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.
| Mutual Fund Plans | AUM (Rs. in cr.) | Expense Ratio (%) | CAGR 5Y (%) | CAGR 3Y (%) |
|---|---|---|---|---|
| Aditya Birla SL PSU Equity Fund | 6,043.99 | 0 | 26.57 | 28.73 |
| LIC MF Infra Fund | 1,046.65 | 0.83 | 26.38 | 29.35 |
| SBI PSU Fund | 6,669.45 | 0.85 | 26.32 | 31.31 |
| DSP India T.I.G.E.R Fund | 5,788.63 | 0 | 26.10 | 27.64 |
| ICICI Pru Infrastructure Fund | 8,311.08 | 1.18 | 25.94 | 23.67 |
| Nippon India Power & Infra Fund | 7,707.34 | 0.82 | 25.67 | 27.04 |
| Canara Rob Infrastructure Fund | 988.78 | 0.85 | 25.37 | 25.90 |
| Invesco India PSU Equity Fund | 1,520.15 | 0.77 | 24.94 | 28.25 |
| Franklin Build India Fund | 3,213.95 | 1.08 | 24.62 | 25.72 |
| HDFC Infrastructure Fund | 2,416.48 | 1.1 | 24.45 | 24.71 |
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 15th May 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
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.
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.
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.
DSP India T.I.G.E.R Fund
DSP India T.I.G.E.R Fund is an open-ended thematic equity scheme focused on infrastructure, economic reform, and growth-linked sectors. The fund invests in companies connected to themes such as transport, energy, construction, engineering, and capital goods. Its performance depends on investment cycles, policy execution, and sector demand.
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.
Nippon India Power & Infra Fund
Nippon India Power & Infra Fund is an open-ended thematic equity scheme that focuses on companies in the power and infrastructure sectors. The fund may invest in utilities, capital goods, construction, energy, and allied businesses. Its performance depends on sector cycles, regulatory changes, project execution, and market demand.
Canara Rob Infrastructure Fund
Canara Rob Infrastructure Fund is an open-ended equity scheme that invests in companies participating in India’s infrastructure development. The fund may cover sectors such as construction, power, engineering, cement, transport, and related services. Its performance depends on infrastructure activity, corporate earnings, policy support, and broader equity market conditions.
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.
Franklin Build India Fund
Franklin Build India Fund is an open-ended equity scheme that invests in companies linked to India’s infrastructure and economic development theme. The portfolio may include sectors such as construction, capital goods, financial services, power, logistics, and cement. Its performance depends on investment activity, policy execution, and corporate earnings.
HDFC Infrastructure Fund
HDFC Infrastructure Fund is an open-ended equity scheme focused on companies connected to infrastructure development in India. The fund may invest across sectors such as construction, engineering, power, cement, transport, and industrial services. Its performance depends on infrastructure spending, project execution, sector cycles, and market conditions.
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
| 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 top performing mutual funds India, 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!
Advantages of Investing in High-Return Mutual Funds
- Diversification: These top performing mutual funds India invest across different companies and sectors, which helps mitigate risk. Diversification reduces the impact if one sector or stock performs poorly, supporting stability in the highest return mutual fund in 1 year.
- Regulatory Oversight: Equity low risk high return 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 low risk high 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 high risk high return mutual 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
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.
Note: Mutual fund investments are subject to market risks. These funds are not suitable for everyone. Please assess your risk appetite and consult a SEBI-registered financial advisor before investing.
There is no single scheme that fits all investors. Many investors look at the best SIP mutual funds based on past performance, costs, and consistency. For newcomers, some schemes are often highlighted as the highest return SIP mutual funds for beginners, though suitability depends on goals, risk appetite, and time horizon.
You can use the Tickertape Mutual Fund Screener and select the equity category to compare funds based on past performance. Investors can also identify mutual funds for long-term returns using more than 200 filters such as returns, expense ratios, volatility, and more.
As of 15th May 2026, the top five equity mutual funds with the highest 5-year CAGR include:
– Aditya Birla SL PSU Equity Fund
– LIC MF Infra Fund
– SBI PSU Fund
– DSP India T.I.G.E.R Fund
– ICICI Pru Infrastructure Fund
Note: The funds listed above are meant to be educational and not recommendations.
Past returns do not guarantee future performance of mutual funds. Future returns depend on market conditions, economic factors, fund management, portfolio composition, and unpredictable variables differing from historical periods.
