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.

• Author
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Suresh KP

Founder at Myinvestmentideas.com

Suresh KP is the founder of MyInvestmentIdeas.com, which he has run since 2011. He has over 23 years of experience across investments, mutual funds, stock markets, insurance, taxation and financial planning, and has written 2,500+ articles for Indian retail investors. He has completed NISM Investment Adviser (Level 1 & 2) and NISM Research Analyst certifications. Articles on this site compare publicly available data for educational purposes; Suresh is not a SEBI-registered investment adviser. More about his background: About Suresh KP | X (Twitter)

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