Best Performing Mutual Funds in India for 10 Years for Long-Term Investments (2024)
As numerous Asset Management Companies (AMC) in India introduce new fund offerings (NFOs) frequently, both experienced and new investors seek options for wealth creation. Amongst the new mutual fund schemes, some of the best mutual funds have delivered returns beyond expectations. Although past performance isn’t a guaranteed indicator of future returns, it serves as a valuable gauge of a fund’s historical performance.
Investors tend to favour mutual funds that not only offer impressive returns but also maintain low expense ratios. Furthermore, it’s worth noting that mutual funds present a diverse range of investment options, including stocks, debt, and hybrid funds. These choices cater to investors with varying risk tolerances and investment horizons.
In this blog, we will delve deeper into equity mutual fund schemes and identify the best mutual fund to invest in for 10 years, along with the benefits and much more!
Highest Return Mutual Funds in Last 10 Years
| Fund Name | Sub Category | AUM (Rs. in cr) | Expense Ratio (in %) | CAGR 3Y | CAGR 10Y | Exit Load |
|---|---|---|---|---|---|---|
| Nippon India Small Cap Fund | Small Cap Fund | 61,027.03 | 0.66 | 28.92 | 23.75 | 1 |
| SBI Small Cap Fund | Small Cap Fund | 33,107.25 | 0.66 | 20.03 | 23.50 | 1 |
| Quant ELSS Tax Saver Fund | Equity Linked Savings Scheme (ELSS) | 11,560.66 | 0.65 | 20.04 | 23.07 | 0 |
| Motilal Oswal Midcap Fund | Mid Cap Fund | 20,055.68 | 0.58 | 33.46 | 22.34 | 1 |
| Quant Small Cap Fund | Small Cap Fund | 26,644.74 | 0.64 | 26.59 | 21.81 | 1 |
| HSBC Small Cap Fund | Small Cap Fund | 16,919.61 | 0.67 | 25.03 | 21.78 | 1 |
| Edelweiss Mid Cap Fund | Mid Cap Fund | 7,677.01 | 0.36 | 24.87 | 21.18 | 1 |
| Kotak Small Cap Fund | Small Cap Fund | 17,593.30 | 0.49 | 19.13 | 21.12 | 1 |
| Axis Small Cap Fund | Small Cap Fund | 24,766.00 | 0.54 | 21.47 | 21.07 | 1 |
| Quant Flexi Cap Fund | Flexi Cap Fund | 7,513.82 | 0.59 | 20.89 | 20.93 | 1 |
Disclaimer: Please note that the above list is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing.
Note: The data on the top-performing mutual funds in the last 10 years in India is from 11th November 2024, and the data is derived from Tickertape Mutual Fund Screener.
🚀 Pro Tip: You can use Tickertape’s Mutual Fund Screener to research and evaluate funds with over 50+ pre-loaded filters and parameters.
Overview of the Best Mutual Funds to Invest for 10 Years
Nippon India Small Cap Fund
The Nippon India Small Cap Fund is an open-ended equity scheme launched by Nippon India Mutual Fund. As of 11th November 2024, the Assets Under Management (AUM) of the fund is Rs. 61,027.03 cr. and has an expense ratio of 0.66%. The fund has been able to generate better returns compared to other funds in the same category. The 3-yr CAGR of the fund is 28.92%, and the 10-yr CAGR is 23.75%.
SBI Small Cap Fund
The SBI Small Cap Fund is an equity mutual fund scheme launched by SBI Mutual Fund. The fund primarily invests a minimum of 65% in small-cap stocks. As of 11th November 2024, the AUM of the fund is Rs. 33,107.25 cr. The fund has an expense ratio of 0.66%, close to what most other small-cap funds charge. The fund has been able to generate better returns compared to other funds in the same category. The 3-yr CAGR of the fund is 20.03%, and the 10-yr CAGR is 23.50%.
Quant ELSS Tax Saver Fund
Quant ELSS Tax Saver Fund is an equity-oriented mutual fund designed to provide investors with the dual benefits of potential capital appreciation and tax savings. As of 11th November 2024, the AUM of the fund is Rs. 11,560.66 cr. The fund has an expense ratio of 0.65%. The fund has been able to generate better returns compared to other funds in the same category. The 3-yr CAGR of the fund is 20.04%, and the 10-yr CAGR is 23.07%.
Motilal Oswal Midcap Fund
Motilal Oswal Midcap Fund is an open-ended equity scheme that predominantly invests in mid-cap stocks. This fund is managed by Motilal Oswal Asset Management Company (MOAMC). As of 11th November 2024, the AUM of the fund is Rs. 20,055.68 cr and has an expense ratio of 0.58%. The 3-yr CAGR is 33.46% while the 10-yr CAGR is 22.34%.
Quant Small Cap Fund
Quant Small Cap Fund is designed for investors seeking aggressive growth through investments primarily in small-cap stocks. As a small-cap fund, it invests in companies that rank below the top 250 listed by market capitalisation. As of 11th November 2024, the AUM of the fund is Rs. 26,644.74 cr and has an expense ratio of 0.64%. The 3-yr CAGR is 26.59% while the 10-yr CAGR is 21.81%.
HSBC Small Cap Fund
An open-ended equity scheme predominantly investing in small-cap stocks is launched by HSBC Mutual Fund. The investment objective is to generate long-term capital growth from an actively managed portfolio of equity and equity-related securities of predominantly small-cap companies. The fund’s AUM is Rs. 16,919.61 cr. as of 11th November 2024. The fund has delivered 3-yr CAGR of 25.03% and 10-yr CAGR of 21.78%. The expense ratio of the fund is 0.67%, close to what most other small-cap funds charge.
Edelweiss Mid Cap Fund
Edelweiss Mid Cap Fund is an equity mutual fund scheme launched by Edelweiss Mutual Fund. In terms of composition, the mid-ap makes up for the majority of the fund at 57.33% along with the largest allocation towards Specialised Finance at 8.22%. As of 11th November 2024, the AUM of the fund is Rs. 7,677.01 cr. The expense ratio of the fund is 0.36%, less than what most other mid-cap funds charge. A lower expense ratio implies better returns over the long term. The fund has 3-yr CAGR of 24.87% while the 10-yr CAGR is 21.18%.
Kotak Small Cap Fund
Kotak Small Cap Fund is an equity mutual fund scheme launched by Kotak Mahindra Mutual Fund. The main objective of the scheme is to generate long-term capital growth from a diversified and actively managed portfolio of equity and equity-related securities. As of 11th November 2024, the AUM of the fund is Rs. 17,593.30 cr. The fund has an expense ratio of 0.49%, which is close to what most other small-cap funds charge. Furthermore, the fund has recorded a 3-yr CAGR of 19.13% and a 10-yr CAGR of 21.12%.
Axis Small Cap Fund
Axis Small Cap Fund is an open-ended equity scheme launched by Axis Mutual Fund. The fund has an AUM of Rs. 24,766.00 cr. as of 11th November 2024. The expense ratio of the fund is 0.54%, close to what other small-cap funds charge. The fund has generated a 3-yr CAGR of 21.47% and a 10-yr CAGR of 21.07%.
Quant Flexi Cap Fund
Quant Flexi Cap Fund is an equity-focused mutual fund designed to offer investors the flexibility of investing across large-cap, mid-cap, and small-cap companies. As of 11th November 2024, the AUM of the fund is Rs. 7,513.82 cr. The fund has an expense ratio of 0.59%, which is close to what most other flexi-cap funds charge. Furthermore, the fund has recorded a 3-yr CAGR of 20.89% and a 10-yr CAGR of 20.93%.
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What are Top Performing Mutual Funds in the Last 10 Years?
The best performing mutual funds in India in the last 10 years are those that have outperformed their peers and the broader market. These funds have capitalised on market trends and economic cycles, leveraging their investment strategies and asset allocation to generate substantial returns for investors. They often belong to sectors like technology, healthcare, and consumer goods, which have historically shown strong growth potential. Additionally, geographical diversification in emerging markets has been beneficial for some top funds, allowing them to tap into new markets and consumer bases.
Benefits of Investing in Best Mutual Funds Next 10 Years
Here are some of the potential benefits of investing in the best performing mutual funds in India for 10 years.
- Potential for High Returns: For many investors, equity mutual funds may have the potential to generate better returns than other types of investments, such as fixed deposits or savings accounts.
- Diversification: All mutual funds may provide a way to diversify your investment portfolio across different asset classes, sectors, and companies.
- Professional Management: The top rated mutual funds last 10 years are managed by professional fund managers. They have the expertise and experience to invest in the stock market. This can save you the time and effort of having to research and pick individual stocks yourself.
- Liquidity: Mutual funds may be considered as highly liquid investments. This may mean that you can easily sell your units and redeem your money whenever you need it.
- Tax Benefits: Equity mutual funds such as ELSS funds offer certain tax benefits under Section 80C. This can help to reduce your overall tax liability.
How to Select the Best Mutual Fund for 10 Years to Invest In?
Apart from the above-mentioned factors, here are some of the tips on how to select the best mutual fund investment for 10 years.
- Identify Your Financial Goals and Risk Tolerance: What are you saving for? Retirement? A child’s education? A down payment on a house? Once you know your goal, you can assess your risk tolerance. Are you comfortable with the potential for volatility, or do you prefer a more conservative approach?
- Choose the Right Fund Type: There are many different types of mutual funds, each with its own investment objective and risk profile. Equity funds invest in stocks, while debt funds invest in bonds. Hybrid funds invest in a mix of both stocks and bonds. You can compare funds, and choose according to your own investment objectives and risk tolerance.
Who Should Invest in the Best Performing Mutual Fund in India Last 10 Years?
Investing in the best-performing mutual funds with good mutual fund returns 10 years over 10 years can be open to a wide range of investors. These funds are typically suitable for investors with long-term financial goals and since these funds are managed by experts, it is also suitable for first-time and risk-averse investors. However, each mutual fund scheme is based on certain themes, therefore it’s advisable to consult and/or a financial advisor who can provide personalised guidance based on your specific financial situation.
Risks of Investing in Best Mutual Funds Next 10 Years
Investing in even the highest return mutual fund in last 10 years in India may carry the following risks:
- Market Risk: The value of your investment can go down as well as up due to market fluctuations. However, by picking the right mutual fund scheme, you can mitigate this risk.
- Interest Rate Risk: In the case of debt mutual funds, changes in interest rates can have a significant impact on the value of the fund’s underlying holdings. If interest rates rise, the value of bonds may fall even in the case of the best performing mutual funds in India last 10 years.
- Credit Risk: Debt mutual funds are vulnerable to losses if the bond issuer defaults on interest payments or principal repayment.
- Currency Risk: If you invest in international mutual funds, your investment may be affected by changes in exchange rates.
- Liquidity Risk: Some top-performing mutual funds in India may hold illiquid assets, making it challenging to sell these investments without significantly affecting their value.
Taxation on the Best Performing Long-Term Mutual Funds as per Union Budget 2024-25
The taxation on capital gains from your mutual fund investments are based on their holding periods and asset allocation. A few revisions were made to the tax rates, depending on their types, in the Union Budget 2024-25. In order to fully understand the best performing mutual funds in the last 10 years, it is important to learn about these revisions as well. They include:
Equity Mutual Funds
- Short-Term Capital Gains (STCG): The gains from equity mutual funds held for less than 12 months are now taxed at 20%. This is an increase from the previous tax rate of 15%.
- Long-Term Capital Gains (LTCG): For equity mutual funds held for over a period of over 12 months, gains are classified as long-term capital gains. The new budget introduces these key changes to the LTCG:
- Tax-Free Limit: The capital gains up to Rs. 1.25 lakh per year are tax-free. This is an increase from the previous limit of Rs. 1 lakh.
- Tax Rate: The gains exceeding Rs. 1.25 lakh are now taxed at a flat rate of 12.5%. This is an increase from the previous rate of 10%.
- Indexation: The benefit of indexation, which allowed investors to adjust the purchase price for inflation, has been removed for all asset classes, including equity mutual funds.
Indexation was a method that allowed investors to adjust the purchase price of assets for inflation. This adjustment reduced taxable profits when selling assets like property or gold. Previously, these long-term capital gains were taxed at 20%. The new rule imposes a flat 12.5% tax on all long-term capital gains but eliminates any indexation benefits.
| Capital Gains Tax | Holding Period | Old Rate | New Rate |
| Short-Term Capital Gains (STCG) | Less than 12 months | 15% | 20% |
| Long-Term Capital Gains (LTCG) | More than 12 months | 10% | 12.50% |
Debt Mutual Funds
- Short-Term Capital Gains (STCG): If you sell your debt fund units within a period of 36 months, the gains are classified as short-term capital gains. The STCG will be taxed according to your income tax slab rate.
- Long-Term Capital Gains (LTCG): For debt funds held for a period over 36 months, the gains are classified as long-term capital gains. The new budget outlines a few changes on the LTCG for debt funds including:
- Tax Rate: A flat 12.5% tax rate applies to these gains.
- No Indexation Benefit: The previous benefit of adjusting the purchase price for inflation is removed. Now, the entire gain after three years is taxable at 12.5%.
| Capital Gains Tax | Holding Period | Old Rate | New Rate |
| Short-Term Capital Gains (STCG) | Less than 36 months | Taxed according to your income tax slab | Taxed according to your income tax slab |
| Long-Term Capital Gains (LTCG) | More than 36 months | 10% | 12.50% |
Hybrid Mutual Funds
Short-Term Capital Gains (STCG)
The tax on short-term capital gains depends on the fund’s asset allocation when it comes to hybrid mutual funds. Here is a breakdown of STCG tax rates according to their asset allocation in hybrid funds:
- Equity-Oriented Hybrid Funds (more than 65% in equity): The gains from units sold within 12 months are taxed at 20%.
- Debt-Oriented Hybrid Funds (less than 65% in equity): The gains from units sold within three years are taxed according to your income tax slab.
Long-Term Capital Gains (LTCG)
The capital gains tax on hybrid mutual funds that extend the specified period (12 or 36 months) is known as long-term capital gain tax. The tax treatment under this condition is as follows:
- Equity-Oriented Hybrid Funds: The gains from units held for over a period of 12 months are taxed at 12.5%. The gains up to Rs. 1.25 lakh are tax-free.
- Debt-Oriented Hybrid Funds: The gains from units held for over a period of 36 months are taxed at 12.5% without indexation benefits. This means the entire gain is taxed at this rate, without adjustment for inflation.
| Type of Hybrid Fund | Short-Term Capital Gains (STCG) | Long-Term Capital Gains (LTCG) | Indexation Benefit |
| Equity-Oriented Hybrid Funds | 20% for holdings less than 1 year | 12.5% for holdings over 1 year, with gains up to Rs. 1.25 lakh tax-free | Not available |
| Debt-Oriented Hybrid Funds | Taxed as per income tax slab for holdings less than 3 years | 12.5% for holdings over 3 years | Not available |
Note: Mutual fund schemes where neither the equity nor debt orientation exceeds 65% will now be classified as long-term investments after 24 months. The previous holding period for these funds was 36 months. These will be taxed at the revised LTCG tax rate of 12.5%.
SIP for Highest Return Mutual Fund in Last 10 years
To do a SIP for the best performing mutual funds last 10 years, you can follow these steps:
- Identify the Best Mutual Fund in the Last 10 Years: You can do this by comparing the performance of different mutual funds in the same category. You can also find this information on various financial websites and mutual fund websites.
- Choose the Right SIP Plan: There are different SIP plans available, such as daily SIP, weekly SIP, and monthly SIP. Choose a SIP plan that works best for you and your budget.
- Open a Demat Account and a Trading Account: You need a demat account to hold your mutual fund units. If you don’t have a demat account, you can open a demat account on smallcase.
- Start Your SIP: Once you have opened a demat account and a trading account, you can start your SIP by giving instructions to your bank or broker. You can also start an SIP online through the website of the mutual fund company.
Here are some additional tips for doing a SIP:
- Invest regularly. The key to a successful SIP is to invest regularly, even if it is a small amount.
- Stay invested for the long term. The stock market can be volatile in the short term, but it has historically trended upwards over the long term.
Calculate your SIP returns today via smallcase SIP calculator!
To Wrap It Up…
In conclusion, investing in the best mutual funds for the next 10 years can be a strategic and potentially rewarding financial move. Although it’s crucial to keep in mind that past performance is not a foolproof indicator of future results, it may help investors to make an informed decision. However, it is always worthwhile to consult a financial advisor before investing.
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Frequently Asked Questions (FAQs) on the Best Mutual Funds in Last 10 Years
Based on the 10-yr CAGR, here is the list of 5 top large-cap mutual funds to invest in for the next 10 years, including large and midcap funds:
(a) Nippon India Small Cap Fund
(b) SBI Small Cap Fund
(c) Quant ELSS Tax Saver Fund
(d) Motilal Oswal Midcap Fund
(e) Quant Small Cap Fund
Note: This information is provided for educational purposes and is not intended as a recommendation or endorsement.
The highest Compound Annual Growth Rate (CAGR) is a significant metric for evaluating mutual fund performance, as it indicates the fund’s annual growth over a specified period longer than a year. It helps the investors to understand the historical growth trajectory of the fund. However, it’s important to note that while a high CAGR can be attractive, other financial metrics should also be evaluated before making an investment decision.
Investing in the best-performing mutual funds in India for the last 10 years can be good for new investors as it would mitigate risks. However, it is important to consider your own investment goals and risk tolerance before investing in any mutual fund.
The best time to invest in mutual funds is when you have a long-term investment horizon and can stay invested for at least 5-10 years.
