Long-term mutual fund returns can provide a very different picture compared to short-term performance. While a fund may generate impressive returns over 3 or 5 years, a 10-year track record gives investors a much longer period over which to evaluate how the scheme has performed through different market cycles.
As of now, 15 mutual fund schemes have delivered more than 18% annualized returns over the last 10 years based on the data compared for this article. The list includes small-cap, mid-cap, flexi-cap, infrastructure, ELSS, manufacturing and international/overseas-oriented funds.
What makes this comparison interesting is that several of these funds have also delivered strong 5-year returns, while a few have relatively modest recent performance despite maintaining a strong 10-year CAGR. This shows why looking only at the latest 3-year return may not always provide the complete picture.
In this article, we look at these 15 mutual funds, their 3-year, 5-year and 10-year annualized returns, and some important points investors should consider while interpreting the numbers.
Explore 18 Mutual Funds With 1-Year Returns Above 20.0% (Sep-26 Update)
How we selected these Mutual Funds?
For this comparison, we considered equity mutual fund schemes across categories, including diversified equity funds, small-cap, mid-cap, flexi-cap, ELSS, sectoral, thematic and global/overseas equity funds. We considered the Direct Plan – Growth option for the comparison and excluded ETFs from the analysis. Funds were shortlisted based on their 10-year annualized returns as of now, with the threshold set at more than 18%. This is a historical performance-based comparison and does not imply that the funds listed are suitable for every investor or that they will generate similar returns in the future.
15 Mutual Funds With 10-Year Returns Above 18%
The table below compares the annualized returns of the 15 mutual fund schemes.
| S No | Mutual Fund | 3-Year CAGR | 5-Year CAGR | 10-Year CAGR |
|---|---|---|---|---|
| 1 | Nippon India Small Cap Fund | 16.2% | 19.0% | 21.0% |
| 2 | Quant Small Cap Fund | 18.7% | 19.4% | 21.0% |
| 3 | Quant Infrastructure Fund | 18.6% | 18.1% | 20.3% |
| 4 | Quant ELSS Tax Saver Fund | 15.4% | 15.0% | 19.9% |
| 5 | Invesco India Mid Cap Fund | 24.8% | 19.8% | 19.7% |
| 6 | Bank of India Manufacturing & Infrastructure Fund | 23.1% | 21.1% | 19.6% |
| 7 | Axis Small Cap Fund | 16.5% | 16.1% | 19.6% |
| 8 | Quant Flexi Cap Fund | 16.2% | 14.3% | 19.1% |
| 9 | DSP US Specific Equity Omni FoF | 29.1% | 19.6% | 19.1% |
| 10 | Edelweiss Mid Cap Fund | 21.7% | 18.5% | 19.0% |
| 11 | Invesco India Infrastructure Fund | 19.6% | 18.8% | 19.0% |
| 12 | SBI Small Cap Fund | 12.3% | 14.2% | 18.7% |
| 13 | Nippon India Growth Mid Cap Fund | 18.8% | 17.8% | 18.2% |
| 14 | DSP World Mining Overseas Equity Omni FoF | 30.2% | 21.6% | 18.2% |
| 15 | Quant Mid Cap Fund | 11.4% | 15.3% | 18.1% |
Data as of September 24, 2026. Returns are annualized (CAGR). The comparison is based on the respective mutual fund schemes’ Direct Plan – Growth option.
What Does a 10-Year CAGR Above 18% Mean?
A 10-year CAGR of 18% or more is a significant long-term return figure. However, CAGR should not be interpreted as the actual return generated every year.
For example, a fund with a 20% 10-year CAGR does not mean that it delivered exactly 20% every year. Some years could have produced much higher returns, while other years could have been negative or considerably lower.
The advantage of a 10-year period is that it covers multiple market phases. This can include bull markets, corrections, periods of high volatility and changes in economic conditions.
Therefore, a long-term return number can provide useful context when it is viewed along with rolling returns, volatility, drawdowns and the fund’s investment strategy.
Check out – 11 Mutual Funds With 5-Year Annualized Returns Above 20.0%
Fund-Wise Performance
1. Nippon India Small Cap Fund
Nippon India Small Cap Fund has delivered a 21.0% annualized return over the last 10 years, placing it among the highest long-term performers in this comparison.
- 3-Year CAGR: 16.2%
- 5-Year CAGR: 19.0%
- 10-Year CAGR: 21.0%
The 10-year return is considerably higher than its recent 3-year CAGR. This highlights how the long-term number can remain strong even when the more recent performance period has been relatively moderate.
As a small-cap fund, investors should also consider the higher volatility associated with smaller companies before comparing it with diversified categories.
2. Quant Small Cap Fund
Quant Small Cap Fund has generated a 21.0% annualized return over the last 10 years.
- 3-Year CAGR: 18.7%
- 5-Year CAGR: 19.4%
- 10-Year CAGR: 21.0%
The fund has maintained relatively strong returns across all three periods shown in the table. Its 5-year CAGR is also close to the long-term number, indicating that the recent five-year period has contributed meaningfully to its 10-year performance.
Small-cap funds can experience sharp fluctuations, so investors should not evaluate the scheme only on its historical CAGR.
3. Quant Infrastructure Fund
Quant Infrastructure Fund has delivered a 20.3% annualized return over the last 10 years.
- 3-Year CAGR: 18.6%
- 5-Year CAGR: 18.1%
- 10-Year CAGR: 20.3%
The fund’s performance has remained above 18% across the three periods in this comparison. Infrastructure-oriented funds can have relatively concentrated exposure to companies benefiting from infrastructure and capital expenditure cycles.
Investors therefore need to consider the additional sector and thematic concentration risk along with the historical returns.
4. Quant ELSS Tax Saver Fund
Quant ELSS Tax Saver Fund has generated a 19.9% annualized return over the last 10 years.
- 3-Year CAGR: 15.4%
- 5-Year CAGR: 15.0%
- 10-Year CAGR: 19.9%
The gap between the long-term return and the recent 3-year and 5-year returns is noticeable. This shows that the fund’s historical 10-year CAGR should not be interpreted as an indication of what investors might earn going forward.
ELSS funds also come with a statutory three-year lock-in for each investment.
5. Invesco India Mid Cap Fund
Invesco India Mid Cap Fund has delivered a 19.7% annualized return over 10 years.
- 3-Year CAGR: 24.8%
- 5-Year CAGR: 19.8%
- 10-Year CAGR: 19.7%
The fund’s 3-year CAGR is substantially higher than its 10-year CAGR. Its 5-year return, however, is almost identical to the long-term number.
This makes it one of the funds in the list where both recent and longer-term performance remain relatively strong, although historical performance alone does not establish future returns.
6. Bank of India Manufacturing & Infrastructure Fund
Bank of India Manufacturing & Infrastructure Fund has generated a 19.6% annualized return over the last 10 years.
- 3-Year CAGR: 23.1%
- 5-Year CAGR: 21.1%
- 10-Year CAGR: 19.6%
The fund has delivered more than 20% annualized returns over both the 3-year and 5-year periods. Its 10-year CAGR is also comfortably above the 18% threshold used for this comparison.
Since the fund focuses on manufacturing and infrastructure themes, investors should consider the concentration associated with such an investment strategy.
7. Axis Small Cap Fund
Axis Small Cap Fund has delivered a 19.6% annualized return over the last 10 years.
- 3-Year CAGR: 16.5%
- 5-Year CAGR: 16.1%
- 10-Year CAGR: 19.6%
The fund’s recent returns are lower than its 10-year CAGR. This is another example of why long-term historical performance should be viewed alongside shorter periods.
Small-cap funds can go through extended periods of outperformance as well as underperformance, depending on market conditions.
8. Quant Flexi Cap Fund
Quant Flexi Cap Fund has generated a 19.1% annualized return over the last 10 years.
- 3-Year CAGR: 16.2%
- 5-Year CAGR: 14.3%
- 10-Year CAGR: 19.1%
The difference between the 10-year CAGR and the recent 5-year return is relatively large. This suggests that a significant portion of the long-term performance came from periods outside the latest five-year window.
Flexi-cap funds have the flexibility to invest across market-cap segments, but the actual portfolio composition can change over time.
Review – 15 Mutual Funds With 3-Year Annualized Returns Above 22.5%
9. DSP US Specific Equity Omni FoF
DSP US Specific Equity Omni FoF has delivered a 19.1% annualized return over 10 years.
- 3-Year CAGR: 29.1%
- 5-Year CAGR: 19.6%
- 10-Year CAGR: 19.1%
The fund’s 3-year CAGR is significantly higher than its 10-year figure. Since this is an overseas-oriented fund of fund, its performance can also be influenced by international equity markets and currency movements.
Therefore, its historical returns should be assessed differently from those of a purely India-focused diversified equity fund.
10. Edelweiss Mid Cap Fund
Edelweiss Mid Cap Fund has generated a 19.0% annualized return over the last 10 years.
- 3-Year CAGR: 21.7%
- 5-Year CAGR: 18.5%
- 10-Year CAGR: 19.0%
The fund has maintained a relatively consistent long-term return profile, with its 5-year CAGR close to its 10-year CAGR.
Its 3-year performance is higher than both longer periods, showing stronger recent performance within the period being compared.
11. Invesco India Infrastructure Fund
Invesco India Infrastructure Fund has delivered a 19.0% annualized return over the last 10 years.
- 3-Year CAGR: 19.6%
- 5-Year CAGR: 18.8%
- 10-Year CAGR: 19.0%
The three return periods are relatively close to one another. This is notable because the fund’s recent performance has not deviated significantly from its longer-term annualized return.
However, infrastructure funds can be affected by economic cycles, government spending, interest rates and capital expenditure trends.
12. SBI Small Cap Fund
SBI Small Cap Fund has generated an 18.7% annualized return over the last 10 years.
- 3-Year CAGR: 12.3%
- 5-Year CAGR: 14.2%
- 10-Year CAGR: 18.7%
This is one of the clearest examples of the difference between long-term and recent performance in this list. The fund’s 10-year CAGR remains above 18%, while its 3-year and 5-year returns are considerably lower.
Investors looking at the scheme should therefore avoid relying solely on its impressive 10-year number and examine more recent rolling-return periods as well.
13. Nippon India Growth Mid Cap Fund
Nippon India Growth Mid Cap Fund has delivered an 18.2% annualized return over the last 10 years.
- 3-Year CAGR: 18.8%
- 5-Year CAGR: 17.8%
- 10-Year CAGR: 18.2%
The fund’s returns across the three periods are relatively close to each other. Its 3-year CAGR is slightly above the 10-year figure, while the 5-year CAGR is slightly lower.
This provides a more balanced view of the fund’s recent and long-term performance compared with funds where there is a much wider gap between the periods.
14. DSP World Mining Overseas Equity Omni FoF
DSP World Mining Overseas Equity Omni FoF has generated an 18.2% annualized return over the last 10 years.
- 3-Year CAGR: 30.2%
- 5-Year CAGR: 21.6%
- 10-Year CAGR: 18.2%
The fund has recorded the highest 3-year CAGR among the 15 funds in this comparison at 30.2%. Its 5-year CAGR is also above 20%, while the 10-year CAGR stands at 18.2%.
However, its international and mining-oriented exposure makes it substantially different from diversified domestic equity funds. Commodity cycles, global equity markets and currency movements can have a meaningful impact on returns.
15. Quant Mid Cap Fund
Quant Mid Cap Fund has delivered an 18.1% annualized return over the last 10 years.
- 3-Year CAGR: 11.4%
- 5-Year CAGR: 15.3%
- 10-Year CAGR: 18.1%
The fund’s long-term CAGR is considerably higher than its recent 3-year and 5-year returns. This is an important reminder that a strong 10-year historical return does not necessarily mean the fund has been among the strongest performers in every recent period.
Mid-cap funds can experience meaningful volatility as the underlying companies are generally more sensitive to changes in economic and market conditions than large-cap companies.
Category-Wise Breakdown
The 15 funds in this comparison are spread across several categories rather than being concentrated in a single segment.
Small-cap funds account for four schemes:
- Nippon India Small Cap Fund
- Quant Small Cap Fund
- Axis Small Cap Fund
- SBI Small Cap Fund
Mid-cap funds account for three schemes:
- Invesco India Mid Cap Fund
- Edelweiss Mid Cap Fund
- Nippon India Growth Mid Cap Fund
- Quant Mid Cap Fund
Infrastructure and manufacturing-oriented funds also feature prominently:
- Quant Infrastructure Fund
- Bank of India Manufacturing & Infrastructure Fund
- Invesco India Infrastructure Fund
The list also includes diversified strategies such as Quant Flexi Cap Fund and Quant ELSS Tax Saver Fund, along with overseas-oriented funds such as DSP US Specific Equity Omni FoF and DSP World Mining Overseas Equity Omni FoF.
This mix is important because the 18% threshold does not represent a particular category’s typical return. Different categories have different risk profiles, portfolio structures and market cycles.
What Stands Out From the Data?
One of the biggest observations is the difference between long-term and recent performance.
Nippon India Small Cap Fund and Quant Small Cap Fund have the highest 10-year CAGR in this comparison at 21.0%. Both have also delivered 5-year CAGRs of around 19%, although their 3-year returns are lower.
On the other hand, some funds have recently performed much better than their long-term CAGR. DSP World Mining Overseas Equity Omni FoF has a 30.2% 3-year CAGR compared with an 18.2% 10-year CAGR. DSP US Specific Equity Omni FoF also shows a similar pattern, with a 29.1% 3-year CAGR versus 19.1% over 10 years.
Invesco India Mid Cap Fund is another notable example. Its 24.8% 3-year CAGR is substantially higher than its 19.7% 10-year CAGR, while the 5-year CAGR of 19.8% is almost identical to the long-term number.
At the other end, SBI Small Cap Fund and Quant Mid Cap Fund have much lower recent returns than their 10-year CAGRs. Their historical numbers therefore need to be interpreted carefully rather than viewed as an expectation of future returns.
Why 10-Year Returns Should Not Be Viewed in Isolation
A 10-year CAGR is useful because it covers a relatively long investment period, but it does not tell us everything about a mutual fund.
Two funds can have the same 10-year CAGR but very different return journeys. One may have generated relatively consistent returns, while another may have experienced significant ups and downs but ultimately arrived at the same CAGR.
This is why investors researching mutual funds may also want to examine rolling returns, maximum drawdown, volatility, portfolio concentration, expense ratio, fund manager changes and portfolio characteristics.
The category also matters. A small-cap fund, infrastructure fund and overseas fund should not be compared only on the basis of which one has the highest CAGR.
3-Year vs 5-Year vs 10-Year Returns
Looking at all three periods together gives a better perspective.
Some funds have performed strongly across all periods. Invesco India Mid Cap Fund, for example, has delivered 24.8%, 19.8% and 19.7% over 3, 5 and 10 years respectively.
Some funds have a much stronger recent performance profile. DSP World Mining Overseas Equity Omni FoF has generated 30.2% over 3 years and 21.6% over 5 years compared with 18.2% over 10 years.
There are also funds where the long-term return is substantially higher than the recent numbers. SBI Small Cap Fund has delivered 18.7% over 10 years but 12.3% over the latest 3-year period.
This variation demonstrates why investors should avoid selecting a mutual fund simply because it appears near the top of a historical-return table.
Things to Check Before Investing
If you are using this list as a starting point for mutual fund research, there are several additional factors worth checking.
Check Rolling Returns
Point-to-point CAGR can be influenced by the exact starting and ending dates. Rolling returns across multiple periods can provide a broader view of how consistently a fund has performed.
Understand the Fund Category
A small-cap, mid-cap, infrastructure or overseas fund can have very different risk characteristics. Compare a fund with its appropriate category and benchmark rather than with every fund in this table.
Look at Portfolio Concentration
Thematic and sector-oriented funds can have higher concentration in particular industries. This can result in stronger performance during favourable cycles but can also increase downside risk when the theme falls out of favour.
Check Recent Portfolio Changes
Historical performance may have been generated under a different portfolio structure or fund management setup. It can therefore be useful to review the current portfolio and recent changes before drawing conclusions.
Consider Risk Along With Returns
A high CAGR alone does not indicate that a fund is suitable for every investor. Volatility, drawdowns and concentration should also be considered along with return data.
Do Not Assume Historical CAGR Will Continue
A 10-year CAGR of 18%, 19% or 21% does not mean investors should expect the same return over the next 10 years. Market valuations, economic conditions, interest rates, earnings growth and portfolio positioning can all change.
Frequently Asked Questions
Which mutual funds have the highest 10-year returns in this list?
Nippon India Small Cap Fund and Quant Small Cap Fund have the highest 10-year annualized return in this comparison at 21.0%, followed by Quant Infrastructure Fund at 20.3%.
How many mutual funds delivered more than 18% annualized returns over 10 years?
Based on the data compared as of September 24, 2026, 15 mutual fund schemes have delivered more than 18% annualized returns over the 10-year period.
Which fund has the highest 3-year return in this list?
DSP World Mining Overseas Equity Omni FoF has the highest 3-year annualized return in this comparison at 30.2%, followed by DSP US Specific Equity Omni FoF at 29.1%.
Are these the best mutual funds to invest in?
This table should not be interpreted as a list of the “best” mutual funds. It is a historical performance comparison based on 10-year annualized returns above 18%. Investors should evaluate risk, category, portfolio composition, rolling returns, investment objectives and other factors before making any investment decision.
Does a 10-year return above 18% mean the fund will continue to generate similar returns?
No. Historical returns do not indicate future performance. A fund’s future returns can be significantly different from its historical CAGR depending on market conditions, valuations, portfolio positioning and other factors.
Disclaimer: This article is for informational and educational purposes only and is based on publicly available mutual fund performance data as of September 24, 2026. The historical returns mentioned above should not be construed as an indication of future performance. This article does not constitute investment advice or a recommendation to buy, sell or hold any mutual fund scheme. Mutual fund investments are subject to market risks. Investors should read all scheme-related documents carefully and consult a SEBI-registered investment advisor before making any investment decision.
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