25-Year SIPs Turn Rs 10,000 Monthly Investment into Crores in Top Indian Equity Funds

A study by ETMutualFunds reveals the remarkable long-term wealth-creation power of Systematic Investment Plans (SIPs) in Indian equity mutual funds. Investors who consistently invested Rs 10,000 per month in 36 select equity funds over the past 25 years would have accumulated significant wealth, turning their modest monthly contributions into crores by November 2025.

The top performer was Nippon India Growth Mid Cap Fund, which transformed a Rs 10,000 monthly SIP into an impressive Rs 8.81 crore, achieving an Extended Internal Rate of Return (XIRR) of 22.14%. Following closely, Franklin India Mid Cap Fund grew the same investment to Rs 6.52 crore with an XIRR of 20.32%, and HDFC Flexi Cap Fund yielded Rs 5.91 crore with an XIRR of 19.72%. Several SBI Mutual Fund schemes, including SBI Contra Fund, SBI ELSS Tax Saver Fund, and SBI Large & Midcap Fund, also delivered strong returns, ranging from Rs 5.02 crore to Rs 5.81 crore.

Other notable performers include Franklin India Flexi Cap Fund, ELSS funds like HDFC ELSS Tax Saver and ICICI Pru ELSS Tax Saver Fund, and offerings from Quant Mutual Fund and Sundaram Mutual Fund, all demonstrating substantial growth over the quarter-century period. The analysis excluded hybrid, sectoral, and thematic schemes, focusing purely on equity fund performance.

Impact: This news highlights the substantial wealth generation capacity of disciplined, long-term investing in equity markets via SIPs. It can encourage more retail investors to consider mutual funds for achieving their financial goals, underscoring the importance of patience and consistency in investment strategies. Impact Rating: 8/10

Definitions: SIP (Systematic Investment Plan): A disciplined way to invest a fixed sum of money in a mutual fund scheme at regular intervals, usually monthly. Equity Mutual Funds: Funds that invest primarily in the stocks of companies. XIRR (Extended Internal Rate of Return): A measure of investment return that takes into account the timing and amount of cash flows, providing a more accurate picture of annualized returns for investments with multiple cash flows over time. Mid Cap Fund: A mutual fund that invests in companies with medium market capitalization. Flexi Cap Fund: A fund that can invest in companies of any market capitalization (large, mid, or small). ELSS (Equity Linked Savings Scheme): A type of equity mutual fund in India that offers tax benefits under Section 80C of the Income Tax Act. Contra Fund: A fund that follows a contrarian investment strategy, investing in stocks that are out of favor but have potential for future growth.