Two returns, same funds
A monthly SIP in the median diversified equity fund, started three years ago, has returned 7.34% a year to 15 May 2026. A single sum put into the same funds three years ago has returned 16.66% a year.
Neither number is wrong. They describe different money, invested at different times, and right now they are unusually far apart.
The SIP figures are XIRR: 36 equal instalments on about the 15th of each month from June 2023, valued at the NAV of 15 May 2026. The lump-sum figure is the compound annual return from May 2023. All are for each fund's Direct plan, Growth option. "Diversified" means every equity category except sector and theme funds.
Category by category
| Category | Funds | 3-year SIP | 3-year lump sum | 5-year SIP | 5-year lump sum |
|---|---|---|---|---|---|
| Mid Cap | 28 | 12.03% | 21.61% | 16.12% | 19.13% |
| Small Cap | 23 | 9.83% | 19.12% | 15.48% | 19.76% |
| Multi Cap | 19 | 8.92% | 18.39% | 14.59% | 16.65% |
| Large & Mid Cap | 26 | 7.96% | 17.34% | 13.29% | 16.54% |
| Value | 19 | 7.46% | 17.42% | 12.86% | 16.64% |
| Focused | 25 | 7.11% | 15.32% | 11.57% | 14.88% |
| Dividend Yield | 8 | 6.69% | 17.09% | 12.67% | 17.02% |
| Flexi Cap | 33 | 6.47% | 15.16% | 10.80% | 13.82% |
| ELSS | 36 | 5.71% | 14.29% | 10.34% | 14.47% |
| Large Cap | 30 | 4.52% | 12.63% | 9.24% | 12.50% |
| Sector & theme | 123 | 9.03% | 17.64% | 13.72% | 15.66% |
| Multi asset allocation | 10 | 13.12% | 17.76% | 15.45% | 15.19% |
| Aggressive hybrid | 28 | 6.30% | 13.43% | 10.11% | 12.20% |
| Balanced advantage | 29 | 6.25% | 11.26% | 8.92% | 10.30% |
Medians. "Funds" counts those with a three-year SIP figure; five-year columns cover fewer funds.
In every equity category the SIP return is roughly half the lump-sum return over three years, or less. The order is the same either way: mid caps first, large caps and ELSS last. Over five years the gap narrows to between two and five points.
Multi-asset funds are the exception in the five-year column, where the median SIP (15.45%) edges past the median lump sum (15.19%).
Why the gap is so wide now
A lump sum invested in mid-May 2023 bought in when the Nifty 50 stood at 18,398.85. It has had three full years to compound.
A SIP over the same three years did most of its buying later. Its 36 instalments went in at Nifty 50 levels from 18,688.10 to 26,027.30, a simple average of about 23,226. On Friday the index closed at 23,643.50, less than 2% above that average. 16 of the 36 instalments were bought with the index higher than it is today.
A Nifty 50 index fund shows it most cleanly, since there is no manager in it. UTI Nifty 50 Index has returned 9.76% a year as a three-year lump sum, but a three-year SIP in it has made 2.67% a year.
Across all 250 diversified funds with both figures, not one has a three-year SIP return above its lump-sum return. Over five years, 3 of 198 do.
The best and worst three-year SIPs
| Fund (Direct, Growth) | Category | 3-year SIP | 3-year lump sum |
|---|---|---|---|
| ICICI Prudential Mid Cap | Mid Cap | 19.48% | 26.80% |
| HSBC Midcap | Mid Cap | 18.47% | 27.91% |
| Invesco India Mid Cap | Mid Cap | 16.89% | 26.56% |
| WhiteOak Capital Mid Cap | Mid Cap | 16.58% | 27.18% |
| Bandhan Small Cap | Small Cap | 16.44% | 30.91% |
| … | |||
| Shriram ELSS Tax Saver | ELSS | 0.89% | 10.22% |
| UTI Flexi Cap | Flexi Cap | 0.76% | 8.54% |
| Shriram Flexi Cap | Flexi Cap | 0.45% | 10.47% |
| Mirae Asset Focused | Focused | 0.17% | 7.80% |
| Samco ELSS Tax Saver | ELSS | −1.68% | 7.50% |
Only one of the 250, Samco ELSS Tax Saver, shows a three-year SIP below zero.
What this does not tell you
A low SIP return is not a verdict on SIPs. It says that many recent instalments were bought at prices the market is not yet back above. A SIP's XIRR depends heavily on where prices stand on the day it is measured, and that day is the same for every instalment.
Your own SIP will differ. A different start date, day of the month or step-up changes the XIRR, sometimes by a lot.
Past returns don't predict future ones. None of this is advice to buy or sell any fund.
Where to go from here
SIP 101 and SIP vs lump sum explain the mechanics, and absolute, CAGR and XIRR covers why a SIP is measured differently. The SIP calculator projects a SIP forward, and the best SIP funds screen ranks funds on their SIP record.
For how the categories have moved recently, see equity category returns for April and mid-cap fund returns in May.
Frequently asked questions
What return has a 3-year SIP in equity funds given?
On NAVs to 15 May 2026, a monthly SIP over the last 36 months in the median diversified equity fund (Direct plan, Growth option) returned 7.34% a year, measured as XIRR across 250 funds. Mid-cap funds led with a median 12.03%, large-cap funds trailed with 4.52%.
Why is my SIP return lower than the fund's 3-year return?
Because the two measure different money. The 3-year return is for a single sum invested in May 2023, when the Nifty 50 was at 18,398.85. A SIP over the same three years bought most of its units later, at higher prices: 16 of its 36 monthly instalments were bought with the Nifty 50 above its 15 May 2026 close of 23,643.50.
Do SIPs ever beat lump-sum returns?
They can, after a fall early in the window. To 15 May 2026, none of 250 diversified equity funds had a 3-year SIP return above its 3-year lump-sum return, and only 3 of 198 did over five years.
This is commentary on published data, not investment advice. WealthTicker is not a SEBI-registered adviser or distributor. Figures are WealthTicker’s own calculations from public data — AMFI’s fund NAVs and disclosures, NSE’s index and FII/DII files, and the fund houses’ monthly portfolios (how we calculate). They are as of the dates stated and can be revised by their source.
Keep reading
3-year SIPs: large-cap funds have barely broken even
A 3-year monthly SIP in the median large-cap fund made 0.34% a year to 1 October 2026; small-cap funds made 10.42%. Five categories, against May.
Hybrid funds one year to 22 October 2026: arbitrage led
Arbitrage funds averaged 6.54% over one year, all 34 positive; aggressive hybrids averaged -3.92%. Seven hybrid categories, to 22 October 2026.
Small caps: 19.5% rolling 5-year return, 14.9% trailing
Every equity category's trailing 5-year return is 3 to 6 points below its average rolling 5-year return since 2013. The gap by category, to 7 October 2026.