Last Updated on Aug 5, 2022 by Anjali Chourasiya

Wealth creation involves investment in long-term instruments. As an investor, you wish to invest in instruments that are profitable for you. For this purpose, a high-return mutual fund is a good choice. They are a type of equity fund, carrying the high risk and delivering high returns. Let’s explore them in detail and list the top high-return mutual funds based on their 3-yr average annual rolling returns.

What are high-return mutual funds?

High-return mutual funds carry high risks. They typically invest in equity which is known for its specific risk-reward dynamic. These mutual funds can provide you with high returns. However, their risk-to-returns ratio is also significantly higher. That said, while you may make profits, you may just as quickly lose your investment amount.

These funds are volatile and unpredictable. High-return funds are suitable for investors with an aggressive risk appetite.

Features of high-return mutual funds

Various types: There are ten sub-categories of equity mutual funds as classified by the Securities Exchange Board of India (SEBI). It includes large, mid, and small-cap funds, ELSS funds, focused funds, dividend-yielding funds, thematic and sector funds, etc. Hence, there is a wide variety for you to choose from.

Risk-reward ratio: The phrase ‘higher the risk, higher the reward’ was perhaps coined for high-return mutual funds. Its risk-to-return ratio is proportional.

Asset allocation: Equity funds allocate 65% to 80% of assets in equities. Therefore, they are known as the ‘high-risk funds’. In a bullish trend, this high asset allocation can be proved to be incredibly profitable while the chances of losses increases in the bearish market.

Tax benefits: High-return mutual funds can give you tax benefits. For instance, with ELSS funds, there is an option to claim deductions of up to Rs. 1,50,000 under Section 80C. However, you have to pay short-term and long-term capital gains on your returns.

Investment modes: You can invest in high-return mutual funds in two ways: Systematic Investment Plan (SIP) and lumpsum. The minimum SIP investment goes as low as Rs. 150.

Top 10 high-return mutual funds in 2022

There are various ways you can find out high-return mutual funds. Following are the top 10 high-return mutual funds based on the factors:

  • Category: Equity
  • Plan: Growth
  • 3-yr Average Annual Rolling Return: Set to ‘High’

Note that the list is curated as of 5th August 2022 using Tickertape Mutual Fund Screener.

NameAUM (Rs. in cr.)CAGR 3 yr (%)3 yr Average Annual Rolling Return (%)
Quant Small Cap Fund1711.7849.1356.05
Canara Rob Small Cap Fund2621.2041.7550.26
Bank of India Small Cap Fund294.4741.9650.21
Mirae Asset Midcap Fund7173.2330.7847.16
ICICI Pru Technology Fund8508.1334.4747.02
Quant Infrastructure Fund539.7539.7045.91
Edelweiss Small Cap Fund1084.8537.1445.24
Quant Tax Plan1370.2040.2143.39
Aditya Birla SL Digital India Fund2939.0033.3943.21
Tata Digital India Fund5433.8032.4343.07

1. Quant Small Cap Fund

Quant Small Cap Growth Fund was made available to investors on 15 April 1996. The fund has Assets Under Management (AUM) of Rs. 6,179 cr. Its 3-yr rolling return is 56.05% and requires a minimum SIP investment of Rs. 1,000. The current Net Asset Value (NAV) of the fund is Rs. 133.11.

2. Canara Rob Small Cap Fund

Canara Rob Small Cap Fund is managed by Canara Robeco Asset Management Company, a joint venture between the now defunct Canbank Mutual Fund and Robeco Groep N.V. The total AUM of the fund is Rs. 2,621 cr. as of 30 June 2022. Its minimum SIP is Rs. 1,000. The 3-yr rolling return of the fund stands at 50.26%, and the current NAV as of 5 August 2022 is Rs. 25.35.

3. Bank of India Small Cap Fund

Bank of India Small Cap Fund was launched on 19 December 2018 and currently has an AUM of Rs. 294 cr. Its 3-yr rolling return stands at 50.21% and requires a minimum SIP investment of Rs. 1,000. The NAV of the fund as of 5 August 2022 is Rs. 27.15.

4. Mirae Asset Midcap Fund

Mirae Asset Financial Group manages this fund. The AUM as of 30 June 2022 equals Rs. 7,173 cr. It requires a minimum SIP investment of Rs. 1,000. The fund has a 3-yr rolling return of 47.16%, and the NAV of the fund as of 5 August 2022 is Rs. 22.20.

5. ICICI Pru Technology Fund

ICICI Prudential Technology Fund was launched on 1 January 2013. The fund has a total AUM of Rs. 8,508 cr. and requires a minimum SIP investment of Rs. 100. Its 3-yr rolling return stands at 47.02%, and the NAV as of 5 August 2022 is Rs. 148.21.

6. Quant Infrastructure Fund

Quant Infrastructure Fund is a thematic fund with a current AUM of Rs. 540 cr. The fund was launched in September 2007. It requires a minimum SIP investment of Rs. 1,000. The fund has a 3-yr rolling return of 45.91%, and the current NAV is Rs. 22.75. 

7. Edelweiss Small Cap Fund

One of India’s fastest growing and young Asset Management Companies (AMC), Edelweiss Asset Management Limited, manages this fund. The fund has an AUM of Rs. 1.085 cr. It requires a minimum SIP of Rs. 500 and has a 3-yr rolling return of 45.24%. The current NAV of the fund is Rs. 25.76.

8. Quant Tax Plan

Quant Tax Plan is a tax-saver mutual fund managed by Quant Mutual Fund House. Its current AUM is Rs. 1,370 cr. The fund requires a minimum SIP of Rs. 500. It has a 3-yr rolling return of 43.39%, and the NAV as of 5 August 2022 is Rs. 245.69.

9. Aditya Birla SL Digital India Fund

Managed by Aditya Birla Sun Life Mutual Fund, it was launched on 16 January 2000. It is a thematic mutual fund. The AUM of the fund as of 30 June 2022 is Rs. 2,939 cr. A 3-yr rolling return for the fund is 43.21%, and the current NAV is Rs. 128.77. The fund requires a minimum SIP investment of Rs. 100.

10. Tata Digital India Fund

Tata Digital India Fund was made available to investors on 30 June 1995. It currently has an AUM of Rs. 5,422.80 cr. and a 3-yr rolling return of 43.07%. It requires a minimum SIP investment of Rs. 150. The NAV of the fund as of 5 August 2022 is Rs. 36.19.

To conclude

High-return mutual funds are mostly equity mutual funds with high risk. However, it is always worthwhile to consult a financial advisor before investing. You can use Tickertape Mutual Fund Screener to sort the top mutual funds based on your preference. 

FAQs 

1. Do high-return mutual funds have high risk?

High-return mutual funds primarily invest in equity assets. Hence, as a result, they carry high-risk with them. 

2. Which mutual fund is best for high return?

Based on a 3-yr average annual rolling return, Quant Small Cap Fund, Canara Rob Small Cap Fund, and Bank of India Small Cap Fund are the top three high-return mutual funds as of 5 August 2022. However, use Tickertape Mutual Fund Screener to get the list of best high-return funds based on the parameters that suit your investment goal.

Anjali Chourasiya