Top 5 Mutual Funds That Turned ₹1 Lakh into ₹2 Lakh in 2 Years

Investors often look for the best-performing mutual funds that can provide excellent returns in a short period of time. Mutual funds are usually considered long-term investment vehicles, but there are several schemes that have been able to double the investor’s money in just two years. Yes, you read it correctly – these funds have given you over 40% annual revenue over the past two years. In this article, we will take a look at what mutual funds are and how we filtered out these high growth schemes, diving deep into the top five mutual fund schemes that doubled their investments in two years.

What is a mutual fund?

Mutual funds pool money from a variety of investors and invest in a variety of securities, such as stocks, bonds and other equipment. These funds are managed by professional fund managers who make investment decisions on behalf of investors. Mutual funds are ideal for individuals who want to invest in the stock market but lack the time and expertise to manage their own portfolio.

How did you filter these mutual funds?

We followed a simple filtering process.

• All equity mutual fund schemes across the category were considered.
• A filtered fund based on two years of performance data.
• We only selected funds that gave returns of 40% or more per annum over the past two years (i.e. we doubled our investments).

I’ve written a similar artille before 10 mutual fund schemes with 10-year returns of 464% to 646%

A list of the top 5 mutual funds that have converted £1 lakh to £2 in two years

Here are the top five mutual fund schemes that have generated over 40% CAGR returns over the past two years:

It’s deep sive to the top 5 mutual funds that have turned £1 lakh into £2 in two years

Let’s dive deep into each of these schemes.

#1 – HDFC Defense

• Category: Theme – Defense Sector Fund
• Investment objective: It aims to generate long-term capital gains by investing in companies that are part of the defense and alliance sectors, such as aerospace, shipbuilding and homeland security.
• Returns:
  • 1 year – 32.5%
  • 2 years – 60.4% (£1 investment was £2.58 lakh)
  • 3 years – Na
  • 5 years – Na
  • 10 years – Na

• Reasons to consider: This is India’s first dedicated defence sector fund, launched to help the government take advantage of its promotion to independence in defense (Atmanirbhar Bharat). Strong momentum in the growth of defense manufacturing and exports offers long-term thematic potential.
• risk:Sector-specific concentration. High risks due to government policies and reliance on global geopolitical factors. It’s not suitable for conservative investors or investors looking for diversification.

This fund is part of a previous article 8 mutual funds with 3 month returns of 20% to 54%.

#2 – Band Dance Mall Cap Fund

• category: Small Cap Fund
• Investment objective: It aims to generate long-term capital gains by investing primarily in small businesses.
• Returns:
  • 1 year – 29.5%
  • 2 years – 43.3% (an pound investment would have been £205,000)
  • 3 years – 34.0%
  • 5 years – 38.5%
• Reasons to consider: The fund has shown strong consistency over the years. Perfect for high-risk investors looking for aggressive growth.
• risk: High volatility due to exposure to small caps. Not suitable for short-term investors.

#3 – SBI PSU Fund

• category: Sector/Theme – PSU
• Investment objective: Invest in public sector operations (PSU) stocks.
• Returns:
  • 1 year – 8.9%
  • 2 years – 42.3% (£1 investment was £2.03 lakh)
  • 3 years – 36.1%
  • 5 years – 33.2%
  • 10 years – 14.0%
• Reasons to consider: The focus on PSU revival and sale has led to strong performance. It’s attractive for theme investors.
• risk: Sector-specific risks and political decisions can affect performance.

#4 – Investco India PSU Equity Fund

• category: Sector/Theme – PSU
• Investment objective: The company aims to increase capital over the long term through investments in stocks and equity-related products from PSU companies.
• Returns:
  • 1 year – 8.9%
  • 2 years – 41.6% (£1 investment was £2.01 lakh)
  • 3 years – 37.4%
  • 5 years – 32.0%
  • 10 years – 18.6%
• Reasons to consider: We will focus on consistently strong performance and underrated PSU stocks.
• risk: Like other PSU-focused funds, sector-specific policy-related risks are prone to emerge.

This mutual fund is part of it 10 mutual funds with CAGRs of 30% or more in a period of 3 and 5 years.

#5 – LIC MF Infrastructure Fund

• category: Sector/Theme – Infrastructure
• Investment objective: Invest in products related to equity and equity for businesses engaged in infrastructure development.
• Returns:
  • 1 year – 17.6%
  • 2 years – 40.4% (1 pound investment was 1.99 easy)
  • 3 years – 32.5%
  • 5 years – 35.5%
  • 10 years – 16.5%
• Reasons to consider: As the government focuses on infrastructure, the fund benefits from India’s long-term growth story.
• risk: Infrastructure sector concentration can lead to periodic performance.

Conclusion

These five mutual fund schemes have produced exceptional returns over the past two years, but past performance does not represent future results. Investors should assess risk appetite, investment duration and financial goals before investing. It is also wise to diversify across categories rather than betting entirely on a single theme or sector.

If you are a high-risk investor looking for positive growth and can continue investing in the long term, these funds can add value to your portfolio.

Suresh KP is a veteran financial expert with over 20 years of experience. He is a NISM certified investment advisor and research analyst. For more information about his expertise and certification, please visit Suresh KP

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