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    Home»Mutual Funds»3 Nippon India funds rank among 1209 mutual funds in 20-year returns, Rs 10,000 SIP turns nearly Rs 2 Cr. Here’s how they compare on return, risk and category – Mutual Funds News
    Mutual Funds

    3 Nippon India funds rank among 1209 mutual funds in 20-year returns, Rs 10,000 SIP turns nearly Rs 2 Cr. Here’s how they compare on return, risk and category – Mutual Funds News

    July 4, 2026


    A 20-year track record is one of the toughest tests for any mutual fund. Over such a long period, funds go through bull and bear markets, economic booms and slowdowns, global crises, and changing interest rate cycles. Yet only a handful manage to consistently stay among the top performers.

    We analysed around 1,209 active and passive equity funds listed on Value Research and found that only about 50 regular funds have completed 20 years. Their annualised returns range from around 5% to 19.51%, with 43 of them delivering double-digit returns over the 20-year period.

    A closer look shows that mid-cap and sectoral funds dominate the top of the table. Among the five best-performing funds over the last 20 years, three belong to Nippon India Mutual Fund, while the other two are from HSBC and Bandhan.

    Among the five funds, Nippon India Pharma Fund emerged as the top performer over the last 20 years, delivering an annualised return of 19.51% and securing the No. 1 rank in its category (1/3). Nippon India Banking & Financial Services Fund followed with a 17.64% annualised return, also ranking 1st in its category over the same period.

    Within the mid-cap category, HSBC Midcap Fund and Nippon India Growth Mid Cap Fund generated nearly identical long-term returns of 16.83% and 16.82%, ranking 1st and 2nd, respectively, among 11 funds. Bandhan Flexi Cap Fund delivered a 16.58% annualised return over 20 years and ranked 1st in the flexi-cap category among 12 funds.

    Here’s a look at the top five equity mutual funds based on their 20-year returns.

    3 top-performing Nippon India mutual funds in the last 20 years

    Funds 20-Year Returns In % Benchmark Returns In % Rs 1 lakh lump sum would have grown to
    Nippon India Pharma Fund 19.51 15.46 Rs 35.32 lakh approx
    Nippon India Banking & Financial Services Reg 17.64 14.28 Rs 25.76 lakh approx
    Nippon India Growth Mid Cap Reg 16.82 17.32 Rs 22.40 lakh approx

    SIP Returns

    Funds 20 Years SIP Returns In % SIP of Rs 10,000 would have grown to
    Nippon India Pharma Fund 18.07 Rs 1.96 Cr approx
    Nippon India Growth Mid Cap Reg 16.97 Rs 1.68 cr approx
    Nippon India Banking & Financial Services Reg 14.90 Rs 1.31 Cr approx

    Source: Value Research and fund factsheets as of 3rd July 2026

    Nippon India Pharma Fund

    Since its launch on June 5, 2004, this mutual fund has produced returns of 20.03%. Sailesh Raj Bhan is now in charge of managing the fund, which has a 1.51% expense ratio. 

    The fund has delivered a mean return of 20.09%, which is lower than both the BSE Healthcare TRI (23.71%) and the sector category average (21.60%), indicating relatively modest average returns compared to its benchmark and peers.

    Benchmark: BSE Healthcare TRI

    Top 5 holdings: Sun Pharmaceutical, Lupin, Dr. Reddy’S Labs, Cipla and Divi’s Lab.

    Risk profile: The fund’s standard deviation of 15.22% is lower than the benchmark (16.66%) as well as the category average (15.96%), suggesting that its returns have been relatively less volatile than both. 

    With a Sharpe ratio of 0.94, the fund trails both the benchmark (1.07) and the category average (0.99), indicating comparatively weaker risk-adjusted returns. 

    The fund has a Sortino ratio of 1.38, below the benchmark and category average of 1.63, suggesting it has generated relatively lower returns for the downside risk undertaken. The fund’s beta is 0.89, compared with the category average of 0.93.

    The fund has an alpha of -1.63, which is lower than the category average of -0.86, indicating that it has underperformed on a risk-adjusted basis.

    Nippon India Banking & Financial Services Fund

    Since its launch on May 26, 2003, the fund has produced returns of 19.84%. The fund currently has an expense ratio of 1.53% and is managed by Vinay Sharma and Bhavik Dave. 

    The fund has generated a mean return of 13.53%, outperforming both the BSE Bankex TRI (10.77%) and the sector category average (13.35%), indicating stronger long-term return potential than its benchmark and peers.

    Top 5 holdings: ICICI Bank, HDFC Bank, Axis Bank, SBI and Kotak Mahindra Bank.

    Top sector-wise holdings: Financial, Industrials and Technology.

    Benchmark: BSE Bankex TRI

    Risk profile: The fund’s standard deviation of 15.28% is lower than both the benchmark (16.67%) and the category average (17.06%), suggesting that it has experienced comparatively lower volatility than the banking sector and its peer funds. 

    With a Sharpe ratio of 0.51, the fund has outperformed both the benchmark (0.30) and the category average (0.42), indicating better risk-adjusted returns. The fund’s Sortino ratio of 0.63 is higher than the benchmark (0.36) and the category average (0.56), reflecting superior downside risk-adjusted performance. 

    The fund has a beta of 0.88, compared with the category average of 0.94, indicating that it has been slightly less sensitive to overall market movements than the average banking sector fund. 

    The fund has generated an alpha of 3.37, exceeding the category average of 2.90, suggesting that it has delivered superior excess returns over what would be expected based on its level of market risk.

    Nippon India Growth Mid Cap Fund

    Since its launch on October 8, 1995, the fund has produced returns of 21.96%. Rupesh Patel is now in charge of managing the fund, which has a 1.24% expense ratio. 

    The fund has delivered a mean return of 21.48%, outperforming both the BSE 150 MidCap TRI (19.41%) and the mid-cap category average (19.10%), indicating superior long-term return potential.

    Benchmark: BSE 150 MidCap TRI

    Top 5 holdings: BSE, Fortis Healthcare, Federal Bank, AU Small Fin Bank and Bharat Forge.

    Top 5 sector-wise holdings: Financial, Industrials, Consumer Discretionary, Healthcare and Technology.

    Risk profile: The fund’s standard deviation of 17.90% is marginally lower than the benchmark (18.06%) and broadly in line with the category average (17.96%), suggesting slightly lower volatility than its benchmark and peers. 

    With a Sharpe ratio of 0.88, the fund has outperformed both the benchmark (0.75) and the category average (0.74), indicating better risk-adjusted returns. The fund’s Sortino ratio of 1.16 is higher than the benchmark (0.99) and the category average (0.97), reflecting superior returns relative to the downside risk taken. 

    The fund has a beta of 0.97, in line with the category average of 0.97, whereas the fund has generated an alpha of 2.50, significantly higher than the category average of 0.16.

    Word of caution

    While these funds have delivered exceptional 20-year returns, investors should avoid choosing a mutual fund based solely on past performance. The pharma and banking funds are sectoral schemes, which invest in a single sector and can experience higher volatility, whereas the mid-cap fund may witness sharper volatility than diversified large-cap funds during market corrections.

    A fund that performed well over the past two decades may not necessarily replicate the same returns in the future. Investors should evaluate factors such as their investment horizon, risk appetite, portfolio diversification, and financial goals before investing, and they should also compare recent performance, portfolio quality, expense ratio, fund manager strategy, and risk metrics rather than relying only on long-term returns.

    Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully before investing.

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