Top 10 Mutual Funds with the Highest Returns in India Over 10 Years

We all dream of financial freedom, and finding the mutual funds with the highest returns is a key part of that journey. While safe, options like fixed deposits often can’t outpace inflation. For long-term goals a decade away, mutual funds offer the growth potential your savings need. But with so many choices, which funds have actually delivered?

A 10-year track record separates the true champions from the rest. It shows a fund’s ability to thrive through market cycles. While past performance is no guarantee, it tells a powerful story about strategy and management. Let’s cut to the chase and look at the top mutual funds with the highest returns in India that have proven themselves over the last ten years.

How We Identified These Mutual Funds

We used a clear, three-step method to find these top performers:

1. 10-Year Performance: We prioritized funds with the highest 10-year Compound Annual Growth Rate (CAGR), which shows consistent long-term growth rather than short-term spikes.
2. Consistency Check: We looked for funds that consistently outperformed their benchmark index across different market cycles, not just in bull markets.
3. Fundamentals Matter: We considered the fund manager’s experience (long tenure is better), the fund’s investment philosophy, and its expense ratio.

Earlier we wrote about: What is Exit load in mutual funds?

List Of Mutual Funds With The Highest Returns (Direct Plans):

Fund Name	Category	10Y CAGR (%)	Expense Ratio (%)
Nippon India Small Cap Fund	Small Cap	22.86	0.64
Quant ELSS Tax Saver Fund	ELSS	22.04	0.58
Quant Infrastructure Fund	Sectoral	20.87	0.66
Axis Small Cap Fund	Small Cap	20.57	0.57
Quant Small Cap Fund	Small Cap	20.49	0.72
HDFC Small Cap Fund	Small Cap	20.44	0.71
HSBC Small Cap Fund	Small Cap	20.41	0.65
Invesco India Midcap Fund	Mid Cap	20.41	0.56
SBI Small Cap Fund	Small Cap	20.41	0.74
Quant Flexi Cap Fund	Flexi Cap	20.02	0.66

Top 10 Mutual Funds with the Highest 10-Year Returns:

Let’s dive into the top 10 mutual funds with the highest returns in the last 10 years.

1. Nippon India Small Cap Fund

Fund Objective: Focuses on small-cap Indian companies with high growth potential, aiming for long-term wealth creation.
Annualised Returns:

• 1 Year: –8.03%
• 3 Years: 23.91%
• 5 Years: 32.82%
• 10 Years: 21.77%
  Who Can Invest: Investors seeking aggressive small-cap exposure and willing to accept high volatility.

2. Quant ELSS Tax Saver Fund

Fund Objective: Invests in diversified equities while offering tax benefits under Section 80C.
Annualised Returns:

• 1 Year: –7.42%
• 3 Years: 20.84%
• 5 Years: 27.12%
• 10 Years: 20.02%
  Who Can Invest: Tax-conscious investors aiming for long-term equity growth.

3. Quant Infrastructure Fund

Fund Objective: Focuses on infrastructure sector companies to benefit from India’s growth in roads, power, and urban development.
Annualised Returns:

• 1 Year: –12.2%
• 3 Years: 20.6%
• 5 Years: 34.7%
• 10 Years: 17.5%
  Who Can Invest: Sector-focused investors with high-growth appetite and long-term horizon.

4. Axis Small Cap Fund

Fund Objective: Targets small-cap Indian companies with strong fundamentals and growth potential.
Annualised Returns:

• 1 Year: –3.87%
• 3 Years: 17.65%
• 5 Years: 27.40%
• 10 Years: 19.84%
  Who Can Invest: Long-term investors who can tolerate volatility for better returns.

5. Quant Small Cap Fund

Fund Objective: Invests primarily in small-cap stocks with high growth potential and value opportunities.
Annualised Returns:

• 1 Year: –10.39%
• 3 Years: 24.81%
• 5 Years: 34.99%
• 10 Years: 20.05%
  Who Can Invest: Investors aiming for aggressive growth and comfortable with small-cap risk.

6. HDFC Small Cap Fund

Fund Objective: Focuses on emerging small-cap companies with solid fundamentals for long-term growth.
Annualised Returns:

• 1 Year: –0.18%
• 3 Years: 24.54%
• 5 Years: 31.02%
• 10 Years: 19.90%
  Who Can Invest: Investors seeking long-term capital appreciation in India’s small-cap space.

7. HSBC Small Cap Fund

Fund Objective: Invests in undervalued small-cap companies with strong growth potential across sectors.
Annualised Returns:

• 1 Year: –10.66%
• 3 Years: 20.32%
• 5 Years: 30.36%
• 10 Years: 19.43%
  Who Can Invest: Aggressive investors looking to diversify in high-growth small-cap stocks.

8. Invesco India Midcap Fund

Fund Objective: Focuses on mid-cap companies that balance growth potential and stability compared to small caps.
Annualised Returns:

• 1 Year: 7.13%
• 3 Years: 28.99%
• 5 Years: 28.83%
• 10 Years: 19.80%
  Who Can Invest: Investors looking for a mix of growth and moderate risk through mid-cap exposure.

9. SBI Small Cap Fund

Fund Objective: Targets small-cap companies with high growth potential backed by robust research and analysis.
Annualised Returns:

• 1 Year: –7.59%
• 3 Years: 15.34%
• 5 Years: 24.83%
• 10 Years: 19.63%
  Who Can Invest: Long-term investors willing to handle volatility in exchange for higher returns.

10. Quant Flexi Cap Fund

Fund Objective: Offers flexibility to invest across large, mid, and small-cap stocks to optimize risk and returns.
Annualised Returns:

• 1 Year: –12.39%
• 3 Years: 18.68%
• 5 Years: 27.12%
• 10 Years: 20.07%
• Who Can Invest: Investors seeking diversified exposure across market caps for balanced growth.

Factors Contributing To High Returns:

First, they have a disciplined strategy and stick to it means hunting for undervalued small-caps .

Second, experienced fund managers make all the difference. Their ability to navigate market turbulence and spot quality opportunities is what separates good returns from great ones.

Finally, these funds master the art of patience. They’re built for the long haul, allowing short-term market noise to fade away while the power of compounding works its magic on your investment.

Things to Consider Before Investing In Mutual Funds With the Highest Returns:

First, can you stomach the volatility? The same small-cap funds that deliver spectacular gains often experience sharper drops during market downturns.

Second, is your investment horizon long enough? You should be thinking 7-10 years minimum to truly benefit from these mutual funds with the highest returns.

Finally, don’t overlook costs and leadership. A lower expense ratio directly boosts your final returns, and an experienced fund manager with a proven strategy is often worth their weight in gold.

Conclusion About 10 Mutual Funds With The Highest Returns:

While chasing the mutual funds with the highest returns is tempting, true wealth building requires more than just picking top performers. The real secret lies in matching these funds to your risk appetite and investment horizon, then staying patient through market cycles. Remember – it’s not about timing the market, but time in the market that creates lasting wealth. Choose wisely, invest consistently, and let compounding do the heavy lifting for your financial future.

Disclaimer: Investments are subject to market risks. Past performance does not guarantee future returns.Please consult a financial advisor before investing.

FAQs About 10 Mutual Funds With The Highest Returns: