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SIP investing builds long-term wealth by averaging market volatility and supporting disciplined investing.
Infrastructure and PSU funds continue to show strong five-year returns driven by policy and sector reforms.
Diversified, midcap, and small-cap funds add growth potential when held through long-term SIPs.
January 2026 opened with Indian equity markets showing long-term strength despite short-term ups and downs. Sector rotation, government spending, and earnings recovery continue to support equity mutual funds.
SIP investing remains one of the most reliable ways to build wealth in this environment. Regular investing helps manage volatility and captures growth across market cycles. The data below highlights top-performing funds based on recent returns while keeping long-term performance intact.
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ICICI Prudential Infrastructure Fund Direct – Growth is one of the top SIP portfolios to invest in 2026, attracting attention through the strong government focus on infrastructure, capital expenditure, and urban development. It has a NAV of Rs. 216.43 with AUM of Rs. 8,160.47 crores.
The fund delivered returns of 1.72% in one month, 3.35% in three months, 7.44% over one year, 26.23% over three years, and 31.66% over five years.
These numbers show stable long-term performance supported by policy-driven growth. SIP investors looking for thematic exposure find this fund suitable for long investment horizons.
SBI PSU Fund Direct – Growth remains a strong performer among public sector-focused funds. The fund stands at a NAV of Rs. 37.62 and manages assets worth Rs. 5,762.54 crores. This SIP saw returns of 3.17% in one month, 7.50% in three months, 13.23% in one year, 30.24% in three years, and 31.04% over five years. PSU reforms, balance sheet clean-up, and improving profitability support these returns.
Aditya Birla Sun Life PSU Equity Fund Direct – Growth is one of the best SIP investment portfolios that shows consistent performance. The fund reports a NAV of Rs. 38.32 and AUM of Rs. 5,627.47 crores.
Returns stand at 3.70% for one month, 7.47% for three months, 12.34% over one year, 28.28% for three years, and 30.98% over five years. Long-term SIP investments in PSU funds benefit from valuation comfort and cyclical recovery.
Quant Small Cap Fund Direct – Growth remains popular among aggressive investors. The NAV stands at Rs. 276.88 with a large AUM of Rs. 30,169.70 crores. Short-term returns for this fund are -0.09% in one month and 0.76% in three months, while the one-year return shows -2.19%.
After several ups and downs, the fund still returned 21.30% in three years and 30.83% in five years. Small-cap investment is a long-term game, and systematic investment is one technique that allows traders to get through the market instability while still experiencing growth.
ICICI Prudential BHARAT 22 FOF Fund Direct – Growth gives exposure to particular PSUs and strategic holdings. The fund, besides showing an NAV of Rs. 34.34, also boasts an AUM of Rs. 2,452.89 crores. Its returns include 2.41% in one month, 7.25% in three months, 8.46% in one year, 27.03% over three years, and 29.71% over five years. This fund is ideal for SIP investors who are looking for a carefully cultivated PSU exposure with a phased approach.
Invesco India PSU Equity Fund Direct – Growth is another strong player in this segment. The fund's current NAV stands at Rs. 79.16, and its total AUM is Rs. 1,444.71 crores. The fund has provided a return of 3.16% for one month, 5.68% for three months, 12.27% for one year, 30.94% for three years, and 29.60% over five years.
Long-term SIP returns are backed by workers’ improving efficiency and profitability across PSU companies.
ICICI Prudential India Opportunities Fund Direct –Growth provides diversified exposure across different market capitalizations. The fund stands at a NAV of Rs. 41.41 and AUM of Rs. 33,946.40 crores. This elite SIP provided returns of 1.58% in one month, 6.96% in three months, 13.35% over one year, 24.63% over three years, and 28.88% over five years. This fund suits SIP investors seeking stability with growth potential.
A strong SIP portfolio for January 2026 blends infrastructure, PSU, small-cap, midcap, and diversified equity funds. Infrastructure and PSU funds provide policy-driven growth. Small- and mid-cap funds offer higher growth potential over the long term. Diversified funds bring balance and stability. Consistent SIP investing across these categories helps manage risk while capturing market opportunities.
Also Read: Top SIP Investment Apps in India: Grow Your Wealth Smartly!
Market volatility remains a part of equity investing. SIP investing reduces timing risk and builds discipline. The data above highlight funds with strong five-year returns of 28% or more, despite short-term fluctuations.
Investors who maintain a long-term focus and regular investments benefit the most. January 2026 offers a solid opportunity to continue or start SIP investments with a well-balanced portfolio built on proven performance.
1: What makes SIP a good investment option for January 2026?
SIP works well in January 2026 due to market volatility, as regular investing helps average costs and benefits from long-term equity growth.
2: Why do infrastructure funds attract SIP investors?
Infrastructure funds benefit from government spending, policy support, and long-term development projects that drive sustained growth.
3: Are PSU funds suitable for long-term SIP investments?
PSU funds are well-suited to long-term SIP investing due to improving profitability, reforms, and attractive valuations in public sector companies.
4: How do small-cap and midcap funds perform in SIP portfolios?
Small-cap and midcap funds offer higher long-term growth potential, while SIPs help manage short-term volatility.
5: How important is diversification in SIP portfolios?
Diversification across sectors and market caps reduces risk and improves consistency in long-term SIP returns.
