Only 3 equity savings funds delivered 10%+ SIP returns in 5 years; HSBC led at 12.54%, check the full list

Equity savings funds are hybrid mutual fund schemes that combine equity, arbitrage and debt investments in a single portfolio. The category is designed to provide equity exposure while using arbitrage and fixed-income investments to diversify the portfolio and moderate the impact of equity-market volatility.

The five-year SIP return data shows that several equity savings funds have delivered healthy returns, but only three schemes crossed the 10% mark. HSBC Equity Savings Fund led with a 12.54% five-year SIP return, followed by Edelweiss Equity Savings Fund at 11.01% and Kotak Equity Savings Fund at 10.13%.

HSBC leads at 12.54%, Edelweiss and Kotak also cross 10%

HSBC Equity Savings Fund delivered the highest five-year SIP return among the schemes in the data at 12.54%. Edelweiss Equity Savings Fund followed at 11.01%, while Kotak Equity Savings Fund delivered 10.13%.

The next group came relatively close to the 10% mark. Mirae Asset Equity Savings Fund delivered 9.95%, while Axis Equity Savings Fund returned 9.18%.

At the lower end, PGIM India Equity Savings Fund delivered 6.77% over five years. Union Equity Savings Fund and Nippon India Equity Savings Fund posted 6.94% and 7.17%, respectively, while ICICI Prudential Equity Savings Fund delivered 7.19%.

HSBC's lead is also notable because the fund is not among the largest schemes in the category. It has net assets of ₹1,326 crore, compared with ₹10,409 crore for Kotak Equity Savings Fund and ₹16,179 crore for ICICI Prudential Equity Savings Fund.

Three-year SIP returns: HSBC and Edelweiss remain ahead

The three-year SIP return ranking also puts HSBC at the top. The fund delivered 11.52%, followed by Edelweiss Equity Savings Fund at 10.49%.

Mirae Asset Equity Savings Fund delivered 8.67% over three years, while Kotak Equity Savings Fund posted 8.28%. Mahindra Manulife Equity Savings Fund also returned 8.28%.

The three-year numbers show that the gap between HSBC and the rest of the category has been more pronounced recently. HSBC's 11.52% return was followed by Edelweiss at 10.49%, while most other funds were below 9%.

At the lower end, Invesco India Equity Savings Fund returned 5.48% over three years. ICICI Prudential Equity Savings Fund delivered 5.90%, while Union Equity Savings Fund posted 5.86%.

ICICI Prudential is the largest scheme with net assets of ₹16,179 crore, but its three-year and five-year SIP returns were 5.90% and 7.19%, respectively.

Ten-year returns: HSBC still leads, but Sundaram moves into the top three

HSBC Equity Savings Fund again topped the chart with a 10-year SIP return of 11.58%.

Sundaram Equity Savings Fund was second at 10.95%, followed by Edelweiss Equity Savings Fund at 10.80%. Kotak Equity Savings Fund also crossed the 10% mark, delivering 10.49%.

The 10-year data changes the picture slightly. Kotak, which ranked third over five years, moves to fourth over 10 years, while Sundaram moves into second place.

Sundaram's performance is particularly notable because its five-year SIP return was 9.44%, below the 10% threshold, but its 10-year return was 10.95%. Its three-year SIP return was lower at 6.99%.

Axis, HDFC and SBI also delivered relatively consistent long-term returns, although none crossed 10% over 10 years. Their SIP returns were 9.83%, 9.63% and 9.51%, respectively.

Equity savings funds are meant to offer investors a middle ground between equity and debt by combining equity exposure with arbitrage and fixed-income investments. However, it is important to note that the returns within the category can still vary meaningfully across funds.