If a mutual fund yields a return of nearly 20% CAGR over 20 years, investors consider it a great success. It is not easy to get that sort of return consistently over such a long period, because the market experiences ups and downs, including rallies and downturns, during this time. Still, there have been some equity mutual funds that have given an annualised return of 18% to 20% per annum in the last two decades. This means that these schemes have crossed many market cycles and increased the wealth of investors manifold, that too without slowing down.
In this write-up, we have shortlisted five mutual funds based on their 20-year performance. If someone had invested in any of these schemes, their investment could have grown by approximately 27 to 35 times over this period. These five funds belong to different categories — a sectoral fund, a value fund, two mid-cap funds, and a multi-cap fund. Over the past 20 years, they have delivered compound annual growth rates (CAGR) ranging from 17.75% to 19.46%. Data is sourced from Value Research.
Let us now discuss the five funds one by one, which have multiplied the wealth of investors up to 35 times in the last two decades. Three of these funds are from Nippon India, and the other two funds – Sundaram and ICICI Prudential – have also been on top. We will also discuss the 1 year, 3 year, 5 year and 10 year returns of all these funds so that investors can get an idea of their recent performance.
1. Nippon India Pharma Fund
Launched on June 5, 2004, the Nippon India Pharma Fund is an open‑ended scheme focused on healthcare and pharmaceutical stocks. Since its inception, it has delivered an impressive annualized return of 20.57%, outperforming its benchmark, the BSE Healthcare TRI.
With assets under management totaling around Rs 8,569 crore as of June 30, 2025, the fund carries a “Very High” risk rating. Its expense ratio is 1.80% (as of June 30, 2025).
1, 3, 5, 10-year performance of Nippon India Pharma Fund
The sectoral fund’s regular plan has delivered strong long-term performance, particularly for investors with a high-risk appetite. Over the past 1 year, it returned 11.94%, while its 3-year and 5-year returns stand at 24.16% and 21.39% per annum, respectively. Over a 10-year period, the fund has generated a healthy CAGR of 14.13%. Though it slightly underperformed its benchmark, the BSE Healthcare TRI, in the 1- and 3-year periods, it has held up well over longer horizons.
Nippon India Pharma Fund’s 20-year returns
The fund’s regular plan has delivered an excellent annualised return of 19.46% over the last 20 years. That means a lump sum investment of Rs 1 lakh in this fund made 20 years ago would be worth now Rs 35 lakh.
2. Sundaram Mid Cap Fund
Launched on July 30, 2002, the Sundaram Mid Cap Fund is an open-ended scheme that focuses on mid-sized companies with strong growth potential. Managed by Sundaram Mutual Fund, it has delivered an impressive return of 23.99% since inception.
As of June 30, 2025, the fund manages assets worth Rs 12,818 crore and carries a “Very High” risk rating. It tracks the NIFTY Midcap 150 TRI as its benchmark and has an expense ratio of 1.73%. This fund may suit investors with a long-term investment horizon and a higher risk tolerance.
1, 3, 5, 10-year performance of Sundaram Mid Cap Fund
Over the last 1 year, it delivered a return of 7.83%, outperforming its benchmark significantly in the 3- and 5-year periods with annualized returns of 26.37% and 28.36%, respectively. Over the 10-year horizon, the fund has generated a healthy 14.65% CAGR. While it trails the benchmark slightly over 10 years, it has demonstrated strong consistency in shorter periods.
Sundaram Mid Cap Fund’s 20-year returns
The fund has delivered an 18.64% CAGR in 20 years, turning Rs 1 lakh lump sum investment into Rs 30.52 lakh during the period.
3. ICICI Prudential Value Fund
Launched on August 16, 2004, the ICICI Prudential Value Fund, previously known as ICICI Prudential Value Discovery Fund, is an open-ended value-oriented equity scheme managed by ICICI Prudential Mutual Fund. Since inception, it has delivered a robust annualised return of 20.18%. The fund tracks the NIFTY 500 TRI index and has a “Very High” risk rating.
As of June 30, 2025, it manages a sizable corpus of Rs 54,096 crore with an expense ratio of 1.51%. Known for its focus on undervalued quality stocks, the fund is suitable for long-term investors who prefer a value investing approach with potential for steady wealth creation over time.
1, 3, 5, 10-year performance of ICICI Prudential Value Fund
The ICICI Prudential Value Fund has delivered consistent long-term performance, staying true to its value investing strategy. Over the past 1 year, it returned 5.70%, and has outperformed its benchmark, the BSE 500 TRI, over the 3- and 5-year periods with strong annualised returns of 23.49% and 27.08%, respectively. Over a 10-year horizon, it has delivered a healthy 14.84% CAGR, again ahead of the benchmark.
ICICI Prudential Value Fund’s 20-year returns
The fund has given an annualised return of 18.19% over the last 20 years. That means a lump sum investment of Rs 1 lakh in this fund made 20 years ago would be worth now over Rs 28 lakh.
4. Nippon India Growth Mid Cap Fund
Launched on October 8, 1995, the Nippon India Growth Mid Cap Fund is one of the oldest and most well-established mid-cap funds in the market. Managed by Nippon India Mutual Fund, it has delivered a strong return of 22.47% since inception.
The fund follows the NIFTY Midcap 150 TRI as its benchmark and is rated “Very High” on the riskometer. As of June 30, 2025, it manages assets worth Rs 39,066 crore and has an expense ratio of 1.55%. With its long-term track record and focus on emerging mid-sized companies, this fund may suit investors seeking wealth creation over a long investment horizon.
1, 3, 5, 10-year performance of Nippon India Growth Mid Cap Fund
The Nippon India Growth Mid Cap Fund has maintained a strong track record, especially in the medium to long term. Over the past 1 year, the fund returned 7.31%, and it has significantly outperformed its benchmark over the 3- and 5-year periods with annualised returns of 27.83% and 31.52%, respectively. Over a 10-year period, the fund has delivered a healthy CAGR of 17.37%, closely matching the benchmark.
Nippon India Growth Mid Cap Fund’s 20-year returns
The mid-cap fund has delivered a healthy 18.09% return (CAGR) over the last 20 years. With this rate of return, someone who had invested Rs 1 lakh lump sum in this fund would have seen the investment grow up to Rs 27.81 lakh now after 20 years.
5. Nippon India Multi Cap Fund
Launched on March 28, 2005, the Nippon India Multi Cap Fund is an open-ended equity scheme that invests across large-cap, mid-cap, and small-cap stocks in a diversified manner. Since its inception, it has delivered a strong annualised return of 18.29%.
The fund follows the Nifty 500 Multicap 50:25:25 TRI as its benchmark and is classified under the “Very High” risk category. As of June 30, 2025, it manages assets worth Rs 45,366 crore with an expense ratio of 1.52%.
1, 3, 5, 10-year performance of Nippon India Multi Cap Fund
The Nippon India Multi Cap Fund has shown strong performance across multiple time frames. Over the past 1 year, it delivered a return of 6.16%. Its 3-year and 5-year annualised returns stand at an impressive 26.40% and 31.49%, respectively. Over a 10-year period, the fund has generated a solid CAGR of 14.72%.
Nippon India Multi Cap Fund’s 20-year returns
The multi-cap fund has delivered an excellent return of 17.75% over the last 20 years. That means a lump sum investment of Rs 1 lakh in this fund made 20 years ago would now be worth Rs 31 lakh.
It is important to note that the performance of these funds till now is not a guarantee of future. In the last 20 years, these schemes have given excellent returns, but the nature of the stock market is volatile and it is not necessary that similar returns will be obtained in future as well. Before investing, investors must keep in mind their risk capacity and investment period.
Disclaimer: The above content is for informational purposes only. Mutual Fund investments are subject to market risks. Please consult your financial advisor before investing.