For long-term investors aiming at wealth creation, mutual funds continue to be an attractive and rewarding option. Over a 20-year period, a select set of mutual fund schemes have delivered extraordinary absolute returns, turning small investments into substantial wealth. In this article, we highlight 10 mutual fund schemes that have generated absolute returns between 1775% and 2002% in the last 20 years. We’ll explore their investment strategies, risk profiles, and estimated returns on a ₹1 Lakh investment.
Earlier we analysed about 10 Mutual Fund Schemes with 15-Year Returns Between 1247% and 1809% which investors can review them.
How We Filtered These Mutual Funds?
- We considered only regular plans since direct plans were launched in 2013 and lack a 20-year history.
- We included all equity mutual funds: large cap, mid cap, small cap, thematic, sectoral, and multi-cap funds.
- We filtered mutual funds that have completed at least 20 years performance. If the mutual fund scheme is launched in < 20 years, it would not appear in this list.
- We calculated CAGR and absolute returns using historical NAVs.
- These funds have delivered 20-year CAGR returns between 17.75% and 20.02%.
- Absolute returns range between 1775% and 2002%.
An investment of ₹1 Lakh in these funds 20 years ago would be worth ₹18.75 Lakhs to ₹21.02 Lakhs today.
List of Top Performing Mutual Funds in Last 20 Years
Let’s dive in!
| Fund Name | 20 Yr CAGR Return (%) | Absolute Return (%) | ₹1 Lakh Turned To |
|---|---|---|---|
| Nippon India Pharma Fund | 20.02% | 2002% | ₹21.02 Lakhs |
| Sundaram Mid Cap Fund | 19.14% | 1844% | ₹19.44 Lakhs |
| ICICI Prudential Value Fund | 18.82% | 1803% | ₹19.03 Lakhs |
| Nippon India Growth Fund | 18.69% | 1786% | ₹18.86 Lakhs |
| SBI Consumption Opportunities Fund | 18.33% | 1735% | ₹18.35 Lakhs |
| Nippon India Multi Cap Fund | 18.18% | 1714% | ₹18.14 Lakhs |
| Canara Robeco Large & Mid Cap Fund | 18.02% | 1694% | ₹17.94 Lakhs |
| ICICI Prudential Technology Fund | 18.00% | 1692% | ₹17.92 Lakhs |
| HDFC Flexi Cap Fund | 17.90% | 1680% | ₹17.80 Lakhs |
| Canara Robeco ELSS Tax Saver Fund | 17.75% | 1667% | ₹17.75 Lakhs |
*Approximate numbers based on 20-year CAGR
Deep Dive into Top Performing Mutual Funds in Last 20 Years
#1 – Nippon India Pharma Fund
Investment Objective: To provide long-term capital appreciation through investments in pharma and healthcare sector companies.
Annualised Returns:
- 3 Years: 25.7%
- 5 Years: 21.7%
- 10 Years: 14.4%
- 15 Years: 16.3%
- 20 Years: 20.02%
- Absolute Return: 2002% (₹1 Lakh → ₹21.02 Lakhs)
Portfolio Composition: Invests across leading pharma, biotech, and healthcare equipment companies.
Risk Factors:
- Sector concentration
- Regulatory and patent risks
- Global dependency
#2 – Sundaram Mid Cap Fund
Investment Objective: To achieve capital appreciation through investments in mid-sized companies with high growth potential.
Annualised Returns:
- 3 Years: 30.6%
- 5 Years: 28.9%
- 10 Years: 15.3%
- 15 Years: 16.5%
- 20 Years: 19.14%
- Absolute Return: 1844% (₹1 Lakh → ₹19.44 Lakhs)
Portfolio Composition: Focus on mid-cap businesses across industrials, financials, and manufacturing.
Risk Factors:
- High mid-cap volatility
- Liquidity concerns
- Sector rotation risk
Investors can also check 10 CRISIL 5 Star Rated Mutual Funds with over 30% CAGR in the last 5 years.
#3 – ICICI Prudential Value Fund
Investment Objective: To generate long-term returns through a value-investing strategy targeting undervalued stocks.
Annualised Returns:
- 3 Years: 27.0%
- 5 Years: 28.7%
- 10 Years: 15.2%
- 15 Years: 16.8%
- 20 Years: 18.82%
- Absolute Return: 1803% (₹1 Lakh → ₹19.03 Lakhs)
Portfolio Composition: Emphasis on low P/E stocks with turnaround potential and strong fundamentals.
Risk Factors:
- Value trap risk
- Longer time horizon for returns
- Market underperformance during growth cycles
#4 – Nippon India Growth Fund
Investment Objective: To provide long-term capital growth by investing in emerging companies with robust potential.
Annualised Returns:
- 3 Years: 31.9%
- 5 Years: 32.7%
- 10 Years: 18.0%
- 15 Years: 15.8%
- 20 Years: 18.69%
- Absolute Return: 1786% (₹1 Lakh → ₹18.86 Lakhs)
Portfolio Composition: Focuses on mid and small-cap growth stocks across sectors.
Risk Factors:
- Business model scalability
- Limited research coverage on smaller firms
- Cyclical pressures
#5 – SBI Consumption Opportunities Fund
Investment Objective: To generate returns by investing in sectors driven by consumption demand.
Annualised Returns:
- 3 Years: 21.3%
- 5 Years: 26.6%
- 10 Years: 15.8%
- 15 Years: 17.8%
- 20 Years: 18.33%
- Absolute Return: 1735% (₹1 Lakh → ₹18.35 Lakhs)
Portfolio Composition: Consumer goods, retail, autos, and hospitality.
Risk Factors:
- Inflation and demand cycles
- Consumer trend volatility
- Sector-specific downturns
Do you know there are 7 Mutual Funds that turned ₹ 1 Lakh to ₹ 5 Lakhs in 5 years time frame?
#6 – Nippon India Multi Cap Fund
Investment Objective: To provide capital growth through a diversified investment in large, mid, and small-cap stocks.
Annualised Returns:
- 3 Years: 31.0%
- 5 Years: 32.3%
- 10 Years: 15.0%
- 15 Years: 15.8%
- 20 Years: 18.18%
- Absolute Return: 1714% (₹1 Lakh → ₹18.14 Lakhs)
Portfolio Composition: Balanced allocation across sectors and market caps.
Risk Factors:
- Asset allocation risks
- Broader market volatility
- Fund manager dependency
#7 – Canara Robeco Large & Mid Cap Fund
Investment Objective: To generate long-term capital appreciation through investments in large and mid-cap stocks.
Annualised Returns:
- 3 Years: 22.3%
- 5 Years: 23.9%
- 10 Years: 16.0%
- 15 Years: 18.3%
- 20 Years: 18.02%
- Absolute Return: 1694% (₹1 Lakh → ₹17.94 Lakhs)
Portfolio Composition: Balanced exposure to high-quality large caps and fast-growing mid-caps.
Risk Factors:
- Allocation imbalance
- Slower returns from large-caps
- Economic headwinds
#8 – ICICI Prudential Technology Fund
Investment Objective: To provide long-term capital gains through investments in the technology sector.
Annualised Returns:
- 3 Years: 17.7%
- 5 Years: 30.3%
- 10 Years: 17.8%
- 15 Years: 18.7%
- 20 Years: 18.00%
- Absolute Return: 1692% (₹1 Lakh → ₹17.92 Lakhs)
Portfolio Composition: IT services, software, fintech, and digital businesses.
Risk Factors:
- Sector concentration
- Global demand cycles
- FX and geopolitical exposure
#9 – HDFC Flexi Cap Fund
Investment Objective: To achieve long-term capital appreciation through investments across market capitalizations.
Annualised Returns:
- 3 Years: 28.8%
- 5 Years: 29.9%
- 10 Years: 15.7%
- 15 Years: 14.8%
- 20 Years: 17.90%
- Absolute Return: 1680% (₹1 Lakh → ₹17.80 Lakhs)
Portfolio Composition: Flexible allocation strategy with high-quality blue chips and emerging stocks.
Risk Factors:
- Allocation drift
- Market volatility
- Fund manager discretion risk
The above fund is one of the 13 Mutual Funds Rated 5 Star by Value Research with 30% CAGR in the last 5 years.
#10 – Canara Robeco ELSS Tax Saver Fund
Investment Objective: To provide tax-saving benefits under Section 80C while delivering long-term capital growth.
Annualised Returns:
- 3 Years: 20.7%
- 5 Years: 23.0%
- 10 Years: 14.4%
- 15 Years: 14.1%
- 20 Years: 17.75%
- Absolute Return: 1667% (₹1 Lakh → ₹17.75 Lakhs)
Portfolio Composition: Blend of large and mid-cap stocks with a lock-in period of 3 years.
Risk Factors:
- Lock-in period limits liquidity
- Equity market risks
- ELSS tax policy changes
Final Thoughts
These mutual funds have consistently delivered exceptional returns over the last 20 years, reaffirming the power of long-term investing. While past returns shouldn’t be the only criteria for investment, they offer a reliable perspective on fund stability and management quality.
Consider before investing:
- Align investments with financial goals
- Assess your risk appetite, especially in sectoral and mid/small-cap funds
- Stay invested for the long term to realize the benefits of compounding
A diversified portfolio across top performers can potentially offer both stability and high returns.
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