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.
pl give current value of each scheme.
Whatever indicated in the article is hte current value only.
What about Multicap and Multi asset funds. They are diversified and expected to do better in changing economic scenario. please through some light.
Hello Basu ji, What I indicted are only 11 outperforming and there are hundreds of good performing funds. However their performance is below the ones what is indicated in the article, hence they have not featured. This article is about pure equity funds only and multi asset funds are excluded here as they invest in equity+gold+silver etc.,
Hi,
The above information reg excellent/exorbitant growth of some funds is very useful. Thank you very much.
Thanks you Sridharan ji
Sir,I am a regular reader of your blog.You give well reasearch information on mutual funds.Recently I am reading a lot about new class of SIF funds.Minimum investment is ten lakhs.But there is one confusion,it is said you can invest under one PAN you can spread your ten lakhs across all strategies of same mutual fund.Meaning you can invest two lakhs in one strategy three lakhs in another,one lakh in other strategy without breaking minimum investment of ten lakhs.Kindly put light on this aspect of understanding.
Waiting for your reply.
Hello Bansal, I would be publishing the detailed guide on SIF in the next few days which can clarity all these doubts