Top 10 High-Return Mutual Funds in India for 2024

Investing in mutual funds has become a popular choice for individuals seeking to grow their wealth over time. The Indian market offers a vast array of mutual funds, each with different risk levels and return potential. To help you make an informed decision, we’ve compiled a list of the top 10 high-return mutual funds in India for 2024. These funds have been selected based on their historical performance, consistency, fund management, and growth potential.

1. Axis Bluechip Fund

Category: Large-Cap Fund
3-Year Returns: 18.50%
5-Year Returns: 15.20%
Fund Size: ₹35,000 crore
Expense Ratio: 0.92%
Risk Level: Moderate
Investment Strategy: The Axis Bluechip Fund primarily invests in large-cap companies that have a strong market presence and stable financials. The fund’s strategy is to focus on quality companies with sustainable growth potential, making it a solid choice for conservative investors seeking steady returns.
Performance Analysis: Over the past five years, the fund has consistently outperformed its benchmark, providing stable returns even during market volatility. It’s recognized as one of the best return mutual funds in the large-cap category.

2. SBI Small Cap Fund

Category: Small-Cap Fund
3-Year Returns: 24.60%
5-Year Returns: 19.80%
Fund Size: ₹15,000 crore
Expense Ratio: 0.98%
Risk Level: High
Investment Strategy: This fund focuses on small-cap companies with the potential for exponential growth. The SBI Small Cap Fund is known for its aggressive investment approach, targeting emerging businesses in various sectors.
Performance Analysis: Despite the inherent risks of small-cap investing, this fund has delivered exceptional returns, making it suitable for investors with a high-risk tolerance. It’s one of the highest return mutual funds in the small-cap category.

3. Mirae Asset Emerging Bluechip Fund

Category: Large & Mid-Cap Fund
3-Year Returns: 20.30%
5-Year Returns: 18.40%
Fund Size: ₹25,000 crore
Expense Ratio: 0.80%
Risk Level: Moderate to High
Investment Strategy: This fund adopts a balanced approach, investing in both large-cap and mid-cap companies. It aims to provide a mix of stability from large-cap stocks and growth from mid-cap stocks.
Performance Analysis: The fund has a strong track record of outperforming its peers, making it an attractive option for investors looking for growth with a moderate level of risk. It’s often listed among the best return mutual funds for its category.

4. Kotak Emerging Equity Fund

Category: Mid-Cap Fund
3-Year Returns: 22.10%
5-Year Returns: 17.60%
Fund Size: ₹18,000 crore
Expense Ratio: 0.85%
Risk Level: High
Investment Strategy: The Kotak Emerging Equity Fund primarily invests in mid-cap companies that are in the early stages of their growth trajectory. The fund managers focus on identifying companies with strong fundamentals and significant growth potential.
Performance Analysis: This fund has consistently delivered high returns, especially in bullish market conditions, making it suitable for investors with a long-term investment horizon.

5. HDFC Flexi Cap Fund

Category: Flexi-Cap Fund
3-Year Returns: 19.70%
5-Year Returns: 16.90%
Fund Size: ₹30,000 crore
Expense Ratio: 1.10%
Risk Level: Moderate
Investment Strategy: The HDFC Flexi Cap Fund offers flexibility in asset allocation across large-cap, mid-cap, and small-cap companies. The fund adapts to market conditions, reallocating assets to maximize returns.
Performance Analysis: The fund’s ability to dynamically adjust its portfolio has resulted in consistent performance, making it a strong choice for diversified investors. It’s often considered one of the best return mutual funds in the flexi-cap space.

6. ICICI Prudential Technology Fund

Category: Sectoral/Thematic Fund
3-Year Returns: 35.80%
5-Year Returns: 28.90%
Fund Size: ₹10,000 crore
Expense Ratio: 1.20%
Risk Level: High
Investment Strategy: This fund invests in technology companies, capitalizing on the rapid growth in the tech sector. The fund’s focus on innovation and technological advancements has driven its impressive performance.
Performance Analysis: With the tech sector showing strong growth, this fund has delivered outstanding returns, making it one of the highest return mutual funds in the technology sector.

7. Parag Parikh Flexi Cap Fund

Category: Flexi-Cap Fund
3-Year Returns: 21.50%
5-Year Returns: 18.20%
Fund Size: ₹20,000 crore
Expense Ratio: 0.80%
Risk Level: Moderate
Investment Strategy: Parag Parikh Flexi Cap Fund is unique in its approach, investing in both Indian and global equities. The fund aims to diversify risk while taking advantage of growth opportunities across different markets.
Performance Analysis: The fund has consistently outperformed its benchmark, thanks to its diversified portfolio and global exposure. It’s a strong contender for those seeking high return mutual funds with global diversification.

8. Tata Digital India Fund

Category: Sectoral/Thematic Fund
3-Year Returns: 31.40%
5-Year Returns: 25.70%
Fund Size: ₹7,000 crore
Expense Ratio: 1.25%
Risk Level: High
Investment Strategy: This fund focuses on companies in the digital and IT sectors, which are expected to experience significant growth in the coming years. The fund’s strategy is to invest in market leaders and innovators within the digital space.
Performance Analysis: The fund’s focus on the rapidly expanding digital sector has resulted in strong returns, though it carries higher risk due to its thematic nature. It’s a top pick among the highest return mutual funds in the digital sector.

9. UTI Mid Cap Fund

Category: Mid-Cap Fund
3-Year Returns: 23.00%
5-Year Returns: 18.00%
Fund Size: ₹14,000 crore
Expense Ratio: 0.85%
Risk Level: High
Investment Strategy: The UTI Mid Cap Fund invests in mid-cap companies that are poised for growth. The fund managers focus on identifying companies with strong management teams and robust business models.
Performance Analysis: The fund has a history of outperforming its peers, making it a top choice for investors looking for high return mutual funds in the mid-cap segment.

10. L&T Emerging Businesses Fund

Category: Small-Cap Fund
3-Year Returns: 25.10%
5-Year Returns: 20.20%
Fund Size: ₹9,000 crore
Expense Ratio: 1.10%
Risk Level: High
Investment Strategy: This fund targets small-cap companies with significant growth potential. The fund’s strategy is to invest in businesses that are in the early stages of their growth but have the potential to become market leaders.
Performance Analysis: The fund’s focus on emerging businesses has paid off, delivering substantial returns, but it also comes with higher risk due to the volatility of small-cap stocks. It’s recognized as one of the best return mutual funds in the small-cap category.

Conclusion

Choosing the right mutual fund requires careful consideration of your investment goals, risk tolerance, and time horizon. The funds listed above have shown strong historical performance and offer high returns, but they also come with varying degrees of risk. It is essential to diversify your investments and consult with a financial advisor to ensure that your portfolio aligns with your financial objectives.

Investing in mutual funds is a long-term commitment. By staying invested and making informed decisions, you can achieve significant wealth creation over time.

Discover more: Top 10 SWP Mutual Funds in 2024: A Comprehensive Guide