Top SIP with the Highest Returns Over a 5-Year Period
As we approach mid-2025, a number of Equity Mutual Funds have emerged as top choices for a 5-year Systematic Investment Plan (SIP) aimed at building retirement savings. These funds have demonstrated strong returns, consistent performance, and a solid track record.
Top Performing Funds
Some of the leading Equity Mutual Funds for a 5-year SIP include:
- Nippon India Large Cap Fund: This Large Cap fund has delivered approximately 14.6% annualized returns over 10 years, thanks to its large AUM, consistent large-cap focus, and steady returns.
- Invesco India MidCap Fund: With returns of around 19.7% over the past 5-20 years, this Mid Cap fund has proven its consistency over the long term.
- Bandhan Small Cap Fund: Although relatively new, this Small Cap fund has shown remarkable performance with very high returns, making it a promising choice for investors.
- Nippon India Multi Cap Fund: This Multi Cap fund offers a diversified strategy and strong historical returns, making it a solid choice for investors.
- SBI Contra Fund: With a consistent contra strategy, large AUM, and steady returns, this Contra Equity fund is another strong contender.
- Axis Small Cap Fund: This Small Cap fund has shown reliable performance with solid historical returns.
- Motilal Oswal Midcap 30 Fund: This Mid Cap fund boasts a well-ranked position and aggressive growth focus.
- Mirae Asset Large Cap Fund: This Large Cap fund has a strong reputation and consistent performance.
Key Considerations for a 5-Year SIP towards Retirement
When choosing a fund for a 5-year SIP aimed at retirement savings, it's important to consider the following factors:
- Consistency & Track Record: Funds like Nippon India Large Cap Fund and Nippon India Multi Cap Fund offer lower volatility and proven consistency over 5+ years, making them suitable for moderate risk tolerance.
- Growth Potential: Mid-cap and small-cap funds such as Invesco India MidCap and Bandhan Small Cap offer higher returns but come with higher risk and volatility.
- Fund Size (AUM): Larger Asset Under Management funds tend to have stability and better liquidity.
- Risk Profile: Conservative investors should lean towards large-cap funds; moderate to aggressive investors can include mid-cap and small-cap funds.
Suggested Approach for Retirement SIP
A balanced approach is recommended for a retirement SIP. Combine large-cap, multi-cap, and some mid/small-cap funds for diversification and balanced growth. Maintain SIP consistently for at least 5 years to benefit from market cycles. Use XIRR (Extended Internal Rate of Return) and long-term returns as key success indicators.
Additional Insights
- Balanced hybrid funds, which combine equity and debt, may suit slightly conservative investors wanting moderate returns with lower volatility over 5 years, typically yielding around 13% annualized.
- Expert portfolios divide investors into conservative, moderate, and aggressive risk profiles, recommending portfolios accordingly.
In conclusion, the Nippon India Large Cap Fund, Invesco India MidCap Fund, Bandhan Small Cap Fund, and Nippon India Multi Cap Fund stand out as some of the best equity mutual funds for a 5-year SIP to build a retirement corpus given their returns, ranking, and consistency as of mid-2025. The SIP Calculator App can be a valuable tool in estimating the potential growth of an investment.
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