Synopsis: These top 10 handpicked mutual funds are ideal for Gen Z investors to build long-term wealth. This list highlights high-return funds with strong consistency and future growth potential.
As a young investor from Gen Z, you have a significant advantage like time, where you can have an investment horizon of 20-35+ years. And afford to take calculated risk in high growth equity funds that can compound wealth significantly.
Small Cap Funds (High Growth Potential)
1. Nippon India Small Cap fund
- 5 years CAGR: 32.29%
- AUM: ₹68,969.11 Crore
- Expense Ratio: 0.63%
- Exit load: 1% if redeemed within 1 year.
- SIP: 100
- Lump sum: NIL
2. Quant Small Cap Fund
- 5 years CAGR: 35.42%
- AUM: ₹30,504.39 Crore
- Expense Ratio: 0.75%
- Exit load: 1% if redeemed within 1 year.
- Min SIP: 1000
- Lump sum: 5000
Mid cap fund
3. Motilal Oswal Midcap Fund Direct Growth
- 5 years CAGR: 32.78%
- AUM: ₹37,500.86 Crore
- Expense Ratio: 0.70%
- Exit load: 1% if redeemed within 1 year.
- SIP: 500
- Lump sum: 500
4. Edelweiss Mid Cap Direct Plan Growth
- 5 years CAGR: 29.65%
- AUM: ₹11,731.01 Crore
- Expense Ratio: 0.40%
- Exit load: 1% if redeemed within 1 year.
- SIP: 100
- Lump sum: 100
Large cap Fund
5. Nippon India Large Cap
- 5 years CAGR: 23.83%
- AUM: ₹48,870.60 Crore
- Expense Ratio: 0.67
- Exit load: 1% if redeemed within 7days.
- SIP: 100
- Lump sum: 100
Also read: Top 10 Best-Performing Mutual Funds Delivering Up to 35.4% Returns in Last 5 Years
6. ICICI Prudential Large Cap
- 5 years CAGR: 20.73%
- AUM: ₹75,863.05 Crore
- Expense Ratio: 0.85%
- Exit load: 1% if redeemed within 1 year.
- SIP: 100
- Lump sum: 100
Large & Mid Cap Fund
7. Invesco India Large & Mid Cap Fund Direct Growth
- 5 years CAGR: 23.88%
- AUM: ₹9034.16 Crore
- Expense Ratio: 0.61%
- Exit load: units in excess of 10% of the investment, 1% will be charged for redemption within 1 year.
- SIP: 100
- Lump sum: 1000
Flexi Cap
8. HDFC Flexi Cap Direct Plan Growth
- 5 years CAGR: 27.36%
- AUM: ₹91041.00 Crore
- Expense Ratio: 0.67%
- Exit load: 1% will be charged for redemption within 1 year.
- SIP: ₹100
- Lump sum: ₹100
9. JM Flexicap Fund Direct Plan Growth
- 5 years CAGR: 24.70%
- AUM: ₹6080.39 Crore
- Expense Ratio: 0.54%
- Exit load:1%, if redeemed within 30 days.
- SIP: ₹100
- Lump sum: ₹1000
Debt Mutual Fund
10. HDFC Income Plus Arbitrage Active FoF Direct Growth
- 5 years CAGR: 14.93%
- AUM: ₹2131.98 Crore
- Expense Ratio: 0.53%
- Exit load:1%, if redeemed within 30 days.
- SIP: ₹100
- Lump sum: ₹1000
Key points
- The best returns have historically come from small and midcap funds, with several posting >30% CAGR over 5 years.
- Flexi cap funds add adaptability and global/diversified exposure, useful for young investors riding multiple market cycles.
- Large cap funds anchor long-term portfolios, providing stability and steady compounding.
| Fund Name | Category | 5 years CAGR | Key features |
| Nippon India Small Cap fund | Small | 32.29% | This fund is capturing high growth potential , delivering robust long term returns through market cycles. |
| Quant Small Cap Fund | Small | 35.42% | It has dynamic stock selection and strong performance, ideal for aggressive growth. |
| Motilal Oswal Midcap Fund Direct Growth | Mid | 32.78% | Strong growth prospects, suitable for wealth creation over the long term. |
| Edelweiss Mid Cap Direct Plan Growth | Mid | 29.65% | Aiming for above average capital appreciation, balancing risk and return. |
| Nippon India Large Cap | Large | 23.83% | Stability by investing in industry leaders and blue chip stocks for steady returns. |
| ICICI Prudential Large Cap | Large | 20.73% | Designed for investors seeking reliable long term capital growth. |
| Invesco India Large & Mid Cap Fund Direct Growth | Large and Mid | 23.88% | A blend fund targeting both large and mid-cap opportunities to maximize growth. |
| HDFC Flexi Cap Direct Plan Growth | Flexi | 27.36% | Invests flexibly across market caps and sectors, allowing for adaptability and risk. |
| JM Flexicap Fund Direct Plan Growth | Flexi | 24.70% | Optimize returns and manage market |
| HDFC Income Plus Arbitrage Active FoF Direct Growth | Debt | 14.93% | Aiming to provide a lower risk returns by arbitraging and income generation strategies. |
Conclusion
Each Category of mutual fund plays a different feature, benefits, and risk. If you’re chasing higher returns and can handle some ups and downs, small- and mid-cap funds might suit you. Debt mutual funds are best for those who want lower risk and returns. Ultimately, long-term investors should choose funds based on how much risk they’re comfortable taking.
Written by Yatheendra N