Top 10 High Return Mutual Funds in India

Are you looking for a long-term investment in 2026 that can generate a high return and build your wealth over time? If yes, then investing in the top 10 high return mutual funds in India can be a viable option for you. Especially, if you have a high risk appetite and are ready to commit for 7-10 years!

In fact, many analysts are predicting that these high return mutual funds could grow at a range of 12-15% in 2026. For your reference, this rate is significantly higher than many traditional investment options like fixed deposits or savings accounts. And with India’s GDP projected to grow at the rate of 6.8 - 7.2% for FY 2026-27, many of the investors are now turning to these mutual funds to take advantage of this expanding economy in 2026.

But which mutual funds should you invest in for long-term returns? Read this post and discover India’s top 10 high return mutual funds.

Buy Digital Gold Online Safely and Start Your Gold Journey at Just ₹100 now

What are High Return Mutual Funds?

High return mutual funds in India are equity mutual funds that have historically performed better than the broader market and have delivered higher returns than the market average. These funds usually invest in stocks of companies with strong growth potential which in turn helps investors grow their wealth over time.

Let us take a look at the different types of mutual funds that provide high returns over time:

Large Cap Funds: These funds invest in well-established and large companies. Moreover, they generally stay stable and are a perfect choice for those who want long-term and steady growth.
Mid Cap Funds: These invest in medium-sized growing companies and offer a good balance of risk and high return.
Small Cap Funds: Focuses on smaller and emerging companies. While small-cap funds can give high returns, they usually have more short-term ups and downs.
Sectoral or Thematic Funds: These funds mainly target specific sectors like tech or infrastructure. If the sector performs well, these funds rise substantially. However, they also fall quickly if the trend changes.
Flexi Cap or Multi Cap Funds:Lastly, these invest in a mix of large, mid, and small companies and allow managers to adapt to market opportunities.

Pro Tip: You can use our Lumpsum Calculator to estimate the potential returns on your one-time mutual fund investment.

Top 10 High Return Mutual Funds in India in 2026

So, if you are convinced and are looking for mutual funds to invest in. Below is a table of the top 10 high return mutual funds in India with their 3-year and 5-year returns. Take a look:

Fund Name	AUM (in Cr)	3 Yrs Avg. Returns	5 Yrs Avg. Returns
Bandhan Small Cap Fund	19,227	26.47%	20.72%
Invesco India MidCap Fund	10,058	24.62%	19.17%
Bandhan Large & Mid Cap Fund	13,940	21.48%	17.61%
HDFC Focused Fund	26,328	19.04%	19.71%
Nippon India Multi Cap Fund	50,352	19.44%	19.32%
ICICI Pru Infra Fund	8,081	21.59%	24.01%
ICICI Pru Manufacturing Fund	6,230	24.17%	20.01%
DSP Natural Resources And New Energy	1,754	23.06%	20.04%
ICICI Pru Pharma Healthcare & Diagnostics (PHD) Fund	6,660	27.18%	16.78%
Franklin India Opportunities Fund	8,271	26.56%	18.97%
ICICI Pru Commodities Fund	3,553	19.28%	22.28%

Best Fund For Your Investment

Best Mutual Funds for 2026 Backed by Expert Research

Overview of High Returns Mutual Funds in India

Let’s take a look at these top 10 high return mutual funds in India in more detail so that you can make informed investments in 2026.

Bandhan Small Cap Fund

First launched on February 8 of 2020, the Bandhan Small Cap Fund was started by Bandhan Mutual Fund. And since then, it has taken its AUM to Rs. 19,227 Crore. Over time, this fund has delivered highly impressive returns which have even beaten its benchmark.

The fund has been managed by Manish Gunwani since 2023, and it follows the GARP (Growth at a Reasonable Price) strategy. It majorly invests in small-cap companies and is currently ranked as one of the top performers in its category in India.

Moreover, in this high return mutual fund, you can start investing with a minimum lump sum of ₹1,000 or start SIP of just Rs 100. In addition to this, Bandhan Small Cap Fund’s portfolio is largely focused on small-cap stocks (68.81%), with additional exposure to large-cap (9.63%) and mid-cap (8.68%) companies. Below is a chart showing the top five sector allocations of this fund:

Real Estate: 8.68%
Financial Services: 21.74%
Consumer Defensive: 4.30%
Communication Services: 2.42%
Consumer Cyclical: 11.84%

Invesco India MidCap Fund

This is an open-ended equity scheme which predominantly invests in mid-sized companies and focuses on long-term appreciation. It was first launched on 19 April 2007 and is currently managed by Aditya Khemani. Since its launch, Invesco India MidCap Fund’s AUM has grown to Rs. 10,058 Crore and has key holdings in The Federal Bank Ltd (6.38%), AU Small Finance Bank Ltd (5.80%), Prestige Estates Projects Ltd (5.16%), L&T Finance Ltd (4.80%), and Swiggy Ltd (4.60%).

Moreover, the Standard Deviation of this high return mutual funds in India is 16.48, which shows a moderate level of volatility when we compare it to other equity funds. It has also generated reasonably good returns and has a Sharpe Ratio of 1.25. Take a look at its sector allocation below:

Financial Services: 37.67%
Real Estate: 8.45%
Consumer Cyclical: 17.32%
Healthcare: 18.22%
Industrials: 7.73%

Bandhan Large & Mid Cap Fund

The Bandhan Large & Mid Cap Fund is an open-ended equity mutual fund with an AUM of Rs. 13,940 Crore. It mainly invests in a mix of both large-cap and mid-cap stocks and is known for having a strong track record of outperforming its category average. Especially when talking about long-term returns.

Currently, it is managed by Manish Gunwani and follows a “Large Blend” style fund strategy while allocating selectively to small-cap stocks in order to enhance alpha generation. Its NAV (Net Asset Value) is Rs. 152.89 for the Direct-Growth plan and Rs. 130.21 for the Regular-Growth plan. Moreover, its market cap exposure for Large Cap is 38.6%, Mid Cap is 36.3%, and Small Cap is 18.3%.

It also has a diversified fund allocation across its top sectors, which include:

Financial Services: 32.22%
Basic Materials: 7.96%
Technology: 9.29%
Communication Services: 6.00%
Industrials: 12.81%

HDFC Focused Fund

With an AUM of Rs. 26,328 Crore and a standard deviation of 9.42 (very stable), the HDFC Focused Fund is a top performing high return mutual fund in India in 2026. It is an open-ended equity scheme which primarily invests in a concentrated portfolio of up to 30 carefully selected and high conviction stocks across large-cap, mid-cap, and small-cap categories.

It is managed by Amit Ganatra and has a minimum investment of Rs. 100 for both Lumpsum and SIP. Its top stock holdings include HDFC Bank, ICICI Bank, Axis Bank, and Kotak Mahindra Bank. Further, its Sharpe ratio is 1.64, Alpha is 7.71, and Beta is 0.72. Its top sector allocation includes:

Financial Services: 44.47%
Technology: 4.80%
Healthcare: 6.82%
Consumer Cyclical: 19.81%
Communication Services: 3.60%

Nippon India Multi Cap Fund

The Nippon India Multi Cap Fund is another one of the top 10 high return mutual funds in India, whose AMU has grown significantly over the years and now stands at Rs. 50,352 Crores. It is an open-ended equity scheme which has a diversified investment portfolio and includes large, mid, and small-cap stocks.

First launched on 25 March 2005 and currently managed by Sailesh Raj Bhan, this mutual fund focuses on "Growth at Reasonable Valuations" (GARP) portfolio strategy. Including the mix of top-down and bottom-up approaches. Moreover, with a Standard Deviation of 13.22, this fund scheme shows moderate volatility as compared to other equity funds. Below is the fund’s allocation across different sectors:

Financial Services: 25.20%
Technology: 5.08%
Industrials: 16.45%
Energy: 2.31%
Utilities: 6.07%

ICICI Pru Infra Fund

If you are looking for a high return mutual fund which aims for long-term capital appreciation, then ICICI Prudential Infrastructure Fund is a great option. It offers just that by investing around 80% of its assets in equity securities that are related to infrastructure.

It was first started on 31 August 2005 and as of March 2026, has a Net Asset Value of Rs. 187 and AUM of Rs. 8,081 Crores. Currently under Ihab Dalwai, ICICI Pru Infra Fund’s top holdings include Larsen & Toubro Ltd., NTPC Ltd., and Adani Ports & Special Economic Zone Ltd. It also has a Standard Deviation of 14.72 and a Sharpe Ratio of 1.26, with Alpha standing at 3.49 and Beta standing at 0.87.

Industrials: 48.97%
Utilities: 9.63%
Real Estate: 6.53%
Financial Services: 12.33%
Energy: 6.00%

ICICI Pru Manufacturing Fund

This is another one of high return mutual funds in India by ICICI, and mainly focuses on and invests in companies within the manufacturing sector. This is a thematic equity scheme which was started in the year 2018 and now has an AUM of RS. 6,230 Crores with an expense ratio of ~0.78% for Direct Plan and ~1.83% - 1.84%. for an indirect plan.

By investing in this mutual fund, you will be able to better generate a long-term capital appreciation and start with a minimum Lumpsum investment of Rs. 5,000 and SIP of Rs. 100. It also has a Standard Deviation of 15.76 and currently has top individual holdings in Mahindra & Mahindra (5.89%), Cummins India (3.72%), UltraTech Cement (3.69%), Bajaj Auto (3.28%), and JSW Steel (3.22%). Further, its sector allocation is as follows:

Consumer Cyclical: 30.34%
Industrials: 24.54%
Basic Materials: 31.17%
Utilities: 2.71%
Energy: 2.04%

Join the community of 10000+ people who are using our Portfolio Services.

DSP Natural Resources and New Energy

The DSP Natural Resources and New Energy is another thematic equity, high return mutual fund in India that you can invest in. It is managed by DSP Mutual Fund and was first launched in April 2018. This primarily focuses its investments in companies that are involved in the discovery, production, and distribution of natural resources (like energy and mining) and alternative energy technologies.

It has approximately Rs. 1,754 Crores in Assets Under Management, with an expense ratio of ~1.99% to 2.02% for the Regular plan and ~0.82% to 0.89% for the Direct Plan. When it comes to its investment strategy and portfolio, this high-risk mutual fund has top holdings in top Indian firms like ONGC, Jindal Steel, Tata Steel, and Coal India. Moreover, it can also allocate up to 35% of its funds to global stocks via BlackRock Global Funds.

Energy: 32.78%
Basic Materials: 36.21%
Utilities: 6.21%

ICICI Pru Pharma Healthcare & Diagnostics PHD Fund

The ICICI Pru Pharma Healthcare & Diagnostics PHD Fund is an open-ended sectoral equity scheme. It mainly invests in companies like Sun Pharmaceutical Industries Ltd or Cipla Ltd, which are within the healthcare, pharmaceutical, and other related sectors. It was first launched in 2018 and ever since has given returns of approximately 19% to 20%.

Moreover, this is currently managed by Dharmesh Kakkad and is rated highly for its consistency and for protecting against valiantly. You can start your investment in this with a lump sum of Rs. 5,000 or start an SIP of Rs. 100. Below is its sector allocation of equity:

Pharmaceuticals & Biotechnology: 84.97%
Healthcare Services: 6.43%
Retailing: 3.05%
Insurance: 1.44%
Chemicals & Petrochemicals: 1.09%

Franklin India Opportunities Fund

The last one of the top 10 high return mutual funds in India in 2026 is Franklin India Opportunities Fund. It has shown strong long-term performance as of March 2026, as compared to its benchmark, and it focuses primarily on primary themes like Make in India, Sustainable Living, and Digitalization.

It has a Standard deviation of 15.2 and market cap allocation of ~45-48% in Large Cap, ~16% in Mid Cap, and ~34% in Small Cap stocks. Furthermore, it has approximately Rs. 8,271 Crores Assets Under Management with a Sharpe Ratio of 1.44, Alpha of 10.29, and Beta of 1.05.

Financial Services: 22.63%
Energy: 7.84%
Technology: 13.93%
Basic Materials: 7.79%
Industrials: 10.13%

Should You Invest in High Return Mutual Funds in India?

Now that you know the top high return mutual funds in India, let us understand whether it is a wise option for you to invest in them or not! Well, the answer is not that simple; it depends on your goals. You have to first understand your risk appetite and long-term financial goals.

Most of these best mutual funds in India invest heavily in equities. While this can give you strong returns in the longer period (perfect for long-term investors), for short-term investments, they can be highly volatile.

So who should invest in these high return mutual funds?

Long-Term Investors: If your investment goal is for the long term, like 5-10 years, then these funds can be great for you. They give enough time to recover from downturns in the market.
Aggressive Risk Takers: These mutual funds are worth investing in for those who can stay calm during sharp market corrections like 20-25% drops without panic selling.
Experienced Investors: If you are a new investor, then it is generally advised to stay away from these funds as they come in high-risk categories. And better start with less volatile Large Cap or Index funds.

Note: You should also look at key aspects such as Mutual funds portfolio overlap, fund manager performance, expense ratio, and the consistency of returns across market cycles.

Factors to Consider Before You Invest in These Funds

Before you invest in these top 10 high return mutual funds in India, you should consider the following things:

Risk Tolerance: High-return funds can be very volatile, especially small-cap or sectoral funds. So before investing, make sure you are comfortable with this level of risk and possible market fluctuations.
Investment Horizon:High-return equity funds usually perform better over the long term. It is generally recommended to stay invested for at least 3–5 years or more.
Consistent Performance: Do not choose a fund mainly based on its latest returns. Instead, compare it with its benchmark and similar funds to see if it has delivered steady performance over time.
Expense Ratio: The expense ratio is the fee charged by the Asset Management Company (AMC) to manage the fund. A lower expense ratio is better because higher fees can reduce your overall returns in the long run.
Fund Manager Experience: The fund manager plays an important role in how the fund performs. Look for funds managed by experienced professionals who have a good track record and a clear investment strategy.
Asset Allocation and Diversification: It is not a good idea to invest all your money in one sector or type of fund. Diversifying your investments across different funds and sectors can help reduce risk and create a more balanced portfolio.
Taxation: Different types of mutual funds have different tax rules in India. For example, equity funds and debt funds are taxed differently on capital gains.
Exit Load: Some mutual funds charge an exit load if you withdraw your money within a certain period.

How to Choose a Mutual Fund that can Provide High Returns in 2026

To choose a mutual fund that can provide high returns in 2026, you can follow these tips:

Market Cap Focus: Large-cap stocks are currently trading at lower premiums compared to their historical averages. This makes large-cap funds a relatively safer option for stability and steady growth.
Asset Allocation: Since markets may not perform evenly after the strong rally in 2025, diversified options like multi-asset allocation funds can help balance risk and returns.
Fund Consistency: Choose funds with a strong long-term track record. Ratings such as 5-star ratings from Value Research or CRISIL can indicate good risk-adjusted performance.
Expense Ratio: Consider investing in Direct plans instead of Regular plans, as they usually have lower costs. Many top funds have expense ratios between 0.4% and 0.8%, which can help improve your overall returns.

Pro Tip: You can use our SIP Calculator to estimate the potential returns from investing in these mutual funds and plan your monthly investments more effectively.

Smart Investments, Bigger Returns

Invest ₹3,000/Month Get

20 Lakhs

you Get

Invest ₹5,000/Month Get

33 Lakhs

you Get

Invest ₹10,000/Month Get

67 Lakhs

you Get

Conclusion

To conclude, these top 10 high return mutual funds in India that we mentioned above are a great choice if you are looking for long-term wealth creation and higher growth potential. In addition to this, as an investor, you should also review your portfolio on a regular basis and stay disciplined with your investment strategy. Taking a long-term approach, staying diversified, and investing consistently can help improve your chances of achieving better financial outcomes.

FAQs

1. Are High-Return Mutual Funds Risky?

Yes, high-return mutual funds usually come with higher risk. Many of these funds invest in small-cap, mid-cap, or sector-specific stocks, which can be more volatile in the short term. However, they may also offer higher growth potential over the long term for investors who can handle market fluctuations

How can You Invest in the top 10 High Return Mutual Funds in India?

You can invest in mutual funds through several methods:

Through SIP (Systematic Investment Plan) or a lump sum investment
Using MySIP’s investment platform
Directly through the Asset Management Company (AMC) website

3. How Long Should You Hold a High Return Mutual Fund?

High-return mutual funds are generally meant for long-term investing. Experts usually recommend holding them for at least 3–5 years or longer to allow the fund to benefit from market growth and reduce the impact of short-term volatility.

4. Can Beginners Invest In High-Return Mutual Funds in 2026?

Yes, beginners can invest in high-return mutual funds in 2026. However, beginners should start with diversified funds like flexi-cap or large-cap funds before moving to riskier options like small-cap or sector funds.