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We provide a list of five equity funds that would have turned a simple Rs 10,000 monthly SIP into over Rs 12 lakh in just five years
Picture this: while you were busy juggling work, family and the daily grind, your small monthly SIP (systematic investment plan) of Rs 10,000 quietly grew into over Rs 12 lakh in just five years. No windfall, no lottery—just a simple, steady habit that turned an investment of Rs 6 lakh into something far bigger.
It’s the kind of outcome that shows the magic of discipline and patience. When you pick the right funds and stick with them, even modest amounts can build into a solid financial cushion
Let’s look at the list of five such funds that transformed a simple Rs 10,000 monthly SIP into over Rs 12 lakh over the last five years.
#5 Invesco India Mid Cap Fund (Direct plan)
- Five-year SIP return: 29.3 per cent
- Total investment value (after five years): Rs 12.1 lakh
- Assets under management: Rs 6,641 crore
- Expense ratio: 0.63
#4 Invesco India Smallcap Fund (Direct plan)
- Five-year SIP return: 29.4 per cent
- Total investment value (after five years): Rs 12.1 lakh
- Assets under management: Rs 6,823 crore
- Expense ratio: 0.44
#3 Quant Small Cap Fund (Direct plan)
- Five-year SIP return: 29.5 per cent
- Total investment value (after five years): Rs 12.2 lakh
- Assets under management: Rs 28,205 crore
- Expense ratio: 0.66
#2 Bandhan Small Cap Fund (Direct plan)
- Five-year SIP return: 31.7 per cent
- Total investment value (after five years): Rs 12.8 lakh
- Assets under management: Rs 11,744 crore
- Expense ratio: 0.39
#1 Motilal Oswal Midcap Fund (Direct plan)
- Five-year SIP return: 33 per cent
- Total investment value (after five years): Rs 13.2 lakh
- Assets under management: Rs 30,401 crore
- Expense ratio: 0.68
The wealth turbochargers
These funds would have grown your Rs 10,000 to over Rs 12 lakh in just five years
| Fund name | 5Y SIP return | Investment value (after five years) | Value Research ratings |
|---|---|---|---|
| Motilal Oswal Midcap | 33.0% | Rs 13.2 lakh |  |
| Bandhan Small Cap | 31.7% | Rs 12.8 lakh |  |
| Quant Small Cap | 29.5% | Rs 12.2 lakh |  |
| Invesco India Smallcap | 29.4% | Rs 12.1 lakh |  |
| Invesco India Mid Cap | 29.3% | Rs 12.1 lakh |  |
| Returns are for direct plans. Excluding sectoral and thematic funds. | |||
High reward comes with high risk
Our list of top-performing funds is dominated by mid- and small-cap funds, known for their ‘high risk, high reward’ nature. They may appear to be effortless wealth creators when markets are booming, but they can hit investors hard when sentiment turns.
Here’s why: During periods of downturn, small caps typically fall much more than the broader market, as evidenced by the table below. What’s worse, their recovery is often slow and painful – years of negative or sluggish growth before any decent returns materialise.
Small caps fall harder, take longer to recover
They experience greater declines than the broader market during crashes
| Event | Nifty 500 (Recovery period) | Nifty 500 fall (%) | Nifty Smallcap 250 (Recovery period) | Nifty Smallcap 250 fall (%) |
|---|---|---|---|---|
| Global Financial Crisis (2008) | 6.21 | -57.7 | 12.36 | -69.3 |
| Post-Global Financial Crisis (2011) | 3.36 | -28.2 | 3.54 | -38.7 |
| Yuan devaluation and Brexit (2015) | 1.93 | -18.1 | 5.41 | -14 |
| Covid pandemic (2020) | 0.81 | -37.8 | 0.78 | -41.5 |
| RBI repo rate hike (2022) | 1.1 | -20.7 | 1.62 | -23.7 |
| Recovery period in years. Nifty 500 and Nifty Smallcap 250 represent the flexi-cap and small-cap categories. | ||||
The takeaway
There’s no doubt that mid- and small-cap funds have rewarded investors handsomely. However, you have to be in it for the long haul (at least seven years). Invest in these funds only if you have a high risk appetite, can stomach prolonged periods of negative or low returns and have a long investment horizon.
Looking for the best mid- and small-cap funds to invest in? Subscribe to Value Research Fund Advisor to get personalised fund recommendations that are aligned with your financial goals, along with a list of our handpicked funds to help you achieve your targets faster.
Also read: 6 large-cap funds turned ₹10K monthly SIP to ₹27L+ in 10 yrs
Disclaimer: This content is for information only and should not be considered investment advice or a recommendation.
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