Sixteen Equity Funds Deliver More Than 20% Seven-Year SIP XIRR

Key Takeaways:

• Sixteen of 191 equity mutual funds analysed generated SIP XIRRs above 20% over the seven-year period. 
• Quant Small Cap Fund led the set with a 26.93% XIRR. 
• All 191 funds produced positive seven-year SIP returns, while 160 delivered double-digit XIRRs. 

Sixteen equity mutual funds generated annualised SIP returns above 20% over the past seven years, with small-cap schemes accounting for a substantial portion of the higher-return group. 

The analysis by ETMutualFunds considered 191 equity schemes using their regular growth options. All 191 generated positive seven-year SIP returns. 

Of these, 160 delivered double-digit XIRRs, while 31 remained in single digits. 

Sixteen crossed the 20% level. 

Quant Small Cap Fund recorded the highest return in the study at a 26.93% XIRR. Other funds in the group included HDFC Mid Cap Fund, Invesco India Smallcap Fund and Nippon India Small Cap Fund. 

The measure used here is important. 

XIRR is commonly used for SIP calculations because individual instalments enter the fund on different dates. It therefore differs from the CAGR generally quoted for a single lump-sum investment. 

A ₹10,000 investment made once seven years ago and a ₹10,000 monthly SIP over seven years do not have the same cash-flow pattern, so their return calculations cannot be compared directly. 

The study also showed considerable variation outside the top-performing group. 

SBI Midcap Fund generated a seven-year SIP XIRR of 15.25%, while Parag Parikh Flexi Cap Fund delivered 14.28%. 

At the lower end of the sample, some equity funds produced mid-single-digit annualised SIP returns over the period. 

Historical performance data does not establish what a fund will earn in future. Market cycles, valuations, portfolio changes and fund-manager decisions can all alter subsequent results. 

What the seven-year dataset does show is a wide spread within equity funds despite every scheme in the sample remaining positive over the period. 

Small-cap and mid-cap strategies were especially visible among the stronger historical performers.