For investors with a long-term horizon, mutual funds have the potential to generate substantial wealth. Over the past decade, while many funds have performed well, a few have stood out by consistently delivering exceptional returns. In this article, we spotlight 10 Mutual Fund Schemes that have created significant long-term value in the last 10 years along with details on their investment objectives, performance over 3, 5, and 10 years, portfolio focus, and the key risks to consider before investing.
10 Mutual Fund Schemes with 10-Year Returns Between 464% and 646%
Let’s get started!
| Mutual Fund Name | Annualised Return (10Y) | Absolute Returns (10Y) | ₹1 Lakh Became |
|---|---|---|---|
| Nippon India Small Cap Fund | 22.3% | 646.6% | 7.46 Lakhs |
| Quant ELSS Tax Saver Fund | 21.0% | 573.7% | 6.7 Lakhs |
| SBI Small Cap Fund | 20.0% | 519.8% | 6.19 Lakhs |
| Quant Flexi Cap Fund | 20.0% | 518.4% | 6.18 Lakhs |
| Quant Small Cap Fund | 19.7% | 508.4% | 6.08 Lakhs |
| Axis Small Cap Fund | 19.5% | 497.8% | 5.97 lakhs |
| Motilal Oswal Midcap Fund | 19.3% | 486.6% | 5.86 Lakhs |
| Edelweiss Mid Cap Fund | 19.2% | 484.5% | 5.84 Lakhs |
| Invesco India Mid Cap Fund | 19.0% | 471.2% | 5.71 Lakhs |
| Kotak Emerging Equity Fund | 18.8% | 464.1% | 5.64 Lakhs |
Top Performing Mutual Funds in last 10 years – Deep Dive
Let’s deep dive into these mutual funds.
#1 – Nippon India Small Cap Fund
Investment Objective: This fund seeks to generate long-term capital growth by investing predominantly in small-cap companies, tapping into their high growth potential.
Annualised Returns:
- 3 Years: 24.7%
- 5 Years: 39.5%
- 10 Years: 22.2%
Where does the scheme invest? The fund maintains a diversified portfolio across small-cap companies in sectors such as healthcare, financials, industrial manufacturing, and technology.
Risk Factors:
- High volatility associated with small-cap investing.
- Liquidity risks during market corrections.
- Company-specific risks, as small businesses may be more vulnerable to operational challenges.
This fund is part of our earlier article on 5 Mutual Funds with 5 year returns between 426% to 619%.
#2 – Quant ELSS Tax Saver Fund
Investment Objective: This fund aims to provide long-term capital appreciation along with tax benefits under Section 80C by investing primarily in equity and equity-related instruments. It follows an aggressive investment strategy and actively manages sectoral allocation.
Annualised Returns:
- 3 Years: 17.0%
- 5 Years: 35.8%
- 10 Years: 21.0%
Where does the scheme invest?
The fund typically invests across market capitalisations with a bias towards high-conviction ideas. Its portfolio includes companies in sectors like financials, power, and capital goods, often with tactical bets to capture market momentum.
Risk Factors:
- High volatility due to aggressive sector rotation.
- Concentrated bets can amplify downside in uncertain markets.
- Market timing and strategy execution risks.
#3 – SBI Small Cap Fund
Investment Objective: The fund aims to provide investors with opportunities for long-term capital appreciation by investing predominantly in a well-diversified portfolio of equity stocks of small-cap companies.
Annualised Returns:
- 3 Years: 17.6%
- 5 Years: 30.9%
- 10 Years: 20.0%
Where does the scheme invest?
The fund invests in emerging small-cap companies across various sectors including consumer goods, industrials, chemicals, and healthcare. Its bottom-up stock picking approach helps identify businesses with strong growth potential and scalable models.
Risk Factors:
- Higher volatility due to exposure to small-cap stocks.
- Liquidity challenges during market downturns.
- Greater sensitivity to economic cycles and regulatory changes
#4 – Quant Flexi Cap Fund
Investment Objective: The fund seeks to generate long-term capital appreciation by investing in a dynamic mix of large, mid, and small-cap stocks across sectors. It takes a high-conviction and active approach to capture market opportunities.
Annualised Returns:
- 3 Years: 20.8%
- 5 Years: 35.4%
- 10 Years: 20.0%
Where does the scheme invest?
The portfolio is spread across sectors like financials, capital goods, and technology, with dynamic allocation based on macro trends and market signals.
Risk Factors:
- Market timing and aggressive rebalancing risks.
- Volatility due to tactical allocation.
- Exposure across market caps can lead to inconsistent performance in volatile markets.
This fund is part of Best Mutual Funds as per Google Gemini to invest in 2025.
#5 – Quant Small Cap Fund
Investment Objective: The fund targets wealth creation by investing in small-cap companies with strong fundamentals and scalable business models. It follows an aggressive strategy with tactical sector rotation.
Annualised Returns:
- 3 Years: 24.9%
- 5 Years: 49.2%
- 10 Years: 19.7%
Where does the scheme invest?
The fund takes concentrated bets in high-potential small-cap stocks from sectors like manufacturing, logistics, and financials.
Risk Factors:
- High volatility inherent in small-cap investments.
- Liquidity risks during corrections.
- Sector rotation and stock concentration risk.
#6 – Axis Small Cap Fund
Investment Objective: This fund aims to generate long-term capital appreciation by investing primarily in small-cap stocks with strong growth potential and quality management.
Annualised Returns:
- 3 Years: 20.1%
- 5 Years: 32.0%
- 10 Years: 19.5%
Where does the scheme invest?
Focuses on bottom-up stock picking in sectors like chemicals, financials, and healthcare with an emphasis on quality and sustainable business models.
Risk Factors:
- Small-cap volatility and liquidity constraints.
- Limited downside protection in bearish phases.
- Dependence on strong execution by small businesses.
#7 – Motilal Oswal Midcap Fund
Investment Objective: The fund seeks to deliver long-term capital appreciation by investing in high-growth midcap stocks using a buy-and-hold strategy.
Annualised Returns:
- 3 Years: 31.0%
- 5 Years: 39.4%
- 10 Years: 19.3%
Where does the scheme invest?
Invests in mid-sized companies with competitive advantages, largely in consumption, BFSI, and capital goods.
Risk Factors:
- Mid-cap exposure creates higher volatility.
- Strategy may underperform in short-term market cycles.
- Sectoral concentration risks.
Even ChatGPT Recommended Mutual Fund Portfolio for 2025 has above mutual fund scheme.
#8 – Edelweiss Mid Cap Fund
Investment Objective: This fund aims to provide long-term wealth creation by investing in high-growth mid-sized companies across various sectors.
Annualised Returns:
- 3 Years: 27.0%
- 5 Years: 35.1%
- 10 Years: 19.2%
Where does the scheme invest?
Focuses on midcap businesses in sectors like financials, consumer, and infrastructure with scalable potential and robust business models.
Risk Factors:
- Midcap volatility and liquidity risks.
- Exposure to cyclical sectors can lead to return fluctuations.
- Economic and policy changes can impact performance.
#9 – Invesco India Mid Cap Fund
Investment Objective: Seeks to generate capital growth by investing in quality midcap companies with strong fundamentals and long-term scalability.
Annualised Returns:
- 3 Years: 27.0%
- 5 Years: 32.0%
- 10 Years: 19.0%
Where does the scheme invest?
Focuses on mid-sized firms from sectors such as chemicals, healthcare, and finance with a fundamental-driven approach.
Risk Factors:
- Market corrections can impact midcap valuations significantly.
- Lower liquidity than large-caps.
- Company-specific operational risks.
#10 – Kotak Emerging Equity Fund
Investment Objective: The fund seeks to generate capital appreciation by investing in mid and small-cap companies with potential to become future leaders.
This fund is part of our earlier article on Top 5 Midcap Mutual Funds to invest in 2025.
Annualised Returns:
- 3 Years: 21.7%
- 5 Years: 32.4%
- 10 Years: 18.8%
Where does the scheme invest?
Invests across sectors like financials, capital goods, and healthcare, identifying promising businesses early in their growth phase.
Risk Factors:
- High risk from smaller company exposure.
- Market and liquidity risks.
- Dependence on execution of business plans by mid-cap firms.
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elaborate with example if I invest directly with nipponmf.com website and investing through 3rd party websites like ETmoney, Kuvera etc., how much extra I have to pay .
Brijpal Singh, brpi5196@gmail.com
How to invest in Nippon India Small Cap Fund SIP?
You can invest through
1) Directly visiting nipponmf.com website, login and select the mutual fund, make payment
2) Use 3rd party websites like ETmoney, Kuvera etc., Login, select fund and make payment