The Indian equity market has witnessed a phenomenal surge in the past decade. Key indices such as the Nifty 50, BSE Sensex, and Nifty 500, etc. delivered multibagger returns, outperforming many global peers. The rise in the stock market has resulted in high returns for investors in equity mutual funds. Barring a few schemes, all equity mutual fund (over 200 schemes) considered across diverse categories delivered double-digit returns in the last 10 years.
Some of the key factors that contributed to the rally in the stock market and in turn equity mutual funds are as follows:
a) India’s resilient GDP growth, driven by increased government investment supportive policies fostered a positive investment climate, attracting significant foreign investments.
b) India’s young and growing population presents a vast consumer market, driving demand for goods and services, thereby benefiting listed companies.
c) Initiatives to increase financial inclusion and the rapid adoption of technology have expanded the investor base, leading to higher market liquidity.
Small and mid-cap-oriented funds were the top performers amid a sharp rally in the segment following the 2020 market crash driven by robust participation by retail investors. Meanwhile, Flexi Cap Funds and Multi Cap Funds also rewarded investors handsomely. Besides, Thematic Funds, particularly those investing in Infrastructure and PSU-related stocks were among the other top beneficiaries.
[Read: Small Cap Index Near an All-time High: Should You Rejoice or Worry?]
[Read: These Thematic Mutual Funds Offered Over 50% Returns In 1 Year. Should You Invest in Them?]
In this article, explore the highest return mutual funds in the last 10 years across various sub-categories of equity mutual funds.
High Return Mutual Fund in the last 10 years #1: Quant Small Cap Fund
Incepted in October 1996, Quant Small Cap Fund is a momentum-driven scheme in the Small Cap Mutual Fund category that follows agile investment approach. It was originally launched as a debt-oriented fund but was recategorised as a Small Cap Fund in 2018. The fund invests around 65% of its assets in small caps, and the balance in large-cap and small-cap stocks.
Performance of Quant Small Cap Fund
| Scheme Name | Total Amount Invested (Rs) | Present Value (Rs) | 10-Yr XIRR (%) |
| Quant Small Cap Fund | 12,00,000 | 57,95,382 | 29.63 |
Data as of July 25, 2024
Returns are XIRR in percentage
Monthly SIP of Rs 10,000 over a 10-year period in Direct plan – Growth option considered
(Source: ACE MF, data collated by PersonalFN)
In the last 10 years, Quant Small Cap Fund grew at an XIRR of 29.6%. A monthly SIP of Rs 10,000 over a 10-year period (i.e. total investment of Rs 12,00,000) would now be valued at Rs 57,95,382.
Top holdings of Quant Small Cap Fund
| Stock name | Allocation (%) |
| Reliance Industries Ltd. | 10.63 |
| HDFC Bank Ltd. | 7.27 |
| JIO Financial Services Ltd. | 5.68 |
| Aegis Logistics Ltd. | 3.57 |
| Bikaji Foods International Ltd. | 3.51 |
(Source: ACE MF, data collated by PersonalFN)
As of June 30, 2024, the fund held 91 stocks in its portfolio, with the top 10 stock holdings accounting for around 46% of its assets. Large-cap stocks such as Reliance Industries, HDFC Bank, Jio Financial Services, and Adani Power currently form the fund’s top holdings followed by small-cap and mid-cap names such as Aegis Logistics, Bikaji Foods International, IRB Infrastructure Developers, and HUDCO among others.
High Return Mutual Fund in the last 10 years #2: Quant Infrastructure Fund
Launched in August 2007, Quant Infrastructure Fund is a Thematic Fund. It aims to identify companies and sectors that are positioned to benefit from India’s infrastructure boom. The fund invests around 30-50% of its assets in large caps, 25-30% in small caps, and up to 15% in mid caps.
Performance of Quant Infrastructure Fund
| Scheme Name | Total Amount Invested (Rs) | Present Value (Rs) | 10-Yr XIRR (%) |
| Quant Infrastructure Fund | 12,00,000 | 56,52,244 | 29.17 |
Data as of July 25, 2024
Returns are XIRR in percentage
Monthly SIP of Rs 10,000 over a 10-year period in Direct plan – Growth option considered
(Source: ACE MF, data collated by PersonalFN)
In the last 10 years, Quant Infrastructure Fund grew at an XIRR of 29.2%. A monthly SIP of Rs 10,000 over a 10-year period (i.e. total investment of Rs 12,00,000) would now be valued at Rs 56,52,244.
Top holdings of Quant Infrastructure Fund
| Stock name | Allocation (%) |
| HDFC Bank Ltd. | 10.45 |
| Reliance Industries Ltd. | 10.38 |
| Tata Power Company Ltd. | 7.70 |
| Adani Power Ltd. | 5.65 |
| Tata Steel Ltd. | 4.89 |
(Source: ACE MF, data collated by PersonalFN)
As of June 30, 2024, the fund held a compact portfolio of 30 stocks, with the top 10 stock holdings accounting for around 59.4% of its assets. Its top holdings comprise mainly large-cap names such as HDFC Bank, Reliance Industries, Tata Power Company, Adani Power, and Tata Steel, followed by small-cap names such as Kalyani Steel and Aegis Logistics.
High Return Mutual Fund in the last 10 years #3: Nippon India Small Cap Fund
Launched in September 2010, Nippon India Small Cap Fund is currently the largest scheme in the Small Cap Fund category that aims to identify high growth potential stocks available at attractive valuations. The fund invests 65-70% of its assets in small caps, 11-15% in large caps, and around 12-15% in mid caps.
Performance of Nippon India Small Cap Fund
| Scheme Name | Total Amount Invested (Rs) | Present Value (Rs) | 10-Yr XIRR (%) |
| Nippon India Small Cap Fund | 12,00,000 | 54,24,394 | 28.41 |
Data as of July 25, 2024
Returns are XIRR in percentage
Monthly SIP of Rs 10,000 over a 10-year period in Direct plan – Growth option considered
(Source: ACE MF, data collated by PersonalFN)
In the last 10 years, Nippon India Small Cap Fund grew at an XIRR of 28.4%. A monthly SIP of Rs 10,000 over a 10-year period (i.e. total investment of Rs 12,00,000) would now be valued at Rs 54,24,394.
Top holdings of Nippon India Small Cap Fund
| Stock name | Allocation (%) |
| HDFC Bank Ltd. | 1.98 |
| Tube Investments of India Ltd. | 1.89 |
| Kirloskar Brothers Ltd. | 1.65 |
| Voltamp Transformers Ltd. | 1.55 |
| Apar Industries Ltd. | 1.45 |
(Source: ACE MF, data collated by PersonalFN)
The fund tends to hold a large portfolio of over 150 stocks and has limited allocation in each stock to under 3%. As of June 30, 2024, the fund held 215 stocks with the top 10 stocks accounting for just 11% of its assets. Its top holdings comprise a mix of large-cap, mid-cap, and small-cap names such as HDFC Bank, Tube Investments of India, Kirloskar Brothers, Voltamp Transformers, and Apar Industries.
High Return Mutual Fund in the last 10 years #4: Quant Mid Cap Fund
Launched in February 2001, Quant Mid Cap Fund is an agile scheme in the Mid Cap Fund category that follows an active investment approach whereby it constantly hunts for attractive opportunities by focusing on ‘buy on dips’ strategy. The fund usually invests around 65% of its assets in mid-cap stocks along with 20-30% in large caps. It also takes exposure to Derivatives for hedging purpose.
Performance of Quant Mid Cap Fund
| Scheme Name | Total Amount Invested (Rs) | Present Value (Rs) | 10-Yr XIRR (%) |
| Quant Mid Cap Fund | 12,00,000 | 50,59,390 | 27.12 |
Data as of July 25, 2024
Returns are XIRR in percentage
Monthly SIP of Rs 10,000 over a 10-year period in Direct plan – Growth option considered
(Source: ACE MF, data collated by PersonalFN)
In the last 10 years, Quant Mid Cap Fund grew at an XIRR of 27.1%. A monthly SIP of Rs 10,000 over a 10-year period (i.e. total investment of Rs 12,00,000) would now be valued at Rs 50,59,390.
Top holdings of Quant Mid Cap Fund
| Stock name | Allocation (%) |
| Reliance Industries Ltd. | 10.52 |
| HDFC Bank Ltd. | 9.28 |
| Aurobindo Pharma Ltd. | 8.31 |
| Samvardhana Motherson International Ltd. | 8.10 |
| Container Corporation Of India Ltd. | 7.47 |
(Source: ACE MF, data collated by PersonalFN)
Quant Mid Cap Fund is selective in stock picking and holds a compact portfolio of about 25-35 stocks. As of June 30, 2024, the fund held 26 stocks, with the top 10 stocks accounting for 67.6% of its assets. The fund currently has higher allocation to mid-cap and large-cap stocks such as Reliance Industries, HDFC Bank, Aurobindo Pharma, Samvardhana Motherson International, and Container Corporation of India.
High Return Mutual Fund in the last 10 years #5: Quant Flexi Cap Fund
Originally launched as a Thematic Fund in September 2008, Quant Flexi Cap Fund now has the mandate to invest dynamically across market caps and sectors depending on the market outlook. The fund’s market cap exposure comprises exposure of about 40-60% in large caps, up to 20% in mid caps, and up to 30% in small caps.
Performance of Quant Flexi Cap Fund
| Scheme Name | Total Amount Invested (Rs) | Present Value (Rs) | 10-Yr XIRR (%) |
| Quant Flexi Cap Fund | 12,00,000 | 49,57,631 | 26.74 |
Data as of July 25, 2024
Returns are XIRR in percentage
Monthly SIP of Rs 10,000 over a 10-year period in Direct plan – Growth option considered
(Source: ACE MF, data collated by PersonalFN)
In the last 10 years, Quant Flexi Cap Fund grew at an XIRR of 26.7%. A monthly SIP of Rs 10,000 over a 10-year period (i.e. total investment of Rs 12,00,000) would now be valued at Rs 49,57,631.
Top holdings of Quant Flexi Cap Fund
| Stock name | Allocation (%) |
| Reliance Industries Ltd. | 10.67 |
| HDFC Bank Ltd. | 10.44 |
| Samvardhana Motherson International Ltd. | 7.57 |
| Adani Power Ltd. | 4.47 |
| Kotak Mahindra Bank Ltd. | 4.06 |
(Source: ACE MF, data collated by PersonalFN)
Quant Flexi Cap Fund demonstrates a distinct preference for momentum-driven stocks, setting it apart from most of its peers. The fund typically maintains a concentrated portfolio of around 30-40 stocks. As of June 30, 2024, the fund held 34 stocks in its portfolio with the top 10 stocks accounting for approximately 55.8% of its assets. Quant Flexi Cap Fund’s top holdings comprise mainly large-cap stocks, along with a few mid-cap and small-cap stocks such as Reliance Industries, HDFC Bank, Samvardhana Motherson International, Adani Power, and Kotak Mahindra Bank.
High Return Mutual Fund in the last 10 years #6: Invesco India Infrastructure Fund
Launched in October 2007, Invesco India Infrastructure Fund is a Thematic Fund that aims to benefit from the infrastructure development across the country and the government’s capex push. It invests about 40% of its assets in large caps along with substantial allocation of 20-30% of its assets in mid caps, and around 20-35% small caps.
Performance of Invesco India Infrastructure Fund
| Scheme Name | Total Amount Invested (Rs) | Present Value (Rs) | 10-Yr XIRR (%) |
| Invesco India Infrastructure Fund | 12,00,000 | 46,93,997 | 25.73 |
Data as of July 25, 2024
Returns are XIRR in percentage
Monthly SIP of Rs 10,000 over a 10-year period in Direct plan – Growth option considered
(Source: ACE MF, data collated by PersonalFN)
In the last 10 years, Invesco India Infrastructure Fund grew at an XIRR of 25.7%. A monthly SIP of Rs 10,000 over a 10-year period (i.e. total investment of Rs 12,00,000) would now be valued at Rs 46,93,997.
Top holdings of Invesco India Infrastructure Fund
| Stock name | Allocation (%) |
| Power Grid Corporation Of India Ltd. | 6.90 |
| Larsen & Toubro Ltd. | 4.85 |
| Jyoti CNC Automation Ltd. | 3.76 |
| NTPC Ltd. | 3.34 |
| IRCTC Ltd. | 3.19 |
(Source: ACE MF, data collated by PersonalFN)
Invesco India Infrastructure Fund currently holds 45 stocks in its portfolio with higher allocation to stocks in the Engineering, Power, and Auto Ancillaries sectors. The top 10 stocks account for 36.8% of its assets and includes stocks such as Power Grid Corporation of India, L&T, Jyoti CNC Automation, NTPC, IRCTC, Thermax, Bharat Electronics, and Tata Power.
High Return Mutual Fund in the last 10 years #7: Quant Active Fund
Launched in March 2001, Quant Active Fund is a Multi Cap Fund that follows a momentum-driven investment approach whereby it constantly hunts for attractive opportunities, which has helped it generate remarkable alpha in recent years and handsomely reward its investors. It maintains a minimum exposure of 25% across the market cap range with higher inclination towards large-cap stocks.
Performance of Quant Active Fund
| Scheme Name | Total Amount Invested (Rs) | Present Value (Rs) | 10-Yr XIRR (%) |
| Quant Active Fund | 12,00,000 | 46,90,661 | 25.72 |
Data as of July 25, 2024
Returns are XIRR in percentage
Monthly SIP of Rs 10,000 over a 10-year period in Direct plan – Growth option considered
(Source: ACE MF, data collated by PersonalFN)
In the last 10 years, Quant Active Fund grew at an XIRR of 25.7%. A monthly SIP of Rs 10,000 over a 10-year period (i.e. total investment of Rs 12,00,000) would now be valued at Rs 46,90,661.
Top holdings of Quant Active Fund
| Stock name | Allocation (%) |
| Reliance Industries Ltd. | 10.65 |
| HDFC Bank Ltd. | 6.62 |
| Adani Power Ltd. | 4.00 |
| JIO Financial Services Ltd. | 3.80 |
| Aurobindo Pharma Ltd. | 3.77 |
(Source: ACE MF, data collated by PersonalFN)
Quant Active Fund usually holds 45-60 stocks in its portfolio. As of June 30, 2024, the fund held 50 stocks in the portfolio, with the top 10 stocks accounting for 44.5% of its assets. Reliance Industries, HDFC Bank, Adani Power, JIO Financial Services, and Aurobindo Pharma currently form part of the fund’s top allocation. The fund’s portfolio witnesses frequent changes. Only a handful of stocks such as Reliance Industries, Aegis Logistics, CRISIL, IRB Infrastructure Developers, and HFCL have constantly found a place among the prominent contenders in the fund’s portfolio.
High Return Mutual Fund in the last 10 years #8: Motilal Oswal Midcap Fund
Launched in February 2014, Motilal Oswal Midcap Fund aims to identify high growth potential quality stocks in the mid-cap space. The fund usually limits the holdings to under 30 stocks in which the fund manager has high conviction. It invests 65-70% of its assets in stocks of mid-cap companies with around 15-20% in large caps and allocation of up to 10% in small caps.
Performance of Motilal Oswal Midcap Fund
| Scheme Name | Total Amount Invested (Rs) | Present Value (Rs) | 10-Yr XIRR (%) |
| Motilal Oswal Midcap Fund | 12,00,000 | 46,68,013 | 25.63 |
Data as of July 25, 2024
Returns are XIRR in percentage
Monthly SIP of Rs 10,000 over a 10-year period in Direct plan – Growth option considered
(Source: ACE MF, data collated by PersonalFN)
In the last 10 years, Motilal Oswal Midcap Fund grew at an XIRR of 25.6%. A monthly SIP of Rs 10,000 over a 10-year period (i.e. total investment of Rs 12,00,000) would now be valued at Rs 46,68,013.
Top holdings of Motilal Oswal Midcap Fund
| Stock name | Allocation (%) |
| JIO Financial Services Ltd. | 9.50 |
| Vodafone Idea Ltd. | 9.49 |
| Persistent Systems Ltd. | 9.13 |
| Kalyan Jewellers India Ltd. | 7.64 |
| Zomato Ltd. | 7.15 |
(Source: ACE MF, data collated by PersonalFN)
As of June 30, 2024, Motilal Oswal Midcap held 24 stocks in its portfolio. The portfolio is concentrated towards the top 6 stocks that account for 50% of its assets. Its portfolio witnesses frequent churn and it currently holds higher exposure to large-cap and mid-cap stocks such as JIO Financial Services, Vodafone Idea, Persistent Systems, Kalyan Jewellers India, and Zomato.
High Return Mutual Fund in the last 10 years #9: Invesco India PSU Equity Fund
Invesco India PSU Equity Fund aims to invest predominantly in companies owned by the Government of India also known as public sector units (PSUs) and companies which are expected to benefit from the divestment process and reforms. Launched in November 2009, it is the oldest scheme among PSU-themed funds. Its portfolio is skewed towards large-cap stocks wherein it allocates 65-70% of its assets. The fund also allocates on an average 20% of its assets in mid caps and 10% in small caps.
Performance of Invesco India PSU Equity Fund
| Scheme Name | Total Amount Invested (Rs) | Present Value (Rs) | 10-Yr XIRR (%) |
| Invesco India PSU Equity Fund | 12,00,000 | 46,55,513 | 25.58 |
Data as of July 25, 2024
Returns are XIRR in percentage
Monthly SIP of Rs 10,000 over a 10-year period in Direct plan – Growth option considered
(Source: ACE MF, data collated by PersonalFN)
In the last 10 years, Invesco India PSU Equity Fund grew at an XIRR of 25.6%. A monthly SIP of Rs 10,000 over a 10-year period (i.e. total investment of Rs 12,00,000) would now be valued at Rs 46,55,513.
Top holdings of Invesco India PSU Equity Fund
| Stock name | Allocation (%) |
| Power Grid Corporation Of India Ltd. | 8.64 |
| Hindustan Aeronautics Ltd. | 8.57 |
| Bharat Electronics Ltd. | 8.34 |
| NTPC Ltd. | 7.61 |
| State Bank Of India | 7.41 |
(Source: ACE MF, data collated by PersonalFN)
Invesco India PSU Equity Fund currently holds 20 stocks in its portfolio and has shown preference for stocks in the Engineering, Power, and Banking sectors. The top 10 stocks account for 67.1% of its assets and predominantly includes large-cap stocks such as Power Grid Corporation of India, Hindustan Aeronautics, Bharat Electronics, NTPC, and SBI.
High Return Mutual Fund in the last 10 years #10: Bandhan Infrastructure Fund
Launched in March 2011, Bandhan Infrastructure Fund focuses on investing in stocks of companies that are participating in and benefiting from growth in Indian infrastructure and infrastructure-related activities. The fund holds significant exposure across market caps which includes allocation of around 30-40% in large caps, 35-45% in small caps, and about 20% in mid caps.
Performance of Bandhan Infrastructure Fund
| Scheme Name | Total Amount Invested (Rs) | Present Value (Rs) | 10-Yr XIRR (%) |
| Bandhan Infrastructure Fund | 12,00,000 | 46,06,325 | 25.38 |
Data as of July 25, 2024
Returns are XIRR in percentage
Monthly SIP of Rs 10,000 over a 10-year period in Direct plan – Growth option considered
(Source: ACE MF, data collated by PersonalFN)
In the last 10 years, Bandhan Infrastructure Fund grew at an XIRR of 25.4%. A monthly SIP of Rs 10,000 over a 10-year period (i.e. total investment of Rs 12,00,000) would now be valued at Rs 46,06,325.
Top holdings of Bandhan Infrastructure Fund
| Stock name | Allocation (%) |
| Kirloskar Brothers Ltd. | 5.69 |
| Larsen & Toubro Ltd. | 4.35 |
| Adani Ports and Special Economic Zone Ltd. | 4.04 |
| Ahluwalia Contracts (India) Ltd. | 3.38 |
| Reliance Industries Ltd. | 3.17 |
(Source: ACE MF, data collated by PersonalFN)
The fund has invested in a large portfolio of 72 stocks with the top 10 stocks accounting for about 35% of its assets. Engineering, Construction, Logistics, and Auto Ancillaries are among the core sectors in the fund’s portfolio. Its portfolio is spread across market caps with stocks such as Kirloskar Brothers, L&T, Adani Ports & SEZ, Ahluwalia Contracts, and Reliance Industries among its top holdings.
Final thoughts
Several high return mutual funds of the past belong to high to very high risk categories such as Small Cap Funds, Mid Cap Funds, Multi Cap Funds, Sector/Thematic Funds. Accordingly, they are suitable only for investors who can tolerate sharp market fluctuations and have a long-term investment horizon of 5-7 years or more.
While past performance is one of the key criteria for shortlisting mutual funds, one should avoid investing in them purely based on past returns as the performance may or may not sustain in the future. Moreover, not every scheme having high return potential may align with your financial objectives and risk tolerance.
It is important to note that while high return potential mutual funds can give a substantial boost to your corpus, the downside risk is also high and often this can make investors nervous about their investments. For instance, Small Cap Funds witnessed up to 20% drop in their NAVs during the market crash of 2015-16.
Investors should instead focus on creating a diversified portfolio wherein relatively stable categories such as Large, Flexi, and Value form part of the ‘core’ portfolio while high risk categories such as Small Cap Funds and Thematic/Sectoral Funds can form part of the ‘satellite’ portion of the portfolio. The allocation in each of the sub-categories of equity mutual fund will depend on each individual’s investment objectives, risk appetite, and time horizon to goal.
Watch this video to find out the investment strategy to follow with equity markets at all-time high:
Note: This write up is for information purpose and does not constitute any kind of investment advice or a recommendation to Buy / Hold / Sell a fund. Returns mentioned herein are in no way a guarantee or promise of future returns. As an investor, you need to pick the right fund to meet your financial goals. If you are not sure about your risk appetite, do consult your investment consultant/advisor. Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. Registration granted by SEBI, Membership of BASL and certification from NISM no way guarantee performance of the intermediary or provide any assurance of returns to investors.
This article first appeared on PersonalFN here
