₹1,000 monthly SIP became ₹4.67 lakh in 10 years: Which diversified equity mutual fund delivered the highest returns?

A mutual fund SIP works on the principle of investing regularly and allowing returns to compound over time. While short-term returns can fluctuate sharply, a 10-year period can show how equity funds have performed through different market cycles.

For investors looking at long-term wealth creation, the 10-year SIP return is therefore an important metric to examine. Some diversified equity funds have delivered returns above 20% over this period. Here’s what you need to know.

*Source: Value Research, Direct plans, Returns as on 25 September 2026

Quant Small Cap Fund leads the list with a 10-year return of 25.64%, followed by Nippon India Small Cap Fund at 22.12%. Invesco India Mid Cap Fund and Quant ELSS Tax Saver Fund also delivered returns above 21% during the period.

The list shows that small-cap and mid-cap-oriented funds feature prominently among the higher-returning funds over the 10-year period.

What would a ₹1,000 monthly SIP in Quant Small Cap Fund have become?

To understand how long-term investing can work through compounding, consider a ₹1,000 monthly SIP in Quant Small Cap Fund for 10 years. An investor would have made 120 monthly instalments of ₹1,000 during this period, taking the total amount invested to ₹1.20 lakh.

At the fund’s stated 10-year return of 25.64%, this investment would have grown to around ₹4.67 lakh. Of this, ₹1.20 lakh would represent the investor’s total contributions, while the remaining ₹3.47 lakh would be the gains generated over the period.

In other words, the investment value would be nearly four times the amount put in through the SIP.

This illustrates how regular investing and compounding can build wealth over a long period. But the actual SIP outcome depends on the fund’s NAV movements and the timing of each instalment.

However, fund selection should not be based only on past returns. Investors should also look at the fund’s investment strategy, portfolio composition, risk level, consistency of performance, and whether it fits their own financial goals and time horizon.

Disclaimer: This is purely for educational/informational purposes and should not be taken as any sort of investment advice. Always consult a SEBI-registered advisor before making any investment decisions.