Systematic Investment Plan (SIP) in mutual funds have emerged as a preferred choice for investors aiming for wealth creation through equities.
Investing in mutual funds SIP works just like like recurring deposits (RD) with a bank, where you deposit a fixed sum of money regularly. The only difference here is that your money is deployed in a mutual fund scheme of your choice.
So, just like little drops of water make a mighty ocean, small yet regular investments via the SIP can help you accumulate a significant corpus to meet your various financial goals.
In today’s article, we will look at the top-performing SIPs across prominent equity mutual fund categories such as Large Cap Fund, Mid Cap Fund, Small Cap Fund, Flexi Cap Fund, and Value Fund.
We have shortlisted these schemes based on their 10-year performance i.e. the extended internal rate of return (XIRR). The XIRR helps you evaluate mutual fund returns when there are multiple transactions taking place within a particular time frame such as in the case of SIP investments.
#1 Nippon India Small Cap Fund
Nippon India Small Cap Fund is the largest scheme in the Small Cap Fund category having a corpus of Rs 554.9 billion (bn). It aims to identify small-sized companies with high-growth potential that are available at relatively attractive valuations.
Since its inception in September 2010, Nippon India Small Cap Fund has done well across market phases and built an impressive track record of superior performance.
In the last 10 years, Nippon India Small Cap Fund grew at an XIRR of 23.6% compared to 17.7% XIRR in its benchmark Nifty Smallcap 250 – TRI.
A monthly SIP of Rs 10,000 in the fund over a 10-year period i.e., a total investment of Rs 1.2 million (m), would now be valued at Rs 4.18 m.
Nippon India Small Cap Fund – 10 Year SIP
| Scheme Name | Total Amount Invested (Rs) | Present Value (Rs) | XIRR (%) | Benchmark | XIRR (%) |
| Nippon India Small Cap Fund | 1,200,000 | 4,183,250 | 23.61 | Nifty Smallcap 250 – TRI | 17.73 |
Past performance is not an indicator of future returns. The securities quoted are for illustration only and are not recommendatory. Data as of May 06, 2025. Returns are XIRR in percentage. Monthly SIP of Rs 10,000 over a 10-year period in Direct plan – Growth option considered. (Source: ACE MF)
Nippon Small Cap Fund holds a large portfolio of over 200 stocks and it has restricted allocation in each stock to 2% or less to reduce the downside risk. Its top holdings include a mix of large-cap, mid-cap, and small-cap names.
Nippon India Small Cap Fund – Top Holdings
Holding in (%) as of March 31, 2025
(Source: ACE MF)
Nippon India Small Cap Fund has demonstrated exceptional performance over longer time frames and has generate substantial lead over the benchmark and its peers.
The fund’s focus on picking quality, high-conviction companies having strong business models and available at reasonable valuations has enabled it to reward investors with superior risk-adjusted returns.
#2 Motilal Oswal Mid Cap Fund
Incepted in February 2014, Motilal Oswal Midcap Fund aims to create alpha through a portfolio of quality mid-sized companies available at a fair price. The fund invests in a concentrated portfolio of about 35 stocks, which reflects a high-conviction portfolio strategy.
Since its launch, the fund has established a credible track record having outperformed the benchmark and the category average on multiple occasions.
In the last 10 years, Motilal Oswal Mid Cap Fund grew at an XIRR of about 23% compared to around 20% XIRR in its benchmark Nifty Midcap 150 – TRI.
A monthly SIP of Rs 10,000 in the fund over a 10-year period i.e. a total investment of Rs 1.2 m would now be valued at Rs 4.04 m.
Motilal Oswal Midcap Fund – 10 Year SIP
| Scheme Name | Total Amount Invested (Rs) | Present Value (Rs) | XIRR (%) | Benchmark | XIRR (%) |
| Motilal Oswal Midcap Fund | 1,200,000 | 4,038,097 | 22.95 | Nifty Midcap 150 – TRI | 19.95 |
Past performance is not an indicator of future returns. The securities quoted are for illustration only and are not recommendatory. Data as of May 06, 2025. Returns are XIRR in percentage. Monthly SIP of Rs 10,000 over a 10-year period in Direct plan – Growth option considered (Source: ACE MF)
Motilal Oswal Midcap Fund’s stock holdings witness frequent changes but it has shown high conviction in some of its top holdings.
Motilal Oswal Midcap Fund – Top Holdings
Holding in (%) as of March 31, 2025
(Source: ACE MF)
Motilal Oswal Mid Cap Fund churns a portion of its portfolio to capitalise on the various opportunities available in the market.
Though this strategy can result in higher volatility, the fund has managed to reward investors with superior risk-adjusted returns. Its agile and focused investment strategy can result in high alpha if the bets turn out as expected.
#3 Parag Parikh Flexi Cap Fund
Launched in May 2013, Parag Parikh Flexi Cap Fund is a value-biased scheme within the Flexi Cap Fund category.
The fund aims to build a high-potential portfolio of reasonably priced stocks to benefit from the available opportunities across sectors. This has resulted in substantial capital appreciation for investors in the long run.
The fund also offers geographical diversification to its investors by holding a substantial portion of its portfolio in select global corporations.
In the last 10 years, Parag Parikh Flexi Cap Fund grew at an XIRR of 20.5% compared to 15.6% XIRR in its benchmark Nifty 500 – TRI.
A monthly SIP of Rs 10,000 in the fund over a 10-year period i.e., a total investment of Rs 1.2 m would now be valued at Rs 3.53 m.
Parag Parikh Flexi Cap Fund – 10 Year SIP
| Scheme Name | Total Amount Invested (Rs) | Present Value (Rs) | XIRR (%) | Benchmark | XIRR (%) |
| Parag Parikh Flexi Cap Fund | 1,200,000 | 3,528,882 | 20.46 | NIFTY 500 – TRI | 15.61 |
Past performance is not an indicator of future returns. The securities quoted are for illustration only and are not recommendatory. Data as of May 06, 2025. Returns are XIRR in percentage. Monthly SIP of Rs 10,000 over a 10-year period in Direct plan – Growth option considered (Source: ACE MF)
The fund invests primarily in large-cap stocks along with strategic exposure in mid-cap and small-cap stocks Among its overseas allocation, the fund holds exposure in tech giants such as Facebook (Meta), Alphabet Inc, Microsoft Corp, and Amazon.com.
Parag Parikh Flexi Cap Fund – Top Holdings
Holding in (%) as of March 31, 2025
(Source: ACE MF)
Sector wise, the fund prefers banking and finance which currently carries a combined allocation of 40.3%. It also holds significant exposure in infotech, auto & auto ancillaries, power, and mining, among others.
Parag Parikh Flexi Cap Fund employs a buy-and-hold investment strategy, allowing it to fully realise the value of each of its portfolio holdings. The fund has the potential to keep the overall volatility low by seeking out value stocks with a significant margin of safety.
#4 JM Value Fund
Initially launched as a sectoral Fund in June 1997, JM Value Fund was recategorised and renamed in 2018. It now focuses on investing in stocks whose value have not yet been recognised by the market despite their strong fundamentals.
While the past performance of the fund is not directly comparable due to the change in investment mandate, JM Value Fund has registered commendable growth in recent years. This has helped it turn out to be a category outperformer.
In the last 10 years, JM Value Fund grew at an XIRR of 19.3% compared to 15.7% XIRR in its benchmark BSE 500 – TRI.
A monthly SIP of Rs 10,000 in the fund over a 10-year period i.e., a total investment of Rs 1.2 m would now be valued at Rs 3.31 m.
JM Value Fund – 10 Year SIP
| Scheme Name | Total Amount Invested (Rs) | Present Value (Rs) | XIRR (%) | Benchmark | XIRR (%) |
| JM Value Fund | 1,200,000 | 3,308,816 | 19.27 | BSE 500 – TRI | 15.69 |
Past performance is not an indicator of future returns. The securities quoted are for illustration only and are not recommendatory. Data as of May 06, 2025. Returns are XIRR in percentage. Monthly SIP of Rs 10,000 over a 10-year period in Direct plan – Growth option considered (Source: ACE MF)
JM Value Fund tactically allocates assets across the large-cap, mid-cap, and small-cap segments, depending on the market conditions.
JM Value Fund – Top Holdings
Holding in (%) as of March 31, 2025
(Source: ACE MF)
JM Value Fund’s dynamic investment approach and substantial exposure to lower market cap stocks have enabled it to generate high alpha amid the recent market rally.
Additionally, its emphasis on quality, undervalued stocks, offers it the potential to perform well in the long run.
#5 Nippon India Large Cap Fund
Launched in August 2007, the Nippon India Large Cap Fund initially targeted investments in both large and mid-cap stocks, focusing on the top 200 companies. In 2018, it was reclassified as a Large Cap Fund to meet regulatory guidelines.
Currently, the fund favours large-cap stocks even as it continues to maintain a tactical exposure to the mid-cap segment to boost portfolio returns.
In the last 10 years, Nippon India Large Cap Fund grew at an XIRR of 17.5% compared to 15% XIRR in its benchmark BSE 100 – TRI.
A monthly SIP of Rs 10,000 in the fund over a 10-year period i.e., a total investment of Rs 1,2 m would now be valued at Rs 3.01 m.
Nippon India Large Cap Fund – 10 Year SIP
| Scheme Name | Total Amount Invested (Rs) | Present Value (Rs) | XIRR (%) | Benchmark | XIRR (%) |
| Nippon India Large Cap Fund | 1,200,000 | 3,006,903 | 17.49 | BSE 100 – TRI | 15.03 |
Past performance is not an indicator of future returns. The securities quoted are for illustration only and are not recommendatory. Data as of May 06, 2025. Returns are XIRR in percentage. Monthly SIP of Rs 10,000 over a 10-year period in Direct plan – Growth option considered (Source: ACE MF)
The fund’s top stock holdings include large-cap index heavyweights, while in terms of sectoral exposure it is inclined towards banking & finance.
Nippon India Large Cap Fund – Top Holdings
Holding in (%) as of March 31, 2025
(Source: ACE MF)
Nippon India Large Cap Fund focuses on long-term growth by identifying high-growth-potential stocks using a ‘Growth At Reasonable Price’ strategy.
Rather than chasing market trends, the fund seeks out high-growth opportunities within large caps and across different market cap segments. This strategy can enable the fund to generate reasonable alpha and navigate complete market cycles effectively.
Conclusion
SIPs of mutual funds are a sensible choice for creating wealth over the long term.
However, one should ideally avoid shortlisting schemes for SIP solely based on its past performance because past performance is rarely an indicator of future returns.
Ideally, one should adopt a holistic approach to selecting schemes. This involves ensuring that you only pick schemes that align with your investment objectives and risk tolerance.
Choose schemes that have consistently performed well compared to the benchmark and peers and also fare well in terms of risk-adjusted returns.
Happy investing.
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