Are you looking for mutual funds that delivered solid returns over a decade? While many investors focus on short-term performance, wealth truly compounds over the long run. In this article, we highlight 6 mutual funds that turned ₹ 1 Lakh into over ₹ 6 Lakhs in 10 years, delivering annualized returns of nearly 20% or more. These funds have demonstrated consistent outperformance across market cycles, making them suitable candidates for long-term portfolios.
Earlier we covered about 5 Mutual Funds that turned to ₹ 2 Lakhs in 2 years.
What Does It Mean to Grow ₹ 1 Lakh to ₹ 6 Lakhs in 10 Years?
To grow ₹ 1 Lakh into ₹ 6 Lakhs in 10 years, a mutual fund needs to deliver a CAGR (Compound Annual Growth Rate) of around 20%. This is considered excellent performance in the mutual fund space, especially when most equity funds return 12-15% over longer periods.
How We Shortlisted These Funds?
- Considered diversified equity fund categories like Small Cap, Mid Cap, ELSS, and Flexi Cap
- Evaluated 10-year performance as of 10-Jul-2025
- Focused on direct plans with growth option
- Assessed fund manager consistency, alpha, and volatility
- Data is as of 9-Jul-25
List of 6 Mutual Funds That Multiplied ₹ 1 Lakh to Over ₹ 6 Lakhs in 10 Years
Below are the mutual funds along with how much your ₹ 1 lakh would have grown in 10 years:
#1 – Nippon India Small Cap Fund – ₹ 7.6 Lakhs
#2 – Quant ELSS Tax Saver Fund – ₹ 6.98 Lakhs
#3 – Edelweiss Mid Cap Fund – ₹ 6.53 Lakhs
#4 – Axis Small Cap Fund – ₹ 6.38 Lakhs
#5 – HDFC Small Cap Fund – ₹ 6.19 Lakhs
#6 – SBI Small Cap Fund – ₹ 6.14 Lakhs
Detailed Analysis of Top Performing Funds
#1 – Nippon India Small Cap Fund
Category: Small Cap Fund
Objective: Long-term capital appreciation through investments in small-cap stocks.
Annualised Returns:
- 3-Year: 30.0%
- 5-Year: 38.3%
- 10-Year: 22.8%
Why to Invest?
- Impressive 10-year compounding
- Well-diversified with 150+ stocks
- Strong research-driven approach
Risks:
- High volatility
- Small cap exposure may lead to liquidity issues during downturns
This fund is part of 7 Mutual Funds that turned ₹ 1 lakh to 5 Lakhs in 5 years.
#2 – Quant ELSS Tax Saver Fund
Category: ELSS (Tax Saving)
Objective: Capital appreciation through diversified equity investments, with tax benefits under Section 80C.
Annualised Returns:
- 3-Year: 22.3%
- 5-Year: 33.8%
- 10-Year: 21.7%
Why to Invest?
- Tax savings + high growth potential
- Aggressive stock selection strategy
- Compact and focused portfolio
Risks:
- High risk due to concentrated positions
- Mandatory 3-year lock-in period
#3 – Edelweiss Mid Cap Fund
Category: Mid Cap Fund
Objective: Capital appreciation through mid-cap stock investments.
Annualised Returns:
- 3-Year: 31.8%
- 5-Year: 45.8%
- 10-Year: 20.8%
Why to Invest?
- Superior 5-year and 10-year performance
- Agile portfolio across growth sectors
Risks:
- High market sensitivity
- Performance linked to economic recovery
#4 – Axis Small Cap Fund
Category: Small Cap Fund
Objective: Long-term capital appreciation via small-cap investments.
Annualised Returns:
- 3-Year: 25.3%
- 5-Year: 32.0%
- 10-Year: 20.4%
Why to Invest?
- Consistent performance with conservative approach
- Focus on quality small-cap names
Risks:
- May underperform during bull rallies
- High AUM may reduce agility
#5 – HDFC Small Cap Fund
Category: Small Cap Fund
Objective: Long-term capital growth via investment in emerging small caps.
Annualised Returns:
- 3-Year: 29.1%
- 5-Year: 35.0%
- 10-Year: 20.0%
Why to Invest?
- Robust long-term returns
- Managed by experienced professionals
Risks:
- Exposure to high beta sectors
- Short-term underperformance possible
#6 – SBI Small Cap Fund
Category: Small Cap Fund
Objective: Capital appreciation by investing in future potential large caps.
Annualised Returns:
- 3-Year: 22.2%
- 5-Year: 29.6%
- 10-Year: 19.9%
Why to Invest?
- Long-standing track record
- Quality portfolio with governance focus
Risks:
- High volatility
- Less suitable for short investment horizons
Final Thoughts
These 6 mutual funds have delivered strong long-term performance, turning ₹ 1 Lakh into over ₹ 6 Lakhs in 10 years. Investors looking for long-term wealth creation should:
- Be ready for short-term volatility
- Maintain a long investment horizon (10+ years). Considering investing in largecap funds like we indicated in 5 Top Rated Largecap Mutual Funds to invest in 2025 with over 22.9% CAGR.
- Align fund choices with individual risk appetite and goals
While past performance is not a guarantee for future results, funds with decade-long consistent returns indicate strong management and sound investment processes.
Note: Quant Mutual Fund AMC, known for aggressive strategies. However, investors should remain cautious due to past regulatory concerns like the 2023 front-running probe (no final outcome declared yet). Similarly for Axis Mutual Funds also. Always monitor SEBI alerts and fund house governance for risk mitigation.
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