Best Performing Mutual Funds with Highest Returns in Last 10 Years
Investing in mutual funds is a popular strategy for wealth growth. Data shows that equity mutual funds in India have outperformed broader market indices in the past decade. For example, some funds have reported annualised returns over 15% in the last 10 years, compared to the Nifty 50’s average return of around 12%. This article presents historical performance data of various mutual funds and provides insights into how to evaluate their long-term performance.
List of Top Performing Equity Mutual Funds in India
Here’s the list of top 10 best mutual funds in India sorted based on 10-year CAGR.
| Fund Name | AUM | CAGR 3Y | CAGR 10Y | Expense Ratio | Alpha | Volatility | NAV | Exit Load |
|---|---|---|---|---|---|---|---|---|
| Nippon India Small Cap Fund | 64,821.04 | 24.08 | 22.86 | 0.64 | 9.49 | 17.80 | 192.49 | 1 |
| Quant ELSS Tax Saver Fund | 11,396.21 | 15.28 | 22.04 | 0.58 | 4.32 | 16.61 | 412.40 | 0 |
| Quant Infrastructure Fund | 3,139.54 | 18.66 | 20.87 | 0.66 | 3.20 | 19.32 | 41.77 | 0.5 |
| Axis Small Cap Fund | 25,568.92 | 20.19 | 20.57 | 0.57 | 10.52 | 16.13 | 124.77 | 1 |
| Quant Small Cap Fund | 28,758.03 | 25.26 | 20.49 | 0.72 | 8.12 | 17.99 | 280.98 | 1 |
| HDFC Small Cap Fund | 36,294.07 | 24.31 | 20.44 | 0.71 | 13.02 | 17.65 | 164.23 | 1 |
| HSBC Small Cap Fund | 15,885.78 | 21.17 | 20.41 | 0.65 | 10.50 | 20.73 | 91.88 | 1 |
| Invesco India Midcap Fund | 8,062.31 | 29.09 | 20.41 | 0.56 | 13.64 | 18.80 | 220.66 | 1 |
| SBI Small Cap Fund | 35,244.91 | 16.27 | 20.41 | 0.74 | 8.06 | 14.96 | 201.18 | 1 |
| Quant Flexi Cap Fund | 6,686.67 | 17.19 | 20.02 | 0.66 | 3.73 | 16.50 | 108.05 | 1 |
Note: The data on the list of the best mutual funds in India is from 17th September, 2025. This data is derived from the Tickertape Mutual Funds Screener.
Selection Criteria:
- 10Y CAGR: Sort form Highest to Lowest
🚀 Pro Tip: You can use Tickertape’s Mutual Fund Screener to research and evaluate funds with over 50+ pre-loaded filters and parameters.
Overview of Best Performing Mutual Funds in India
Nippon India Small Cap Fund
This fund invests in small companies across different sectors, generally in the early stages of their development. It focuses on businesses that may experience growth as they expand their operations.
Quant ELSS Tax Saver Fund
The Quant ELSS Tax Saver Fund invests in high-growth stocks while providing tax benefits under Section 80C of the Income Tax Act.
Quant Infrastructure Fund
This fund targets companies in infrastructure sectors such as energy, transport, and construction. It invests in businesses within these sectors, which are essential to India’s development.
Axis Small Cap Fund
The Axis Small Cap Fund invests in smaller companies, which may have growth potential but come with higher risk. It aims to target sectors that could benefit from longer-term growth.
Quant Small Cap Fund
This fund looks for small companies that may not be widely recognised by other investors but have potential for growth.
HDFC Small Cap Fund
The HDFC Small Cap Fund invests in small companies across various sectors, focusing on businesses that could grow over time.
HSBC Small Cap Fund
The HSBC Small Cap Fund targets small companies with strong financial positions, which could benefit from economic growth.
Invesco India Midcap Fund
This fund focuses on mid-sized companies that have outgrown the small-cap stage but still have room to grow. It invests in businesses that have the potential to become more established.
SBI Small Cap Fund
The SBI Small Cap Fund focuses on small companies across different sectors, aiming to capture businesses with the potential to expand.
Quant Flexi Cap Fund
The Quant Flexi Cap Fund invests in a mix of large, mid, and small companies, allowing flexibility in its investment approach.
What are the Best Mutual Funds in India?
Mutual funds with high returns over the past decade may attract attention based on factors such as historical performance and growth potential. Funds that have delivered consistent returns may be viewed as stable. Some equity funds are known for their ability to grow steadily while navigating market fluctuations. Mutual funds with a strong Compound Annual Growth Rate (CAGR) over the last 10 years have typically endured through various market cycles. Index funds that track broad market indices like the Nifty are another option for investors seeking long-term exposure.
Taxation on Best Mutual Funds in India
Since many mutual funds in India are equity-oriented (index funds or active equity funds), their taxation follows the rules for equity mutual funds as per the 2024 Union Budget.
| Capital Gains Type | Holding Period | Tax Rate (Budget 2024) | Notes |
| Short-Term Capital Gains (STCG) | Less than 12 months | 20% | Applies if units are redeemed within 1 year. |
| Long-Term Capital Gains (LTCG) | More than 12 months | 12.5% flat (up to ₹1.25 lakh per year tax-free) | No indexation benefit available. |
Dividends from Best Mutual Funds in India
Any dividends received are taxed according to the investor’s income tax slab. Since mutual funds often involve short-term rebalancing, taxation can have a higher impact if units are sold frequently within a year.
How to Invest in the Best Mutual Funds in India?
You can easily start to invest in mutual funds in India by following these steps:
- To invest in the best mutual funds, you can visit a mutual fund investment platform such as smallcase.
- The next step is to research and identify the highest return mutual fund in last 10 years that match your financial goals. Tools like the Tickertape Mutual Fund Screener can help you filter and compare mutual funds investment plans for beginners based on parameters such as returns, expense ratio, and fund size.
- Once you shortlist the funds, visit smallcase, log in, and search for the fund by name. You can then choose the investment mode, either a one-time lump sum or a mutual fund SIP, and complete the process.
However, if you’re confused about which stocks to pick, you can explore smallcases:
- smallcases are readymade model portfolios of stocks/ETFs, that are based on a theme idea or strategy
- They’re created and managed by SEBI-registered investment experts (also known as smallcase managers)
- smallcase offers over 500+ stock portfolios, created by 200+ managers
Here are a few popular smallcases among new investors:
Disclosures for aforementioned smallcases
Advantages of Investing in the Best Mutual Funds in India
- Diversification: Mutual funds offer the opportunity to invest in multiple securities, which can help spread risk and potentially reduce the impact of market volatility.
- Professional Management: Mutual funds are managed by professionals who utilise market analysis to guide investment decisions.
- Tax Benefits: Some mutual funds, like ELSS (Equity Linked Savings Schemes), qualify for tax deductions under Section 80C.
- Consistent Returns: Some mutual funds investment plans for beginners are designed to deliver consistent mutual fund returns, with a history of stable performance over time.
Risks of Investing in Best Mutual Funds in India
- Market Risk: Equity mutual funds are subject to market fluctuations. In periods of economic downturn, the value of these funds may decrease.
- Interest Rate Risk: Debt funds are sensitive to interest rate changes. Rising interest rates may cause prices to fall, affecting the long-term investment returns in India of debt-based mutual funds.
- Credit Risk: Funds that invest in corporate bonds or debt securities may face the risk of issuer defaults, especially in low-rated bonds.
- Liquidity Risk: Some funds, particularly sectoral or thematic funds, may not have sufficient market liquidity, making it difficult to buy or sell units at expected prices.
- Concentration Risk: Sectoral funds, while potentially offering high returns, are concentrated in specific industries, making them more vulnerable to sector-specific downturns.
Factors to Consider Before Investing in Best Mutual Funds in India
- Investment Goal: Determine whether you are aiming for short-term gains or long-term mutual fund returns. Funds with a long track record may offer different perspectives on performance.
- Risk Tolerance: Understand your comfort level with risk. Some funds may experience more fluctuations, while others may offer more stability.
- Expense Ratio: The expense ratio indicates the cost of managing a fund. Funds with lower expense ratios might help retain a larger portion of mutual fund returns.
- Performance History: Reviewing a fund’s past performance can provide insight into its consistency over time.
Who Can Consider Investing in the Best Mutual Funds in India?
- Long-Term Investors: Those looking for steady growth over time might prefer funds with consistent returns over a 10-year period, which tend to perform well through market fluctuations.
- New Investors: Beginners in investing often gravitate toward long-term equity funds, as these generally offer a mix of growth potential and stability.
- Retirement Savers: Individuals focused on retirement savings may look for mutual fund investment plans that deliver consistent returns over time. Mutual fund investment plans with strong historical performance may align with these objectives.
To Wrap It Up
Mutual fund selection should take into account individual investment goals, risk tolerance, and time frame. Funds with consistent returns and long-term growth may suit some investors, while others might consider higher-risk options for potentially higher returns. A mutual fund performance tracker can provide useful data on returns, expenses, and risks. Historical data, such as 10-year returns, may offer insights into mutual funds investment plans with a history of long-term growth.
Looking for a Loan Against Mutual Funds (LAMF)? Explore LAMF on smallcase –
You can now apply for a loan against mutual funds (LAMF) on smallcase. Explore the quick and paperless process with the following articles about the eligibility criteria, documents required, features, benefits and more on LAMF at smallcase!
Frequently Asked Questions About Best Mutual Funds in India
The best funds for long-term investment are typically equity funds or index funds with consistent return mutual funds in India and a strong historical track record of 10-year mutual fund performance.
You can use mutual fund performance tracker in India like Tickertape to monitor returns over different periods and assess whether the fund meets your investment goals.
Top performing equity mutual funds in India often show the highest returns mutual funds over the long term. We have listed the top funds according to their 10Y returns but investors must stay diligient and conduct their own research and/or consult a financial advisor before investing.
When selecting mutual funds for long-term investment, you may consider those with a strong track record of steady growth and low expense ratios for cost-efficient investing.
Yes, some mutual funds, especially index funds and large-cap funds, focus on stable growth. These funds are considered best performing index funds 10-year and offer reliability over time.
