Started investing at the peak? Here’s is what Rs 10,000 SIPs looks like across large, small and mid cap funds

If you had started investing right at the market peak in late September 2024, chances are the journey hasn’t felt great.

Both the Sensex and Nifty hit all-time highs on September 26, 2024, and since then, markets have been volatile and largely subdued. The Sensex, for instance, is down about 9.4 percent so far this year and over 4 percent in the past one year.

But here’s the real question: what does this mean for investors putting in money every month in a disciplined manner?

To answer that, we looked at how a Rs 10,000 monthly SIP, started right at the peak, performed across large-cap, mid-cap and small-cap funds. We also compared this with a one-time Rs 2 lakh investment made at the same time.

The results show a clear pattern: how you invested mattered just as much as where you invested.

Large-cap funds: SIPs held up, but don’t expect big returns

If you had started a Rs 10,000 monthly SIP in large-cap funds right at the market peak in September 2024, the outcome would’ve been decent, but not exciting.

The best-performing fund, Bank of India Large Cap Fund, delivered an XIRR of about 4.4 percent, taking your Rs 2 lakh investment to just over Rs 2.07 lakh.

A few others, like Taurus Large Cap Fund and Quant Large Cap Fund, managed small positive returns in the 1-2 percent range.

But beyond that, the picture weakens quickly.

Several funds barely stayed above water, and many slipped into negative territory. In fact, the Nifty 50 TRI itself delivered a negative SIP return of around -2 percent, which tells you how tough this period has been even for the broader market.

At the bottom end, investors in some funds saw losses of 4-5.5 percent despite investing consistently every month.

While SIPs helped reduce the impact of volatility, but they didn’t fully escape it.

Lumpsum tells a harsher story

Now compare this with a one-time investment of Rs 2 lakh made at the same peak.

Even the best-performing fund in the lumpsum category ended up delivering a negative return. Motilal Oswal Large Cap Fund, for instance, was down slightly, while most others posted losses between 2 percent and 4 percent.

At the lower end, losses stretched to nearly 8 percent.

SIP vs lumpsum – the gap is hard to ignore. Put the two together, and the difference is clear.

• SIP investors saw a mix of small gains and moderate losses
• Lumpsum investors saw losses across the board

Mid-cap funds: Bigger risks, but also much bigger rewards

If large-cap SIPs felt underwhelming, mid-caps tell a very different story.

Investors who started a Rs 10,000 monthly SIP at the peak still managed to earn strong double-digit returns in some cases.

ICICI Prudential Midcap Fund, for instance, delivered an XIRR of nearly 17 percent, turning a Rs 2 lakh investment into over Rs 2.27 lakh. A few others, like HSBC Midcap Fund, also clocked returns well above 14 percent.

Even beyond the top two, several funds delivered in the 8-9 percent range, comfortably beating the Nifty Midcap 150 TRI, which returned about 7.1 percent over the same period.

At the lower end, returns quickly taper off. Some funds barely delivered 1 percent, while a few slipped into negative territory. The worst performer in your list saw an SIP loss of nearly 9 percent.

So while mid-caps rewarded investors, but only if the right funds were picked.

Lumpsum in mid-caps: Not all outcomes were negative

Unlike large-cap funds, where lumpsum investors saw losses across the board, mid-caps offer a more mixed picture.

Some funds actually managed to stay in the green, even when the investment was made right at the market peak.

ICICI Prudential Midcap Fund, for instance, delivered an XIRR of about 5.4 percent, while a few others like WOC Mid Cap Fund and HSBC Midcap Fund generated modest gains in the 2-3 percent range.

This is notable, especially since the Nifty Midcap 150 TRI itself was slightly negative over the same period.

At the lower end, losses stretch sharply, with some funds falling between 7 percent and 9.5 percent.

Small-cap funds: High returns, but only if you got it right

If mid-caps showed a wide gap between winners and losers, small-caps take that trend even further.

Investors who started a SIP at the market peak still saw strong gains in the top-performing funds.

Union Small Cap Fund, for instance, delivered an XIRR of about 13.4 percent, while several others generated returns in the 9-10 percent range. That’s significantly higher than the Nifty Smallcap 250 TRI, which returned just over 3 percent during the same period.

But the downside is hard to ignore.

At the lower end, returns drop sharply, with the worst-performing fund in your list posting an SIP loss of nearly 9.5 percent.

Lumpsum in small-caps: Risk shows up very clearly

Even the best-performing fund delivered only about 2 percent returns, while most others hovered around flat or negative territory.

And at the bottom end, the losses are steep, going as deep as 13 percent.

The Nifty Smallcap 250 TRI itself fell over 5 percent, reinforcing how difficult this period has been for one-time investments made at the peak.

Wrap Up

Put it all together, and one thing is clear: investing at the market peak tested every strategy, but not equally.

SIPs helped smooth the journey across categories, limiting losses and even delivering gains in several mid- and small-cap funds. Lumpsum investments, on the other hand, were far more sensitive to timing, with losses showing up across most categories.

At the same time, the gap between the best and worst funds widens sharply as you move from large-caps to small-caps.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.