Top-Rated Equity Mutual Funds Deliver Exceptional Long-Term Returns

The past 10 years underlined a key truth about equity mutual funds : returns come only to those who stay invested. A set of high-quality equity mutual funds across small-cap, mid-cap and select sectoral categories have delivered exceptional long-term returns. These funds have made modest investments into sizeable wealth over a decade. Data shows that these top-rated equity funds have grown money by nearly 6 to 7 times in 10 years, with lump sum returns ranging between 19.28% and 21.34% CAGR, while SIP returns ranged from 17.28% to 21.53% CAGR over the same period. These figures gain even more relevance when seen against the backdrop of category averages. Over the last 10 years, small-cap funds delivered an average of 16.5% CAGR, mid-cap funds 16.42%, infra-themed funds 16.16%, and banking sector funds 15.05%. Every fund in this list has comfortably outperformed its category average, reinforcing the idea that disciplined, long-term investing rewards investors who stay invested through market cycles. Importantly, these funds are selected based on 10-year lump sum returns, not SIP returns. This distinction matters because SIP leadership changes when rankings are done purely on SIP performance. For instance, Quant Small Cap Fund – Direct Plan – Growth leads the 10-year SIP return chart with a CAGR of 23.14%, but it is not part of this list as the ranking criterion here is lump sum performance. 1. Nippon India Small Cap Fund – Direct Plan Value Research Rating: 4 Star ₹1 lakh lump sum (10 years): ₹6.91 lakh ₹10,000 monthly SIP (10 years): ₹36.76 lakh Expense ratio: 0.66% Risk metrics Standard deviation: 16.83 Sharpe ratio: 0.87 Sortino ratio: 1.25 Beta: 0.85 2. Edelweiss Mid Cap Fund – Direct Plan Value Research Rating: 5 Star ₹1 lakh lump sum (10 years): ₹6.29 lakh ₹10,000 monthly SIP (10 years): ₹36.87 lakh Expense ratio: 0.42% Risk metrics Standard deviation: 15.41 Sharpe ratio: 1.27 Sortino ratio: 1.64 Beta: 0.93 3. Franklin Build India Fund – Direct Plan Value Research Rating: 5 Star ₹1 lakh lump sum (10 years): ₹6.14 lakh ₹10,000 monthly SIP (10 years): ₹35.21 lakh Expense ratio: 1.02% Risk metrics Risk data not disclosed in the provided dataset 4. Invesco India Mid Cap Fund – Direct Plan Value Research Rating: 4 Star ₹1 lakh lump sum (10 years): ₹6.09 lakh ₹10,000 monthly SIP (10 years): ₹35.61 lakh Expense ratio: 0.54% Risk metrics Standard deviation: 16.64 Sharpe ratio: 1.15 Sortino ratio: 1.47 Beta: 0.98 5. HDFC Mid Cap Fund – Direct Plan Value Research Rating: 5 Star ₹1 lakh lump sum (10 years): ₹6.05 lakh ₹10,000 monthly SIP (10 years): ₹35.03 lakh Expense ratio: 0.74% Risk metrics Standard deviation: 13.88 Sharpe ratio: 1.31 Sortino ratio: 1.87 Beta: 0.85 6. Kotak Midcap Fund – Direct Plan Value Research Rating: 4 Star ₹1 lakh lump sum (10 years): ₹6.01 lakh ₹10,000 monthly SIP (10 years): ₹33.11 lakh Expense ratio: 0.38% Risk metrics Standard deviation: 15.18 Sharpe ratio: 1.00 Sortino ratio: 1.25 Beta: 0.89 7. Nippon India Growth Fund – Mid Cap – Direct Plan Value Research Rating: 4 Star ₹1 lakh lump sum (10 years): ₹6.00 lakh ₹10,000 monthly SIP (10 years): ₹35.29 lakh Expense ratio: 0.74% Risk metrics Standard deviation: 15.42 Sharpe ratio: 1.18 Sortino ratio: 1.74 Beta: 0.95 8. Bank of India Manufacturing & Infrastructure Fund – Direct Plan Value Research Rating: 4 Star ₹1 lakh lump sum (10 years): ₹5.97 lakh ₹10,000 monthly SIP (10 years): ₹35.50 lakh Expense ratio: 0.71% Risk metrics Standard deviation: 16.34 Sharpe ratio: 1.14 Sortino ratio: 1.46 Beta: 0.57 9. HDFC Small Cap Fund – Direct Plan Value Research Rating: 4 Star ₹1 lakh lump sum (10 years): ₹5.90 lakh ₹10,000 monthly SIP (10 years): ₹32.47 lakh Expense ratio: 0.67% Risk metrics Standard deviation: 15.72 Sharpe ratio: 0.86 Sortino ratio: 1.31 Beta: 0.78 10. SBI Banking & Financial Services Fund – Direct Plan Value Research Rating: 4 Star ₹1 lakh lump sum (10 years): ₹5.82 lakh ₹10,000 monthly SIP (10 years): ₹29.38 lakh Expense ratio: 0.72% Risk metrics Standard deviation: 11.06 Sharpe ratio: 1.38 Sortino ratio: 2.74 Beta: 0.82 Even among “very high risk” funds, these metrics show meaningful differences in volatility and downside protection, which is why returns alone never tell the full story. Since this list is based on lump sum returns, it should not be interpreted as a ranking of SIP performers. SIP outcomes depend heavily on market volatility and timing, which is why SIP leaders may differ when rankings are done purely on SIP returns. While these long-term returns are impressive, investors should not select mutual funds based on returns alone. Other critical factors include volatility and risk profile, portfolio concentration and sector exposure, consistency across market cycles, fund management track record, and alignment with personal goals and time horizon. Funds delivering high returns often experience sharp interim volatility—especially in small- and mid-cap categories. The biggest takeaway from this 10-year data is simple—long-term investing rewards discipline and patience. Investors who stayed invested through market ups and downs were able to build substantial wealth. For long-term goals, time in the market continues to matter far more than timing the market. Disclaimer: The above content is for informational purposes only. Mutual Fund investments are subject to market risks. Please consult your financial advisor before investing.