Top 3 Mutual Funds That Turned ₹1 Lakh into ₹2 Lakh in 2 Years

Top 3 Mutual Funds That Turned ₹1 Lakh into ₹2 Lakh in 2 Years

If you Want Quick Returns. These 3 mutual funds stood out with their outstanding results!

It is widely thought that mutual funds do not offer fast growth in the market. How amazing would it be if you could simply double what you have invested, all in 2 years?

This is certainly true. A number of mutual fund options delivered up to 40% annual returns which allowed investors to turn ₹1 lakh into over ₹2 lakh in a short while.

In this blog, you’ll discover:

  • What mutual funds are
  • How we selected these top 3 funds
  • Details of the 3 best mutual funds that doubled wealth in 2 years

What Are Investments Like Mutual Funds?

Mutual funds gather funds from different investors and put them into things like stocks, bonds or securities issued by the government. Managers with the appropriate experience take care of these investments.

They are helpful if you want to invest in the market without buying shares and checking each company.


How These Top Performing Funds Were Selected

This is our filtering procedure:

  • Considered all equity mutual fund schemes.
  • Analyzed 2-year performance.
  • Selected funds that provided more than 40% CAGR (Compound Annual Growth Rate)

Only a few funds passed this test — and here are the top 3 winners.


Top 3 Mutual Funds That Turned ₹1 Lakh Into ₹2 Lakh

Fund Name2-Year CAGR₹1 Lakh Became
HDFC Defence Fund60.4%₹2.58 Lakhs
Bandhan Small Cap Fund43.3%₹2.05 Lakhs
SBI PSU Fund42.3%₹2.03 Lakhs

Fund Analysis by Category


1.HDFC Defence Fund

  • Type: Thematic – Defence Sector
  • 2-Year Return: 60.4%
  • ₹1 Lakh Became: ₹2.58 Lakhs
  • Why It Performed:
    India’s first defence-focused mutual fund. Benefited from “Make in India” and increasing defence exports.
  • Risks:
    Sector-specific and impacted by government policies. High risk, not ideal for conservative investors.

2.Bandhan Small Cap Fund

  • Type: Small Cap Fund
  • 2-Year Return: 43.3%
  • ₹1 Lakh Became: ₹2.05 Lakhs
  • Why It Performed:
    Invests in fast-growing small companies. Great for long-term investors who can handle volatility.
  • Risks:
    Small-cap stocks are risky and can fluctuate heavily in the short term.

3.SBI PSU Fund

  • Type: Sectoral – Public Sector Undertakings (PSUs)
  • 2-Year Return: 42.3%
  • ₹1 Lakh Became: ₹2.03 Lakhs
  • Why It Performed:
    PSUs are gaining attention due to reforms and government divestment plans. This fund captured the trend early.
  • Risks:
    Political and sectoral risks. Highly dependent on government policies.

Also Read : Best Mutual Funds to Invest ₹5 Lakhs Now in 2025

Final Thoughts

The 3 mutual funds schemes mentioned above have performed tremendously well over the past two years, even doubling an investor’s wealth. A few reminders though:

No uture returns are assured, regardless of past performance.

Make certain to assess your risk level, objectives, and time horizon before committing to any investment. Remember to note that the spreading out of one’s investments is essential.

If you’re an investor with a high tolerance for risk and are seeking aggressive growth potential

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