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Risk in SIP: Assessment of Risk in SIP Investment

Updated on June 25, 2025 , 60921 views

The risk in SIP varies for different Types of Mutual Funds. investing in Mutual Funds via SIP (Systematic Investment plan) involves Market linked risks, that are certainly higher for Equity Funds than debt and balanced Mutual Funds. The risk in SIP depends on the investment option that is chosen considering the risk profile, risk appetite and liquidity. However, the risk in SIP can be managed and reduced by the fund managers and the fund house.

To calculate the risk in SIP there are various tools available like sip calculator (also known as SIP return calculator).

Risk in SIP: Assessment of SIP Risks

Risk 1: The risk of SIP getting a negative return or price risk

Mutual fund investments are subject to market risks, is a commonly heard term. What this means is that your investment in a SIP can go down and you can end up with a value lower than what you invested depending on how the market behaves.

The risk in SIP is however related to the holding period and usually, the longer the holding period, the lower the risk. With higher holding period the probability of making profit increases. For e.g. have a look below for equity, a longer holding period for equity results in a lowering chance of loss. (The below is an analysis done on the BSE Sensex from 1979 to 2016).

Risk 2: The risk being able to get your money back quickly or liquidity risk

The ability to get your money back quickly depends on the Underlying investments. Usually with mutual funds, this is not an issue, however, there have been periods (such in 2008), when there was an issue in selling securities(Bonds) and that certain mutual funds had to limit withdrawals from some schemes. The equity market is fairly liquid (meaning that buying and selling do not pose an issue). However, if the sale quantity exceeds the numbers of buyers by a large amount, then this will result in an issue, hence making subsequent payouts a problem and hence liquidity risk.

Risk 3: The risk of downgrade of a security or credit risk

When the bond of a particular company/entity undergoes a downgrade by a credit rating agency, its price falls. If the price falls, this impacts the overall value of the Portfolio. This is called credit risk.

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Risk 4: The risk of the company not paying the owners of the bond their due or default risk

When a company defaults on its payments to the bond holders, it’s called Default Risk.

With the investor not getting their money back, this will impact their portfolio, negatively.

Risk 5: The risk of processing your transaction correctly or technology risk

Today, all transactions take place in the electronic mode. With the various touch-points, there is a possibility of a technological failure at various places, at the R & T Agent, the Bank to debit funds etc.

The non-processing of a transaction is also a risk in SIP.

Risk 6: The risk of scheme performance by the portfolio manager or fund management risk

Another risk in SIP is that the chosen scheme may not deliver upto expectations, and performance may be much lower than expected. The Fund Manager may under-deliver on performance, and this will lead to low returns on the SIP investment.

These are the major risks in a SIP, while we can go on and elaborate further risks in SIP like Economy risk etc., most of these risks would fall under one or more of the categories above.

Though there is definitely a risk in SIP, one should always remember that SIP or lump sum, this is just an investment route and NOT the underlying investment. One needs to look at the underlying investment, its risks, and then make a final decision.

*Below is the list of Top SIP's one can evaluate to invest in

1. Invesco India PSU Equity Fund

To generate capital appreciation by investing in Equity and Equity Related Instruments of companies where the Central / State Government(s) has majority shareholding or management control or has powers to appoint majority of directors. However, there is no assurance or guarantee that the investment objective of the Scheme will be achieved. The Scheme does not assure or guarantee any returns.

Invesco India PSU Equity Fund is a Equity - Sectoral fund was launched on 18 Nov 09. It is a fund with High risk and has given a CAGR/Annualized return of 12.7% since its launch. Ranked 33 in Sectoral category. Return for 2024 was 25.6% , 2023 was 54.5% and 2022 was 20.5% .

Below is the key information for Invesco India PSU Equity Fund

Invesco India PSU Equity Fund Growth
Launch Date	18 Nov 09
NAV (27 Jun 25)	₹65.03 ↑ 0.53 (0.82 %)
Net Assets (Cr)	₹1,394 on 31 May 25
Category	Equity - Sectoral
AMC	Invesco Asset Management (India) Private Ltd
Rating	☆☆☆
Risk	High
Expense Ratio	2.39
Sharpe Ratio	-0.18
Information Ratio	-0.17
Alpha Ratio	2.52
Min Investment	5,000
Min SIP Investment	500
Exit Load	0-1 Years (1%),1 Years and above(NIL)

Growth of 10,000 investment over the years.

Date	Value
31 May 20	₹10,000
31 May 21	₹14,678
31 May 22	₹15,757
31 May 23	₹19,884
31 May 24	₹40,074
31 May 25	₹39,362

Invesco India PSU Equity Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹627,226.
Net Profit of ₹327,226 Invest Now

Returns for Invesco India PSU Equity Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 27 Jun 25

Duration	Returns
1 Month	1%
3 Month	12.9%
6 Month	7.5%
1 Year	-3.3%
3 Year	39%
5 Year	29%
10 Year
15 Year
Since launch	12.7%

Historical performance (Yearly) on absolute basis

Year	Returns
2024	25.6%
2023	54.5%
2022	20.5%
2021	31.1%
2020	6.1%
2019	10.1%
2018	-16.9%
2017	24.3%
2016	17.9%
2015	2.5%

Fund Manager information for Invesco India PSU Equity Fund

Name	Since	Tenure
Dhimant Kothari	19 May 20	5.04 Yr.

Data below for Invesco India PSU Equity Fund as on 31 May 25

Equity Sector Allocation

Sector	Value
Industrials	29.48%
Utility	26.88%
Financial Services	22.09%
Energy	16.43%
Basic Materials	3.8%

Asset Allocation

Asset Class	Value
Cash	1.31%
Equity	98.69%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
Power Grid Corp Of India Ltd (Utilities) Equity, Since 28 Feb 22 \| 532898	9%	₹111 Cr	3,599,413
Bharat Electronics Ltd (Industrials) Equity, Since 31 Mar 17 \| BEL	8%	₹109 Cr	3,455,627 ↓ -438,992
State Bank of India (Financial Services) Equity, Since 28 Feb 21 \| SBIN	8%	₹108 Cr	1,365,114 ↑ 113,571
Bharat Petroleum Corp Ltd (Energy) Equity, Since 30 Sep 18 \| 500547	8%	₹107 Cr	3,445,961
Hindustan Aeronautics Ltd Ordinary Shares (Industrials) Equity, Since 31 May 22 \| HAL	8%	₹105 Cr	233,477 ↑ 58,122
NTPC Ltd (Utilities) Equity, Since 31 May 19 \| 532555	6%	₹76 Cr	2,148,687 ↑ 578,056
NTPC Green Energy Ltd (Utilities) Equity, Since 30 Nov 24 \| NTPCGREEN	5%	₹59 Cr	5,911,723
Hindustan Petroleum Corp Ltd (Energy) Equity, Since 30 Nov 23 \| HINDPETRO	5%	₹59 Cr	1,564,169
Bharat Dynamics Ltd Ordinary Shares (Industrials) Equity, Since 31 May 22 \| BDL	4%	₹52 Cr	338,824
NHPC Ltd (Utilities) Equity, Since 31 Oct 22 \| NHPC	4%	₹51 Cr	5,962,963 ↑ 2,141,456

2. SBI PSU Fund

The objective of the scheme would be to provide investors with opportunities for long-term growth in capital along with the liquidity of an open-ended scheme through an active management of investments in a diversified basket of equity stocks of domestic Public Sector Undertakings and in debt and money market instruments issued by PSUs AND others.

SBI PSU Fund is a Equity - Sectoral fund was launched on 7 Jul 10. It is a fund with High risk and has given a CAGR/Annualized return of 8.2% since its launch. Ranked 31 in Sectoral category. Return for 2024 was 23.5% , 2023 was 54% and 2022 was 29% .

Below is the key information for SBI PSU Fund

SBI PSU Fund Growth
Launch Date	7 Jul 10
NAV (27 Jun 25)	₹32.4064 ↑ 0.25 (0.77 %)
Net Assets (Cr)	₹5,259 on 31 May 25
Category	Equity - Sectoral
AMC	SBI Funds Management Private Limited
Rating	☆☆
Risk	High
Expense Ratio	2.3
Sharpe Ratio	-0.26
Information Ratio	-0.36
Alpha Ratio	0.46
Min Investment	5,000
Min SIP Investment	500
Exit Load	0-1 Years (1%),1 Years and above(NIL)

Growth of 10,000 investment over the years.

Date	Value
31 May 20	₹10,000
31 May 21	₹15,496
31 May 22	₹16,867
31 May 23	₹20,532
31 May 24	₹41,696
31 May 25	₹41,224

SBI PSU Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹642,208.
Net Profit of ₹342,208 Invest Now

Returns for SBI PSU Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 27 Jun 25

Duration	Returns
1 Month	1.9%
3 Month	8.2%
6 Month	5.5%
1 Year	-0.5%
3 Year	38.3%
5 Year	30.5%
10 Year
15 Year
Since launch	8.2%

Historical performance (Yearly) on absolute basis

Year	Returns
2024	23.5%
2023	54%
2022	29%
2021	32.4%
2020	-10%
2019	6%
2018	-23.8%
2017	21.9%
2016	16.2%
2015	-11.1%

Fund Manager information for SBI PSU Fund

Name	Since	Tenure
Rohit Shimpi	1 Jun 24	1 Yr.

Data below for SBI PSU Fund as on 31 May 25

Equity Sector Allocation

Sector	Value
Financial Services	35.59%
Utility	30.25%
Energy	15.7%
Industrials	9.6%
Basic Materials	5.14%

Asset Allocation

Asset Class	Value
Cash	3.7%
Equity	96.3%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
State Bank of India (Financial Services) Equity, Since 31 Jul 10 \| SBIN	13%	₹676 Cr	8,577,500
GAIL (India) Ltd (Utilities) Equity, Since 31 May 24 \| 532155	10%	₹487 Cr	25,750,000
Power Grid Corp Of India Ltd (Utilities) Equity, Since 31 Jul 10 \| 532898	9%	₹465 Cr	15,135,554
NTPC Ltd (Utilities) Equity, Since 31 Jul 10 \| 532555	9%	₹431 Cr	12,143,244 ↑ 1,400,000
Bharat Electronics Ltd (Industrials) Equity, Since 30 Jun 24 \| BEL	8%	₹426 Cr	13,575,000
Bharat Petroleum Corp Ltd (Energy) Equity, Since 31 Aug 24 \| 500547	6%	₹301 Cr	9,700,000
Bank of Baroda (Financial Services) Equity, Since 31 Aug 24 \| 532134	5%	₹275 Cr	11,000,000
NMDC Ltd (Basic Materials) Equity, Since 31 Oct 23 \| 526371	4%	₹181 Cr	27,900,000
General Insurance Corp of India (Financial Services) Equity, Since 31 May 24 \| GICRE	3%	₹173 Cr	4,150,000
Oil India Ltd (Energy) Equity, Since 31 Mar 24 \| OIL	3%	₹158 Cr	3,850,000

3. Nippon India Power and Infra Fund

(Erstwhile Reliance Diversified Power Sector Fund)

The primary investment objective of the scheme is to generate long term capital appreciation by investing predominantly in equity and equity related securities of companies in the power sector.

Nippon India Power and Infra Fund is a Equity - Sectoral fund was launched on 8 May 04. It is a fund with High risk and has given a CAGR/Annualized return of 18.3% since its launch. Ranked 13 in Sectoral category. Return for 2024 was 26.9% , 2023 was 58% and 2022 was 10.9% .

Below is the key information for Nippon India Power and Infra Fund

Nippon India Power and Infra Fund Growth
Launch Date	8 May 04
NAV (27 Jun 25)	₹352.305 ↑ 1.76 (0.50 %)
Net Assets (Cr)	₹7,417 on 31 May 25
Category	Equity - Sectoral
AMC	Nippon Life Asset Management Ltd.
Rating	☆☆☆☆
Risk	High
Expense Ratio	2.05
Sharpe Ratio	-0.18
Information Ratio	1.23
Alpha Ratio	-3.24
Min Investment	5,000
Min SIP Investment	100
Exit Load	0-1 Years (1%),1 Years and above(NIL)

Growth of 10,000 investment over the years.

Date	Value
31 May 20	₹10,000
31 May 21	₹17,696
31 May 22	₹19,981
31 May 23	₹25,995
31 May 24	₹46,664
31 May 25	₹46,582

Nippon India Power and Infra Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹689,048.
Net Profit of ₹389,048 Invest Now

Returns for Nippon India Power and Infra Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 27 Jun 25

Duration	Returns
1 Month	2%
3 Month	11.1%
6 Month	0.6%
1 Year	-4.9%
3 Year	36.9%
5 Year	33.1%
10 Year
15 Year
Since launch	18.3%

Historical performance (Yearly) on absolute basis

Year	Returns
2024	26.9%
2023	58%
2022	10.9%
2021	48.9%
2020	10.8%
2019	-2.9%
2018	-21.1%
2017	61.7%
2016	0.1%
2015	0.3%

Fund Manager information for Nippon India Power and Infra Fund

Name	Since	Tenure
Kinjal Desai	25 May 18	7.02 Yr.
Rahul Modi	19 Aug 24	0.78 Yr.

Data below for Nippon India Power and Infra Fund as on 31 May 25

Equity Sector Allocation

Sector	Value
Industrials	38.96%
Utility	20.7%
Energy	9.63%
Communication Services	7.86%
Basic Materials	7.5%
Consumer Cyclical	4.3%
Real Estate	3.02%
Financial Services	2.18%
Health Care	2.09%
Technology	2.02%

Asset Allocation

Asset Class	Value
Cash	0.52%
Equity	99.48%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
Reliance Industries Ltd (Energy) Equity, Since 30 Nov 18 \| RELIANCE	8%	₹576 Cr	4,100,000
NTPC Ltd (Utilities) Equity, Since 31 May 09 \| 532555	8%	₹550 Cr	15,500,000 ↑ 100,000
Bharti Airtel Ltd (Communication Services) Equity, Since 30 Apr 18 \| BHARTIARTL	7%	₹485 Cr	2,600,000
Larsen & Toubro Ltd (Industrials) Equity, Since 30 Nov 07 \| LT	6%	₹449 Cr	1,344,337 ↓ -127,664
Tata Power Co Ltd (Utilities) Equity, Since 30 Apr 23 \| 500400	4%	₹296 Cr	7,700,789 ↑ 570,000
UltraTech Cement Ltd (Basic Materials) Equity, Since 31 Oct 19 \| 532538	3%	₹233 Cr	200,000 ↓ -40,038
Kaynes Technology India Ltd (Industrials) Equity, Since 30 Nov 22 \| KAYNES	3%	₹213 Cr	370,000 ↓ -53,938
Bharat Heavy Electricals Ltd (Industrials) Equity, Since 30 Sep 24 \| 500103	3%	₹193 Cr	8,513,730 ↑ 513,730
CG Power & Industrial Solutions Ltd (Industrials) Equity, Since 30 Sep 24 \| 500093	3%	₹192 Cr	3,057,923 ↑ 425,000
Carborundum Universal Ltd (Industrials) Equity, Since 30 Sep 23 \| CARBORUNIV	3%	₹184 Cr	1,800,000

4. HDFC Infrastructure Fund

To seek long-term capital appreciation by investing predominantly in equity and equity related securities of companies engaged in or expected to benefit from growth and development of infrastructure.

HDFC Infrastructure Fund is a Equity - Sectoral fund was launched on 10 Mar 08. It is a fund with High risk and has given a CAGR/Annualized return of since its launch. Ranked 26 in Sectoral category. Return for 2024 was 23% , 2023 was 55.4% and 2022 was 19.3% .

Below is the key information for HDFC Infrastructure Fund

HDFC Infrastructure Fund Growth
Launch Date	10 Mar 08
NAV (27 Jun 25)	₹48.416 ↑ 0.32 (0.66 %)
Net Assets (Cr)	₹2,540 on 31 May 25
Category	Equity - Sectoral
AMC	HDFC Asset Management Company Limited
Rating	☆☆☆
Risk	High
Expense Ratio	2.31
Sharpe Ratio	-0.02
Information Ratio	0
Alpha Ratio	0
Min Investment	5,000
Min SIP Investment	300
Exit Load	0-1 Years (1%),1 Years and above(NIL)

Growth of 10,000 investment over the years.

Date	Value
31 May 20	₹10,000
31 May 21	₹18,382
31 May 22	₹20,960
31 May 23	₹26,577
31 May 24	₹47,409
31 May 25	₹49,598

HDFC Infrastructure Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹705,310.
Net Profit of ₹405,310 Invest Now

Returns for HDFC Infrastructure Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 27 Jun 25

Duration	Returns
1 Month	2.4%
3 Month	11.6%
6 Month	3.7%
1 Year	0.8%
3 Year	36.5%
5 Year	34.9%
10 Year
15 Year
Since launch

Historical performance (Yearly) on absolute basis

Year	Returns
2024	23%
2023	55.4%
2022	19.3%
2021	43.2%
2020	-7.5%
2019	-3.4%
2018	-29%
2017	43.3%
2016	-1.9%
2015	-2.5%

Fund Manager information for HDFC Infrastructure Fund

Name	Since	Tenure
Srinivasan Ramamurthy	12 Jan 24	1.38 Yr.
Dhruv Muchhal	22 Jun 23	1.94 Yr.

Data below for HDFC Infrastructure Fund as on 31 May 25

Equity Sector Allocation

Sector	Value
Industrials	37.51%
Financial Services	20.97%
Basic Materials	11.02%
Utility	7.56%
Energy	6.75%
Communication Services	4.01%
Real Estate	2.2%
Health Care	1.75%
Technology	1.27%
Consumer Cyclical	0.48%

Asset Allocation

Asset Class	Value
Cash	6.48%
Equity	93.52%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
ICICI Bank Ltd (Financial Services) Equity, Since 31 Oct 09 \| ICICIBANK	8%	₹186 Cr	1,300,000
HDFC Bank Ltd (Financial Services) Equity, Since 31 Aug 23 \| HDFCBANK	6%	₹135 Cr	700,000
Larsen & Toubro Ltd (Industrials) Equity, Since 30 Jun 12 \| LT	5%	₹127 Cr	380,000
J Kumar Infraprojects Ltd (Industrials) Equity, Since 31 Oct 15 \| JKIL	4%	₹94 Cr	1,450,000
InterGlobe Aviation Ltd (Industrials) Equity, Since 31 Dec 21 \| INDIGO	3%	₹79 Cr	150,000
NTPC Ltd (Utilities) Equity, Since 31 Dec 17 \| 532555	3%	₹78 Cr	2,200,000
Kalpataru Projects International Ltd (Industrials) Equity, Since 31 Jan 23 \| KPIL	3%	₹74 Cr	758,285
Reliance Industries Ltd (Energy) Equity, Since 31 May 24 \| RELIANCE	3%	₹70 Cr	500,000
Bharti Airtel Ltd (Communication Services) Equity, Since 30 Sep 20 \| BHARTIARTL	3%	₹65 Cr	350,000
Paradeep Phosphates Ltd (Basic Materials) Equity, Since 31 May 22 \| 543530	3%	₹62 Cr	4,300,000 ↓ -400,000

5. ICICI Prudential Infrastructure Fund

To generate capital appreciation and income distribution to unit holders by investing predominantly in equity/equity related securities of the companies belonging to the infrastructure development and balance in debt securities and money market instruments.

ICICI Prudential Infrastructure Fund is a Equity - Sectoral fund was launched on 31 Aug 05. It is a fund with High risk and has given a CAGR/Annualized return of 16.3% since its launch. Ranked 27 in Sectoral category. Return for 2024 was 27.4% , 2023 was 44.6% and 2022 was 28.8% .

Below is the key information for ICICI Prudential Infrastructure Fund

ICICI Prudential Infrastructure Fund Growth
Launch Date	31 Aug 05
NAV (27 Jun 25)	₹199.43 ↑ 1.24 (0.63 %)
Net Assets (Cr)	₹7,920 on 31 May 25
Category	Equity - Sectoral
AMC	ICICI Prudential Asset Management Company Limited
Rating	☆☆☆
Risk	High
Expense Ratio	2.22
Sharpe Ratio	0.15
Information Ratio	0
Alpha Ratio	0
Min Investment	5,000
Min SIP Investment	100
Exit Load	0-1 Years (1%),1 Years and above(NIL)

Growth of 10,000 investment over the years.

Date	Value
31 May 20	₹10,000
31 May 21	₹18,721
31 May 22	₹23,007
31 May 23	₹29,843
31 May 24	₹49,203
31 May 25	₹53,203

ICICI Prudential Infrastructure Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹756,118.
Net Profit of ₹456,118 Invest Now

Returns for ICICI Prudential Infrastructure Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 27 Jun 25

Duration	Returns
1 Month	3.4%
3 Month	11.6%
6 Month	6.9%
1 Year	5.3%
3 Year	36%
5 Year	37.5%
10 Year
15 Year
Since launch	16.3%

Historical performance (Yearly) on absolute basis

Year	Returns
2024	27.4%
2023	44.6%
2022	28.8%
2021	50.1%
2020	3.6%
2019	2.6%
2018	-14%
2017	40.8%
2016	2%
2015	-3.4%

Fund Manager information for ICICI Prudential Infrastructure Fund

Name	Since	Tenure
Ihab Dalwai	3 Jun 17	8 Yr.
Sharmila D’mello	30 Jun 22	2.92 Yr.

Data below for ICICI Prudential Infrastructure Fund as on 31 May 25

Equity Sector Allocation

Sector	Value
Industrials	39.73%
Basic Materials	18.96%
Financial Services	14.34%
Utility	8.93%
Energy	6.65%
Real Estate	2.45%
Communication Services	1.71%
Consumer Cyclical	0.89%

Asset Allocation

Asset Class	Value
Cash	6.34%
Equity	93.66%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
Larsen & Toubro Ltd (Industrials) Equity, Since 30 Nov 09 \| LT	10%	₹722 Cr	2,160,204 ↑ 220,204
Adani Ports & Special Economic Zone Ltd (Industrials) Equity, Since 31 May 24 \| ADANIPORTS	4%	₹306 Cr	2,515,859 ↓ -121,785
NCC Ltd (Industrials) Equity, Since 31 Aug 21 \| NCC	4%	₹265 Cr	12,522,005
Reliance Industries Ltd (Energy) Equity, Since 31 Jul 23 \| RELIANCE	3%	₹234 Cr	1,662,727 ↑ 103,241
NTPC Ltd (Utilities) Equity, Since 29 Feb 16 \| 532555	3%	₹227 Cr	6,400,000 ↓ -600,000
Shree Cement Ltd (Basic Materials) Equity, Since 30 Apr 24 \| 500387	3%	₹224 Cr	75,408 ↓ -11,000
Vedanta Ltd (Basic Materials) Equity, Since 31 Jul 24 \| 500295	3%	₹219 Cr	5,223,662 ↑ 500,000
ICICI Bank Ltd (Financial Services) Equity, Since 31 Dec 16 \| ICICIBANK	3%	₹203 Cr	1,425,000 ↓ -175,000
CESC Ltd (Utilities) Equity, Since 30 Jun 23 \| CESC	3%	₹191 Cr	12,000,502
Kalpataru Projects International Ltd (Industrials) Equity, Since 30 Sep 06 \| KPIL	2%	₹185 Cr	1,903,566

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.