From Nippon to Quant and SBI, these funds delivered 18–20% CAGR over 10 years
Mutual funds have become one of the most popular investment choices in India, especially for long-term wealth building. Over the past ten years, a few mutual funds have delivered outstanding performance, giving returns far better than many other investment options. These funds have consistently stayed strong through market ups and downs and rewarded investors with solid returns.
Here are the top five mutual funds in India that have delivered exceptional returns over the last decade.
1. Nippon India Small Cap Fund
Category: Small-cap equity
10-Year Return (CAGR): Around 20%
3-Year Return (CAGR): Around 22.3%
This fund focuses on small companies with the potential to grow fast. These are not big or well-known firms, but they often have strong business models and future prospects. Over the last 10 years, the fund has performed very well, delivering close to 20% annual returns. The fund keeps its costs low, with an expense ratio of around 0.7%, which helps investors earn better returns. Its strategy of identifying promising companies early has worked in its favor.
2. Quant Small Cap Fund
Category: Small-cap equity
10-Year Return (CAGR): Around 18.8%
7-Year Return (CAGR): Over 25%
Quant Small Cap Fund has become one of the best-performing small-cap funds in the country. It uses a smart approach, relying on data and careful research to select its investments. The fund has delivered very high returns over the last seven years and has maintained strong growth even over a full decade. It focuses on undervalued small firms and holds on to winning stocks for a long time.
3. SBI Small Cap Fund
Category: Small-cap equity
10-Year Return (CAGR): Around 18.5%
Assets Under Management (AUM): Around ₹31,000 crore
SBI Small Cap Fund is one of the largest and most trusted small-cap mutual funds in India. It invests in companies that are financially strong and have good long-term growth potential. The fund follows a careful, value-based investment style. Despite its large size, the fund has continued to perform well. Its stable management and disciplined approach have helped it build a strong reputation.
4. Motilal Oswal Midcap Fund
Category: Mid-cap equity
10-Year Return (CAGR): Around 17.4%
7-Year Return (CAGR): Around 21.5%
This fund invests in medium-sized companies that are neither too big nor too small. These mid-cap firms often grow faster than large companies but are less risky than small-cap firms. Motilal Oswal Midcap Fund has successfully found such companies and invested in them early. Its solid return over the last decade makes it one of the best mid-cap mutual funds in India.
5. Quant ELSS Tax Saver Fund
Category: Equity Linked Savings Scheme (ELSS) – Tax Saving
10-Year Return (CAGR): Around 18.9%
7-Year Return (CAGR): Around 21.8%
This fund offers both good returns and tax savings under Section 80C of the Income Tax Act. It has performed better than most other tax-saving mutual funds. The fund holds a mix of mid-cap and large-cap stocks and uses in-depth research to choose quality companies. Its strong performance along with tax benefits makes it a good option for long-term investors.
Common Factors Behind Their Success
All five funds share a few important characteristics that have helped them succeed:
1. Strong Fund Management
Each fund is managed by experienced professionals who make smart and timely decisions. Their strategies are based on careful study of the market and company fundamentals.
2. Consistent Long-Term Focus
These funds have performed well by sticking to their long-term investment strategies, even during difficult times like the 2020 pandemic or the global market slowdowns in earlier years.
3. Low Expense Ratios
Most of these funds charge less than 1% in annual fees, allowing investors to keep more of their earnings. Lower costs often lead to better long-term performance.
4. Disciplined Investment Process
Each fund follows a disciplined and research-backed process to choose its investments. This helps in identifying high-growth companies before they become widely popular.
Latest Trends in 2025
1. Growing Preference for Active Funds
In 2025, there has been a noticeable shift back towards actively managed mutual funds, especially in the small- and mid-cap segments. These funds are showing better results than passive options in many cases.
2. Global Diversification
With global markets evolving, many Indian investors are now interested in mutual funds that offer exposure to international stocks. This helps reduce risk and balance the portfolio.
3. Tax-Saving Funds Gaining Popularity
ELSS funds like the Quant Tax Saver are gaining more attention, especially from salaried investors looking to save on taxes while building long-term wealth.
How These Funds Fit in a Portfolio
These funds can be used in different ways depending on financial goals and risk appetite:
Small-Cap Funds: High-growth potential, but come with higher short-term risk. Suitable for long-term wealth creation.
Mid-Cap Funds: Offer balanced growth and lower volatility than small-cap funds.
ELSS Funds: Provide tax savings along with good returns. Ideal for long-term tax planning.
A balanced portfolio could include a mix of small-cap, mid-cap, and ELSS funds depending on the investor’s needs.
Points to Keep in Mind
While these funds have done very well in the past, it is important to consider a few things:
Past performance is not a guarantee of future results.
Market volatility can affect short-term returns, especially in small-cap and mid-cap funds.
Valuations may be high after years of good returns.
Change in fund management or strategy can impact future performance.
Regular monitoring and reviewing of investments are always important.
These five mutual funds have stood out over the past decade by delivering excellent returns. Their long-term approach, strong management, and disciplined strategies have made them favorites among investors looking to grow their wealth.
With small-cap, mid-cap, and tax-saving categories represented, these funds offer something for every investor type. As the mutual fund industry continues to grow in India, these top-performing schemes serve as strong examples of what disciplined and long-term investing can achieve.
