Best Mutual Funds for Next 10 Years in India

Are you someone who lacks time to analyze the market scenario to make a fair investment decision?  Are you someone who wants to have your best investment in a diversified portfolio? Are you someone who wants a professional fund manager who will handle your investments and yield good returns for the next 10 years? 

Right! In this article, we present the best mutual funds for the next 10 years that you can invest in and have greater returns for your secured plans. Also, have a look at the brief overview of each of these mutual funds, which speaks about their SIP investment, lump-sum investment, and the risk factor involved in it. 

Before dwelling on the list of the best mutual funds for the next 10 years, let us first understand the meaning of mutual funds.

Overview of Mutual Funds

A mutual fund is a collection of stocks, bonds, or various other securities that is managed by professional fund managers and is purchased from a pool of contributions made by multiple investors. These mutual funds provide individuals with professional management, liquidity, tax benefits, and the potential to build long-term wealth  

Let us understand this simple concept with the help of the simplest example. 

Visualize yourself as the captain of a cricket squad whose aim is to build the best squad for the tournament. Rather than relying on a single person to outshine the match, you decide to have a balanced team with:

• Batsman (to score runs)

• Bowlers (to take wickets)

• All-rounders (to perform both)

• Wicket-keeper (to support fielding)

In this way, even if one player has a bad day, the others can compensate for the performance and secure victory for the team. 

Now, think of this in terms of a mutual fund. The squad is a mutual fund; different players represent different types of investments like stocks and bonds, and the captain represents the fund manager who carefully selects and manages the investment to maximize returns. 

Types of Mutual Funds (Based on Asset Class)

There are various mutual fund options available in the market. You can choose your mutual fund based on returns and risk appetite. 

1. Equity Mutual Funds: 

An equity mutual fund invests primarily in stocks or equities. It is suitable for long-term investors who expect notable returns over a longer period, but this also carries potential risk due to the volatility in the market condition.

There are different types of equity mutual funds, which include large-cap funds, mid-cap funds, small-cap funds, multi-cap funds, sectoral funds, ELSS, dividend yield funds, contra funds, and focused funds. 

2. Debt Mutual Funds: 

Debt mutual funds are a type of fund that invests your money into securities that provide fixed income, like corporate bonds, government bonds, and other debt instruments. It is considered to be less risky than equity mutual funds as they generate regular income through interest payments. 

The different types of debt mutual funds include liquid funds, ultra short-term funds, short-term funds, medium duration funds, medium to long-term funds, gilt funds, and credit risk funds. 

3. Hybrid Mutual Funds: 

A mutual fund that invests in a mixture of equity and debt mutual funds is known as a hybrid mutual fund, also called a balanced fund. The aim here is to balance return and risk through diversification. 

There are different types of hybrid mutual funds, namely, aggressive hybrid funds, conservative hybrid funds, and dynamic asset allocation funds. 

Best Mutual Funds for the Next 10 Years

When we observe the stock market’s historical data and its pattern, we see that equity mutual funds have outperformed gold and other bonds. 

So, here is a curated list of the best mutual funds for the next 10 years, which is carefully handpicked from various equity categories mentioned in the Rupeezy App.

The above information is collected and recorded as of the 28th of February, 2025.

Overview of The Best Mutual Funds for the Next 10 Years

Nippon India Large Cap Fund:

Nippon India Large Cap Fund is a mutual fund scheme that mainly focuses on investing in large-cap companies to gain potentially consistent long-term returns by having relatively lower risk compared to mid and small-cap funds. It has diversified its investments across various industries like banks, IT software, petroleum products, finance, power, automobiles, etc. 

• Assets Under Management (Fund Size): Rs.35,667 Cr

• NAV: Rs 79.83

• Minimum Investment (SIP): Rs.100

• Minimum Investment (Lump-sum): Rs.100

• Returns (10-year CAGR): 12.07%

• Risk factor: Very high risk

• Exit Load: 1% (If redeemed or switched out on or before completion of 7 days from the date of allotment of units).

Quant Mid Cap Fund:

Quant Mid Cap Fund is a mutual fund scheme that mainly focuses on investing in mid-cap companies. It will have the potential to gain greater returns when compared to the large-cap mutual fund, but it also carries higher volatility. They have diversified their portfolio into PSUs, oil and gas, metals, FMCG, healthcare, telecom, etc. 

• Assets Under Management (Fund Size): Rs.8608 Cr

• NAV: Rs 194.91

• Minimum Investment (SIP): Rs.1,000

• Minimum Investment (Lump-sum): Rs 5,000

• Returns (10-year CAGR): 15.76%

• Risk factor: Very high risk

• Exit Load: 0.50% (for redemption within 90 days)

Quant Small Cap Fund:

Quant Small Cap Fund is a mutual fund scheme that typically focuses on investing in small-cap Indian companies. This implies that the returns on this investment would be potentially higher than the large and mid-cap mutual funds but at the cost of very high market volatility. 

It has diversified its investment in diverse sectors like refineries, trading, pharmaceuticals, healthcare, banks, textiles, entertainment, etc.

• Assets Under Management (Fund Size): Rs.25,183 Cr

• NAV: Rs 221.83

• Minimum Investment (SIP): Rs.1,000

• Minimum Investment (Lump-sum): Rs.5,000

• Returns (10-year CAGR): 18.10%

• Risk factor: Very high risk

• Exit Load: 1% (If redeemed/switched out within 1 year from the date of allotment).

Quant Flexi Cap Fund:

Quant Flexi Cap Fund is an equity fund that allows an investment to be done across large-cap, mid-cap, and small-cap securities along with the versatility of adjusting the allocations based on the fluctuations in the market.

This will help the investors to have diverse exposure and gain strategically consistent returns by selecting the stocks carefully and as per market conditions. The benchmark index for this mutual fund is NIFTY 500 TRI.

• Assets Under Management (Fund Size): Rs.6,829 Cr

• NAV: Rs.86.47

• Minimum Investment (SIP): Rs.1,000

• Minimum Investment (Lump-sum): Rs.5,000

• Returns (10-year CAGR): 17.13%

• Risk factor: Very high risk

• Exit Load: 1% (For redemptions/switchouts within 15 days from the date of allotment of units, irrespective of the amount of investment.)

Quant Active Fund:

Quant Active Fund is also a type of mutual fund scheme that invests in large-cap, mid-cap, and small-cap companies but with fixed allocation, unlike flexi funds. It helps the investors to capture benefits from the mid and small-cap stocks and enjoy the stability from the large-cap stocks. 

The benchmark index for this mutual fund is NIFTY 500 Multicap, with its allocations spread across Large Cap, Mid Cap, and Small Cap companies in the ratio 50:25:25. It has diversified its investment in many industries like trading, refineries, pharmaceuticals, cigarettes, steel, etc.

• Assets Under Management (Fund Size): Rs.9,863 Cr

• NAV: Rs.564.67

• Minimum Investment (SIP): Rs.1,000

• Minimum Investment (Lump-sum): Rs.5,000

• Returns (10-year CAGR): 16.03%

• Risk factor: Very high risk

• Exit Load: 1% (For redemptions/switchouts within 15 days from the date of allotment of units, irrespective of the amount of investment.)

Quant ELSS Tax Saver Fund:

Quant ELSS Tax Saver Fund is an Equity-linked Savings Scheme that provides tax benefits by claiming a maximum deduction of Rs.1.5 lakhs per financial year under Section 80C of the Income Tax Act. 1961 and have a minimum lock-in period of 3 years.

The benchmark index for this mutual fund is NIFTY 500 TRI, and it has diversified its portfolio in various sectors like refineries, pharmaceuticals, power generation and supply, finance and investments, trading, steel, etc.

• Assets Under Management (Fund Size): Rs.10,279 Cr

• NAV: Rs.. 317.25

• Minimum Investment (SIP): Rs.500

• Minimum Investment (Lump-sum): Rs.500

• Returns (10-year CAGR): 17.80%

• Risk factor: Very high risk

• Exit Load: No exit load is applicable for this fund

ICICI Pru Value Discovery Fund:

ICICI Pru Value Discovery Fund is a value equity mutual fund that focuses on identifying the currently undervalued stocks and investing in them. This means that the stock prices are lower than their perceived intrinsic value. It follows the value investing strategy, which identifies underpriced stocks with strong fundamentals. 

They have diversified their portfolio into top sectors like banks, pharmaceuticals and biotechnology, automobiles, petroleum products, IT software, etc. 

• Assets Under Management (Fund Size): Rs.48,400 Cr

• NAV: Rs 420.65

• Minimum Investment (SIP): Rs.100

• Minimum Investment (Lump-sum): Rs.1,000

• Returns (10-year CAGR): 13.56%

• Risk factor: Very high risk

• Exit Load: 1% (If the amount sought to be redeemed or switched out is invested for a period of up to 12 months from the date of allotment).

Quant Infrastucture Fund:

Quant Infrastructure Fund is one of the equity mutual funds that invest in infrastructure-related companies and would allow the investors to gain the benefit from the potential growth of the infrastructure industry. 

It can invest in companies of all sizes, i.e., large, mid, and small-cap, but only with the compulsion of investing in the same sector. This fund has diversified its investment into construction, auto ancillaries, cement, electric equipment, glass and glass products, etc.

• Assets Under Management (Fund Size): Rs.3,304 Cr

• NAV: Rs. 33.12

• Minimum Investment (SIP): Rs.1,000

• Minimum Investment (Lump-sum): Rs.5,000

• Returns (10-year CAGR): 15.99%

• Risk factor: Very high risk

• Exit Load: 0.50% (For redemption within 90 days.)

ICICI Pru Dividend Yield Equity Fund: 

ICICI Pru Dividend Yield Equity Fund is a dividend-yield mutual fund that invests securities in specific high-dividend-yielding company stocks. This would be suitable for those investors who want to have stability and passive income at the same time. They have a diverse portfolio in banks, automobiles, power, pharmaceuticals and biotechnology, oil, etc. 

• Assets Under Management (Fund Size): Rs.4,835 Cr

• NAV: Rs.46.82

• Minimum Investment (SIP): Rs.100

• Minimum Investment (Lump-sum): Rs.5,000

• Returns (10-year CAGR): 13.86%

• Risk factor: Very high risk

• Exit Load: 1% (If units purchased or switched in from another scheme of the fund are redeemed or switched out within 1 year from the date of allotment.)

SBI Contra Fund:

The SBI Contra Fund is a type of mutual fund that follows the contradictory strategy of investing in underperforming stocks for greater returns but at the cost of high risk.

This mutual fund would be suitable for investors who are tolerant of high risk and who can invest for the long term. It has invested in various sectors like banks, refineries, oil drilling/allied services, cement, domestic appliances, etc.

• Assets Under Management (Fund Size): Rs.41,634 Cr

• NAV: Rs 348.54

• Minimum Investment (SIP): Rs.500

• Minimum Investment (Lump-sum): Rs.5,000

• Returns (10-year CAGR): 14.16%

• Risk factor: Very high risk

• Exit Load: 1% (For exit within 1 year from the date of allotment.)

How to Choose the Right Mutual Fund for the Next 10 Years

• Understanding the investment objective: Understanding your investment objective is, your desired return the risk you are willing to take, is crucial in deciding what type of mutual funds you could choose. If you have an appetite for risk, you could go for equity mutual funds which can generate huge returns on the long run. On the other hand, if you have a low risk tolerance, you could choose a debt fund which generate lower yet stable returns.

• Assets Under Management: The AUM mainly indicates the size and performance of a mutual fund and indicates the fund’s credibility as well as the investor’s confidence in the fund house.

• Past Performance of the Fund: Though past performance does not provide an indication of future outcomes, it can tell us about how a particular fund has managed to cope with the market conditions and volatility. It would help you to understand consistency, risk, and management quality.

• Background of the AMC: Assessing the background of Asset Management Company is important to know their ability to generate returns. One way of assessing the AMC’s performance would be to also check how its other funds have also performed. So, if two funds have similar returns, then choosing AMC with a good overall track record would be a great option.

• Assess the timeframe: Long-term investors can opt for equity mutual funds, whereas short-term investors can consider having debt mutual funds. This is because investing in a debt mutual fund would ensure fixed income and would be a suitable option for short-term investments. On the other hand, an equity fund can be volatile in the short run, it has a potential of yielding a higher returns.

• Fund managers: A mutual fund is standing strongly on the performance of the stock market as well as the fund manager’s informed decisions. Assessing their past performance in different market situations would indicate their efficiency in managing the mutual fund.

• Expense ratio: An expense ratio is the annual fee charged by a mutual fund to cover its operational costs. This expense ratio is deducted from the total value of the fund which has an impact on its overall returns. Now in the case of two mutual funds which deliver the same rate of return, an investor can choose the one with a lower expense ratio as it can slightly impact the investor’s returns over a long time.

• Tax implications: The taxes imposed on the capital gains will impact your mutual fund returns as well as the income earned. So, understanding the tax implications for short-term and long-term capital gains in equity funds and non-equity funds becomes important as it will have an influence on your overall returns. 

Ways of Investing in Equity Mutual Funds

1. Lump-Sum Investment: 

A lump-sum investment in a mutual fund means that you invest a large amount of money into a mutual fund in a single transaction. This can be done when you have a large corpus at hand and when the market is in fair value. This means that the investors must invest in a mutual fund when the market is low to buy more units. 

2. SIP Investment:

An SIP investment is another way to invest in a mutual fund where you contribute a fixed amount at regular time intervals. If you do not have a lump-sum amount at hand, then you can opt for an SIP investment where you consistently invest irrespective of the market condition. An SIP can be started with amounts as low as Rs.100, which allows you to be a consistent investor with smaller savings too. 

Risk vs Return: What Should Investors Expect?

An investor needs to have a clear understanding of the relationship between risk and returns. Balancing risks by adopting various strategies is essential to gain higher returns. Mastering this concept would help you invest consciously in mutual funds. 

The essence of this concept is to understand that higher risk can fetch higher returns. This means that an aggressive risk-taker would take a higher risk to yield more returns, whereas a moderate risk-taker would take a lower risk and would be happy with minimum returns. 

Mutual Fund Returns: Lumpsum vs Sip 

Now that we have looked at the best mutual funds for the next 10 years in India, let us see how your investment can compound over the years with an example. 

Lump-Sum Investment:

If I invest Rs.10 lakhs in a mutual fund for 10 years (in a lump sum), with an expected return of 12.5%, then I would get a gain of Rs.22.47 lakhs.

SIP Investment:

If I invest Rs.10 lakhs in a mutual fund for 10 years (Rs.8,333.33 per month) with an expected return of 12.5%, then I would get a gain of Rs.9.95 lakhs. Since SIPs involve fixed periodic investments, the average purchase price of mutual fund units tends to be slightly higher than in a lump sum investment. As a result, SIP returns are generally lower compared to lump sum investments.

Taxation Of Equity Mutual Funds

1. Short-term capital gains (STCG): 

A short-term capital gain is yielded when your investment’s holding period is less than one year. This capital gain on equity mutual funds is taxed at the rate of 20%. 

2. Long-term capital gains (LTCG):

A long-term capital gain is obtained when your investment’s (assets in general) holding period is more than one year. This arises when you sell your investment after holding it for more than a year. 

If your LTCG has not exceeded Rs.1,25,000, then you have the benefit of being tax-free. Secondly, if your LTCG exceeds the maximum threshold of Rs.1,25,000, then you are subjected to pay tax at a flat rate of 12.5%.

Steps to Invest In Equity Mutual Funds

Investing in a mutual fund requires comprehensive, careful planning and execution. However, the process of investment is an effortless procedure. Now, let us look at this seamless process.

• Step 1: Download the Rupeezy App from the Google Play Store or iPhone App Store. You can also click on this link to open your account to invest in mutual funds. 

• Step 2: Register your account with the help of your mobile number.

• Step 3: Now, fill in the necessary details like date of birth, bank statement, Aadhar, and PAN Card. 

• Step 4: A redirected page to complete your KYC process will appear.

• Step 5: After a successful KYC process, you will be sent a client code, after which you are supposed to set a strong password for the same. 

• Step 6: After the completion of all these steps, you can log in to your account.

• Step 7: You can now opt for the invest option and select to invest in your desired funds. 

Conclusion

A mutual fund is one form of investment where you enjoy diversification benefits, professional fund management benefits, tax benefits, rupee cost averaging benefits, and low investment requirements benefits. Also, investing in the best mutual funds for the next 10 years in the long term would be a beneficial factor to investors. 

Considering factors like investment objective, time horizon, and risk tolerance is important before investing in a mutual fund. When analyzing the historical data, equity funds have proven to yield more returns than debt funds, but they also come with a significant risk. So, understanding the concept of risk vs return is crucial.

Long-term investors could either opt for a SIP investment or a lump-sum investment, where, in a SIP investment, stocks are bought when the market is down and sold when the market is up. Whereas you can invest in a lump sum when the market is at its fair value.

Now that you have come across the best mutual funds to invest in for the next 10 years, start your mutual fund investment journey at Rupeezy!

FAQs

Q. Which mutual fund is the best for the next 10 years?

Quant Small Cap Fund (small cap equity category) with 18.10% returns and Quant ELSS Tax Saver Fund (ELSS category) with 17.80% returns, as of 28th of February 2025, are the best mutual funds for the next 10 years when we look at the historical returns from the past 10 years.

Q. Which sector will boom in the next 10 years?

Healthcare and insurance, renewable energy, IT, FMCG, infrastructure, and EV sectors are the fastest-growing sectors in India and are expected to boom in the next 10 years.

Q. How can I make Rs.1 Cr in 10 years?

If you are making an SIP in an Equity fund, you would have to approximately invest Rs. 42000 every month for the next 10 years to successfully have Rs 1 crore by the end of the next 10 years. 

If you make use of the lump-sum investment method, a one-time investment of approximately Rs.31 lakhs is required, which would compound and grow to Rs.1 crore in the next 10 years.

The above scenarios are based on the estimation that the particular fund that you have selected will grow at a CAGR of 12.5%.