Top High-Return Mutual Funds in India 2025: Performance & Returns
Mutual funds are managed by professionals and provide a diversified way to invest. Some funds have shown high returns, proving their ability to outperform the market over time. Understanding what drives their performance, the risks they carry, and the factors to review before investing offers clarity to investors.
This article covers some of the best-performing mutual funds in India, highlighting key factors to consider while evaluating.
Top 10 High Return Mutual Funds in India
The following table highlights some of the top-performing mutual funds based on their past performance.
| Mutual Fund Plans | AUM (Rs. in cr.) | Expense Ratio (%) | CAGR 5Y (%) | NAV | Volatility (%) | Alpha | Exit Load (%) | Alpha (%) | Volatility (%) |
|---|---|---|---|---|---|---|---|---|---|
| Quant Small Cap Fund | 29,629.09 | 0.71 | 36.8 | 272.99 | 18.05 | 5.15 | 1 | 4.09 | 11.04 |
| ICICI Pru Infrastructure Fund | 8,042.75 | 1.14 | 34.85 | 208.04 | 15.68 | 8.58 | 1 | 2.27 | 13.19 |
| Motilal Oswal Midcap Fund | 33,608.53 | 0.7 | 35.13 | 119.71 | 18.48 | 8.6 | 1 | 2.79 | 17.40 |
| Quant Infrastructure Fund | 3,428.94 | 0.65 | 34.8 | 40.03 | 19.37 | 1.28 | 0.5 | 4.07 | 16.28 |
| Nippon India Small Cap Fund | 65,922.00 | 0.64 | 33.68 | 57.84 | 20.4 | 9.4 | 0.5 | 1.33 | 12.16 |
| Bandhan Infrastructure Fund | 1,675.88 | 0.84 | 33.59 | 187.8 | 17.86 | 7.22 | 1 | 3.23 | 11.54 |
| HDFC Infrastructure Fund | 2,539.90 | 1.08 | 33.01 | 51.82 | 16.06 | 8.12 | 1 | 2.42 | 14.09 |
| DSP India T.I.G.E.R Fund | 5,405.54 | 0.73 | 32.73 | 50.09 | 19.34 | 12.07 | 1 | 3.34 | 15.29 |
| Franklin Build India Fund | 2,950.12 | 0.95 | 32.79 | 338.82 | 17.18 | 7.64 | 1 | 2.08 | 14.46 |
| Bandhan Small Cap Fund | 14,062.19 | 0.4 | 32.9 | 160.75 | 16.33 | 4.45 | 1 | 2.58 | 11.59 |
Disclaimer: Please note that the above list of high return mutual funds in India is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing. The data is derived from Tickertape Mutual Fund Screener and is subject to real-time updates.
Note: The data on the top 10 mutual funds with the highest return in India is from 2nd September 2025, and the data is derived from Tickertape Mutual Fund Screener.
- 5Y CAGR: Sorted from Highest to Lowest
🚀 Pro Tip: Use Tickertape’s Mutual Fund Screener to filter and compare funds based on performance, expense ratio, and risk. Find funds that match your goals and risk tolerance for smarter investment choices.
Overview of the Best Return Mutual Funds
Quant Small Cap Fund
Quant Small Cap Fund invests in small-cap companies with strong growth potential. It focuses on under-researched businesses and applies dynamic strategies to capture opportunities across different sectors.
Motilal Oswal Midcap Fund
Motilal Oswal Midcap Fund targets mid-sized companies with established track records. It seeks to benefit from firms that are scaling operations, expanding market presence, and building long-term value.
ICICI Prudential Infrastructure Fund
This fund invests in companies linked to India’s infrastructure growth story. Its portfolio covers construction, telecom, power, and transport businesses that stand to benefit from ongoing development.
Quant Infrastructure Fund
Quant Infrastructure Fund focuses on sectors driving India’s development, including energy, telecom, and construction. It uses active strategies to benefit from reforms and government-led projects.
Nippon India Small Cap Fund
Nippon India Small Cap Fund identifies smaller businesses with growth potential. It invests in under-researched companies, diversifying across industries to balance growth opportunities with risk.
Bandhan Infrastructure Fund
This fund focuses on infrastructure and allied industries such as transport, energy, and construction. It aims to capture opportunities arising from India’s long-term capital expenditure.
HDFC Infrastructure Fund
HDFC Infrastructure Fund invests in companies involved in power, telecom, and construction. It follows a diversified approach to tap into opportunities from urban and industrial development.
Bandhan Small Cap Fund
Bandhan Small Cap Fund invests in smaller enterprises with potential for growth. It emphasises businesses capable of expanding rapidly over time and takes a diversified approach across industries.
Franklin Build India Fund
This fund targets businesses contributing to infrastructure development. Its portfolio includes companies in construction, energy, and transportation, aligning with India’s industrial growth story.
DSP India T.I.G.E.R Fund
The DSP India T.I.G.E.R Fund invests in sectors benefiting from economic reforms and infrastructure development. It covers areas such as energy, capital goods, and transportation.
What are High Return Mutual Funds?
High-return mutual funds are schemes that have historically delivered strong growth compared to their peers or benchmarks. Unlike conservative funds that focus mainly on stability, the portfolio composition of best return mutual funds often comprises companies with higher growth potential but also higher risk.
Taxation of Mutual Funds
The taxation on capital gains from your high-return mutual funds is based on their holding periods and asset allocation. Here’s the latest taxation policy on mutual funds:
Equity Mutual Funds
| Capital Gains Type | Holding Period | Tax Rate |
| Short-Term Capital Gains (STCG) | Less than 12 months | 20% flat |
| Long-Term Capital Gains (LTCG) | More than 12 months | 12.5% (gains up to ₹1.25 lakh per year are tax-free) |
How to Invest in the Best Return Mutual Funds?
You can easily invest in top-performing mutual funds by following these steps:
- To invest in mutual funds, you can visit an equity investment platform such as smallcase or Tickertape.
- The next step would be to research and identify the mutual funds that delivered the highest returns. You can sort it out on the basis of 1-month return, 3-yr CAGR, 5-yr CAGR or more using Tickertape Mutual Fund Screener. With 50+ pre-loaded filters, it helps you to create a comprehensive list by giving insights into the fund’s performance.
- Once you have identified the funds that align with your investment thesis, go to smallcase.com or the smallcase app, and log in via your phone number. Click on ‘Discover‘ and enter the name of the specific mutual fund in the search bar and hit enter. You can click on ‘invest now’ and select whether you want to invest a lump sum amount or start a SIP and start investing!
Advantages of Investing in High-Return Mutual Funds
- Diversification: These funds invest across different companies and sectors, which helps mitigate risk. Diversification reduces the impact if one sector or stock performs poorly, supporting stability in mutual funds.
- Regulatory Oversight: Equity mutual funds operate under SEBI regulations, ensuring transparency and compliance. This regulatory framework builds investor confidence by providing safeguards against mismanagement or lack of accountability.
- Professional Management: These top-performing mutual funds are managed by experienced fund managers who conduct thorough research, monitor markets, and rebalance portfolios. This eliminates the need for investors to pick and track individual stocks themselves.
Risks Involved While Investing in a Mutual Fund with Highest Returns
- Market Risk: The value of investments can fluctuate due to changing market conditions, affecting the overall mutual fund returns of even the best high-return mutual funds.
- Interest Rate Risk: Rising interest rates increase borrowing costs for companies, which can reduce profits and lower stock valuations. Since equity funds primarily invest in stocks, these changes in interest rates also influence the returns generated by such funds
- Higher Risk-Return Tradeoff: These high-growth mutual funds in India aim for faster wealth creation, which naturally involves higher risk. They tend to perform well when markets are favourable but may face challenges during economic slowdowns or market downturns.
Factors to Consider While Investing in the Best Return Mutual Fund
- Investment Objective: Each fund is designed with a specific purpose, such as growth, income generation, or capital preservation. Understanding the objective helps assess whether a mutual fund’s strategy aligns with your own financial goals.
- Historical Performance: Reviewing past performance, especially the average mutual fund return, may provide insights into potential outcomes. However, past performance of even the best-performing funds in 2025 does not guarantee future results.
- Expense Ratio: Lower expense ratios can improve overall outcomes. Comparing the costs of similar mutual fund schemes for wealth creation helps evaluate efficiency and the portion of returns that stay invested.
- Fund Manager Experience: The expertise and experience of the fund manager might significantly influence the fund’s performance.
- Risk-Adjusted Returns: Evaluating how much risk the fund takes to achieve its returns can be crucial. Some high-yield mutual funds may generate growth, but the higher volatility may not be suitable for all investors.
- Portfolio Diversification: A fund that invests across different companies and sectors can reduce risk. Many top mutual funds for capital appreciation manage volatility by diversifying their holdings instead of relying on a single sector.
Who Might Explore the Best Return Mutual Funds?
Considering the high volatility, high-return mutual funds are best suited for the following investor personas:
- Young Professionals: Investors at the start of their careers often aim to grow wealth over the long term. With more years to invest and fewer financial responsibilities, they may explore high-return mutual funds to build capital steadily.
- Risk-Tolerant Investors: Those investors who are comfortable with market volatility and willing to accept higher risks in exchange for the possibility of strong gains, have a long-term investment horizon, and are financially stable enough to withstand temporary losses may explore high-return mutual funds.
- Experienced Investors: Investors who already understand mutual funds and market trends may consider high-return options to add diversity and growth potential to their portfolios.
- Long-Term Planners: Investors preparing for long-term goals like retirement may explore these funds, since longer timelines provide room for compounding and growth despite market fluctuations.
- Wealth Builders: Investors focused on growing their wealth at a faster pace may prefer high-return funds, even if it means dealing with more risk along the way.
To Wrap Up…
Investing in high-return mutual funds involves considering several key factors, including financial goals, risk tolerance, and investment horizon. Careful research, including historical performance analysis, and understanding risks and taxation can help inform better decisions. It is also beneficial to review the portfolio regularly and make adjustments as needed to stay aligned with financial objectives.w your portfolio and adjust as necessary to stay on track with your financial objectives.
Frequently Asked Questions About the Best Return Mutual Fund
The best return mutual fund varies depending on individual goals, risk tolerance, and market conditions. However, investors can analyse some of the top-performing mutual funds in the last 5 years using the Tickertape Mutual Fund Screener.
The Compound Annual Growth Rate (CAGR) formula commonly calculates mutual fund returns. This formula measures the mean annual growth rate of an investment over a specified period.
High-return mutual funds often show higher growth but also carry more volatility. Their outcomes depend on market cycles and sector trends. Beginners must do research to understand how these funds work, since their performance differs from more stable categories.
The average rate of return on mutual funds can vary widely based on the type of fund and market conditions. Historical averages might serve as a benchmark, but they do not guarantee future performance.
Mutual fund investment options with high returns might be suitable for young professionals, risk-tolerant investors, experienced investors, long-term planners, and those focused on wealth accumulation.
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