Mutual funds continue to be one of the best avenues for long-term wealth creation, thanks to professional fund management and diversification. Over the last five years, a few funds have delivered phenomenal performance, significantly outpacing broader indices. In this article, we highlight 11 mutual funds that delivered 376% to 415% absolute returns in the last 5 years. We will look at their performance, growth potential, and suitability for investors.
Earlier, we wrote about 12 Mutual Funds that Outperformed in the Last 2 Years with 75% to 118% Returns. Now, let’s deep dive into the latest top performers over the five-year horizon.
How We Filtered These Mutual Funds?
To arrive at this list of top-performing schemes, we followed a clear filtering methodology:
- Considered all equity categories including large-cap, mid-cap, small-cap, flexi-cap, thematic and sector funds.
- Included only direct plans to reflect the true investor returns without distributor commission impact.
- Analysed performance for the last 5 years and identified schemes that consistently outperformed.
- Applied a filter of minimum 35% CAGR in 5 years.
- As of 25-Sep-2025, only 11 funds qualified under this criterion.
List of 11 Mutual Funds Outperformed in Last 5 Years
| Rank | Mutual Fund Scheme | 5-Year CAGR (%) | Absolute Return (%) | 1 Lakh would have become (₹) |
|---|---|---|---|---|
| 1 | ICICI Prudential Infrastructure Fund | 39.0 | 415% | 5.15 Lakhs |
| 2 | Quant Small Cap Fund | 37.0 | 394% | 4.94 Lakhs |
| 3 | Franklin Build India Fund | 36.7 | 390% | 4.90 Lakhs |
| 4 | HDFC Infrastructure Fund | 36.5 | 388% | 4.88 Lakhs |
| 5 | Bandhan Infrastructure Fund | 36.4 | 387% | 4.87 Lakhs |
| 6 | Quant Infrastructure Fund | 36.2 | 384% | 4.84 Lakhs |
| 7 | DSP India T.I.G.E.R. Fund | 36.0 | 383% | 4.83 Lakhs |
| 8 | ICICI Prudential BHARAT 22 FOF | 35.9 | 382% | 4.82 Lakhs |
| 9 | Aditya Birla Sun Life PSU Equity Fund | 35.5 | 378% | 4.78 Lakhs |
| 10 | Motilal Oswal Midcap Fund | 35.4 | 377% | 4.77 Lakhs |
| 11 | ICICI Prudential Commodities Fund | 35.3 | 376% | 4.76 Lakhs |
Deep Dive into Each Mutual Fund
#1 – ICICI Prudential Infrastructure Fund
Investment Objective: Invests in infrastructure companies poised to benefit from India’s long-term development story.
Annualised Performance:
- 3 Years: 29.63%
- 5 Years: 39.02%
- 10 Years: 18.29%
Why to Invest:
- Strong beneficiary of India’s infra growth push.
- Consistent long-term performer.
- Suitable for wealth creation in high-growth sectors.
Risk Factors:
- Cyclical infra sector exposure.
- Sensitive to government policy and regulations.
This fund is consistent performere among infrastructure funds and also part of Best Mutual Funds to Invest in 2025 as per Perplexity AI.
#2 – Quant Small Cap Fund
Investment Objective: Focuses on high-growth small-cap companies.
Annualised Performance:
- 3 Years: 24.87%
- 5 Years: 36.96%
- 10 Years: 20.36%
Why to Invest:
- Strong alpha generation potential.
- Opportunity to benefit from emerging companies.
- Ideal for long-term aggressive investors.
Risk Factors:
- High volatility in small-cap space.
- Liquidity risks.
#3 – Franklin Build India Fund
Investment Objective: Invests in infrastructure and capital goods sectors.
Annualised Performance:
- 3 Years: 29.30%
- 5 Years: 36.67%
- 10 Years: 19.01%
Why to Invest:
- Focused infra growth theme.
- Proven track record of strong returns.
- Beneficiary of India’s capital expenditure cycle.
Risk Factors:
- Concentrated infra exposure.
- Sector downturn risks.
This is one of the consistent performing infra fund which we reviewed in 10 Mutual Funds That Turned ₹ 1 Lakh Into Over ₹ 10 Lakhs in 15 Years.
#4 – HDFC Infrastructure Fund
Investment Objective: Invests in infrastructure-related businesses.
Annualised Performance:
- 3 Years: 29.30%
- 5 Years: 36.53%
- 10 Years: 13.06%
Why to Invest:
- Long-term wealth creation potential.
- Strong infra theme exposure.
- Backed by HDFC’s fund management expertise.
Risk Factors:
- High infra-sector volatility.
- Dependent on policy reforms.
#5 – Bandhan Infrastructure Fund
Investment Objective: Targets companies benefiting from infra expansion.
Annualised Performance:
- 3 Years: 28.29%
- 5 Years: 36.41%
- 10 Years: 17.72%
Why to Invest:
- Good option for infra-based diversification.
- Strong performance history.
- Potential to benefit from India’s infra boom.
Risk Factors:
- Policy uncertainty.
- Sector concentration risks.
#6 – Quant Infrastructure Fund
Investment Objective: Invests in infra-related companies with a quant-driven approach.
Annualised Performance:
- 3 Years: 19.15%
- 5 Years: 36.18%
- 10 Years: 20.66%
Why to Invest:
- Quantitative investment strategies.
- Infra + quant approach offers unique exposure.
- Strong long-term alpha.
Risk Factors:
- Sector volatility.
- Dependence on infra cycle.
While this fund is part of 7 Mutual Funds That Turned ₹ 1 Lakh Into ₹ 5 Lakhs in 5 Years, its 1 year returns are minus 11% which has taken beating post their fund manager scam news came.
#7 – DSP India T.I.G.E.R. Fund
Investment Objective: Focuses on companies supporting economic reforms and infra growth.
Annualised Performance:
- 3 Years: 27.66%
- 5 Years: 35.95%
- 10 Years: 17.64%
Why to Invest:
- Established track record.
- Focus on India’s infra reforms.
- Diversified infra exposure.
Risk Factors:
- Cyclical sector risks.
- Sensitive to policy changes.
#8 – ICICI Prudential BHARAT 22 FOF
Investment Objective: Mirrors BHARAT 22 ETF comprising PSUs and infra-heavy companies.
Annualised Performance:
- 3 Years: 27.51%
- 5 Years: 35.89%
- 10 Years: N/A
Why to Invest:
- Provides access to PSU + infra story.
- Strong government-backed portfolio.
- Suitable for long-term investors.
Risk Factors:
- Dependent on PSU performance.
- Market volatility in public sector undertakings.
This fund featured in our recent article on 13 Best Mutual Funds Rated 5-Star by Value Research (30%+ CAGR in 5 Years).
#9 – Aditya Birla Sun Life PSU Equity Fund
Investment Objective: Invests in PSUs across sectors like energy, infra, and banking.
Annualised Performance:
- 3 Years: 31.08%
- 5 Years: 35.53%
- 10 Years: N/A
Why to Invest:
- Strong PSU revival story.
- Attractive valuations in PSUs.
- Can benefit from government reforms.
Risk Factors:
- Dependent on government policies.
- PSU inefficiencies.
#10 – Motilal Oswal Midcap Fund
Investment Objective: Focuses on mid-cap companies with strong growth.
Annualised Performance:
- 3 Years: 26.45%
- 5 Years: 35.44%
- 10 Years: 19.14%
Why to Invest:
- Proven midcap growth play.
- Consistent performance track record.
- Suitable for wealth creation over the long term.
Risk Factors:
- Higher volatility than large caps.
- Sector rotation risks.
This fund is consistent performer even from rolling returns perspective, hence we listed this as among 5 Best Midcap Mutual Funds to Invest in 2025 (Based on Rolling Returns).
#11 – ICICI Prudential Commodities Fund
Investment Objective: Invests in companies from commodity and natural resources sectors.
Annualised Performance:
- 3 Years: 21.23%
- 5 Years: 35.34%
- 10 Years: N/A
Why to Invest:
- Strong commodity cycle play.
- Opportunity to diversify equity portfolio.
- Potential hedge against inflation.
Risk Factors:
- Commodity price fluctuations.
- Global market volatility.
Investor may also like 15 Mutual Funds Outperformed in Last 3 Years with 120% to 380% Returns
Summary Comparison – Annualised Returns
| Fund Name | 3-Year CAGR | 5-Year CAGR | 10-Year CAGR |
|---|---|---|---|
| ICICI Prudential Infrastructure Fund | 29.63% | 39.02% | 18.29% |
| Quant Small Cap Fund | 24.87% | 36.96% | 20.36% |
| Franklin Build India Fund | 29.30% | 36.67% | 19.01% |
| HDFC Infrastructure Fund | 29.30% | 36.53% | 13.06% |
| Bandhan Infrastructure Fund | 28.29% | 36.41% | 17.72% |
| Quant Infrastructure Fund | 19.15% | 36.18% | 20.66% |
| DSP India T.I.G.E.R. Fund | 27.66% | 35.95% | 17.64% |
| ICICI Prudential BHARAT 22 FOF | 27.51% | 35.89% | N/A |
| Aditya Birla Sun Life PSU Equity Fund | 31.08% | 35.53% | N/A |
| Motilal Oswal Midcap Fund | 26.45% | 35.44% | 19.14% |
| ICICI Prudential Commodities Fund | 21.23% | 35.34% | N/A |
Key Takeaways
- These 11 funds delivered 376% to 415% absolute returns in the last 5 years, far exceeding index returns.
- Most top performers are infrastructure, PSU, and midcap-focused funds, indicating strong growth in these segments.
- While returns are impressive, these funds are sectoral/thematic and carry higher risk than diversified equity funds. Check our recent article about 7 Thematic Mutual Funds with 30%+ CAGR in 5 Years.
- Investors should evaluate their risk appetite and time horizon before investing.
Conclusion
The last 5 years have been remarkable for thematic and infra-focused mutual funds, with some schemes turning ₹1 Lakh into over ₹5 Lakhs. However, such high returns often come with higher risks. Investors should diversify and not allocate their entire portfolio to these funds. Those with a long-term outlook and high-risk appetite can consider adding some of these funds for wealth creation.
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