Investors often look for consistent wealth creation opportunities when investing in mutual funds. Systematic Investment Plans (SIPs) offer a disciplined and regular method to build wealth over time. One of the key performance metrics that investors check is the long-term SIP return. In this article, we bring you the Top 10 Mutual Funds that delivered over 30% SIP returns in the last 5 years, which is exceptional in the current market scenario.
Investors can also read 6 Mutual Funds That Turned ₹ 1 Lakh Into Over ₹ 6 Lakhs in 10 Years
What is a SIP in Mutual Funds?
A Systematic Investment Plan (SIP) is a method of investing a fixed sum regularly in a mutual fund scheme. It allows investors to buy units of a fund on a particular date each month, benefiting from rupee cost averaging and compounding over time. SIPs are ideal for salaried individuals or those looking for disciplined wealth accumulation without timing the market.
List of Top 10 Mutual Funds with Highest 5-Year SIP Returns (Over 30%)
| Fund Name | 5-Year SIP Return (%) |
|---|---|
| ICICI Prudential Infrastructure Fund | 32.4% |
| Invesco India PSU Equity Fund | 31.5% |
| Bandhan Small Cap Fund | 31.7% |
| Motilal Oswal Midcap Fund | 31.7% |
| SBI PSU Fund | 31.2% |
| LIC MF Infrastructure Fund | 30.9% |
| HDFC Infrastructure Fund | 30.8% |
| Aditya Birla Sun Life PSU Equity Fund | 30.5% |
| Bandhan Infrastructure Fund | 30.1% |
| Franklin Build India Fund | 30.0% |
Deep Dive into Each Mutual Fund Scheme (Categorized by Fund Type)
Infrastructure Funds
#1 – ICICI Prudential Infrastructure Fund
- Fund Objective: Focuses on companies engaged in infrastructure and allied sectors.
- Annualised Returns:
- 3 Years: 35.9%
- 5 Years: 38.9%
- 10 Years: 17.2%
- SIP Returns:
- 3 Years: 28.8%
- 5 Years: 32.4%
- 10 Years: 23.2%
- Who Can Invest:
- Suitable for aggressive investors looking for long-term capital appreciation.
- Risk Factors:
- Sector concentration, economic slowdown, regulatory changes.
This fund is part of 7 Mutual Funds that turned ₹ 1 Lakh to ₹ 5 Lakh in 5 years.
#2 – LIC MF Infrastructure Fund
- Fund Objective: Invests in infrastructure-related sectors like power, construction, etc.
- Annualised Returns:
- 3 Years: 34.1%
- 5 Years: 34.3%
- 10 Years: 16.1%
- SIP Returns:
- 3 Years: 31.9%
- 5 Years: 30.9%
- 10 Years: 22.1%
- Who Can Invest:
- Investors with long-term goals and risk tolerance.
- Risk Factors:
- Project delays, sectoral underperformance.
#3 – HDFC Infrastructure Fund
- Fund Objective: Seeks capital appreciation by investing in infrastructure-related sectors.
- Annualised Returns:
- 3 Years: 35.8%
- 5 Years: 36.4%
- 10 Years: 12.1%
- SIP Returns:
- 3 Years: 28.2%
- 5 Years: 30.8%
- 10 Years: 18.6%
- Who Can Invest:
- Investors willing to take sector-specific bets.
- Risk Factors:
- High volatility, regulatory hurdles.
#4 – Bandhan Infrastructure Fund
- Fund Objective: Invests in infrastructure and capital goods sectors.
- Annualised Returns:
- 3 Years: 35.1%
- 5 Years: 36.3%
- 10 Years: 16.6%
- SIP Returns:
- 3 Years: 28.9%
- 5 Years: 30.1%
- 10 Years: 21.6%
- Who Can Invest:
- Investors optimistic about India’s infrastructure push.
- Risk Factors:
- Sector exposure risks, economic slowdown.
#5 – Franklin Build India Fund
- Fund Objective: Invests in companies benefiting from infrastructure development.
- Annualised Returns:
- 3 Years: 34.6%
- 5 Years: 35.3%
- 10 Years: 18.3%
- SIP Returns:
- 3 Years: 28.7%
- 5 Years: 30.0%
- 10 Years: 22.4%
- Who Can Invest:
- Long-term investors with high-risk appetite.
- Risk Factors:
- Policy shifts, global macro factors.
PSU Funds
#6 – Invesco India PSU Equity Fund
- Fund Objective: Invests predominantly in Public Sector Undertaking (PSU) stocks.
- Annualised Returns:
- 3 Years: 39.8%
- 5 Years: 31.3%
- 10 Years: 18.0%
- SIP Returns:
- 3 Years: 32.4%
- 5 Years: 31.5%
- 10 Years: 22.5%
- Who Can Invest:
- Ideal for investors bullish on India’s PSU reforms.
- Risk Factors:
- Government policies, volatility in PSU stocks.
This fund is part of Top 5 Mutual Funds that turned ₹ 1 Lakh to ₹ 2 Lakhs in 2 years time frame.
#7 – SBI PSU Fund
- Fund Objective: Focuses on equity of PSU companies across sectors.
- Annualised Returns:
- 3 Years: 38.6%
- 5 Years: 32.5%
- 10 Years: 13.7%
- SIP Returns:
- 3 Years: 30.4%
- 5 Years: 31.2%
- 10 Years: 19.6%
- Who Can Invest:
- Investors betting on PSU revival and value investing.
- Risk Factors:
- Performance highly linked to policy decisions.
#8 – Aditya Birla Sun Life PSU Equity Fund
- Fund Objective: Focus on PSU stocks across market capitalizations.
- Annualised Returns:
- 3 Years: 36.3%
- 5 Years: 33.9%
- SIP Returns:
- 3 Years: 27.3%
- 5 Years: 30.4%
- Who Can Invest:
- Investors seeking value investing through PSUs.
- Risk Factors:
- Policy-driven volatility.
Mid & Small Cap Funds
#9 – Bandhan Small Cap Fund
- Fund Objective: Invests in small-cap companies with high growth potential.
- Annualised Returns:
- 3 Years: 36.1%
- 5 Years: 38.2%
- SIP Returns:
- 3 Years: 35.4%
- 5 Years: 31.7%
- Who Can Invest:
- Investors with high-risk appetite and long-term horizon.
- Risk Factors:
- Market volatility, illiquidity in small caps.
We analysed this fund earlier as part of 12 Best Mutual Funds to invest in 2025 as per Google Gemini AI.
#10 – Motilal Oswal Midcap Fund
- Fund Objective: Targets mid-cap companies with strong earnings growth.
- Annualised Returns:
- 3 Years: 33.8%
- 5 Years: 37.4%
- 10 Years: 18.8%
- SIP Returns:
- 3 Years: 29.5%
- 5 Years: 31.7%
- 10 Years: 23.7%
- Who Can Invest:
- Investors seeking diversification through mid-cap exposure.
- Risk Factors:
- Cyclical volatility, liquidity concerns.
Conclusion
The mutual funds listed above have delivered exceptional 5-year SIP returns, crossing the 30% mark. However, most of these are sectoral or thematic funds, particularly in infrastructure, power, and PSU segments. While such funds offer higher returns in favourable conditions, they also carry higher risks.
Investors should carefully evaluate their risk profile, investment horizon, and financial goals before investing in such schemes. A diversified portfolio with a mix of large-cap, flexi-cap, and thematic funds is always advisable for balanced growth.
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Hi Suresh
I am 66 years old. I had invested in Icici prudential 20 years ago and it gave me good returns. afterwards I couldnt invest any more. Now I can spare Rs. 50000/- monthly for small term investments upto say 7 years or 5 years. Could you suggest some of the schemes wherein I can invest.
Regards
Thank you
Hello Dr. M.J, I hope you have source of retirement income and term insurance and health insurance.
Since your time frame is 5 to 7 years and I am assuming you would be moderate risk taker considering your age, you can go for largecap mutual funds. Refer this article which can provide someinsights about such mutual funds. https://myinvestmentideas.com/5-top-rated-largecap-mutual-funds-with-over-22-9-cagr-in-5-years/
Dear Sir ,
thank you for the information about the Active funds information,like wise kindly give information about Passive funds also…
Hello, While I write about passive funds, you can go through this article which can provide some insights. https://myinvestmentideas.com/10-best-debt-mutual-funds-for-2025-as-rbi-slashes-repo-rate/