High Return Mutual Funds in India

Discover high-return mutual funds in India, emphasising small and midcap equities. Consider debt funds for short-term stability and small and midcap equity mutual funds for long-term growth.

Since the March 2020 low, India’s NSE Nifty 50 is on a bullish run, setting new records every month, and making it one of the best performers in the world today. It is also among Asia’s top gainers this month, surpassing the regional benchmark by 4 percentage points. On the other hand, consumer prices rose above 6 percent in the last two months, driven by higher food and oil prices. This high inflation led to the dwindling of returns on traditional investment sources such as bank deposits, compelling investors to look for juicier and market-linked avenues of investment like mutual funds. The last 12 months have witnessed some high return mutual funds in India drawing the attention of new and existing investors towards them.

Investing in High Return Mutual Funds in India

The primary objective of your mutual fund investments usually is to multiply and accumulate wealth. Wealth accumulation is not a short-term process but a process that needs to be looked at from a long-term perspective. While investing across mutual fund sub-types such as equities, debt, and hybrid, it is pertinent to note that the high-performing mutual funds in India mostly comprise the small and mid-cap equities. This can be attributed to the fact that equities normally demonstrate a high growth rate over the other fund sub-types. The table shown below indicates a list of high return mutual funds in India in 2021:

Small-Cap Equity Mutual Funds

Fund Name NAV (as of Jul 27, 2021) in Rs. 3-year Return 5-year Return
Quant Small Cap Fund 129.86 +72%  +39.01%
Kotak Small Cap Fund 165.65 +51.5%  +30.27%
Axis Small Cap Fund 61 +44.21%  +29.25%
Nippon India Small Cap 82.98 +46.99%  +28.55%
ICICI Prudential Small Cap Fund 50.87 +47.17%  +26.8%

Check out the Kotak Mutual Funds AMC Page

Mid Cap Equity Mutual Funds

Fund Name NAV (as of Jul 27, 2021) in Rs. 3-year Return 5-year Return
PGIM India Midcap Opportunities Fund 42.19 +50.98% +30.41%
Quant Midcap Fund 114.73 +45.55% +28.75%
Axis Midcap Fund 69.77 +34.14% +25.41%
Edelweiss Midcap Fund 51.84 +39.66% +24.99%
Kotak Emerging Equity Fund 74.01 +37.8% +24.09%

Check out the Axis Mutual Funds AMC Page

Large Cap Equity Mutual Funds

Fund Name NAV (as of Jul 27, 2021) in Rs. 3-year Return 5-year Return
Canara Robeco Bluechip Equity Fund 42.05 +27.18% +20.74%
Axis Blue Chip Fund 46.92 +23.84% +20.03%
Kotak Bluechip Fund 378.85 +26.03% +18.57%
Mirae Asset Large Cap Fund 78.06 +23.96% +18.11%
Edelweiss Large Cap Fund 54.38 +23.72% +17.82%

Check out the Canara Robeco Mutual Funds AMC Page

Large and Midcap Equity Mutual Funds

Fund Name NAV (as of Jul 27, 2021) in Rs. 3-year Return 5-year Return
Mirae Asset Emerging Bluechip Fund 97.44 +34.56% +24.52%
Canara Robeco Emerging Equities Fund 162.92 +31% +21.46%
Edelweiss Large & Midcap Fund 53.76 +30.16% +21.1%
Principal Emerging Bluechip Fund 178.89 +30.87% +20.55%
DSP Equity Opportunities Fund 371.28 +30.81% +20.5%

Check out the Mirae Mutual Funds AMC Page

High Return Hybrid Mutual Funds

Fund Name NAV (as of Jul 27, 2021) in Rs. 3-year Return 5-year Return
Quant Multi-Asset Fund Direct-Growth 72.56 +27.89% +17.68%
Quant Multi-Asset Fund Growth 71.89 +27.49% +17.46%
Quant Absolute Fund Direct-Growth 269.3 + 26.51% +19.27%
Quant Absolute Fund Growth 260.42 +25.45% +18.57%
Kotak Asset Allocator Fund Direct-Growth 132.93 +18.95% +15.02%

High Return Debt Mutual Funds

Fund Name NAV (as of Jul 27, 2021) in Rs. 3-year Return 5-year Return
IDFC Government Securities Fund Constant Maturity Direct-Growth 36.37 +12.02% +9.98%
IDFC Government Securities Investment Plan Direct-Growth 29.62 +11.82% +9.56%
ICICI Prudential Constant Maturity Gilt Fund Direct-Growth 19.6 +11.47% +9.32%
DSP Government Securities Direct Plan-Growth 77.82 +11.28% +9.14%
Nippon India Nivesh Lakshya Fund Direct-Growth 13.72 +11.07%

Check out the ICICI Prudential Mutual Funds AMC Page

From the above-tabulated information, it is evident that small and midcap equities can be deemed as high return mutual funds in India. They are providing around 30 percent return over a 5-year long-term duration as compared to a roughly 20 percent return from large caps for the same period. However, investment in small and midcap mutual funds is riskier than in large caps funds, despite their high growth potential.

So, investors who have a high-risk appetite for market volatility over a long-term investment period may opt for small and midcap mutual funds. Investors with short-term investment goals are advised to stay away from these funds. Alongside, there are a few factors that you need to keep an eye on while investing in high return mutual funds in India 2021:

Investment Style

Depending on your risk tolerance level, you can choose from large caps, midcap, small-cap, or multi-cap funds that can offer you high returns.

Expense Ratio

This is the cost of managing the mutual fund. The higher the expense ratio, the maximum it shall impact the fund’s performance. High-performing mutual funds in India from small and midcap equities usually have a relatively lower expense ratio, guaranteeing some plum returns.

Entry and Exit Load Charges

As an investor, you must look to minimize the additional charges on your mutual fund investment. Entry and exit load charges can reduce your NAV value, and so you must choose from the high-performing mutual funds in India that have NIL or minimal entry and exit load charges to maximize the returns.

Brokerage Charges

Direct mutual funds normally generate higher returns than regular mutual funds as there are no brokerage charges. Buying direct mutual funds from any online platform not just helps avoid paying a commission to an AMC or a brokerage firm but also maximizes your investment returns.


Mutual fund investing, in general, requires immense patience, effort as well as risk appetite. Risk and returns are directly proportional and thus balancing your desire for returns with your risk appetite becomes crucial. So, while investing in small and midcap equities that promise superior returns, you need to be careful about the risk of possible unsuccessful ventures and the adverse impact of market volatility on these small-cap funds. A better way out would be to invest very nominally in such risk-prone small-cap funds without making them part of your core investment portfolio. This way, their growth can be balanced by reducing any overexposure to risk.


Which SIP is best for 1 year?

For a one-year investment horizon, consider debt or liquid funds for stability and minimal risk.

What are the top 5 performing mutual funds?

Among the top-performing mutual funds are Quant Small Cap Fund, PGIM India Midcap Opportunities Fund, Canara Robeco Bluechip Equity Fund, Mirae Asset Emerging Bluechip Fund, and Quant Multi-Asset Fund.

Which mutual fund is best for the long term?

For long-term investment goals, consider small and midcap equity mutual funds, as they historically offer higher returns over extended periods, although with higher risk.