When it comes to mutual fund investing, consistent high performance over long periods signals strong fund management, robust stock selection, and the ability to navigate multiple market cycles. As per the latest data available, these 14 mutual funds have delivered over 30% CAGR in the last 5 years, significantly outperforming their category benchmarks. These funds span across sectors including infrastructure, PSU, small cap, midcap, multicap, and opportunities-based themes, making them attractive options for long-term wealth creation.
Before we begin this article, investors can also explore 10 Mutual Funds with Best Risk-Adjusted Returns to invest in 2025.
How We Filtered These Mutual Funds?
To shortlist these high-performing mutual funds, we followed a structured and data-driven filtration process. Here’s how the final list of 14 mutual funds was derived:
1. Considered all equity-oriented mutual funds
We evaluated the entire universe of equity funds, including:
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Diversified equity funds
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Thematic and sector-specific funds (Infrastructure, PSU, Small Cap, Midcap, etc.)
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Global and international equity funds (where 5-year data was available)
2. Selected only Direct Plans
Direct plans provide higher long-term returns due to lower expense ratios. Hence, only Direct plan NAVs were used for performance screening.
3. Applied a strict 5-year performance filter
We calculated 5-year CAGR for all eligible funds based on NAV data from: 1-Dec-2020 to 30-Nov-2025
4. Shortlisted funds delivering over 30% CAGR
Only funds that delivered 30%+ CAGR consistently over this 5-year period were included. We could get 14 mutual funds that delivered 30% CAGR over 5 years time frame
List of 14 High Return Mutual Funds with Over 30% CAGR in the last 5 years
Below is the list of mutual funds along with their 5-year CAGR, absolute returns, and the future value of ₹1 Lakh investment.
| Fund Name | 5-Year CAGR (%) | 5-Year Absolute Return | ₹1 Lakh Would Have Turned Into |
|---|---|---|---|
| ICICI Prudential Infrastructure Fund (Direct) | 34.09 | 339% | ₹4.39 Lakhs |
| Quant Small Cap Fund (Direct) | 33.24 | 325% | ₹4.25 Lakhs |
| Aditya Birla Sun Life PSU Equity Fund (Direct) | 32.42 | 314% | ₹4.14 Lakhs |
| HDFC Infrastructure Fund (Direct) | 32.27 | 312% | ₹4.12 Lakhs |
| SBI PSU Fund (Direct) | 31.98 | 309% | ₹4.09 Lakhs |
| Quant Infrastructure Fund (Direct) | 31.59 | 304% | ₹4.04 Lakhs |
| ICICI Prudential BHARAT 22 FOF (Direct) | 31.50 | 303% | ₹4.03 Lakhs |
| Motilal Oswal Midcap Fund (Direct) | 31.23 | 299% | ₹3.99 Lakhs |
| ICICI Prudential India Opportunities Fund (Direct) | 31.06 | 297% | ₹3.97 Lakhs |
| Bandhan Infrastructure Fund (Direct) | 30.68 | 293% | ₹3.93 Lakhs |
| Franklin Build India Fund (Direct) | 30.60 | 292% | ₹3.92 Lakhs |
| Canara Robeco Infrastructure Fund (Direct) | 30.50 | 291% | ₹3.91 Lakhs |
| Nippon India Small Cap Fund (Direct) | 30.31 | 289% | ₹3.89 Lakhs |
| DSP India TIGER Fund (Direct) | 30.26 | 288% | ₹3.88 Lakhs |
| Nippon India Power & Infra Fund (Direct) | 29.97 | 285% | ₹3.85 Lakhs |
Deep Dive into 14 High Return Mutual Funds with Over 30% CAGR
Let’s look at each fund’s objective, performance, reasons to invest, and risk factors.
#1 – ICICI Prudential Infrastructure Fund
Investment Objective: Long-term capital appreciation by investing in infrastructure and allied sectors.
Performance Summary:
- 3-Year Return: 26.12%
- 5-Year Return: 34.09%
- 10-Year Return: 18.10%
Highlights:
- Focuses on sectors like construction, engineering, capital goods, and utilities.
- One of the top performers in the infra category.
Why to Invest:
- Beneficiary of India’s strong infrastructure CAPEX cycle.
Risk Factors:
- Sector-specific volatility in cyclical downturns.
We analysed this fund in detail at 7 Low Risk-High Return Mutual Funds as per ValueResearch to Invest in 2025.
#2 – Quant Small Cap Fund
Investment Objective: To achieve high long-term returns by investing in small-cap companies.
Performance Summary:
- 3-Year Return: 22.99%
- 5-Year Return: 33.24%
- 10-Year Return: 20.25%
Highlights:
- Highly dynamic multi-factor investment strategy.
- Known for aggressive alpha generation.
Why to Invest:
- Suitable for long-term investors seeking high-growth potential.
Risk Factors:
- High volatility during market corrections.
#3 – Aditya Birla Sun Life PSU Equity Fund
Investment Objective: To generate long-term growth by investing in PSU companies.
Performance Summary:
- 3-Year Return: 27.71%
- 5-Year Return: 32.42%
- 10-Year Return: NA
Highlights:
- Strong rally in PSU banks, defence, and power stocks boosted returns.
Why to Invest:
- Focused exposure to India’s ongoing PSU reforms.
Risk Factors:
- Government policy dependence.
#4 – HDFC Infrastructure Fund
Investment Objective: Capital appreciation by investing in companies involved in infrastructure development.
Performance Summary:
- 3-Year Return: 26.80%
- 5-Year Return: 32.27%
- 10-Year Return: 12.31%
Highlights:
- Benefitted from economic revival and strong project execution cycles.
Why to Invest:
- Suitable for aggressive investors with long-term view.
Risk Factors:
- Infra sector slowdown can impact returns.
While this fund generated highest returns on lumpsum, this fund has generated SIP Returns too which we analysed at Top 10 Mutual Funds with Highest 5-Year SIP Returns (Over 30%).
#5 – SBI PSU Fund
Investment Objective: Exposure to PSU companies across sectors.
Performance Summary:
- 3-Year Return: 28.98%
- 5-Year Return: 31.98%
- 10-Year Return: 15.17%
Highlights:
- Banking, defence, and energy sectors led the performance.
Why to Invest:
- Best suited for thematic investors.
Risk Factors:
- Volatile due to heavy PSU concentration.
#6 – Quant Infrastructure Fund
Investment Objective: Long-term wealth creation through infra-related companies.
Performance Summary:
- 3-Year Return: 18.02%
- 5-Year Return: 31.59%
- 10-Year Return: 20.12%
Highlights:
- Unique quant-driven strategy offers differentiated exposure.
Why to Invest:
- Strong alpha potential.
Risk Factors:
- High churn rate.
Perplexity AI Recommends this Mutual Fund for invest in 2025 too.
#7 – ICICI Prudential BHARAT 22 FOF
Investment Objective: To mirror the performance of the Bharat 22 Index.
Performance Summary:
- 3-Year Return: 26.30%
- 5-Year Return: 31.50%
Highlights:
- PSU-heavy portfolio; strong performance due to re-rating.
Why to Invest:
- Best for investors seeking diversified PSU exposure.
Risk Factors:
- Sensitive to government policy.
#8 – Motilal Oswal Midcap Fund
Investment Objective: Focused on high-quality midcap companies.
Performance Summary:
- 3-Year Return: 27.04%
- 5-Year Return: 31.23%
- 10-Year Return: 19.23%
Highlights:
- Consistent midcap performer.
Why to Invest:
- Good blend of stability and growth.
Risk Factors:
- Midcap volatility during market corrections.
This mutual fund is among 5 Best Midcap Mutual Funds to Invest in 2025 based on Rolling Returns.
#9 – ICICI Prudential India Opportunities Fund
Investment Objective: To invest in opportunities arising from mispriced stocks.
Performance Summary:
- 3-Year Return: 23.57%
- 5-Year Return: 31.06%
Highlights:
- Contrarian and value-driven strategy.
Why to Invest:
- Ideal for investors who prefer tactical allocation.
Risk Factors:
- Performance may vary with changing valuation cycles.
#10 – Bandhan Infrastructure Fund
Investment Objective: Exposure to infrastructure and related themes.
Performance Summary:
- 3-Year Return: 26.04%
- 5-Year Return: 30.68%
- 10-Year Return: 17.37%
Highlights:
- Rising capital expenditure boosted performance.
Why to Invest:
- Good thematic choice for long-term wealth creation.
Risk Factors:
- Cyclical impact on infra sector.
#11 – Franklin Build India Fund
Investment Objective: Long-term capital appreciation through infra-based portfolio.
Performance Summary:
- 3-Year Return: 26.81%
- 5-Year Return: 30.60%
- 10-Year Return: 18.79%
Highlights:
- One of the oldest infra funds with stable performance.
Why to Invest:
- Suitable for long-term investors.
Risk Factors:
- May underperform in non-infra-led rallies.
We explore this fund as part of 10 Mutual Funds Outperformed in Last 15 Years with 983% to 1,560% Absolute Returns and is consisting long term performer
#12 – Canara Robeco Infrastructure Fund
Investment Objective: Invests in companies driving infrastructure growth.
Performance Summary:
- 3-Year Return: 25.86%
- 5-Year Return: 30.50%
- 10-Year Return: 16.84%
Highlights:
- Conservative infra fund with consistent returns.
Why to Invest:
- Good for moderate-risk investors.
Risk Factors:
- Cyclical volatility.
#13 – Nippon India Small Cap Fund
Investment Objective: High growth potential through small-cap companies.
Performance Summary:
- 3-Year Return: 22.15%
- 5-Year Return: 30.31%
- 10-Year Return: 21.08%
Highlights:
- One of the largest AUM small-cap funds.
Why to Invest:
- Suitable for long-term aggressive investors.
Risk Factors:
- High volatility.
This fund is ChatGPT’s Favorite Mutual Fund for 2026.
#14 – DSP India TIGER Fund
Investment Objective: Focus on infrastructure and economic reforms.
Performance Summary:
- 3-Year Return: 25.51%
- 5-Year Return: 30.26%
- 10-Year Return: 17.32%
Highlights:
- Diversified infra play.
Why to Invest:
- Ideal for thematic investors.
Risk Factors:
- Sensitive to policy decisions.
#15 – Nippon India Power & Infra Fund
Investment Objective: Capital appreciation by investing in power and infrastructure.
Performance Summary:
- 3-Year Return: 26.11%
- 5-Year Return: 29.97%
- 10-Year Return: 17.52%
Highlights:
- Strong performer in power sector revival.
Why to Invest:
- Good for investors seeking power + infra exposure.
Risk Factors:
- Sectoral fluctuations.
Surprinsingly, none of these funds appear in Google Gemini AI Recommended Mutual Funds for 2026.
Conclusion
These 14 mutual funds have showcased exceptional performance with 30%+ CAGR over 5 years. While these high returns may look attractive, investors should not chase returns blindly. Mutual fund selection should always be aligned with:
- Your risk appetite (small cap and thematic funds carry higher volatility)
- Your financial goals (short-term vs long-term)
- Your investment tenure (5–10 years recommended for better compounding)
These funds can act as a starting point for identifying strong performers, but final investment decisions should be made after evaluating risk, diversification needs, and your long-term objectives.
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