₹1 Lakh Became ₹3.3–3.6 Lakh! These 10 Mutual Funds Gave 235%–260% Returns in 5 Years

Mutual funds have once again proven why they remain one of the most effective wealth-creation tools for Indian investors. While fixed deposits and traditional instruments struggled to beat inflation, a select set of equity mutual funds delivered extraordinary returns over the last five years. In this article, we analyse 10 mutual funds that turned an investment of ₹1 lakh into ₹3.3 to ₹3.6 lakh in just 5 years, translating into 230% to 260% absolute returns. These funds benefited from strong sectoral tailwinds, disciplined fund management, and India’s post-COVID economic recovery.

How We Filtered These Mutual Funds

For this analysis, we evaluated equity mutual funds across thematic, sectoral, midcap, and smallcap categories.

• Performance data considered as of 10-Jan-2026

• 5-year CAGR used as the primary filter

• Only funds with CAGR above 26% were shortlisted

• Absolute returns were calculated for a lump sum investment of ₹1 lakh

Since Direct plans have limited long-term history in some schemes, we considered consistent performance data for fair comparison.

10 Mutual Funds That Delivered 230%–260% Returns in 5 Years

Deep Dive into Mutual Funds That Created Massive Wealth in 5 Years

#1 – ICICI Prudential Infrastructure Fund

Fund Objective:

• Invests in infrastructure-related companies across power, capital goods, construction, and logistics sectors.

Performance Highlights:

• 3-Year CAGR: 24.94%

• 5-Year CAGR: 29.40%

• 10-Year CAGR: 18.43%

• Absolute Return (5 Years): 260%

• ₹1 Lakh investment value in 5 years: ₹3.60 Lakh

Who Should Invest:

• Investors bullish on India’s infrastructure growth

• Those with a high-risk appetite and long-term horizon

Risk Factors:

• Sector concentration risk

• Dependency on government capex cycles

This fund is part of 11 Best Mutual Funds to Invest in 2026 as per Perplexity AI.

#2 – SBI PSU Fund

Fund Objective:

• Focuses on public sector undertakings benefiting from reforms and divestment.

Performance Highlights:

• 3-Year CAGR: 29.19%

• 5-Year CAGR: 29.38%

• 10-Year CAGR: 15.21%

• Absolute Return (5 Years): 259%

• ₹1 Lakh investment value in 5 years: ₹3.59 Lakh

Who Should Invest:

• Investors with a high conviction on PSU turnaround

Risk Factors:

• Policy changes

• PSU-specific governance risks

#3 – Aditya Birla Sun Life PSU Equity Fund

Fund Objective:

• Invests predominantly in PSU stocks across energy, banking, and industrial segments.

Performance Highlights:

• 3-Year CAGR: 27.18%

• 5-Year CAGR: 29.01%

• Absolute Return (5 Years): 257%

• ₹1 Lakh investment value in 5 years: ₹3.57 Lakh

Do you know that this fund is among Top 10 Mutual Funds with Highest 5-Year SIP Returns (Over 30%)?

#4 – Quant Small Cap Fund

Fund Objective:

• Targets high-growth small-cap companies using a dynamic investment strategy.

Performance Highlights:

• 3-Year CAGR: 20.03%

• 5-Year CAGR:: 28.70%

• 10-Year CAGR: 19.61%

• Absolute Return (5 Years): 255%

• ₹1 Lakh investment value in 5 years: ₹3.55 Lakh

#5 – ICICI Prudential BHARAT 22 FOF

Fund Objective:

• Tracks the BHARAT 22 ETF focusing on PSUs and CPSEs.

Performance Highlights:

• 3-Year CAGR: 26.09%

• 5-Year CAGR: 28.15%

• Absolute Return (5 Years): 248%

• ₹1 Lakh investment value in 5 years: ₹3.48 Lakh

We explored this fund earlier at 13 Best Mutual Funds Rated 5-Star by Value Research (30%+ CAGR in 5 Years).

#6 – Invesco India PSU Equity Fund

Fund Objective:

• The Invesco India PSU Equity Fund aims for long-term capital appreciation by investing primarily in equity and equity-related instruments of Public Sector Undertakings (PSUs) where the government holds significant ownership or control, focusing on fundamentally strong companies with growth potential, while also allowing flexibility for privatized or divested entities. 

Performance Highlights:

• 3-Year CAGR: 29.99%

• 5-Year CAGR: 28.01%

• 10-Year CAGR: 18.53%

• ₹1 Lakh investment value in 5 years: ₹3.46 Lakh

#7 – Motilal Oswal Midcap Fund

Fund objective:   The Motilal Oswal Midcap Fund aims for long-term capital appreciation by investing in high-quality, mid-sized Indian companies with strong, long-term competitive advantages and significant growth potential, focusing on sectors poised for growth and utilizing a “Buy Right, Sit Tight” philosophy.

Performance Highlights:

• 3-Year CAGR: 26.11%

• 5-Year CAGR: 27.72%

• 10-Year CAGR: 18.69%

• ₹1 Lakh investment value in 5 years: ₹3.43 Lakh

This is among 5 Mutual Funds with Highest Rolling Returns in last 5 years.

#8 – HDFC Infrastructure Fund

Fund Objective: To seek long-term capital appreciation/income by investing predominantly in equity and equity related securities of companies engaged in or expected to benefit from the growth and development of infrastructure

Performance Highlights:

• 3-Year CAGR: 25.54%

• 5-Year CAGR: 26.93%

• 10-Year CAGR: 12.64%

• ₹1 Lakh investment value in 5 years: ₹3.37 Lakh

#9 – ICICI Prudential India Opportunities Fund

Fund objective: To generate long-term capital appreciation by investing in opportunities presented by special situations such as corporate restructuring, Government policy and/or regulatory changes, companies going through temporary unique challenges and other similar instances.

Performance Highlights:

• 3-Year CAGR: 23.70%

• 5-Year CAGR: 26.81%

• ₹1 Lakh investment value in 5 years: ₹3.36 Lakh

Explore more about this fund at 7 Thematic Mutual Funds with 30%+ CAGR in 5 Years.

#10 – LIC MF Infrastructure Fund

Fund objective: The investment objective of the scheme is to generate long-term growth from a portfolio of equity / equity related instruments of companies engaged either directly or indirectly in the infrastructure sector

Performance Highlights:

• 3-Year CAGR: 27.85%

• 5-Year CAGR: 26.68%

• 10-Year CAGR: 17.45%

• ₹1 Lakh investment value in 5 years: ₹3.35 Lakh

Conclusion

The last five years have shown that thematic and sectoral mutual funds, when timed well, can generate exceptional returns. These 10 mutual funds turned ₹1 lakh into ₹3.3–₹3.6 lakh, highlighting the power of staying invested during strong economic cycles.

However, higher returns come with higher volatility. Investors should align investments with their risk appetite and diversify wisely.

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Suresh KP

Founder at Myinvestmentideas.com

Suresh KP is a seasoned financial expert with over 23 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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