High Return Mutual Funds in India: Best CAGR Mutual Funds (2026)
Top High Return Mutual Funds - Best Funds, Benefits & Risks
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Selection criteria: Plan: Growth | 3Y CAGR: Sorted from Highest to Lowest
What are High Return Mutual Funds in India?
High return mutual funds are schemes that have delivered relatively higher returns compared with other categories over specific time periods. Their return potential depends on market conditions, sector trends, and the underlying portfolio's performance over time.The term 'high return' is relative and context-dependent. In the Indian mutual fund context, it generally refers to equity funds that have delivered 3-year or 5-year CAGRs meaningfully above the Nifty 50 benchmark (approximately 13-15% historically over 10 years).
What Is CAGR in Mutual Funds?
CAGR stands for Compound Annual Growth Rate. In the context of mutual funds, it is the annualised rate at which a lumpsum investment has grown over a specific period, assuming the returns are reinvested. CAGR is the standard measure used to compare the historical performance of mutual funds across different time periods and categories.
For example, if a mutual fund had a NAV of Rs 50 five years ago and its current NAV is Rs 100, the 5-year CAGR is approximately 14.9%. The CAGR formula is: CAGR = (Ending Value / Beginning Value)^(1/Number of Years) - 1. A higher CAGR indicates stronger historical growth, but past CAGR does not guarantee future returns. When comparing funds, CAGR is most meaningful when measured over the same time period and against funds within the same category, since different fund types carry different risk levels that drive different return profiles.
Overview of the Mutual Funds with Highest Returns
Nippon India Taiwan Equity Fund
Nippon India Taiwan Equity Fund is an international equity fund that invests in Taiwanese companies across sectors such as semiconductors, electronics, technology hardware and manufacturing. It provides exposure to Taiwan’s equity market, which is closely linked to global technology supply chains.
DSP World Gold Mining Overseas Equity Omni FoF
DSP World Gold Mining Overseas Equity Omni FoF is a fund of fund that invests in overseas gold mining companies. It provides exposure to businesses involved in gold exploration, mining and production, with performance linked to global gold mining stocks.
Kotak Silver ETF FoF
Kotak Silver ETF FoF is a fund of fund that invests in Kotak Silver ETF. It provides exposure to domestic silver prices through a mutual fund structure, with returns linked to silver price movements, tracking difference and scheme expenses.
HDFC Silver ETF FoF
HDFC Silver ETF FoF is a fund of fund that invests in HDFC Silver ETF. It aims to track domestic silver price movements through the underlying ETF, subject to tracking difference, liquidity in the ETF and scheme-level expenses.
UTI Silver ETF FoF
UTI Silver ETF FoF is a fund of fund that invests in UTI Silver ETF. It provides exposure to silver as an asset class through the mutual fund route, with returns broadly linked to domestic silver prices and fund-level expenses.
How to Invest in Mutual Funds With High Returns?
Here’s how you can identify and invest in the high return mutual funds with Tickertape Mutual Fund Screener -
- Launch Tickertape Mutual Fund Screener.
- Select “Plan: Growth”, and “CAGR 3Y (%):” Highest to lowest
- You can then further filter out the highest return mutual fund in India based on over 50 fundamental and technical parameters.
- After identifying the top return mutual fund in India that aligns with your investment thesis, click on “Place Order” to invest in the fund.
With Tickertape Mutual Fund Screener, you can invest via ‘lumpsum’ or start a ‘SIP’ in Mutual Funds. Moreover, by connecting your portfolio, you can do a deep analysis of your portfolio and assess its performance.
Taxation of High Return Mutual Funds
Equity mutual funds are taxed based on how long the investment is held. As per the 2024 Union Budget, both short-term and long-term gains have revised rates and exemption limits. The details are as follows:
| Capital Gains Type | Holding Period | Tax Rate |
|---|---|---|
| Short-Term Capital Gains (STCG) | Less than 12 months | 20% |
| Long-Term Capital Gains (LTCG) | More than 12 months | 12.5% (Exempt up to ₹1.25 lakh per financial year) |
Who Should Consider High Return Mutual Funds?
Investors With A High Risk Appetite
Long-Term Wealth Builders
Investors Seeking Capital Appreciation
Investors Comfortable With Equity Market Volatility
Benefits of Investing in High Return Mutual Funds
Higher Historical Growth
Strong-Performing Categories
Data-Led Portfolio Insights
Risks of Investing in High Return Mutual Funds
Past Returns
High Volatility
Sector Concentration
Cycle Dependence
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Factors to Consider Before Investing in High Return Mutual Funds
Volatility Profile
Category Dynamics
Expense Structure
Portfolio Composition
Return Consistency
Conclusion
Highest return mutual funds highlight schemes that delivered stronger gains over specific periods. Their portfolios often reflect favourable sector trends, earnings momentum, or supportive market cycles. However, these funds rely on historical performance, which can change when market conditions shift. Many high-return schemes belong to volatile categories that experience sharper ups and downs.
For better analysis, Tickertape Mutual Fund Screener can help analyse these funds in detail using more than 50 pre-built filters, offering a data-led view of returns, risk measures, and portfolio characteristics.
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Frequently Asked Questions About High Return Mutual Funds
What are high return mutual funds?
High return mutual funds are schemes that delivered higher historical returns than other funds in their category over a specific period. This label is based on past performance and does not indicate a separate SEBI-defined category.What are the best CGAR mutual funds in India?
Highest CAGR mutual fund in India varies depending on the time period, fund category and market cycle. For example, the highest-returning funds over 3 years, 5 years and 10 years may differ. You can open the High Return Mutual Funds Screener and sort funds by their 3Y, 5Y, or 10Y CAGR to compare long-term return performance.Disclaimer: This is for informational purposes only and should not be considered investment advice. Mutual fund returns change over time, and past performance does not guarantee future returnsWhich mutual funds have the highest returns?
As of 22nd July 2026, the top high return mutual funds in India based on 3Y CAGR include:- Nippon India Taiwan Equity Fund
- DSP World Gold Mining Overseas Equity Omni FoF
- Kotak Silver ETF FoF
- HDFC Silver ETF FoF
- UTI Silver ETF FoF
Disclaimer: Please note that the above list of highest CAGR mutual funds is for educational purposes only, and is not recommendatory.
Are high return mutual funds only equity funds?
No, they are not limited to equity alone. High return equity mutual funds are the most common in this category because equity funds usually carry higher growth potential. However, certain hybrid funds and even some debt funds can also deliver high returns during favourable market, credit, or interest-rate cycles.Is a mutual fund with highest return risky?
Many funds in high-return lists come from segments with sharper price swings, such as small-cap or thematic categories. These categories may face deeper corrections, which impact their risk profile.Are high return mutual funds a good investment?
Whether a high return mutual fund is suitable depends on various factors, such as how its category behaves, how volatile its returns have been, and whether its past performance came from a short-term cycle or long-term strength.How to choose best equity mutual funds in India?
While choosing the best equity mutual funds in India, investors can use Tickertape Mutual Fund Screener to review factors such as the fund category, past return consistency, volatility, expense ratio, and more. They can compare the funds using more than 50 filters to figure out whether the fund’s risk level and investment style match their financial goals and time horizon.Disclaimer: Please note that the above information is for educational purposes only, and is not recommendatory.
What are the advantages of investing in mutual fund with highest return?
These funds can provide access to professional fund management, portfolio diversification, and market-linked growth potential. They also allow investors to participate in different sectors, market capitalisations, or investment styles through a single investment product.Disclaimer: Please note that the above information is for educational purposes only, and is not recommendatory.
What are the risks of investing in high return mutual funds?
High return mutual funds can carry market risk, volatility risk, concentration risk, and category-specific risk. A fund that has delivered strong returns in one period may underperform in another. This makes it important to understand the fund’s risk profile rather than focusing only on past returns.Who should look to invest in high return mutual funds?
These funds may be considered by investors who understand market-linked fluctuations and are evaluating funds in line with their financial goals, risk tolerance, and investment horizon. The suitability of any mutual fund depends on individual risk tolerance and investment strategy.Disclaimer: Please note that the above information is for educational purposes only, and is not recommendatory.
Which is the highest return mutual fund in 10 years?
As of 22nd June 2026, Nippon India Small Cap Fund has delivered the highest return among equity mutual funds in the last 10 years. The fund primarily invests in small-cap companies across sectors, aiming to capture growth opportunities from emerging and relatively smaller businesses.Disclaimer: Please note that the above information is for educational purposes only, and is not recommendatory.
How to find mutual funds with a high Sharpe ratio?
Tickertape Mutual Fund Screener allows you to find mutual funds with a high Sharpe ratio by using risk-adjusted return filters. You can open the screener, apply the Sharpe Ratio filter, and compare funds across categories, returns, risk, expense ratio and other key metrics.Disclaimer: Please note that the above information is for educational purposes only, and is not recommendatory.
What are low risk high return mutual funds?
Low risk high return mutual funds usually refer to funds that aim to balance stable returns with controlled volatility. These may include debt funds, conservative hybrid funds, or balanced advantage funds, depending on market conditions. However, no mutual fund is completely risk-free, and higher return potential usually comes with some level of market risk.Disclaimer: Please note that the above information is for educational purposes only, and is not recommendatory.
What are high risk high return mutual funds?
High risk high return mutual funds are funds that invest in volatile asset classes or concentrated segments such as small-cap, mid-cap, sectoral, thematic, or international equity funds. These funds can deliver strong returns during favourable market phases but may also see sharp declines during corrections.Disclaimer: Please note that the above information is for educational purposes only, and is not recommendatory.
