Best Nippon India funds: Top 5 schemes with 20%+ CAGR in 3, 5 years; multiplied wealth up to 3 times

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 5-year returns: Wealth triples in top-performing funds (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.