Strong equity market performance over the past few years has helped several mutual fund schemes deliver eye-catching returns for long-term investors. Among fund houses, Nippon India Mutual Fund stands out with multiple schemes that have managed to deliver over 20% annualised returns across both 3-year and 5-year periods, turning modest investments into substantial wealth.
A closer look at return data shows that ₹1 lakh invested in some Nippon India funds nearly doubled in just three years, while the same amount grew up to three times in five years, highlighting the power of sustained equity exposure when markets remain supportive.
Here are five Nippon India mutual fund schemes that have consistently delivered strong performance across medium and longer timeframes.
3-year returns: ₹1 lakh nearly doubles in select schemes
| Fund | 3-year CAGR | Value of ₹1 lakh |
| Nippon India Power & Infra Fund (Direct) | 27.01% | ₹2.05 lakh |
| Nippon India Growth Mid Cap Fund (Direct) | 26.89% | ₹2.04 lakh |
| Nippon India Value Fund (Direct) | 23.38% | ₹1.88 lakh |
| Nippon India Multi Cap Fund (Direct) | 22.49% | ₹1.84 lakh |
| Nippon India Small Cap Fund (Direct) | 22.13% | ₹1.82 lakh |
5-year returns: Wealth triples in top-performing funds
| Fund | 5-year CAGR | Value of ₹1 lakh |
| Nippon India Small Cap Fund (Direct) | 26.26% | ₹3.21 lakh |
| Nippon India Power & Infra Fund (Direct) | 25.24% | ₹3.04 lakh |
| Nippon India Growth Mid Cap Fund (Direct) | 23.99% | ₹2.93 lakh |
| Nippon India Multi Cap Fund (Direct) | 23.75% | ₹2.90 lakh |
| Nippon India Value Fund (Direct) | 20.36% | ₹2.53 lakh |
(Source: AMFI, Fund Fact sheet)
Fund-wise snapshot and what’s driving returns
1. Nippon India Power & Infra Fund – Direct Plan – Growth
Launched in 2013, this thematic fund focuses on infrastructure-linked opportunities such as power, utilities, and capital goods. Despite being classified as Very High Risk, the fund has benefited from renewed government spending on infrastructure and power transition themes.
Return since launch: 14.90% CAGR
Benchmark: NIFTY Infrastructure TRI
AUM: ₹7,117 crore
Expense ratio: 0.96%
Risk metrics:
Sharpe ratio of 1.03 indicates good risk-adjusted returns
Beta of 0.66 suggests lower volatility than the broader market
Top holdings include: Reliance Industries, NTPC, Larsen & Toubro, Tata Power, and Bharti Airtel.
2. Nippon India Growth Mid Cap Fund – Direct Plan – Growth
This mid-cap oriented scheme has emerged as a consistent performer, balancing growth potential with disciplined stock selection.
Return since launch: 18.44% CAGR
Benchmark: NIFTY Midcap 150 TRI
AUM: ₹42,124 crore
Expense ratio: 0.74%
Risk metrics:
Sharpe ratio of 1.18 reflects strong risk-adjusted performance
Sortino ratio of 1.74 shows effective downside protection
Key holdings include: BSE, Fortis Healthcare, Federal Bank, AU Small Finance Bank, and Persistent Systems.
3. Nippon India Value Fund – Direct Plan – Growth
The value fund focuses on relatively attractively priced large- and mid-cap stocks and has delivered steady returns despite market cycles.
Return since launch: 16.36% CAGR
Benchmark: NIFTY 500 TRI
AUM: ₹9,153 crore
Expense ratio: 1.08%
Risk metrics:
Alpha of 5.45 indicates strong outperformance over the benchmark
Sortino ratio of 1.86 highlights superior downside risk management
Portfolio exposure includes: HDFC Bank, Vedanta, Infosys, SBI, ICICI Bank, Reliance Industries, and NTPC.
4. Nippon India Multi Cap Fund – Direct Plan – Growth
This scheme invests across large-, mid-, and small-cap stocks, offering diversification across market segments.
Return since launch: 16.25% CAGR
Benchmark: Nifty 500 Multicap 50:25:25 TRI
AUM: ₹50,352 crore
Expense ratio: 0.72%
Risk metrics:
Beta of 0.87 suggests lower volatility than the broader market
Sharpe ratio of 1.10 indicates balanced risk-adjusted returns
Top holdings include: HDFC Bank, Axis Bank, ICICI Bank, Infosys, and GE Vernova T&D India.
5. Nippon India Small Cap Fund – Direct Plan – Growth
Among the most aggressive strategies, this small-cap fund has delivered the highest long-term return since launch among the five schemes.
Return since launch: 23.90% CAGR
Benchmark: NIFTY Smallcap 250 TRI
AUM: ₹68,287 crore
Expense ratio: 0.66%
Risk metrics:
Higher volatility with a standard deviation of 16.83
Alpha of 3.54 reflects sustained outperformance
Key holdings include: Multi Commodity Exchange of India, HDFC Bank, SBI, Karur Vysya Bank, and Bharat Heavy Electricals.
What investors should keep in mind
While these Nippon India funds have delivered impressive returns across both 3-year and 5-year periods, it is important to remember that all five schemes are classified as Very High Risk. Such funds can see sharp ups and downs, especially during market corrections.
Past performance does not guarantee future returns. Investors should align fund selection with their risk appetite, investment horizon, and financial goals, and consider staggering investments through SIPs rather than lump sums during volatile phases.
For investors with a long-term horizon and high risk tolerance, these funds showcase how equity mutual funds can significantly multiply wealth over time—but patience and discipline remain key.
Disclaimer: The above content is for informational purposes only. Mutual Fund investments are subject to market risks. Please consult your financial advisor before investing.