One of the best ways to invest money with disciplined approach is to invest through SIP in mutual fund schemes. If you are wondering which are the SIP mutual funds that generated high returns in last 20 years and is it worth to invest now in those funds or not, then this article is for you. Mutual Fund investments is long term game. If you are disciplined investor, you can achieve your financial goals faster. In this article we would provide 5 Mutual Funds with highest SIP returns in the last 20 years and our view about such funds.
Also Read: Top 10 Mutual Funds to invest in 2023
How we filtered these funds that generated highest SIP returns in last 20 years?
We considered all equity funds. This includes large cap funds, mid cap funds, small cap funds, international funds, sector specific funds and thematic funds. There are over 690 mutual funds that fall in this category.
We have filtered funds that generated highest SIP returns in the last 20 years. Since the direct plans were floated only from 2013 onwards, which are there for 10 years only, we have considered regular plans to check highest SIP returns in 20 years.
We have filtered 5 mutual funds that gave highest SIP returns in the last 20 years.
Out of these Top 5 funds, surprisingly 3 are sector funds and 2 are mid cap funds.
These funds generated highest SIP returns between 18% to 19% in the last 20 years while the next set of 5 equity funds generated between 17% to 17.8% returns during a similar period. This performance is after considering some correction that is happening now in the last few weeks. If you take last 10 years returns, these could be still higher if one opts for direct plans in these mutual funds.
5 Mutual Funds with Highest SIP Returns in the last 20 years
Here is the list of Top 5 highest SIP return mutual funds in last 20 years.
#1 – ICICI Prudential Technology Fund
#2 – SBI Consumption Opportunities Fund
#3 – Sundaram Mid Cap Fund
#4 – ICICI Prudential FMCG Fund
#5 – Nippon India Growth Fund
Top 5 Mutual Funds with Highest SIP Returns in 20 years โ Detailed View
Let’s get into more info about these mutual fund schemes.
#1 – ICICI Prudential Technology Fund
Investment Strategy of the fund
To generate long-term capital appreciation by creating a portfolio that is invested in equity and equity related securities of technology and technology dependent companies.
Fund Performance and Risk Statistics
| Performance & Risk Metrics | ICICI Prudential Technology Fund |
| Value Research Rating | Not Rated |
| 3 Years – SIP Returns | 22% |
| 5 Years – SIP Returns | 23% |
| 10 Years – SIP Returns | 20% |
| 15 Years – SIP Returns | 20% |
| 20 Years – SIP Returns | 19% |
| 10 Years – Annualised Returns | 20% |
| AUM –ย Crores | 8,794 |
| Expense Ratio | 2.09% |
| Beta | 0.97 |
| Alpha | 6.24 |
Our View: This mutual fund is a consistent performer in medium term and long term that generated 12% annualised returns (regular plan) since inception from 2000. This fund underperformed in the last 1 year due to the overall downtrend in the IT / Technology sector. This fund has low beta and high alpha. We have covered this in our earlier article – SIP fund that generated highest SIP returns in 20 years.
IT and Technology sector is expected to outperform in 2023 and in the next 3-5 years, hence this fund could be the best bet even in the short term. Since this is sector fund and could see high volatility in short to medium term, hence high risk investors can invest some portion of their portfolio in such mutual funds.
You may like: This Mutual Fund generated highest SIP Returns in last 5 years
#2 – SBI Consumption Opportunities Fund
Investment Strategy of the fund
SBI Consumption Opportunities Fund aims to provide investors with opportunities for long-term capital appreciation by primarily investing in a diversified portfolio of equity and equity related securities in consumption space.
Fund Performance and Risk Statistics
| Performance & Risk Metrics | SBI Consumption Opportunities Fund |
| Value Research Rating | 3 Star |
| 3 Years – SIP Returns | 26% |
| 5 Years – SIP Returns | 18% |
| 10 Years – SIP Returns | 16% |
| 15 Years – SIP Returns | 19% |
| 20 Years – SIP Returns | 19% |
| 10 Years – Annualised Returns | 15% |
| AUM –ย Crores | 1,173 |
| Expense Ratio | 2.24% |
| Beta | 0.88 |
| Alpha | 5.23 |
Our View: Even this mutual fund is a consistent performer in medium term and long term that generated 15% annualised returns (regular plan) since inception from 1999. This fund has a low beta (low risk) and high alpha (high return).
Even this is a sector fund and could see high volatility in short to medium term, hence high risk investors can invest some portion of their portfolio in such mutual funds.
Investors should not make this as their main mutual fund for achieving their financial goals.
#3 – Sundaram Mid Cap Fund
Investment Strategy of the fund
The objective of the scheme is to achieve capital appreciation by investing predominantly in stocks that are termed as mid-cap.
Fund Performance and Risk Statistics
| Performance & Risk Metrics | Sundaram Mid Cap Fund |
| Value Research Rating | 2 Star |
| 3 Years – SIP Returns | 20% |
| 5 Years – SIP Returns | 14% |
| 10 Years – SIP Returns | 14% |
| 15 Years – SIP Returns | 15% |
| 20 Years – SIP Returns | 18% |
| 10 Years – Annualised Returns | 16% |
| AUM –ย Crores | 7,320 |
| Expense Ratio | 1.88% |
| Beta | 0.96 |
| Alpha | – |
Our View: This mutual fund is a consistent performer in the short term, medium term and long term that generated 23.4% annualised returns (regular plan) since inception from 2002. This fund has a low beta (low risk), however generated negative alpha in recent times due to fall in the overall Midcap segment.
Midcap mutual funds can provide high returns if invested for a medium to long term through SIP. While the large cap fund’s returns can beat inflation, Midcap and smallcap segment can generate far higher returns. If you are a high risk investor and willing to invest for a medium to long term, you can invest in such mutual fund schemes.
#4 – ICICI Prudential FMCG Fund
Investment Strategy of the fund
The objective of the To generate long term capital appreciation through investments made primarily in equity & equity related securities forming part of the FMCG sector.
Fund Performance and Risk Statistics
| Performance & Risk Metrics | ICICI Prudential FMCG Fund |
| Value Research Rating | Not Rated |
| 3 Years – SIP Returns | 20% |
| 5 Years – SIP Returns | 15% |
| 10 Years – SIP Returns | 14% |
| 15 Years – SIP Returns | 16% |
| 20 Years – SIP Returns | 18% |
| 10 Years – Annualised Returns | 14% |
| AUM –ย Crores | 1,189 |
| Expense Ratio | 2.35% |
| Beta | 0.53 |
| Alpha | 3.90 |
Our View: Even this mutual fund is a consistent performer in medium term and long term that generated 16.5% annualised returns (regular plan) since inception from 1999. This fund has a low beta (low risk) and high alpha (high return).
Even this is a sector fund and could see high volatility in short to medium term, hence high risk investors can invest some portion of their portfolio in such mutual funds.
Investors should not make this as their main mutual fund for achieving their financial goals.
Also Read: 5 Mutual Funds with Highest SIP returns in last 10 years
#5 – Nippon India Growth Fund
Investment Strategy of the fund
The primary investment objective of the Scheme is to achieve long-term growth of capital by investing in equity and equity related securities through a research based investment approach.
Fund Performance and Risk Statistics
| Performance & Risk Metrics | Nippon India Growth Fund |
| Value Research Rating | 4 Star |
| 3 Years – SIP Returns | 25% |
| 5 Years – SIP Returns | 20% |
| 10 Years – SIP Returns | 17% |
| 15 Years – SIP Returns | 15% |
| 20 Years – SIP Returns | 18% |
| 10 Years – Annualised Returns | 16% |
| AUM –ย Crores | 13,597 |
| Expense Ratio | 1.84% |
| Beta | 0.97 |
| Alpha | – |
Our View: This mutual fund is a consistent performer in the short term, medium term and long term that generated 21.7% annualised returns (regular plan) since inception from 1995. This fund has a low beta (low risk), however, has negative alpha considering the fall in Midcap segment in the last 1 year.
Like I indicated in the earlier part of the article, mid cap mutual funds can provide superior returns in medium to long term. High risk investors who are willing to invest for a medium to long term, can invest in such mutual fund scheme.
Mutual Funds List with Annualised Returns in last 3 to 20 years
| Mutual Fund Name | 3 Years | 5 Years | 10 Years | 15 Years | 20 Years |
|---|---|---|---|---|---|
| ICICI Prudential Technology Fund | 30% | 22% | 20% | 15% | 20% |
| SBI Consumption Opportunities Fund | 20% | 11% | 15% | 18% | 21% |
| Sundaram Mid Cap Fund | 16% | 6% | 16% | 12% | 24% |
| ICICI Prudential FMCG Fund | 15% | 11% | 14% | 14% | 21% |
| Nippon India Growth Fund | 23% | 12% | 16% | 11% | 24% |
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Nippon India growth fund – in the summary table 15 years sip returns mentioned as 11% but above it is mentioned as 15%. Kindly check
Excellent Presentation