Highest Return Mutual Funds In Last 10 Years
18 Nov 2025 7 mins Mutual Funds
Investing in mutual funds has become a popular choice for many Indian investors looking to grow their wealth over time. With the potential for high returns, understanding which mutual funds have performed best over the last decade is crucial for making informed financial decisions.
This article delves into the highest return mutual funds in India over the past ten years, providing insights into their performance, the factors influencing returns, and actionable steps for investors. If you're ready to start investing in mutual funds, keep reading!
Understanding Mutual Fund Returns
Mutual funds pool money from various investors to purchase a diversified portfolio of stocks, bonds, or other securities. The returns on these investments can vary significantly based on the fund's management and market conditions. Over the last ten years, mutual funds have generally provided better returns compared to traditional savings instruments like fixed deposits.
The average return on mutual funds for the last decade has been impressive, especially for equity mutual funds. According to the Association of Mutual Funds in India (AMFI), the average annual return for equity mutual funds has hovered around 12-15%, depending on the market cycles. However, some funds have outperformed this average, achieving returns upwards of 20% annually. For example, during the bull run from 2014 to 2017, many equity funds experienced spectacular growth, reflecting the underlying strength of the Indian economy and increasing consumer spending.
Factors Influencing Mutual Fund Returns
Market Conditions: Economic growth, inflation, and interest rates can significantly influence mutual fund performance. For instance, during periods of economic expansion, equity funds tend to perform better due to increased corporate profits and investor confidence.
Fund Management: The expertise of fund managers plays a crucial role in navigating market volatility and selecting the right securities. Funds managed by experienced professionals with a proven track record often deliver superior returns.
Investment Strategy: Funds focused on specific sectors or themes may experience different levels of risk and return. For example, funds that invested in technology or healthcare sectors during the pandemic have seen significant gains.
Expense Ratios: Lower expense ratios can lead to higher net returns for investors over time. A fund with a 1% higher expense ratio can erode returns significantly over a long investment horizon.
Top Performing Mutual Funds of the Last Decade
Here’s a look at some of the highest return mutual funds in India over the last ten years:
Mutual Fund Name | Category | 10-Year Return (%) |
|---|---|---|
Axis Bluechip Fund | Large Cap | 18.6% |
ICICI Prudential Equity & Debt Fund | Hybrid | 16.5% |
SBI Small Cap Fund | Small Cap | 22.3% |
HDFC Mid-Cap Opportunities Fund | Mid Cap | 19.4% |
Motilal Oswal Nasdaq 100 Fund of Fund | International | 23.1% |
Analysis of the Top Performers
The above-listed funds have demonstrated consistent performance due to their robust management strategies and ability to capitalize on market trends. For instance, the SBI Small Cap Fund has been particularly successful by investing in smaller companies with high growth potential, which often outperform larger firms in expanding economies. The fund's strategy of identifying emerging market leaders has allowed it to achieve returns that surpass many competitors.
On the other hand, the Axis Bluechip Fund has focused on stable, large-cap companies, providing a more conservative investment approach with substantial returns. By investing in well-established companies with solid fundamentals, the fund has managed to deliver consistent performance even during market downturns, showcasing its resilience.
Comparative Analysis: 5-Year and 20-Year Returns
To gauge the performance of mutual funds effectively, it’s essential to consider both short-term and long-term returns. Here’s how the top mutual funds stack up over 5-year and 20-year periods:
Mutual Fund Name | 5-Year Return (%) | 20-Year Return (%) |
|---|---|---|
Axis Bluechip Fund | 15.2% | 14.5% |
ICICI Prudential Equity & Debt Fund | 14.8% | 12.3% |
SBI Small Cap Fund | 19.7% | 18.2% |
HDFC Mid-Cap Opportunities Fund | 16.9% | 15.3% |
Motilal Oswal Nasdaq 100 Fund of Fund | 20.1% | NA |
Understanding the Performance Trends
The 5-year returns provide a snapshot of how the funds have performed in recent market conditions, which have been quite volatile. The strong performance of the SBI Small Cap Fund reflects the rebound of small-cap stocks post-pandemic, as these companies have benefitted from the economic recovery and increased consumer demand. Conversely, the 20-year returns highlight the long-term growth potential of these funds, showcasing their resilience and ability to deliver consistent returns over time. For example, funds that have maintained a diversified portfolio across various sectors have often outperformed during different market cycles, demonstrating the importance of strategic asset allocation.
How to Choose the Right Mutual Fund
With numerous options available, selecting the right mutual fund can be daunting. Here are some actionable steps to consider:
Define Your Goals: Determine your financial goals, risk tolerance, and investment horizon. For instance, if you are saving for retirement in 20 years, you might opt for more aggressive equity funds, whereas for short-term goals, debt funds could be more suitable.
Research Fund Performance: Look into past performance, expense ratios, and fund manager credentials. Use tools like Morningstar or Value Research to compare funds based on metrics such as Sharpe ratio, which adjusts returns for risk taken.
Diversification: Consider funds that offer diversification across different sectors or asset classes. A balanced portfolio can mitigate risks associated with market volatility.
Consult Experts: Seek advice from financial planners or use tools like mutual fund dividend calculators to project potential earnings. Professional insights can provide clarity on market trends and fund performance.
Frequently Asked Questions (FAQs)
What are the highest return mutual funds in the last 10 years?
The highest return mutual funds in the last decade include SBI Small Cap Fund, Axis Bluechip Fund, and Motilal Oswal Nasdaq 100 Fund of Fund, with returns ranging from 18% to 23% annually. These funds have capitalized on market trends and economic recovery, showcasing their effectiveness in wealth generation.
How do mutual fund returns compare over 1, 5, and 20 years?
Mutual fund returns can vary significantly over different time frames. Typically, long-term investments (20 years) yield higher returns compared to short-term (1 year) investments due to the power of compounding and market recovery. For example, while a fund might see fluctuations in the short term, its long-term trajectory often reflects the broader economic growth and market performance.
What is the average return on mutual funds for the last 10 years?
The average return on mutual funds over the last decade has been around 12-15%, with equity funds outperforming traditional investment options. This performance is indicative of the Indian economy's growth, driven by reforms and increasing participation in the equity markets.
How can I calculate potential returns from mutual funds?
You can use a mutual fund dividend calculator or financial tools available online to project your potential returns based on your investment amount and the historical performance of the fund. Additionally, reviewing the fund's fact sheet and performance reports can provide insights into expected future returns based on historical data.
Conclusion
Investing in mutual funds can be a powerful way to build wealth over time, especially when you choose the right funds. By understanding the highest return mutual funds in the last ten years and learning how to select the best options for your financial goals, you can enhance your investment strategy. Remember to conduct thorough research and consider professional advice to make informed decisions. The Indian mutual fund landscape is dynamic, and staying updated on market trends will help you make smarter investment choices.
If you found this article helpful, feel free to share your thoughts in the comments below, and don't forget to subscribe to our newsletter for more financial insights!
Find the Best Mutual Funds for your every investment goal. Explore top mutual funds and start your SIP Today!
Find the Best Credit Card for your spending habits. Explore top credit cards and maximize your rewards.
Get a Personal Loan that fits your needs. Apply for loans from Rs 1000 to Rs 15 Lakhs with competitive rates.
Author - Abhishek Sonawane
Abhishek Sonawane, an MBA graduate from the prestigious Indian Institute of Management Visakhapatnam (IIMV), brings over ten years of experience in the finance domain. His extensive background includes various roles in financial management and strategy, providing him with a comprehensive understanding of the financial landscape. Abhishek’s expertise and dedication to financial education make him an authoritative voice in personal finance, helping readers make informed financial decisions.