For investors with a long-term horizon, mutual funds can generate substantial wealth. Many funds have worked well over the past decade, but some have stood out by consistently providing exceptional returns. In this article, we will light up the spotlight 10 mutual fund schemes that have created great long-term value over the past decade In addition to investment goals, performance over 3, 5, 10 years, portfolio focus, and details of key risks to consider before investing.
10 mutual fund schemes with 10-year returns of 464% to 646%
Let’s get started!
| Mutual fund name | Annual Returns (10 years) | Absolute Return (10Y) | It’s now £1 lakh |
|---|---|---|---|
| Nippon India Small Cap Fund | 22.3% | 646.6% | 7.46 lakhs |
| Quant ELSS Tax Saver Fund | 21.0% | 573.7% | 6.7 lakhs |
| SBI Small Cap Fund | 20.0% | 519.8% | 6.19 lakhs |
| Quant Flexi Cap Fund | 20.0% | 518.4% | 6.18 lakhs |
| Quant Small Cap Fund | 19.7% | 508.4% | 6.08 lakhs |
| Axis Small Cap Fund | 19.5% | 497.8% | 5.97 lakhs |
| Motilal Oswal Midcap Fund | 19.3% | 486.6% | 5.86 lakhs |
| Edelweiss Midcap Fund | 19.2% | 484.5% | 5.84 lakhs |
| Investco India Mid Cap Fund | 19.0% | 471.2% | 5.71 lakhs |
| Kotak Emerging Equity Fund | 18.8% | 464.1% | 5.64 lakhs |
Top Performance Mutual Funds in the Last 10 Years – Deep Diving
Let’s dig deep into these mutual funds.
#1 – Nippon India Small Cap Fund
Investment goals: The fund is primarily investing in small businesses and seeking to generate long-term capital growth by leveraging its high growth potential.
Annual revenue:
- 3 years: 24.7%
- 5 years: 39.5%
- 10 years: 22.2%
Where does the scheme invest? The fund maintains a diverse portfolio across small and medium-sized enterprises in areas such as healthcare, finance, industrial manufacturing and technology.
Risk factors:
- High volatility associated with small investments.
- Liquidity risks during market corrections.
- Small businesses may be more vulnerable to operational challenges, and therefore there is a company-specific risk.
This fund is part of a previous article Five mutual funds with 5-year returns of 426% to 619%.
#2 – Quant ELSS Tax Saver Fund
Investment objective: The fund aims to provide long-term capital gains along with tax benefits under Section 80C by investing primarily in equity and equity-related products. It follows an aggressive investment strategy and actively manages sector allocations.
Annual returns:
- 3 years: 17.0%
- 5 years: 35.8%
- 10 years: 21.0%
Where does the scheme invest?
The fund usually invests high capital in urban areas and is biased towards high conviction ideas. Its portfolio includes companies in sectors such as finance, electricity and capital goods, and often have tactical bets to capture market momentum.
Risk factors:
- High volatility due to offensive sector rotation.
- Intensive bets can amplify the downsides in uncertain markets.
- Market timing and strategy execution risk.
#3 – SBI Small Cap Fund
Investment objective: The fund aims to provide investors with long-term capital gains opportunities, primarily by investing in a well-diversified portfolio of small companies’ equity stocks.
Annual returns:
- 3 years: 17.6%
- 5 years: 30.9%
- 10 years: 20.0%
Where does the scheme invest?
The fund invests in startups in a variety of sectors, including consumer goods, industry, chemicals and healthcare. The bottom-up stock picking approach helps identify companies with strong growth potential and scalable models.
Risk factors:
- Higher volatility due to small cap exposure.
- Liquidity challenges amidst the sluggish market.
- Greater sensitivity to economic cycles and regulations changes
#4 – Quant Flexi Cap Fund
Investment goal: Funds are trying to generate long-term capital gains by investing in dynamic combinations of large, medium and small caps across the sector. Achieving market opportunities requires a highly beneficial and proactive approach.
Annual returns:
- 3 years: 20.8%
- 5 years: 35.4%
- 10 years: 20.0%
Where does the scheme invest?
The portfolio spreads across sectors such as finance, capital goods and technology, with dynamic allocation based on macro trends and market signals.
Risk factors:
- Market timing and aggressive rebalancing risks.
- Volatility due to tactical assignments.
- Exposure across market capitalization can lead to inconsistent performance in unstable markets.
This fund is part of Best mutual funds to invest in 2025 according to Google Gemini.
#5 – Quant Small Cap Fund
Investment objective: The fund aims to create wealth by investing in small and medium-sized businesses with strong foundations and scalable business models. Follow aggressive strategies with tactical sector rotation.
Annual returns:
- 3 years: 24.9%
- 5 years: 49.2%
- 10 years: 19.7%
Where does the scheme invest?
Funds place concentrated bets on high potential small-caps from sectors such as manufacturing, logistics and finance.
Risk factors:
- High volatility inherent in small investments.
- Liquidity risks during revision.
- Risks of sector rotation and inventory concentration.
#6 – Axis Small Cap Fund
Investment Target: The fund aims to generate long-term capital gains, primarily by investing in small caps with strong growth potential and quality control.
Annual returns:
- 3 years: 20.1%
- 5 years: 32.0%
- 10 years: 19.5%
Where does the scheme invest?
It focuses on bottom-up stock picking in sectors such as chemicals, finance and healthcare, with an emphasis on quality and sustainable business models.
Risk factors:
- Small volatility and fluidity constraints.
- Limited downside protection during the bearish stage.
- Reliance on strong execution by small and medium-sized businesses.
#7 – Motilal Oswal Midcap Fund
Investment objective: The fund is trying to provide long-term capital gains by using its purchase and holding strategy to invest in growing Cap stocks.
Annual returns:
- 3 years: 31.0%
- 5 years: 39.4%
- 10 years: 19.3%
Where does the scheme invest?
They invest in medium-sized companies with competitive advantages, primarily in consumption, BFSI and capital goods.
Risk factors:
- Exposure in the cap produces higher volatility.
- Strategies can slow performance in short-term market cycles.
- Division concentration risk.
flat ChatGpt recommended mutual fund portfolio in 2025 There is the mutual fund scheme above.
#8 – Edelweiss Mid Cap Fund
Investment objective: The fund aims to provide long-term wealth creation by investing in high-growth medium-sized companies in various sectors.
Annual returns:
- 3 years: 27.0%
- 5 years: 35.1%
- 10 years: 19.2%
Where does the scheme invest?
It focuses on MIDCAP businesses in sectors such as finance, consumer and infrastructure, with a potential and robust business model.
Risk factors:
- Midcap volatility and liquidity risks.
- Cyclic sector exposure can lead to reversal of variation.
- Economic and policy changes can affect performance.
#9 – Investco India Mid Cap Fund
Investment objective: We aim to generate capital growth by investing in high-quality medium-cap companies with strong fundamentals and long-term scalability.
Annual returns:
- 3 years: 27.0%
- 5 years: 32.0%
- 10 years: 19.0%
Where does the scheme invest?
It focuses on medium-sized companies in the chemicals, healthcare and finance sectors with a basic approach.
Risk factors:
- Market revisions can have a significant impact on MidCap valuation.
- Lower fluidity than a large cap.
- Company-specific operational risks.
#10 – Kotak Emerging Equity Fund
Investment objective: The fund is looking to generate capital gains by investing in intermediate and small businesses with potential to become future leaders.
This fund is part of a previous article Top 5 Midcap Mutual Funds to Invest in 2025.
Annual returns:
- 3 years: 21.7%
- 5 years: 32.4%
- 10 years: 18.8%
Where does the scheme invest?
Invest in sectors such as finance, capital goods and healthcare to identify promising companies early in their growth stages.
Risk factors:
- There is a higher risk from exposure to small companies.
- Market and liquidity risks.
- Reliance on intermediate companies to implement business plans.
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