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How much return mutual funds give on average, returns by type — a complete guide.
Published by The Retail Trader · AUG 09, 2026 · Features
How much return mutual funds give on average, returns by type — a complete guide.
Keep these eight points in mind:
• Large Cap — 1 Year: 15-20%, 3 Years: 12-15%, 5 Years: 12-14%, 10 Years: 11-13%
• Mid Cap — 1 Year: 20-30%, 3 Years: 15-20%, 5 Years: 14-18%, 10 Years: 13-16%
• Small Cap — 1 Year: 25-40%, 3 Years: 18-25%, 5 Years: 16-22%, 10 Years: 14-18%
• Flexi Cap — 1 Year: 18-25%, 3 Years: 14-18%, 5 Years: 13-16%, 10 Years: 12-15%
• Index Fund — 1 Year: 15-20%, 3 Years: 12-15%, 5 Years: 12-14%, 10 Years: 12-14%
• ELSS — 1 Year: 18-25%, 3 Years: 14-18%, 5 Years: 13-16%, 10 Years: 12-15%
• Debt Fund — 1 Year: 6-8%, 3 Years: 6-7%, 5 Years: 6-7%, 10 Years: 6-8%
• Hybrid — 1 Year: 10-15%, 3 Years: 9-12%, 5 Years: 9-11%, 10 Years: 9-11%
Keep these three points in mind:
• 2005-2015 — Nifty 50 CAGR: 12.5%, Best Category: Small Cap (18%)
• 2010-2020 — Nifty 50 CAGR: 10.8%, Best Category: Mid Cap (14%)
• 2015-2025 — Nifty 50 CAGR: 13.2%, Best Category: Small Cap (16%)
What to Expect:
• Large Cap/Index: 12-14% long-term
• Mid Cap: 14-18% long-term
• Small Cap: 16-22% long-term (but very volatile)
• Debt: 6-8% (stable, low risk)
What NOT to Expect:
• "50% returns every year" — Unrealistic
• "Guaranteed returns" — Nothing in the market is guaranteed
• "Past returns = Future returns" — Not true
Keep these five points in mind:
• Savings Account — Returns: 3-4%, Inflation: 6%, Real Returns: -2%
• FD — Returns: 6-7%, Inflation: 6%, Real Returns: 0-1%
• Gold — Returns: 8-10%, Inflation: 6%, Real Returns: 2-4%
• Real Estate — Returns: 8-12%, Inflation: 6%, Real Returns: 2-6%
• Equity MF — Returns: 12-15%, Inflation: 6%, Real Returns: 6-9%
Equity MF beats inflation by 6-9% — best wealth creator.
Keep these points in mind:
• 📌 MF AVERAGE RETURNS
• BY TYPE:
• 📊 Large Cap: 12-14% (10 years)
• 📊 Mid Cap: 14-18%
• 📊 Small Cap: 16-22%
• 📊 Index Fund: 12-14%
• 📊 Debt: 6-8%
• 📊 Hybrid: 9-11%
• REALITY:
• 📊 12-15% long-term realistic
• 📊 50% every year unrealistic
• 📊 Guaranteed returns = scam
• REAL RETURNS (after inflation):
• 📊 Equity MF: 6-9%
• 📊 FD: 0-1%
• 📊 Savings: -2%
• BEST WEALTH CREATOR:
• 📊 Equity MF > Gold > Real Estate > FD > Savings
Keep these points in mind:
• Mutual Fund Types | SIP vs Lump Sum | Nifty 50 Companies
The Retail Trader — educational market analysis. Not investment advice.
This article is educational only — it is not a buy or sell recommendation, makes no claim of guaranteed returns, and is not advisory. Rules, rates and mechanics of the exchanges, SEBI and RBI change from time to time, so verify every number yourself with your broker or an official source.