Top 5 SIP Mutual Funds: Best-Performing Schemes of the Last 10 Years, Check Who Tops the List

Systematic Investment Plans (SIPs) have emerged as one of the most trusted wealth-building tools for Indian investors. By investing a fixed amount regularly in equity mutual funds, investors can benefit from rupee-cost averaging and the power of compounding over the long term.

A recent analysis of 10-year SIP returns as of September 10, 2025, highlights the top five equity mutual fund schemes that have delivered the highest annualized returns over the past decade. The results clearly show that small-cap and mid-cap funds have outperformed other categories, rewarding disciplined long-term investors with impressive gains.

1. Quant Small Cap Fund – 24.5% CAGR

The Quant Small Cap Fund secured the top spot, delivering an annualized return of 24.5% on SIP investments made over the last 10 years.

As a small-cap fund, it focuses on emerging and relatively smaller companies with high growth potential. Despite the volatility typically associated with small-cap stocks, this fund has rewarded investors with outstanding long-term wealth creation.

2. Nippon India Small Cap Fund – 23.1% CAGR

At the second position is the Nippon India Small Cap Fund, with an impressive annual SIP return of 23.1% over 10 years.

This fund has consistently been a favorite among investors who are comfortable with higher risk in exchange for stronger growth prospects. Its disciplined investment strategy in quality small-cap companies has made it one of the most reliable performers in the category.

3. Motilal Oswal Midcap Fund – 22.4% CAGR

The Motilal Oswal Midcap Fund stands at third place, offering 22.4% annualized returns through SIPs.

Midcap funds strike a balance between growth and stability. They are less volatile than small caps but have higher return potential compared to large caps. Over the past decade, this fund has rewarded investors with consistent performance, making it a trusted option for medium- to long-term goals.

4. Invesco India Midcap Fund – 21.4% CAGR

The Invesco India Midcap Fund occupies the fourth spot, generating 21.4% annualized SIP returns in the last decade.

Focused on mid-sized companies with strong fundamentals, this scheme has delivered steady growth, making it a dependable choice for investors seeking exposure beyond large-cap heavy portfolios.

5. Edelweiss Midcap Fund – 21.2% CAGR

Rounding off the list is the Edelweiss Midcap Fund, which provided investors with 21.2% annualized returns over 10 years.

Like its peers, this fund has shown that disciplined investing in midcap companies can generate substantial wealth when held over a long horizon.

What the Data Reveals

The top five SIP performers from the past decade clearly highlight a trend: small-cap and midcap funds have been the biggest wealth creators. Investors who stayed consistent with their SIP contributions, despite market ups and downs, were rewarded with market-beating returns.

• Small-cap funds dominated the top two spots, showing higher return potential for those with risk appetite.

• Midcap funds occupied the next three positions, underscoring their importance in long-term wealth planning.

Key Takeaway for Investors

• SIPs work best when held long-term: The power of compounding multiplies wealth significantly over a 10-year horizon.

• Diversification is essential: While small-cap and midcap funds have delivered higher returns, they come with higher risk. Balancing them with large-cap and hybrid funds can create a more stable portfolio.

• Start early, stay disciplined: Even small monthly investments in SIPs can generate large wealth over time.

Disclaimer

The views and fund data presented here are based on market performance and industry analysis as of September 2025. Mutual fund investments are subject to market risks. Investors should consult a certified financial advisor before making investment decisions.