The Indian equity market has witnessed a roller-coaster ride over the past one year. Both benchmark indices — Sensex and Nifty — touched their 52-week lows in the first week of April. However, supported by positive domestic and global cues, they have since rebounded by more than 19% from those low levels.
Despite this recovery, the one-year growth in benchmark indices has been modest at around 6%. This highlights just how volatile the markets have been over the last 12 months.
Volatility hits mutual funds too
The market turbulence could be seen clearly in equity mutual funds performance also. Most key equity categories — large-cap, mid-cap, and small-cap — delivered returns of around 6% in the last one year. Except for a couple of sectoral funds such as banking and auto, none of the major categories managed to post double-digit returns.
SIP investors still managed 20% returns
Interestingly, even as the broader market struggled to generate double-digit growth, several equity mutual fund investors who stayed invested through SIPs (Systematic Investment Plans) enjoyed far superior results.
In fact, over a dozen funds have delivered 20% to 25% returns in SIP mode during the last one year – a stark contrast to lump-sum investments, where not a single equity fund managed to cross the 20% mark.
Why SIP returns outperformed lump sum investments
So, why have SIP returns outperformed? The answer lies in rupee cost averaging — the core principle behind SIPs. Between January and April 2025, when markets went through a rough patch, investor sentiment turned negative. The SIP stoppage ratio — which measures how many investors stopped their SIPs compared to new registrations — remained above 100% for four consecutive months, peaking at 297% in April 2025. This meant more investors were closing SIPs than starting new ones.
However, financial advisors consistently urged investors not to stop their SIPs. They emphasised that market downturns are actually beneficial for SIP investors, as they allow you to accumulate more units at lower prices, balancing out earlier purchases made at higher levels.
SIP popularity keeps growing
Despite intermittent volatility, SIPs have continued to gain massive traction among retail investors.
According to AMFI data, SIP inflows crossed Rs 29,000 crore for the first time in September 2025, while the number of SIP accounts has climbed to an all-time high of 9.73 crore. The average monthly SIP contribution has also exceeded the Rs 3,000 mark — another record. All three milestones point to one clear trend: SIP investing is becoming the preferred route for long-term wealth creation in India.
Top SIP performers: Funds that beat market returns
As mentioned earlier, around a dozen equity schemes have delivered over 20% SIP returns in the last one year. Among them, a few have even touched 25%, underscoring the power of disciplined investing.
These funds not only highlight the resilience of SIPs but also prove that consistent investments during volatile phases can generate far better results than lump sum entries.
Top 3 SIP mutual funds (direct plans) with up to 25% returns in the last one year
1-year SIP return – 25.71%
1-year return on lump sum investment – 18.25%
Invesco India Mid Cap Fund details
Launched in January 2013, the fund has delivered an impressive 21.93% return since inception. The fund, benchmarked against the BSE 150 MidCap TRI, carries a ‘Very High’ risk rating. It manages assets worth Rs 8,518 crore as of September 2025. With a reasonable expense ratio of 0.54%, it continues to be a strong performer in the mid-cap category under Invesco Mutual Fund.
SBI Banking & Financial Services Fund
1-year SIP return – 25.14%
1-year return on lump sum investment – 19.49%
SBI Banking & Financial Services Fund details
Launched in February 2015, the fund has generated a 16.26% return since inception and tracks the NIFTY Financial Services TRI as its benchmark. Categorised as ‘Very High’ on the riskometer, it manages assets worth Rs 8,693 crore as of September 2025, with an expense ratio of 0.77%.
ICICI Prudential Retirement Fund – Pure Equity Plan
1-year SIP return – 24.19%
1-year return on lump sum investment – 15.71%
ICICI Prudential Retirement Fund – Pure Equity Plan details
Launched on 27 February 2019, this fund has delivered a return of 21.97% since launch, outperforming its benchmark, the NIFTY 500 TRI. It carries a ‘Very High’ risk rating, suitable for long-term investors seeking growth. As of 30 September 2025, the fund manages assets worth Rs 1,410 crore with an expense ratio of 0.70%.
SIP performance of last 1 year – Key takeaway
Even when equity markets remained choppy, SIP investors who stayed the course reaped impressive rewards. The lesson is clear — don’t stop your SIPs when the market dips. Instead, use those periods to accumulate more units and strengthen your long-term portfolio. Investors must remember that past returns can offer some valuable insights about any fund, but cannot guarantee future results.
Disclaimer: The above content is for informational purposes only. Mutual Fund investments are subject to market risks. Please consult your financial advisor before investing.