Are you looking for mutual fund schemes that delivered extraordinary returns in recent years? While many funds perform moderately well, only a few standout performers have managed to multiply investments significantly over a short span. In this article, we bring you a list of 7 mutual funds that turned ₹ 1 Lakh into ₹ 5 Lakhs in just 5 years, delivering over 37% CAGR, based on performance as of 11-June-2025.
Earlier we wrote on Top 5 Mutual Funds that turned ₹ 1 Lakh to ₹ 2 Lakhs in 2 years.
What Does It Mean to 5X in 5 Years?
To grow ₹1 Lakh to ₹5 Lakhs in 5 years, a mutual fund must deliver a Compound Annual Growth Rate (CAGR) of approx. 37.97%. Only a few funds have crossed this benchmark, making them potential candidates for high-growth portfolios.
🔍 How We Shortlisted These Funds
- Considered all equity fund categories (Small Cap, Mid Cap, Sectoral)
- Evaluated 5-year CAGR as of 10-Jun-2025
- Included only Direct Plans with Growth option
- Filtered mutual funds that generated highest returns in the last 5 years
- Considered funds that turned ₹ 1 Lakh into ₹ 5 Lakhs in the last 5 years
List of 7 Mutual Funds That Turned ₹ 1 Lakh Into ₹ 5 Lakhs in 5 Years
|
Mutual Fund Scheme |
5 Yr CAGR (%) | ₹1 Lakh Turned Into (₹) |
|---|---|---|
| Quant Small Cap Fund | 47.87% | ₹7.70 Lakhs |
| Quant Infrastructure Fund | 42.32% | ₹5.42 Lakhs |
| Nippon India Small Cap Fund | 40.00% | ₹5.02 Lakhs |
| Bandhan Small Cap Fund | 39.00% | ₹4.95 Lakhs |
| ICICI Prudential Commodities Fund | 37.98% | ₹5.00 Lakhs |
| ICICI Prudential Infrastructure Fund | 38.93% | ₹4.94 Lakhs |
| Motilal Oswal Midcap Fund | 38.31% | ₹4.90 Lakhs |
🧠 Detailed Analysis of Top Performing Funds
#1 – Quant Small Cap Fund
- Category: Small Cap Fund
- Investment Objective:
Seeks long-term capital appreciation by investing primarily in equity and equity-related instruments of small-cap companies. - Annualised Returns:
- 3-Year: 29.95%
- 5-Year: 47.87%
- 10-Year: 20.63%
✅ Benefits:
- Strong alpha generation through active management
- Tactical shifts in sector and stock weights
- Exposure to emerging, high-growth businesses
- Top performer across 3, 5, and 10-year periods
⚠️ Risk Factors:
- Highly volatile due to small-cap nature
- Sensitive to market corrections and sentiment
- May underperform in bear markets
- Higher exposure to illiquid stocks
#2 – Quant Infrastructure Fund
- Category: Sectoral – Infrastructure
- Investment Objective:
Aims to generate capital appreciation by investing in infrastructure-related sectors such as engineering, construction, cement, and allied industries. - Annualised Returns:
- 3-Year: 25.37%
- 5-Year: 42.32%
- 10-Year: 20.13%
✅ Benefits:
- Strong theme support from India’s infra growth
- Smart allocation to high-momentum infra stocks
- Well-suited for thematic exposure seekers
- Tactical sector rebalancing by experienced managers
⚠️ Risk Factors:
- High sector concentration risk
- Performance tied to government policy and capex trends
- May underperform during economic slowdowns
- Not suitable for conservative investors
#3 – Nippon India Small Cap Fund
- Category: Small Cap Fund
- Investment Objective:
Aims for long-term capital growth through investments predominantly in small-cap companies with high growth potential. - Annualised Returns:
- 3-Year: 30.31%
- 5-Year: 40.00%
- 10-Year: 23.41%
✅ Benefits:
- Consistent outperformance across cycles
- Strong research and disciplined stock picking
- Broad-based portfolio minimizes stock-specific risk
- Proven long-term wealth creator
⚠️ Risk Factors:
- High volatility during market downturns
- Vulnerable to liquidity issues in smaller companies
- Requires long investment horizon for best results
- Risk of short-term underperformance
We discussed this mutual fund as part of some of the Best Mutual Funds to invest ₹ 10 Lakhs in 2025.
#4 – Bandhan Small Cap Fund
- Category: Small Cap Fund
- Investment Objective:
Targets capital appreciation through a diversified portfolio of small-cap stocks across sectors and themes. - Annualised Returns:
- 3-Year: 36.25%
- 5-Year: 39.00%
- 10-Year: —
✅ Benefits:
- Strong 3 and 5-year performance consistency
- Focused stock selection in niche segments
- Excellent alpha generation in short duration
- Aggressive growth strategy
⚠️ Risk Factors:
- Limited long-term track record (newer fund)
- Higher exposure to micro-cap names
- Higher volatility during market corrections
- May lack stability in market downturns
#5 – ICICI Prudential Commodities Fund
- Category: Sectoral – Commodities
- Investment Objective:
Seeks to provide long-term capital appreciation by investing in equity and equity-related securities of commodity-related sectors like metals, energy, and agriculture. - Annualised Returns:
- 3-Year: 23.18%
- 5-Year: 37.98%
- 10-Year: —
✅ Benefits:
- Benefited from global commodity cycles
- Diversified commodity theme (across sectors)
- Good hedge against inflation trends
- Suitable for tactical satellite allocation
⚠️ Risk Factors:
- Highly cyclical and sensitive to global trends
- May underperform during commodity downcycles
- Currency risk due to global commodity exposure
- Requires active monitoring
If you are more concerned about Sectoral funds, you can check 10 Crisil 5 Star Rated Mutual Funds that generated over 30% CAGR returns in last 5 years.
#6 – ICICI Prudential Infrastructure Fund
- Category: Sectoral – Infrastructure
- Investment Objective:
To generate long-term capital appreciation by investing in equity and equity-related instruments of infrastructure companies. - Annualised Returns:
- 3-Year: 34.44%
- 5-Year: 38.93%
- 10-Year: 17.92%
✅ Benefits:
- Direct play on India’s capex revival
- Blend of large-cap and mid-cap exposure
- Actively managed with strong track record
- Positive momentum from infra spending and PLI schemes
⚠️ Risk Factors:
- Cyclical in nature; sensitive to interest rates
- Sector-specific regulatory/policy risk
- May lag during market rotation to defensive sectors
- Limited diversification
#7 – Motilal Oswal Midcap Fund
- Category: Mid Cap Fund
- Investment Objective:
Seeks capital appreciation by investing in mid-cap companies with robust business models and high earnings potential. - Annualised Returns:
- 3-Year: 36.19%
- 5-Year: 38.31%
- 10-Year: 19.28%
✅ Benefits:
- Focus on quality mid-cap stocks
- Lower volatility compared to small caps
- Good balance of growth and stability
- Consistent bottom-up stock selection
⚠️ Risk Factors:
- Mid-cap segment vulnerable during macro slowdown
- Liquidity may drop during market panic
- Can underperform large-cap funds during weak markets
- Requires 5+ year holding period for best returns
Investors can also take advantage and invest in some of the Best Mutual Funds to invest in 2025 during RBI rate cut.
Final Thoughts
These 7 mutual funds have delivered exceptional 5-year returns, but investors must remember that past performance is not a guarantee of future returns. These funds are best suited for investors who:
- Have a high risk appetite
- Are investing with a long-term horizon
- Understand the cyclicality and volatility of equity markets
Always consult a financial advisor and align fund choices with your financial goals and risk profile.
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