A recent analysis highlights the top-performing mutual funds for systematic investment plans (SIPs) of Rs 10,000 over a three-year horizon, based on data from Value Research. Gold funds led the pack with returns exceeding 52%, while other categories like multi-asset and index funds followed. Investors are advised to consider risk appetite and goals beyond past performance.
The Economic Times has compiled a list of top mutual funds suitable for SIP investments over three years, drawing from Value Research data. For a monthly SIP of Rs 10,000, the analysis evaluates performance through extended internal rate of return (XIRR).
Gold funds dominated the top spots. UTI Gold ETF FoF achieved an XIRR of 53.49%, growing the investment to Rs 7.13 lakh. Quantum Gold Savings Fund followed with 53.39%, resulting in Rs 7.22 lakh. SBI Gold Fund recorded 53.26%, and Axis Gold Fund 52.41%, with values ranging between Rs 7.13 lakh and Rs 7.22 lakh across these four funds.
In the index fund category, Motilal Oswal BSE Enhanced Value Index Fund delivered 24.03% XIRR, yielding Rs 5.02 lakh. Multi-asset allocation funds also performed well: Nippon India Multi Asset Allocation Fund at 19.12% XIRR for Rs 4.70 lakh, and ICICI Prudential Bharat 22 FoF at 18.75% for Rs 4.68 lakh.
Additional multi-asset options included SBI Multi Asset Allocation Fund with 16.30% XIRR (Rs 4.53 lakh) and Nippon India Multi-Asset Omni FoF at 15.98% (Rs 4.51 lakh). Rounding out the list, SBI Banking & Financial Services Fund posted 15.88% XIRR, growing to Rs 4.50 lakh.
The report emphasizes that past returns should not be the sole basis for investment decisions. Factors such as individual risk tolerance, investment duration, and financial objectives must guide choices to align with personal circumstances.
