the fund gave exactly 21.74% returns every single year. SIPs buy units at different prices every month. Experts use XIRR to calculate the annualized return and measure the investment's actual performance.

Image Credit : Getty

What did a Rs 10,000 SIP deliver?

Here are the top 5 funds based on their 5-year SIP XIRR:

1. HSBC Mid Cap Fund – 22.70%

2. ITI Small Cap Fund – 22.52%

3. Bandhan Small Cap Fund – 22.03%

4. Invesco India Mid Cap Fund – 21.74%

5. Bank of India Small Cap Fund – 21.24%

A monthly SIP of Rs 10,000 over 5 years means you invest a total of Rs 6 lakh. That investment grew to about Rs 10.53 lakh in the top-ranked HSBC Mid Cap Fund. It reached around Rs 10.36 lakh in the Bandhan Small Cap Fund. But investors must note a very crucial point here.

A fund that gave high returns in the last 5 years carries no guarantee to deliver the same high returns in the next 5 years. Equity funds aim for long-term growth, but they can face market volatility in the short term. This volatility can be significant for investors in small-cap and mid-cap funds.

You should look at your investment horizon, risk appetite, financial goals, the fund's expense ratio, and its long-term performance instead of picking a fund just for its past returns.

This list is purely based on past 5-year SIP performance; it is not a personal investment recommendation. Mutual fund investments are subject to market risks.

Image Credit : PR

Bank of India Small Cap Fund stands fifth

Bank of India Small Cap Fund sits in the fifth place.

5-Year SIP XIRR: 21.24%

Investors who ran a Rs 10,000 monthly SIP in this fund over the last 5 years got an XIRR of over 21%. This top 5 list features 3 small-cap funds and 2 mid-cap funds. This shows that equity funds focusing on small and mid-sized companies performed exceptionally well during this specific 5-year period.

You cannot conclude that small-cap or mid-cap funds will always give the highest returns based on this alone. The leading investment category can change depending on market conditions, the economic environment, and company performance.