If you have been tracking mutual fund performance data lately, another number stands out: several equity mutual fund schemes have delivered 5-year annualized returns of more than 20.0% as of 16-Sep-26. That is a striking figure when you consider that most diversified equity categories have historically delivered 12-15% CAGR over longer periods.
We compared the latest NAV-based return data across PSU, infrastructure, mid-cap and small-cap categories and shortlisted 11 mutual fund schemes that crossed this threshold. IT/Technology sector funds have been excluded from this list since several of them currently have restrictions on fresh lump sum and SIP investments. Below is the complete comparison table along with 3-year and 10-year data (wherever available) so you can evaluate consistency, not just a single strong 5-year window.
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Why This Comparison Matters
A single high return number can be misleading if a fund’s 5-year window happened to capture an unusually strong rally in one sector. That is why this list also shows 3-year and 10-year annualized returns side by side, wherever the fund has that track record. Only 8 of the 11 funds on this list have a 10-year number — the rest are either newer small-cap funds or thematic/FOF schemes with limited history. This is useful context for anyone comparing a strong 5-year run against longer-term consistency.
List of Top 11 Mutual Funds With 5-Year Returns Above 20.0%
| S No | Mutual Fund | 3-Yr CAGR | 5-Yr CAGR | 10-Yr CAGR |
|---|---|---|---|---|
| 1 | SBI PSU Fund | 19.2 | 22.6 | 13.9 |
| 2 | Aditya Birla Sun Life PSU Equity Fund | 18.4 | 22.3 | — |
| 3 | Motilal Oswal Midcap Fund | 17.7 | 21.0 | 17.4 |
| 4 | LIC MF Infrastructure Fund | 22.6 | 20.7 | 17.4 |
| 5 | ICICI Prudential Infrastructure Fund | 16.6 | 20.7 | 17.5 |
| 6 | DSP India T.I.G.E.R. Fund | 19.1 | 20.5 | 17.5 |
| 7 | ICICI Prudential BHARAT 22 FOF | 14.0 | 20.4 | — |
| 8 | Bank of India Manufacturing & Infrastructure Fund | 20.7 | 20.1 | 19.4 |
| 9 | UTI Transportation and Logistics Fund | 17.2 | 20.0 | 12.4 |
| 10 | Invesco India PSU Equity Fund | 18.1 | 20.0 | 16.3 |
| 11 | SBI Children’s Fund – Investment Plan | 20.4 | 20.0 | — |
Data as on 16-Sep-2026. Returns are annualized (CAGR) for the Direct Plan – Growth option. Global funds have been excluded due to current restrictions on fresh investments.
Category-Wise Breakdown
Grouping these 11 funds by category gives a clearer picture of where the outperformance is concentrated:
- Infrastructure/Power: LIC MF Infrastructure Fund, ICICI Prudential Infrastructure Fund, DSP India T.I.G.E.R. Fund, Bank of India Manufacturing & Infrastructure Fund — 4 funds
- PSU: SBI PSU Fund, Aditya Birla Sun Life PSU Equity Fund, Invesco India PSU Equity Fund — 3 funds
- Mid Cap: Motilal Oswal Midcap Fund — 1 fund. Motilal Oswal Midcap Fund has generated higher rolling returns in the midcap funds category in the last 3 to 5 years time frame.
- Thematic/FOF (PSU-linked): ICICI Prudential BHARAT 22 FOF — 1 fund
- Transportation & Logistics: UTI Transportation and Logistics Fund — 1 fund
- Children’s/Solution-Oriented: SBI Children’s Fund – Investment Plan — 1 fund
PSU and Infrastructure categories together account for 7 of the 11 funds on this list, which reflects how concentrated this 5-year rally has been around the PSU/infra theme rather than broad-based across diversified equity funds.
What Stands Out in This Data
- SBI PSU Fund leads at 22.56%, followed by Aditya Birla Sun Life PSU Equity Fund at 22.25% — the two PSU-focused funds remain ahead of the rest of the list.
- Only 8 of the 11 funds have a 10-year track record. Among these, Bank of India Manufacturing & Infrastructure Fund shows the most consistent pattern across all three time frames (20.73% / 20.10% / 19.37%), with the narrowest spread on the list.
- ICICI Prudential BHARAT 22 FOF shows the widest gap between periods — 14.01% over 3 years versus 20.36% over 5 years. ICICI Prudential Infrastructure Fund (16.55% vs 20.72%) and Motilal Oswal Midcap Fund (17.68% vs 20.95%) show the same pattern, indicating recent underperformance relative to their own longer-term average.
- No small-cap fund appears on this list in the current data. Recent market movement has pulled the category’s 5-year numbers below this threshold, a reminder of how sensitive point-to-point returns are to the end date.
Things to Check Before Comparing Further
- Point-to-point returns can be skewed by the base date. A 5-year return calculated from a market low will look very different from one calculated from a market high. Check rolling returns over multiple periods for a fuller picture.
- PSU, infrastructure and thematic funds carry concentration risk. These funds invest in a narrow set of sectors or stocks, which can amplify both gains and drawdowns.
- Expense ratio and fund size matter for Direct Plans, especially for small-cap and thematic funds where capacity constraints can affect future performance.
- Check whether the fund is currently open for fresh lump sum and SIP investments before comparing further.
- Past returns do not indicate future performance. This is standard for all market-linked instruments and applies fully to every fund in this table.
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Frequently Asked Questions
Which mutual fund has the highest 5-year return as of 14-Sep-2026?
SBI PSU Fund tops this list with a 22.5% annualized return over 5 years as of now.
How many mutual funds delivered more than 20.0% annualized returns over 5 years?
Based on the data, 11 mutual fund schemes across Direct Plans crossed the 20.0% mark for 5-year annualized returns, excluding global funds category.
Are PSU and infrastructure funds suitable for all investors?
PSU and infrastructure funds carry higher concentration risk than diversified equity funds since they invest in a narrow set of sectors. This article is for informational and educational comparison purposes only and does not constitute investment advice or a recommendation.
Disclaimer: This article is for informational and educational purposes only, based on publicly available NAV data as on 14-Sep-2026. It does not constitute investment advice or a recommendation to buy, sell, or hold any mutual fund scheme. Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully and consult a SEBI-registered investment advisor before making any investment decision.
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