When it comes to investing, nothing excites investors more than extraordinary returns. Over the past five years, some mutual funds have delivered outstanding returns, creating massive wealth for their investors. In fact, a few funds have clocked 426% to 619% returns during this period! If you are wondering which funds these are, and whether you should consider them now, you are at the right place. In this article, we will cover 5 Mutual Fund Schemes that created massive wealth in the last 5 years, their investment objectives, returns over 3, 5, and 10 years, where they invest, and the risk factors associated with them.
Investors can also check 20 Equity Mutual Funds with Low Beta and High Alpha.
How we filtered these mutual funds?
- We have considered all equity mutual funds including thematic / sector funds and global funds. However we have excluded ETFs from this list.
- We have filtered 5 mutual fund schemes that generated highest returns in the last 5 years.
- These 5 mutual funds generated 426% to 619% absolute returns. Means if one would have invested ₹ 1 Lakh in these mutual funds, the value would have grown to ₹ 5.2 Lakhs to ₹ 7.2 lakhs which is massive wealth creation.
5 Mutual Fund Schemes with 5-Year Returns between 426% to 619%
Let’s get started!
| Mutual Fund Name | Annualised Return (5Y) | Absolute Returns (5Y) | ₹1 Lakh Became |
|---|---|---|---|
| Quant Smallcap Fund | 48.3% | 618.9% | ₹ 7.18 Lakh |
| Quant Infrastructure Fund | 42.4% | 486.9% | ₹ 5.86 Lakh |
| ICICI Prudential Commodities Fund | 39.5% | 429.4% | ₹ 5.29 Lakh |
| ICICI Prudential Infrastructure Fund | 39.5% | 429.4% | ₹ 5.29 Lakh |
| Nippon India Small Cap Fund | 39.3% | 426.4% | ₹ 5.26 Lakh |
This list does not have any International Mutual Funds.
Top Performing Mutual Funds in last 5 years – Deep Dive
Let’s deep dive into these mutual funds.
#1 – Quant Small Cap Fund
Investment Objective: Quant Small Cap Fund aims to generate long-term capital appreciation by investing predominantly in small-cap stocks. It follows a dynamic approach to sector and stock selection, ensuring maximum alpha generation.
Annualised Returns:
- 3 Years: 23.0%
- 5 Years: 48.3%
- 10 Years: 19.8%
Where does the scheme invest? The fund primarily invests in small-cap companies across various sectors including financials, industrials, and materials. It uses a proprietary predictive analytics model to time the market cycles.
Risk Factors:
- High volatility due to small-cap exposure. Refer last 1 year returns which is -4.2% (negative)
- Liquidity risks, as small-cap stocks may not always have sufficient buyers.
- Sensitive to market downturns.
#2 – Quant Infrastructure Fund
Investment Objective: This fund seeks to achieve capital appreciation by investing predominantly in companies engaged in infrastructure and allied sectors.
Annualised Returns:
- 3 Years: 19.2%
- 5 Years: 42.4%
- 10 Years: 18.4%
Where does the scheme invest? It invests heavily in sectors like construction, engineering, energy, and transportation. A significant portion is allocated to companies expected to benefit from government spending and private investments in infrastructure.
Risk Factors:
- Sector concentration risk, as returns depend heavily on infrastructure sector performance. Check last 1 year performance which is -11.9% (negative)
- Policy and regulatory risks.
- Economic slowdown can directly impact fund performance.
#3 – ICICI Prudential Commodities Fund
Investment Objective: The fund aims to generate long-term capital appreciation by investing in equity and equity-related securities of companies engaged in commodity-related sectors.
Annualised Returns:
- 3 Years: 15.4%
- 5 Years: 39.5%
- 10 Years: Not Applicable
Where does the scheme invest? Primarily in companies in metals, mining, oil & gas, and other commodity-driven industries. The fund benefits from commodity price cycles and global demand dynamics.
Risk Factors:
- Commodity price volatility can significantly impact returns.
- Global geopolitical risks.
- Currency fluctuations affecting commodity exports.
#4 – Nippon India Small Cap Fund
Investment Objective: This fund seeks to generate long-term capital growth by investing predominantly in small-cap companies, tapping into their high growth potential.
Annualised Returns:
- 3 Years: 22.7%
- 5 Years: 39.3%
- 10 Years: 21.9%
Where does the scheme invest? The fund maintains a diversified portfolio across small-cap companies in sectors such as healthcare, financials, industrial manufacturing, and technology.
Risk Factors:
- High volatility associated with small-cap investing.
- Liquidity risks during market corrections.
- Company-specific risks, as small businesses may be more vulnerable to operational challenges.
#5 – ICICI Prudential Infrastructure Fund
Investment Objective: The fund aims to generate long-term capital appreciation by investing in equity and equity-related securities of companies engaged in the infrastructure development sector.
Annualised Returns:
- 3 Years: 29.1%
- 5 Years: 39.5%
- 10 Years: 16.6%
Where does the scheme invest? Investments are primarily in companies involved in sectors like energy, construction, engineering, transportation, and telecommunications.
Risk Factors:
- Dependency on infrastructure sector performance.
- Regulatory and policy changes could impact earnings.
- Vulnerability to economic cycles and funding challenges.
The above fund is part of Best Mutual Funds to invest in 2025 as per ChatGPT.
Conclusion: The above 5 mutual funds have delivered massive returns in the last 5 years, thanks to favourable sectoral tailwinds, robust stock picking, and timely sector rotation strategies. However, one should note that past performance may not always guarantee future returns. Check the Worst Performing Mutual Funds in last 5 years which indicates that mutual fund returns are not guaranteed and can fall and generate low returns.
Investors looking to invest in such high-growth mutual funds should assess their risk appetite, investment horizon, and financial goals before taking a decision to invest. Always invest in diversified mutual funds portfolio to reduce risk.
Have you already invested in any of these top-performing funds? Share your experience in the comments!
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