Top 10 Mutual Fund Schemes with 1775% to 2002% Returns in 20 Years

For long-term wealth creation, mutual funds have always been considered one of the most reliable investment vehicles. When held over a 20-year horizon, they showcase the real power of compounding and disciplined investing. Interestingly, a select group of equity mutual fund schemes has delivered extraordinary returns in the last two decades, turning a modest investment into significant wealth.

This article highlights 10 mutual fund schemes that generated absolute returns between 1775% and 2002% in the past 20 years. Alongside performance numbers, we will also look at their strategies, risks, and potential wealth creation from a ₹1 Lakh investment.

How These Mutual Funds Were Filtered

To keep the analysis fair and relevant, a few key filters were applied. Only regular plans were considered since direct plans were launched in 2013 and do not have a complete 20-year track record. All categories of equity mutual funds were included, such as large cap, mid cap, small cap, multi-cap, thematic, and sectoral funds.

The selected schemes are those that have completed at least 20 years of performance history. Their CAGR and absolute returns were calculated based on historical NAVs. These funds have delivered 20-year CAGR returns ranging between 17.75% and 20.02%, translating to absolute returns of 1775% to 2002%. In simple terms, an investment of ₹1 Lakh two decades ago would have grown to between ₹17.75 Lakhs and ₹21.02 Lakhs today.

List of Top Performing Mutual Funds in the Last 20 Years

• Nippon India Pharma Fund – 2002% returns
• Sundaram Mid Cap Fund – 1844% returns
• ICICI Prudential Value Fund – 1803% returns
• Nippon India Growth Fund – 1786% returns
• SBI Consumption Opportunities Fund – 1735% returns
• Nippon India Multi Cap Fund – 1714% returns
• Canara Robeco Large & Mid Cap Fund – 1694% returns
• ICICI Prudential Technology Fund – 1692% returns
• HDFC Flexi Cap Fund – 1680% returns
• Canara Robeco ELSS Tax Saver Fund – 1667% returns

Let us take a closer look at some of these schemes and their performance highlights.

Nippon India Pharma Fund

This scheme has been the best performer in the last two decades with a 20-year CAGR of 20.02%. It primarily invests in pharmaceutical and healthcare companies, including biotech and medical equipment businesses. A ₹1 Lakh investment 20 years ago would now be worth ₹21.02 Lakhs.

The fund benefits from India’s rising healthcare demand and global pharma opportunities, though investors must be cautious about sector concentration risks, regulatory changes, and patent challenges.

Sundaram Mid Cap Fund

Known for its strong focus on mid-sized companies, this fund delivered 1844% absolute returns in 20 years, translating into ₹19.44 Lakhs from ₹1 Lakh. It targets businesses in manufacturing, financials, and industrial sectors.

While the growth potential is high, mid-cap funds tend to be more volatile and exposed to liquidity risks, making them suitable for investors with higher risk tolerance.

ICICI Prudential Value Fund

This fund adopts a value investing strategy by focusing on undervalued companies with turnaround potential. Over the last 20 years, it delivered 1803% returns, turning ₹1 Lakh into ₹19.03 Lakhs.

The approach may take longer to show results, and the risk of falling into value traps exists. However, it offers a steady wealth creation avenue for patient investors.

Nippon India Growth Fund

One of the oldest growth-oriented funds, this scheme invests in emerging companies with strong potential. It has generated 1786% returns over two decades. A ₹1 Lakh investment would now be worth ₹18.86 Lakhs.

While the fund offers high returns, exposure to small and mid-sized companies also adds business model and cyclical risks.

SBI Consumption Opportunities Fund

Focused on consumer-driven sectors like FMCG, autos, retail, and hospitality, this fund has delivered 1735% returns in 20 years. A ₹1 Lakh investment here would have grown to ₹18.35 Lakhs.

As India’s consumption story continues to grow, such funds remain attractive. However, demand cycles and inflationary pressures can create short-term challenges.

Other Consistently Performing Funds

Nippon India Multi Cap Fund, with a diversified allocation across large, mid, and small caps, has delivered 1714% returns. Canara Robeco Large & Mid Cap Fund and ICICI Prudential Technology Fund have both turned ₹1 Lakh into nearly ₹18 Lakhs over the same period.

Meanwhile, HDFC Flexi Cap Fund and Canara Robeco ELSS Tax Saver Fund provided steady long-term wealth creation, though with slightly lower absolute returns compared to the top three performers.

Key Takeaways for Investors

The performance of these funds over 20 years demonstrates the strength of equity mutual funds as long-term wealth creators. While sectoral funds like pharma and technology delivered higher returns, diversified multi-cap and flexi-cap funds also offered stability.

Before investing, it is important to consider a few points:

• Align mutual fund choices with your long-term financial goals.
• Assess your risk appetite, especially when investing in mid-cap or sectoral funds.
• Stay invested for a longer horizon to realize the full benefits of compounding.
• Diversify across different fund categories to balance growth and stability.

Final Thoughts

These 10 mutual fund schemes stand as proof of the power of disciplined, long-term investing. Even a small initial investment, when left untouched for two decades, has the potential to multiply many times over.

For investors looking ahead, the key is not just to chase past returns but to choose funds wisely, stay consistent, and allow time and compounding to work their magic. Long-term investing in mutual funds remains one of the most effective strategies for wealth creation in India.