Top 5 Mutual Funds that turned ₹ 1 Lakh INTO ₹ 2 Lakh in 2 years

Investors often look for the best performing mutual funds that can delivery superior returns in a short period. While Mutual Funds Are Usually Considered a long-term investment Yes, you read that right – these funds Gave over 40% annualized returns in the last two years. In this article, we’ll cover what mutual funds are, how we filtered these high-growth schemes, and give a deep dive into the top 5 mutual funds that dual funds that have doubled investments in 2 years.

What are mutual funds?

Mutual Funds Pool Money from Various Investors and Invest in Diversified Securities Like Stocks, Bonds, and other instruments. These funds are managed by professional fund manners who make investment decisions on behahalf of investors. Mutual funds are ideal for individuals who want to invest in the stock market but lacques the time or Expertise to manage their own portfolio.

How did we filter these mutual funds?

We followed a simple filtering process:

• Considered all Equity Mutual Fund Schemes Across Categories.
• Filted Funds Based on 2-Year Performance Data.
• Selected only those funds that Gave more than 40% annualized return in the last 2 years (IE, Doubled The Investment).

Earlier we Wrote Similar Artilce on 10 Mutual Fund Schemes with 10-Year Returns Between 464% and 646%

List of Top 5 Mutual Funds that Turned ₹ 1 Lakh INTO ₹ 2 Lakh in 2 years

Here are the top 5 mutual funds that generated more than 40% Cagr return in the last 2 years:

Deep Sive Into Top 5 Mutual Funds That Turned ₹ 1 Lakh INTO ₹ 2 Lakh in 2 years

Let’s take a deep dive into economy of these schemes.

#1 – HDFC Defense

• Category: Thematic – Defense Sector Fund
• Investment Objective: AIMS to Generate Long-Term Capital Appreciation by Investing in Companies that are part of the definition and allied sectors, include aerospace, shipbuilding, and homeland security.
• Returns:
  • 1 year – 32.5%
  • 2 years – 60.4% (₹ 1 Lakh Invested would have been ₹ 2.58 lakh)
  • 3 years – Na
  • 5 years – Na
  • 10 years – Na

• Why to consider: This is India’s first dedicated defense sector fund, launched to capitalize on the government’s push towards self-Reliance in Defense (Atmanirbhar Bharat). Strong Momentum in Defense Manufacturing and Export Growth offers long-term thematic potential.
• Risks: Sector-specific concentration. High Risk Due to Dependence on Government Policies and Global Geopolitical Factors. Not suitable for conservative investors or that looking for diversification.

This fund is part of our earlier article on 8 Mutual Funds With 3 Months Returns Between 20% to 54%,

#2 – Bandhan Small Cap Fund

• Category: Small Cap Fund
• Investment Objective: AIMS to Generate Long-Term Capital Appreciation by Investing predominantly in Small-Cap Companies.
• Returns:
  • 1 year – 29.5%
  • 2 years – 43.3% (₹ 1 Lakh Invested would have been ₹ 2.05 lakh)
  • 3 years – 34.0%
  • 5 years – 38.5%
• Why to consider: This fund has shown strong consistency over the Years. Ideal for High-Risk Investors Seeking Aggressive Growth.
• Risks: High Volativity Due to Exposure to Small-Cap Stocks. Not suitable for short-term investors.

#3 – SBI PSU Fund

• Category: Sectoral/Thematic – PSU
• Investment Objective: Invests in Equity Stocks of Public Sector undertakings (PSUS) Across Sector.
• Returns:
  • 1 year – 8.9%
  • 2 years – 42.3% (₹ 1 Lakh Invested would have been ₹ 2.03 lakh)
  • 3 years – 36.1%
  • 5 years – 33.2%
  • 10 years – 14.0%
• Why to consider: Focus on revival and Divestment of Psus has LED to Strong Performance. Attractive for thematic investors.
• Risks: Sector-Specific Risk and Political Decisions Can Affect Performance.

#4 – Invesco India PSU Equity Fund

• Category: Sectoral/Thematic – PSU
• Investment Objective: Targets long-term capital appreciation through investment in equity and equity-Related Instruments of PSU Companies.
• Returns:
  • 1 year – 8.9%
  • 2 years – 41.6% (₹ 1 Lakh Invested would have been ₹ 2.01 lakh)
  • 3 years – 37.4%
  • 5 years – 32.0%
  • 10 years – 18.6%
• Why to consider: Consistently Strong Performance and Focus on Undervalued PSU Stocks.
• Risks: Similar to other psu-focused funds, it is prone to sector-specific and policy-related risks.

This mutual fund is part of 10 Mutual Funds That Generaed Over 30% Cagr Returns in 3 years and 5 years time frame,

#5 – LIC MF Infrastructure Fund

• Category: Sectoral/Thematic – Infrastructure
• Investment Objective: Invests in Equity and Equity-Related Instruments of Companies Engaged in Infrastructure Development.
• Returns:
  • 1 year – 17.6%
  • 2 years – 40.4% (₹ 1 Lakh Invested would have been ₹ 1.99 lakh)
  • 3 years – 32.5%
  • 5 years – 35.5%
  • 10 years – 16.5%
• Why to consider: With Government Focus on Infrastructure, this fund benefits from the long-term India growth story.
• Risks: Concentration in the infra sector can lead to cyclic performance.

Conclusion

While These 5 Mutual Fund Schemes Have Delived Exceptional Returns in the last 2 years, Past performance is not indicative of future results. Investors Should Evaluate Their Risk Appetite, Investment Horizon, and Financial Goals Before Investing. It’s also wise to diversify across categories raather than better on a single theme or sector.

If you’re a high-Risk Investor Looking for Aggressive Growth and Can Stay Invested for the Long Term, these funds united value to your portfolio.

Suresh kp is a seasoned financial expert with over 20 years of experience. He is nism Certified Investment Adviser and Research Analyst. For more about his Expertise and Certifications, Visit About Suresh Kp

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