List of Top High Return Mutual Funds in India

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.

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 6th February 2026, and the data is derived from Tickertape Mutual Fund Screener. 

• Plan: Growth
• Category: Equity
• 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

SBI PSU Fund

SBI PSU Fund is a thematic equity scheme that invests predominantly in shares of Public Sector Undertakings (PSUs). The fund’s portfolio includes government-owned companies across sectors like banking, energy, infrastructure, manufacturing, and other state-controlled enterprises.

Aditya Birla SL PSU Equity Fund

Aditya Birla SL PSU Equity Fund invests primarily in equity securities of Public Sector Undertakings and government-owned companies. The scheme focuses on PSUs across various sectors, including financial services, oil and gas, power, metals, and infrastructure.

ICICI Pru Infrastructure Fund

ICICI Pru Infrastructure Fund is a thematic equity scheme investing in infrastructure and infrastructure-related companies. The fund focuses on sectors including construction, cement, power, transportation, logistics, telecommunication networks, and other core infrastructure segments across the economy.

Invesco India PSU Equity Fund

Invesco India PSU Equity Fund invests predominantly in equity and equity-related securities of Public Sector Undertakings. The scheme’s portfolio comprises government-owned enterprises across banking, energy, capital goods, utilities, metals, and other sectors where PSUs operate.

Quant Small Cap Fund

Quant Small Cap Fund is an equity scheme that invests at least 65% of its assets in small-cap companies. The fund follows a quantitative investment approach, focusing on stocks ranked below 250th position by market capitalisation across various sectors.

ICICI Pru Commodities Fund

ICICI Pru Commodities Fund is a sectoral scheme investing in companies involved in commodity production, processing, and distribution. The fund’s portfolio includes businesses across metals, mining, oil and gas, chemicals, agriculture commodities, and other commodity-linked sectors.

Quant Infrastructure Fund

Quant Infrastructure Fund invests primarily in equity securities of companies operating in infrastructure and related sectors. The scheme’s portfolio includes construction, power generation, roads, ports, telecommunication infrastructure, real estate development, and other core infrastructure businesses.

ICICI Pru India Opp Fund

ICICI Pru India Opp Fund is a diversified equity scheme that invests across market capitalisations and sectors based on opportunity assessment. The fund follows a flexible investment approach, allocating to large-cap, mid-cap, and small-cap stocks based on valuation and growth potential.

Motilal Oswal Midcap Fund

Motilal Oswal Midcap Fund is an equity scheme investing at least 65% of its assets in mid-cap companies. The fund focuses on stocks ranked between 101st and 250th position by market capitalisation, employing fundamental research-driven stock selection.

LIC MF Infra Fund

LIC MF Infra Fund invests predominantly in equity securities of infrastructure and infrastructure-related companies. The scheme’s portfolio spans power generation and distribution, construction, transportation, telecommunication networks, urban infrastructure, and other core infrastructure development sectors.

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 high returns mutual fund

Equity Mutual Funds

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 high returns mutual fund 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!

Here are a few popular smallcases among new investors:

Advantages of Investing in High-Return Mutual Funds

• Diversification: These top return mutual 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 high returns mutual funds.
• Regulatory Oversight: Equity high returns 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 and top return 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.
• Mutual Fund Interest Rate Risk: Rising mutual fund 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 mutual fund 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 mutual 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 and top return 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 with highest returns 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 mutual funds with highest returns.
• 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.

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Frequently Asked Questions About the Best Return Mutual Fund