SIP Returns Crossed 8% In Most Five-Year Periods Across Markets: DSP Report

Systematic Investment Plans (SIPs) delivered returns above 8% in a majority of five-year investment periods across several global markets, according to DSP Mutual Fund’s NETRA analysis based on 30-year and five-year market data.

Invest in Indian Markets and Unlock Future Potential With 5paisa!

Open Account Now

The report stated that SIPs generated returns above 8% in more than 74% of observed five-year periods in India. The analysis covered developed and emerging equity markets and compared SIP returns with lump-sum investments across different timeframes.

According to the report, SIP investing reduced dependence on market timing by spreading investments across multiple market cycles. DSP Mutual Fund said SIPs improved return consistency compared to lump-sum investing, especially during volatile phases.

India Recorded Strong Five-Year SIP Returns

The report showed that five-year SIP returns in India ranged between nearly -11% and 46%, with average returns of around 13%. On the other hand, average returns on lump sum investments were close to 12%.

For long durations of 30 years, SIP returns in India stayed steady at 12%, which translates into about 5% real returns, adjusting for inflation. Returns on lump sum investments were comparable in nominal terms, while real returns were approximately 4%.

DSP Mutual Fund explained the gap between nominal and real returns due to inflation rates in emerging economies like India.

Consistent SIP Returns in Global Markets

In the USA, SIP returns were steady at 8-9% during long durations, with real returns of about 6%. Lump-sum investments generated real returns close to 5%, according to the report.

The report said SIP returns in the United Kingdom stood near 4%, while France and Canada recorded returns between 4% and 6%. Japan’s SIP returns were estimated at 6-7%, while lump-sum returns during weaker market periods fell between 2% and 4%.

Among emerging markets, Brazil recorded SIP returns of around 11%, while Indonesia and Mexico posted returns between 9% and 11%.

Markets associated with China witnessed weaker performance in terms of returns. The SIP return in China’s mainland was about 4-5%, whereas Hong Kong markets returned 2-3%. The report stated that lump-sum investments in the two markets resulted in negative real returns in multiple periods.

Performance of Indian Markets

The benchmark indices in India have been under pressure since 2026 due to the outflow of foreign investments and geopolitical tensions associated with the West Asia war. So far in 2026, the Nifty 50 and Sensex have fallen by about 14% and 13%, respectively.

In spite of the volatility in the market, domestic institutional investments in the form of SIPs have been stable. As per the figures released by AMFI, the monthly SIP investment has stayed above ₹25,000 crore.

The report said SIP investing has historically helped investors navigate market cycles by averaging purchase costs during both rising and falling markets