13 Best Mutual Funds Rated 5-Star by Value Research (30%+ CAGR in 5 Years)

When evaluating mutual fund investments, independent research agencies like Value Research provide valuable insights into a fund’s performance and consistency. Value Research rates mutual funds from 1 to 5 stars based on risk-adjusted returns and consistency. Today, we highlight 13 mutual fund schemes rated 5-star by Value Research that have delivered more than 30% CAGR in the last 5 years. These funds have not only performed consistently but also maintained high credibility in their respective categories.

What is Value Research Mutual Fund Rating?

Value Research’s star rating system evaluates a fund’s historical risk-adjusted return compared to its category peers. The ratings are as follows:

• 5 Star – Top 10% performers
• 4 Star – Next 22.5%
• 3 Star – Middle 35%
• 2 Star – Next 22.5%
• 1 Star – Bottom 10%

These ratings are updated regularly and can change based on fund performance and market trends.

You can also check our earlier article on 10 Crisil 5 Star Rated Mutual Funds of 2025 article too.

How We Filtered These Mutual Funds

To shortlist these top-performing mutual funds, we used the following filtering criteria:

1. Considered all open-ended equity mutual fund schemes across categories (Large, Mid, Small, Flexi, Value, etc.).
2. Selected only those funds that are rated 5-star by Value Research.
3. Further narrowed the list to funds with 5-year CAGR returns above 30%.
4. We considered only direct plan of mutual funds
5. We could get 13 mutual funds that generated over 30% CAGR returns in the last 5 years which are 5 Star Rated by ValueResearch.

Top 13 Value Research 5-Star Mutual Funds with Over 30% CAGR in 5 Years

Here is the list of mutual funds.

Deep Dive into these 13 Value Research 5-Star Mutual Funds with Over 30% CAGR in 5 Years

Lets get into more information about these mutual funds.

#1 – Bandhan Small Cap Fund

• Investment Objective: Aims to generate long-term capital appreciation by investing primarily in small-cap companies.
• Annualized Returns:
  • 3 Years: 37.96%
  • 5 Years: 38.99% (₹1 Lakh → ₹5.00 Lakhs)
  • 10 Years: NA

• Benefits:
  • High growth potential from emerging companies
  • Suitable for aggressive investors with long-term horizon
• Risks:
  • High volatility and risk of loss in short term
  • Sensitive to market corrections

This fund is part of 7 Mutual Funds that turned ₹ 1 Lakh to ₹ 5 Lakhs in 5 years.

#2 – Motilal Oswal Midcap Fund

• Investment Objective: Seeks capital appreciation by investing in midcap stocks with strong fundamentals.
• Annualized Returns:
  • 3 Years: 37.50%
  • 5 Years: 38.45% (₹1 Lakh → ₹4.94 Lakhs)
  • 10 Years: 19.39%

• Benefits:
  • Focus on quality midcap businesses
  • Strong fund management
• Risks:
  • Midcap segment may underperform in bearish markets
  • Lesser liquidity compared to large-caps

#3 – Invesco India Smallcap Fund

• Investment Objective: Seeks to generate capital appreciation by investing in a diversified portfolio of small-cap stocks.
• Annualized Returns:
  • 3 Years: 33.82%
  • 5 Years: 36.55% (₹1 Lakh → ₹4.65 Lakhs)
  • 10 Years: NA

• Benefits:
  • High upside potential
  • Diversified sector allocation
• Risks:
  • Higher risk due to small-cap exposure
  • Prone to large price swings

#4 – SBI Contra Fund

• Investment Objective: Follows a contrarian investment strategy to invest in undervalued sectors and stocks.
• Annualized Returns:
  • 3 Years: 27.54%
  • 5 Years: 35.46% (₹1 Lakh → ₹4.51 Lakhs)
  • 10 Years: 17.30%

• Benefits:
  • Potential to outperform in market recovery
  • Value-driven stock picking
• Risks:
  • May underperform in trending markets
  • Requires patience and long-term holding

This is part of 10 Mutual Funds Recommendations from Grok AI for 2025..

#5 – ICICI Prudential BHARAT 22 FOF

• Investment Objective: Aims to provide returns that closely correspond to the total returns of the underlying Bharat 22 Index.
• Annualized Returns:
  • 3 Years: 33.90%
  • 5 Years: 35.03% (₹1 Lakh → ₹4.47 Lakhs)
  • 10 Years: Not available

• Benefits:
  • Exposure to public sector undertakings
  • Index-based diversification
• Risks:
  • Limited to index performance
  • Sector concentration risk

#6 – Nippon India Multi Cap Fund

• Investment Objective: Seeks to achieve long-term capital growth by investing in large, mid, and small cap stocks.
• Annualized Returns:
  • 3 Years: 31.39%
  • 5 Years: 34.54% (₹1 Lakh → ₹4.40 Lakhs)
  • 10 Years: 16.13%

• Benefits:
  • Balanced exposure across market caps
  • Diversified risk profile
• Risks:
  • Allocation mismatch in certain market phases
  • Market cap rotation can affect returns

#7 – HDFC Mid-Cap Opportunities Fund

• Investment Objective: Aims to generate long-term capital appreciation from a portfolio of mid-cap companies.
• Annualized Returns:
  • 3 Years: 33.82%
  • 5 Years: 34.39% (₹1 Lakh → ₹4.38 Lakhs)
  • 10 Years: 19.12%

• Benefits:
  • Strong historical track record
  • Solid mid-cap exposure
• Risks:
  • Mid-cap volatility
  • Liquidity constraints during market stress

#8 – Motilal Oswal Large and Midcap Fund

• Investment Objective: Invests in a mix of large and mid-cap stocks for long-term growth.
• Annualized Returns:
  • 3 Years: 36.41%
  • 5 Years: 32.70% (₹1 Lakh → ₹4.15 Lakhs)
  • 10 Years: NA

• Benefits:
  • Balanced approach with strong midcap tilt
  • Strong research-backed portfolio
• Risks:
  • Cyclical performance depending on market cap rotation
  • May lag pure midcap or large cap funds

There are 5 mutual funds that turned ₹ 1 Lakh into ₹ 2 Lakhs in 2 years time frame.

#9 – HDFC Focused 30 Fund

• Investment Objective: Seeks capital appreciation through a concentrated portfolio of 30 high-conviction stocks.
• Annualized Returns:
  • 3 Years: 29.07%
  • 5 Years: 31.94% (₹1 Lakh → ₹4.04 Lakhs)
  • 10 Years: 16.21%

• Benefits:
  • Focused strategy can outperform in bull runs
  • High conviction portfolio
• Risks:
  • Higher concentration risk
  • May underperform in volatile phases

#10 – HDFC Flexi Cap Fund

• Investment Objective: To provide long-term capital growth by investing in companies across market capitalizations.
• Annualized Returns:
  • 3 Years: 28.90%
  • 5 Years: 31.48% (₹1 Lakh → ₹3.97 Lakhs)
  • 10 Years: 16.70%

• Benefits:
  • Flexibility to shift between market caps
  • Large asset base and proven track record
• Risks:
  • Performance varies with fund manager strategy
  • Less focused compared to category funds

#11 – ICICI Prudential Large & Mid Cap Fund

• Investment Objective: Aims to generate capital appreciation by investing in large and mid-cap stocks.
• Annualized Returns:
  • 3 Years: 27.89%
  • 5 Years: 30.93% (₹1 Lakh → ₹3.87 Lakhs)
  • 10 Years: 16.85%

• Benefits:
  • Diversified equity exposure
  • Managed by an experienced fund house
• Risks:
  • Sensitive to macroeconomic shifts
  • Returns depend on correct allocation between large and mid-caps

#12 – Bandhan Large & Mid Cap Fund

• Investment Objective: Seeks to generate long-term capital appreciation through a diversified portfolio of large and mid-cap stocks.
• Annualized Returns:
  • 3 Years: 31.47%
  • 5 Years: 30.66% (₹1 Lakh → ₹3.83 Lakhs)
  • 10 Years: 17.28%

• Benefits:
  • Good mix of growth and stability
  • Consistent returns
• Risks:
  • Market timing and stock selection critical
  • Performance depends on economic cycle

Currently stock market is taking correction due to global cues and investors can look into some of the Best Mutual Funds to invest ₹ 10 Lakhs now in 2025.

#13 – ICICI Prudential India Equity FOF

• Investment Objective: Aims to provide long-term capital appreciation by investing in domestic equity mutual fund schemes.
• Annualized Returns:
  • 3 Years: 26.25%
  • 5 Years: 30.03% (₹1 Lakh → ₹3.78 Lakhs)
  • 10 Years: NA

• Benefits:
  • Diversified exposure to top performing equity funds
  • Professional fund selection
• Risks:
  • Layered expense ratios
  • Dependency on performance of underlying schemes

Conclusion

These 13 mutual funds rated 5-star by Value Research have shown robust performance in the past 5 years, delivering over 30% CAGR in many cases. However, past performance is not a guarantee of future returns. Investors should align fund selection with their risk profile, financial goals, and investment horizon.

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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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