Last Updated on Sep 26, 2023 by Harshit Singh
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 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 CAGR.
Table of Contents
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-return 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.
Top 10 high-return large-cap mutual funds in 2023
| Mutual fund name | AUM (Rs. in cr.) | CAGR 3Y (%) | Expense Ratio (%) | Volatility (%) |
| Nippon India Large Cap Fund | 15,855.03 | 31.65 | 0.90 | 10.29 |
| HDFC Top 100 Fund | 25,422.81 | 28.25 | 1.11 | 10.02 |
| ICICI Pru Bluechip Fund | 40,285.71 | 25.66 | 1.02 | 9.25 |
| Mahindra Manulife Large Cap Fund | 260.78 | 24.92 | 0.73 | 10.38 |
| SBI BlueChip Fund | 39,301.06 | 24.64 | 0.88 | 9.24 |
| Tata Large Cap Fund | 1,593.00 | 24.55 | 1.22 | 9.90 |
| Aditya Birla SL Frontline Equity Fund | 23,427.30 | 24.00 | 1.01 | 9.73 |
| Franklin India Bluechip Fund | 6,869.63 | 23.90 | 0.90 | 9.56 |
| Edelweiss Large Cap Fund | 530.97 | 23.12 | 0.83 | 9.77 |
| Kotak Bluechip Fund | 6,369.87 | 23.03 | 0.59 | 9.64 |
Note: The list of top 10 high-return large-cap mutual funds is curated using Tickertape Mutual Fund Screener on the date 26th September 2023 by using following parameters –
Category: Equity > Large cap fund
Plan: Growth
3-yr CAGR: Sorted from highest to lowest
Top 10 high-return mid-cap mutual funds in 2023
| Mutual fund name | AUM (Rs. in cr.) | CAGR 3Y (%) | Expense Ratio (%) | Volatility (%) |
| Quant Mid Cap Fund | 2,531.32 | 40.85 | 0.76 | 14.97 |
| Motilal Oswal Midcap Fund | 5,734.93 | 38.78 | 0.7 | 12.39 |
| SBI Magnum Midcap Fund | 12,555.20 | 36.35 | 0.9 | 10.20 |
| HDFC Mid-Cap Opportunities Fund | 47,236.04 | 36.11 | 0.86 | 11.74 |
| Nippon India Growth Fund | 18,343.36 | 35.24 | 0.94 | 11.53 |
| Mirae Asset Midcap Fund | 11,359.71 | 35.14 | 0.65 | 10.55 |
| Mahindra Manulife Mid Cap Fund | 1,475.97 | 34.78 | 0.56 | 12.12 |
| Edelweiss Mid Cap Fund | 3,448.91 | 33.32 | 0.45 | 11.60 |
| Kotak Emerging Equity Fund | 33,091.23 | 33.11 | 0.37 | 9.54 |
| PGIM India Midcap Opp Fund | 9,261.06 | 32.46 | 0.41 | 10.37 |
Note: The list of top 10 high-return mid-cap mutual funds is curated using Tickertape Mutual Fund Screener on the date 26th September 2023 by using following parameters –
Category: Equity > Mid cap fund
Plan: Growth
3-yr CAGR: Sorted from highest to lowest
Top 10 high-return small-cap mutual funds in 2023
| Mutual fund name | AUM (Rs. in cr.) | CAGR 3Y (%) | Expense Ratio (%) | Volatility (%) |
| Quant Small Cap Fund | 8,075.14 | 48.41 | 0.77 | 15.50 |
| Nippon India Small Cap Fund | 36,539.55 | 44.75 | 0.72 | 11.66 |
| HSBC Small Cap Fund | 11,549.40 | 43.29 | 0.71 | 11.98 |
| HDFC Small Cap Fund | 21,066.56 | 42.12 | 0.75 | 12.01 |
| Tata Small Cap Fund | 5,683.23 | 41.23 | 0.31 | 10.86 |
| ICICI Pru Smallcap Fund | 6,510.80 | 40.00 | 0.70 | 9.97 |
| Franklin India Smaller Cos Fund | 9,595.27 | 39.77 | 0.96 | 11.24 |
| Canara Rob Small Cap Fund | 7,577.29 | 39.58 | 0.42 | 10.30 |
| Edelweiss Small Cap Fund | 2,145.98 | 39.34 | 0.44 | 10.82 |
| Kotak Small Cap Fund | 11,597.03 | 38.33 | 0.43 | 9.11 |
Note: The list of top 10 high-return small-cap mutual funds is curated using Tickertape Mutual Fund Screener on the date 26th September 2023 by using following parameters –
Category: Equity > Small cap fund
Plan: Growth
3-yr CAGR: Sorted from highest to lowest
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 ‘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.
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. With over 50+ filters, you can get the best mutual funds based on your preferences. You can keep track of all the mutual funds you have invested in using our new Mutual Funds Portfolio, which helps you track the performance of your portfolio effortlessly. Explore the new Portfolio now!
As an insatiable reader and learner, I’ve spent the last two years exploring the world of finance. With my creative mind and curious spirit, I love making complex finance topics easy and fun for everyone to understand. Join me on my journey as we navigate the world of finance together!
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