Nippon India Small Cap Fund:
Category: Small Cap
Approx. 10-year CAGR: 21.1% to 21.9%
Nippon India Small Cap Fund mainly invests in small-cap companies. These are smaller businesses that can have plenty of room to grow, but their share prices can also move sharply. The fund has an AUM of around ₹74,484 crore in July 2026.
Quant Small Cap Fund:
Category: Small Cap
Approx. 10-year CAGR: 20.3% to 21.0%
Quant Small Cap Fund invests mainly in small-cap companies across different businesses. Its AUM was around ₹35,557 crore in August 2026. It is classified as a very high-risk equity fund.
Edelweiss Mid Cap Fund:
Category: Mid Cap
Approx. 10-year CAGR: 18.7% to 19.4%
Edelweiss Mid Cap Fund invests mainly in mid-sized companies. Its portfolio covers areas such as financial services, IT, chemicals and pharma. Its AUM was around ₹19,891 crore as of August 2026.
Quant ELSS Saver Fund:
Category: ELSS
Approx. 10-year CAGR: 19.8% to 20.9%
Quant ELSS Saver Funds invest mainly in equities and come with a 3-year lock-in. This fund invests across companies and sectors rather than focusing only on small-cap or mid-cap stocks. Its AUM was about ₹13,383 crore as of July 2026.
Axis Small Cap Fund:
Category: Small Cap
Approx. 10-year CAGR: 18.9% to 19.5%
Axis Small Cap Fund invests predominantly in small-cap stocks. Its AUM was around ₹31,448 crore as of August 2026, and it is classified as very high risk. This fund is suitable for long-term investors who are comfortable with volatility.
SBI Small Cap Fund:
Category: Small Cap
Approx. 10-year CAGR: 19.0% to 21.1%
SBI Small Cap Fund invests mainly in small-cap companies across different sectors. Its AUM was around ₹37,105 crore in July 2026. Small-cap funds can experience significant price movements, so this isn’t generally meant for money you may need soon.
Parag Parikh Flexi Cap Fund:
Category: Flexi Cap
Approx. 10-year CAGR: 16.9% to 18.9%
Parag Parikh Flexi-Cap Fund invests across large-cap, mid-cap and small-cap companies. This gives the fund manager more freedom to explore different areas of the market. The fund’s AUM was around ₹1.48 lakh crore in July 2026.
Nippon India Growth Mid Cap Fund:
Category: Mid Cap
Approx. 10-year CAGR: 18.2% to 18.3%
Nippon India Growth Mid Cap Fund mainly invests in mid-cap companies. It has been around for many years and has a large portfolio. Its AUM was around ₹52,271 crore in August 2026. It can suit long-term investors who want exposure to mid-sized companies and can accept high risk.
Motilal Oswal Midcap Fund:
Category: Mid Cap
Approx. 10-year CAGR: ~20.2%
Motilal Oswal Midcap Fund invests primarily in mid-cap companies. Its AUM was around ₹37,474 crore as of July 2026. Mid-cap stocks can grow faster than some larger companies, but their prices can also fall sharply during weak markets.
Quant Infrastructure Fund:
Category: Sectoral/Thematic
Approx. 10-year CAGR: ~20.3%
Quant Infrastructure Fund focuses on companies linked to the infrastructure theme. This can include businesses involved in areas such as construction, engineering, power and related industries. Since it focuses on a particular theme instead of spreading investments across the entire market, its performance can depend heavily on how the infra sector performs.
Why are highest return mutual fund in last 10 years small-caps?
You may have noticed that most of these funds are either small-cap funds or mid-cap funds. There is a simple reason. Smaller or mid-sized companies can sometimes grow much faster than established businesses. When their businesses grow, their share prices can rise significantly too.
But there is another side to this. Small-cap and mid-cap funds can also fall more sharply when the market turns weak. So, a fund appearing on a list of high-return funds does not mean it is suitable for everyone. Historical returns and risk need to be looked at together.
Should you invest in the highest-return mutual fund?
A fund that delivered excellent returns over the past 10 years may not be the right fund for your situation. There are factors you should look at beyond the historical returns, such as:
- Risk: How much can the fund’s value move up and down?
- Fund category: Small-cap, mid-cap, flexi-cap, ELSS and sectoral funds behave differently.
- Consistency: Check rolling returns and performance across different market periods.
- Benchmark: See how the fund has performed against its benchmark.
- Expense ratio: Higher costs can reduce your returns over time.
Also, remember that the exact ranking can change over time. You must always check the performance at the time of investing.
The bottom line
Seeing the highest return mutual fund in last 10 years grow at 20% or more per year can be exciting. But remember that those are past returns, not a promise of what you will earn. Building wealth usually takes time. There is a saying in the market that tends to hold true: “Time in the market beats timing the market”.
You don’t need to find the equity mutual fund with the biggest return every year. Start with an amount you can comfortably invest and stay consistent. Giving your investment enough time can be more useful than constantly jumping from one high-return fund to another.
