While equity markets have gone through multiple market cycles over the last decade, a select group of mutual funds have generated exceptional long-term returns. According to the latest mutual fund performance data, these 11 mutual funds have delivered over 20% CAGR in the last 10 years.
Generating 20%+ annualised returns over a decade is no small achievement. Such performance highlights the power of compounding and the wealth creation potential of equity mutual funds when investors remain invested for the long term.
For example, a ₹1 lakh investment growing at 20% CAGR for 10 years would become approximately ₹6.2 lakhs. At 22% CAGR, the same investment would grow to around ₹7.3 lakhs over the same period. This demonstrates how even a small difference in annual returns can significantly impact long-term wealth creation.
The list is dominated by small-cap funds, infrastructure-oriented funds, mid-cap funds, and select thematic strategies. Strong economic growth, manufacturing expansion, infrastructure spending, and participation in emerging sectors have contributed to the long-term performance of these schemes.
In this article, we analyse 11 mutual funds that generated over 20% CAGR in the last 10 years and review the key factors behind their performance.
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How We Filtered These Mutual Funds
To identify these high-return mutual funds, we applied the following screening criteria:
- Considered equity mutual funds and Fund of Funds (FoFs).
- Excluded ETFs.
- Included schemes with a minimum 10-year performance track record.
- Shortlisted funds that generated more than 20% CAGR in the last 10 years.
- Performance data is based on Direct Growth Plans.
- Data considered as of 1-Jun-2026.
Important Note
The objective of this analysis is to identify mutual funds that have delivered strong historical returns over the last decade. Historical performance should not be interpreted as an indication or assurance of future returns. Investors should evaluate investment objectives, portfolio characteristics, risk factors, and suitability before making investment decisions.
11 High Return Mutual Funds with Over 20% CAGR in the Last 10 Years
| Mutual Fund Scheme | 3-Year CAGR | 5-Year CAGR | 10-Year CAGR |
|---|---|---|---|
| Nippon India Small Cap Fund | 20.2% | 21.8% | 22.1% |
| Quant Infrastructure Fund | 23.2% | 21.8% | 21.8% |
| Quant Flexi Cap Fund | 20.8% | 18.3% | 21.0% |
| Quant ELSS Tax Saver Fund | 19.6% | 17.6% | 20.9% |
| Quant Small Cap Fund | 21.8% | 21.7% | 20.3% |
| DSP World Mining Overseas Equity Omni FoF | 32.0% | 18.1% | 20.3% |
| Edelweiss Mid Cap Fund | 25.2% | 21.7% | 20.3% |
| DSP Natural Resources and New Energy Fund | 25.8% | 18.5% | 20.2% |
| Invesco India Infrastructure Fund | 25.1% | 22.6% | 20.1% |
| Invesco India Mid Cap Fund | 25.8% | 21.5% | 20.0% |
| Bank of India Manufacturing & Infrastructure Fund | 27.0% | 23.1% | 20.0% |
What Is Driving These Strong Long-Term Returns?
A closer analysis of these funds indicates that five major investment themes have contributed to their long-term performance.
1) Small Cap Wealth Creation
Small-cap companies have been among the biggest wealth creators over the last decade. Several emerging businesses expanded their revenues, profits, and market share, helping small-cap funds deliver strong long-term returns.
2) Infrastructure and Manufacturing Growth
Government-led capital expenditure, infrastructure development, railway expansion, defence spending, and manufacturing initiatives created opportunities for infrastructure-focused mutual funds.
3) Mid Cap Expansion Story
Many mid-sized companies evolved into large businesses during the last decade. Mid-cap funds benefited from earnings growth and increasing investor participation in this segment.
Explore more – 7 Midcap Mutual Funds Delivered 25%+ Annualised Returns in 3 Years
4) Quant-Based Investment Strategies
Several Quant funds on this list benefited from their data-driven and dynamic investment approach, which actively adapts portfolios based on changing market conditions.
5) Global Resources and Commodity Opportunities
Global demand for mining, metals, energy, and natural resources supported the performance of overseas resource-focused funds during various market cycles.
Fund Snapshot Analysis
1) Nippon India Small Cap Fund
10-Year CAGR: 22.1%
Highlights: This small-cap fund is among the strongest long-term performers in its category. It benefited from exposure to emerging businesses that expanded revenues, profitability, and market share over the last decade.
Risk Factors: Small-cap stocks can be volatile and may witness sharper corrections during adverse market conditions.
2) Quant Infrastructure Fund
10-Year CAGR: 21.8%
Highlights: This infrastructure fund benefited from India’s capex cycle, infrastructure spending, railway development, defence investments, and manufacturing growth.
Risk Factors: Infrastructure-focused funds carry sector concentration risk and can be impacted by economic slowdowns.
3) Quant Flexi Cap Fund
10-Year CAGR: 21.0%
Highlights: This flexi-cap fund benefited from its ability to dynamically invest across large-cap, mid-cap, and small-cap stocks, helping it capture opportunities across market segments.
Risk Factors: Performance can vary based on asset allocation decisions and market conditions.
4) Quant ELSS Tax Saver Fund
10-Year CAGR: 20.9%
Highlights: This ELSS tax-saving fund generated strong long-term returns while offering tax benefits under prevailing tax regulations. Its diversified portfolio contributed to long-term wealth creation.
Risk Factors: Subject to equity market volatility and lock-in period considerations.
5) Quant Small Cap Fund
10-Year CAGR: 20.3%
Highlights: This small-cap fund benefited from identifying high-growth companies at relatively early stages of their business expansion cycle.
Risk Factors: Small-cap stocks may experience significant fluctuations in market value.
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6) DSP World Mining Overseas Equity Omni FoF
10-Year CAGR: 20.3%
Highlights: This international fund provides exposure to global mining and resource companies and benefited from commodity and natural resource cycles across global markets.
Risk Factors: Exposed to global market volatility, commodity price movements, and currency fluctuations.
7) Edelweiss Mid Cap Fund
10-Year CAGR: 20.3%
Highlights: This mid-cap fund benefited from investments in medium-sized companies that expanded operations and improved earnings over the last decade.
Risk Factors: Mid-cap stocks can experience higher volatility compared to large-cap stocks.
8) DSP Natural Resources and New Energy Fund
10-Year CAGR: 20.2%
Highlights: This thematic fund focuses on natural resources, energy, and related sectors. It benefited from long-term trends in energy demand and commodity markets.
Risk Factors: Returns can be influenced by commodity cycles and sector-specific developments.
9) Invesco India Infrastructure Fund
10-Year CAGR: 20.1%
Highlights: This infrastructure fund participated in India’s long-term infrastructure development, industrial expansion, and capital expenditure growth story.
Risk Factors: Performance may be influenced by policy changes, economic cycles, and sector-specific risks.
10) Invesco India Mid Cap Fund
10-Year CAGR: 20.0%
Highlights: This mid-cap fund benefited from investments in growing businesses that strengthened their competitive position and earnings profile over time.
Risk Factors: Mid-cap companies may face higher volatility during market corrections.
11) Bank of India Manufacturing & Infrastructure Fund
10-Year CAGR: 20.0%
Highlights: This manufacturing and infrastructure-focused fund benefited from India’s industrial growth, infrastructure investments, and capital expenditure initiatives.
Risk Factors: Sector concentration may result in periods of higher volatility compared to diversified equity funds.
Wealth Creation Example
The power of compounding becomes evident when investments are held for longer periods.
- ₹1 lakh invested at 20% CAGR for 10 years would grow to approximately ₹6.2 lakhs.
- ₹1 lakh invested at 22% CAGR for 10 years would grow to approximately ₹7.3 lakhs.
This example highlights how a relatively small difference in annualised returns can create a significant difference in long-term wealth creation.
Check our analysis 9 High Return Mutual Funds with Over 25% CAGR in the Last 5 Years
Key Risks Investors Should Consider
Before evaluating these mutual funds, investors may consider the following factors:
- Historical returns do not guarantee future performance.
- Small-cap, mid-cap, thematic, and sector-focused funds can experience higher volatility than diversified equity funds.
- Infrastructure and manufacturing funds may be affected by economic and policy cycles.
- Overseas funds are exposed to currency fluctuations and global market risks.
- Investors should evaluate their risk appetite, financial goals, and investment horizon before making investment decisions.
Conclusion
These 11 mutual funds have generated over 20% CAGR during the last 10 years and highlight the wealth creation potential of long-term equity investing. The list includes small-cap, infrastructure, manufacturing, mid-cap, flexi-cap, international, and thematic funds that benefited from various economic and market trends over the decade.
While the historical performance of these funds has been noteworthy, future returns may differ based on market conditions, economic developments, sector cycles, and fund-specific factors. Rather than focusing solely on past returns, investors may consider evaluating portfolio characteristics, investment objectives, risk factors, and suitability before making investment decisions.
The data also highlights how themes such as small-cap growth, infrastructure development, manufacturing expansion, and global resource opportunities have created significant wealth over the last decade. Whether these themes continue to outperform in the future remains uncertain, making diversification and disciplined investing important considerations for long-term investors.
Disclaimer
Mutual fund investments are subject to market risks. The information provided in this article is for educational and informational purposes only and should not be construed as investment advice, recommendation, or solicitation to buy or sell any financial product. Past performance is not indicative of future results. Investors should read all scheme-related documents carefully and consult a financial adviser before making investment decisions. Investors may consider consulting a SEBI-registered investment adviser or financial professional before making investment decisions.
