The biggest advantage of investing in mutual funds is that if you choose the ‘right fund’ and stick with it for the long term, your money can grow very fast. However, finding this ‘right fund’ can be a challenging task. That’s why it’s wise to do some research on your own or seek guidance from a qualified financial advisor who can help you find the one capable of generating decent long-term returns.
In the mutual fund space, a ‘decent return’ can be subjective. But for this story, we are assuming a benchmark return of 15% CAGR.
Seasoned investors would agree that a 15% return is quite achievable over the long term, provided one is disciplined and sticks to the fundamentals of mutual fund investing. To show how such returns are possible, here are some real examples from two prominent mutual fund categories: large-cap funds and flexi-cap funds.
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We have chosen these two categories, as large-cap funds tend to earn investors’ trust as they invest in well-established, blue-chip companies. Flexi-cap funds, on the other hand, allocate assets dynamically across market capitalisations based on prevailing market conditions. These two categories offer valuable insights into investor sentiment and market trends.
So, here are some funds (direct plan) from these two categories that have delivered returns exceeding 15% over the last 10 years.
Top 3 large-cap funds with more than 15% returns in 10 years
- Quant Focused Fund
The large-cap focussed fund has delivered a 15.52% annualised return in 10 years. Its 3-year and 5-year returns have been even better at 19.82 and 27.17%, respectively.
- Nippon India Large Cap Fund
This Nippon India fund has earned investors a 15.09% return on an annualised basis over the last 10 years. Its 3-year and 5-year returns too have been quite good at 24.14% and 29.83%, respectively.
- Canara Robeco Bluechip Equity Fund – Direct Plan 15.04%
This blue-chip focused mutual fund scheme has given a CAGR return of 15.04% in the last 10 years. The fund’s returns in 3 years and 5 years have been 19.18% and 23.67%, respectively.
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Top 3 flexi-cap funds with over 15% returns in 10 years
- Quant Flexi Cap Fund
This flexi-cap fund has generated an annualised return of 19.81% over the last 10 years. While the scheme’s 3-year and 5-year returns have been even better at 23.44% and 35.30%, respectively.
- Parag Parikh Flexi Cap Fund
This Parag Parikh fund has given an 18.25% annualised return over the last 10 years. Its 3-year and 5-year yields have been recorded at 22.97% and 28.41% CAGR, respectively.
- JM Flexicap Fund
JM Flexicap Fund has earned investors a CAGR return of 17.30% in the last 10 years. The fund has delivered 27.90% in the last 3 years and 30.22% in the last 5 years on an annualised basis.
Note: These returns delivered by the funds mentioned above in 3-year, 5-year, and 10-year periods suggest that an over 15% yield expectation is quite achievable, and there are scores of other funds across several other categories that have given more than 15% returns in both the short- and long-term.
But, investors must bear one thing in mind that these numbers might give hope, but past performance is not a guarantee for the future. The market fluctuates. Therefore, it is important to understand your risk profile and needs before investing.
Now, let’s talk about the real question – if the annual return is 15%, how fast does your money grows to 2 times, 5 times or 10 times. So, how many times will your money multiply in how many years if earning a CAGR at 15%?
Also read: 5 top-rated large-cap mutual funds with lowest expense ratio in 2025
How long will it take to double Rs 1 lakh investment?
Your Rs 1 lakh investment needs 5 years to double at Rs 2 lakh if your return on investment is 15% annualised.
How long will it take to grow Rs 1 lakh investment 5 times?
To grow your money 5 times at an annualised return of 15%, you need about 11.5 years. In about 11.5 years, Rs 1 lakh investment becomes Rs 5 lakh with this rate of return.
How long will it take to make Rs 1 lakh into Rs 10 lakh?
If you stay invested consistently, your money can multiply Rs 1 lakh investment 10 times to Rs 10 lakh in about 16.5 years.
Summing up…
If you invest in the right mutual fund with patience and discipline and the market performs well, then with a 15% CAGR you can make good money in the long term – even multiply your money 10 times.
