While several equity mutual fund categories witnessed market volatility in recent years, a select group of schemes managed to deliver exceptional long-term returns. According to the latest performance data, these 9 mutual funds have generated over 25% CAGR in the last five years.
The list is dominated by themes such as international equities, infrastructure, PSU-focused funds, and power sector opportunities. Strong market participation, improving corporate earnings, government-led capital expenditure, and global technology growth have contributed significantly to the performance of these schemes.
A 25% CAGR over a five-year period can create substantial wealth through the power of compounding. However, investors should note that such returns often come with higher volatility and sector-specific risks. Past performance does not guarantee future returns.
In this article, we analyse 9 high return mutual funds that delivered over 25% CAGR in the last five years and review their investment focus, performance metrics, key highlights, and risk factors.
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How We Filtered These High Return Mutual Funds
To identify these high return mutual funds, we screened equity-oriented mutual fund schemes across various categories and applied the following criteria:
Selection Criteria
- Considered all equity mutual fund categories, including diversified equity funds, thematic funds, sectoral funds, PSU funds, infrastructure funds, and international equity funds.
- Excluded Exchange Traded Funds (ETFs) and considered only mutual fund schemes and Fund of Funds (FoFs).
- Considered schemes that have a minimum performance track record of 5 years.
- Shortlisted funds that generated more than 25% CAGR in the last 5 years.
- Performance data is based on regular growth plans.
- Data considered as of 29-May-2026.
Important Note
The objective of this analysis is to identify mutual funds that have delivered strong historical returns over the last five years. Past performance should not be construed as an indication or guarantee of future returns. Investors should evaluate investment objectives, portfolio characteristics, risk factors, and suitability before making investment decisions.
Out of hundreds of equity mutual fund schemes with a 5-year track record, only these 9 funds managed to generate more than 25% CAGR in the last five years.
List of 9 High Return Mutual Funds with Over 25% CAGR in the Last 5 Years
| Rank | Mutual Fund Scheme | 5-Year CAGR |
|---|---|---|
| 1 | Mirae Asset NYSE FANG+ ETF FoF | 32.0% |
| 2 | Motilal Oswal Nasdaq 100 FOF | 27.0% |
| 3 | LIC MF Infrastructure Fund | 26.0% |
| 4 | Aditya Birla Sun Life PSU Equity Fund | 25.9% |
| 5 | SBI PSU Fund | 25.6% |
| 6 | ICICI Prudential BHARAT 22 FOF | 25.4% |
| 7 | DSP India T.I.G.E.R. Fund | 25.3% |
| 8 | Nippon India Power & Infra Fund | 25.3% |
| 9 | ICICI Prudential Infrastructure Fund | 25.2% |
What Is Driving These High Returns?
A closer look at these funds indicates that three major themes have driven performance over the last five years.
1) Global Technology Rally
Funds investing in global technology companies such as Apple, Microsoft, Nvidia, Amazon and Meta benefited from the strong growth in the US technology sector and artificial intelligence-led market expansion.
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2) PSU Re-Rating
Public sector companies witnessed significant re-rating due to improving profitability, government reforms, stronger balance sheets and increased investor participation.
3) Infrastructure and Capital Expenditure Boom
India’s infrastructure push, higher government spending, manufacturing growth and power sector investments created strong opportunities for infrastructure-focused mutual funds.
Let us take a closer look at each of these high return mutual funds.
#1 – Mirae Asset NYSE FANG+ ETF FoF
Investment Objective
To provide returns by investing in units of overseas ETFs tracking the NYSE FANG+ Index.
Performance Metrics
- 3-Year CAGR: 50.9%
- 5-Year CAGR: 32.0%
Key Highlights
- One of the best-performing international mutual funds in recent years.
- Provides exposure to global technology leaders and innovative businesses.
- Benefited from strong performance in artificial intelligence, cloud computing, and digital transformation themes.
Why Investors Evaluate This Fund
Investors looking for global diversification often track funds that provide exposure to leading international technology companies.
Risk Factors
- Global market volatility.
- Currency fluctuation risks.
- High concentration in technology-oriented stocks.
#2 – Motilal Oswal Nasdaq 100 FOF
Investment Objective
To generate returns by investing in Nasdaq 100-linked funds and ETFs.
Performance Metrics
- 3-Year CAGR: 42.6%
- 5-Year CAGR: 27.0%
Key Highlights
- Offers exposure to some of the largest non-financial companies listed in the US.
- Benefited from the growth of technology and innovation-driven businesses.
- Provides geographical diversification beyond Indian markets.
Why Investors Evaluate This Fund
Suitable for investors seeking international exposure through globally recognized companies.
Risk Factors
- Dependence on US market performance.
- Foreign exchange and currency-related risks.
#3 – LIC MF Infrastructure Fund
Investment Objective
To generate long-term capital appreciation by investing primarily in infrastructure-related companies.
Performance Metrics
- 3-Year CAGR: 30.8%
- 5-Year CAGR: 26.0%
- 10-Year CAGR: 18.8%
Key Highlights
- Benefited from India’s infrastructure and manufacturing expansion.
- Exposure to capital goods, construction, and related sectors.
- Strong participation in the government’s infrastructure development initiatives.
Why Investors Evaluate This Fund
Investors interested in India’s long-term infrastructure growth story often monitor such thematic funds.
Risk Factors
- Sector concentration may increase volatility during economic slowdowns.
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#4 – Aditya Birla Sun Life PSU Equity Fund
Investment Objective
To invest predominantly in equity and equity-related securities of public sector undertakings.
Performance Metrics
- 3-Year CAGR: 29.2%
- 5-Year CAGR: 25.9%
Key Highlights
- Benefited from the recent PSU re-rating cycle.
- Exposure to public sector companies across multiple industries.
- Strong gains from improving profitability and operational efficiency of PSU companies.
Why Investors Evaluate This Fund
Provides focused exposure to India’s public sector enterprises.
Risk Factors
- Sensitive to policy changes and sector-specific developments.
#5 – SBI PSU Fund
Investment Objective
To generate capital appreciation through investments in PSU companies.
Performance Metrics
- 3-Year CAGR: 32.1%
- 5-Year CAGR: 25.6%
- 10-Year CAGR: 16.6%
Key Highlights
- One of the major beneficiaries of the PSU rally.
- Diversified exposure across leading government-owned companies.
- Benefited from stronger earnings and valuation re-rating.
Why Investors Evaluate This Fund
Investors looking for PSU-focused opportunities often consider such thematic exposure.
Risk Factors
- Policy and sector concentration risks.
#6 – ICICI Prudential BHARAT 22 FOF
Investment Objective
To provide returns corresponding to the performance of the Bharat 22 Index through fund-of-fund investments.
Performance Metrics
- 3-Year CAGR: 24.1%
- 5-Year CAGR: 25.4%
Key Highlights
- Exposure to leading government-owned enterprises across sectors.
- Benefited from improving fundamentals in PSU businesses.
- Provides diversified exposure within the PSU universe.
Why Investors Evaluate This Fund
Offers access to multiple government-linked businesses through a single investment vehicle.
Risk Factors
- Returns depend heavily on PSU sector performance.
This fund is among 10 Mutual Funds That Turned ₹ 5 Lakhs Into ₹ 15-21 Lakhs in 5 Years.
#7 – DSP India T.I.G.E.R. Fund
Investment Objective
To generate long-term capital growth through investments in infrastructure and related sectors.
Performance Metrics
- 3-Year CAGR: 28.4%
- 5-Year CAGR: 25.3%
- 10-Year CAGR: 19.2%
Key Highlights
- Focuses on transportation, infrastructure, engineering and capital goods opportunities.
- Benefited from higher government spending and infrastructure investments.
- Long-standing presence in the infrastructure fund category.
Why Investors Evaluate This Fund
Suitable for investors tracking India’s long-term infrastructure and industrial growth.
Risk Factors
- Infrastructure businesses can be cyclical and sensitive to economic conditions.
#8 – Nippon India Power & Infra Fund
Investment Objective
To generate long-term capital appreciation through investments in power and infrastructure companies.
Performance Metrics
- 3-Year CAGR: 27.8%
- 5-Year CAGR: 25.3%
- 10-Year CAGR: 19.3%
Key Highlights
- Benefited from rising power demand and infrastructure development.
- Exposure to energy, utilities and capital expenditure themes.
- Strong long-term performance among sector-focused funds.
Why Investors Evaluate This Fund
Provides focused exposure to power and infrastructure-related opportunities.
Risk Factors
- Regulatory and sector concentration risks.
#9 – ICICI Prudential Infrastructure Fund
Investment Objective
To generate long-term capital appreciation through investments in infrastructure and allied sectors.
Performance Metrics
- 3-Year CAGR: 24.2%
- 5-Year CAGR: 25.2%
- 10-Year CAGR: 19.0%
Key Highlights
- Consistent performer within the infrastructure category.
- Diversified exposure across infrastructure-related sectors.
- Benefited from India’s ongoing capex cycle.
Why Investors Evaluate This Fund
Investors tracking India’s infrastructure growth story often monitor this fund category.
Risk Factors
- Infrastructure projects are sensitive to economic and policy cycles.
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Key Risks Investors Should Consider
Before evaluating any high-return mutual fund, investors should keep the following factors in mind:
- High historical returns do not guarantee similar future performance.
- Thematic and sector-focused funds can be more volatile than diversified equity funds.
- International funds are exposed to currency and global market risks.
- PSU and infrastructure funds may experience periods of underperformance when market sentiment changes.
- Investors should assess their risk appetite, financial goals and investment horizon before making investment decisions.
Performance Summary Table
| Mutual Fund | 3-Year CAGR (%) | 5-Year CAGR (%) | 10-Year CAGR (%) |
|---|---|---|---|
| Mirae Asset NYSE FANG+ ETF FoF | 50.9 | 32.0 | — |
| Motilal Oswal Nasdaq 100 FOF | 42.6 | 27.0 | — |
| LIC MF Infrastructure Fund | 30.8 | 26.0 | 18.8 |
| Aditya Birla Sun Life PSU Equity Fund | 29.2 | 25.9 | — |
| SBI PSU Fund | 32.1 | 25.6 | 16.6 |
| ICICI Prudential BHARAT 22 FOF | 24.1 | 25.4 | — |
| DSP India T.I.G.E.R. Fund | 28.4 | 25.3 | 19.2 |
| Nippon India Power & Infra Fund | 27.8 | 25.3 | 19.3 |
| ICICI Prudential Infrastructure Fund | 24.2 | 25.2 | 19.0 |
Conclusion
These 9 mutual funds have generated over 25% CAGR in the last five years and stand out across categories such as international equities, PSU-focused funds, and infrastructure-oriented schemes.
While these funds have delivered strong historical returns, investors should remember that market conditions, sector cycles, and global economic developments can influence future performance. Rather than focusing solely on past returns, investors may consider evaluating investment objectives, portfolio composition, risk factors, and long-term suitability before making investment decisions.
The data highlights how specific themes such as global technology, PSU revival, and infrastructure development have created significant wealth over the last five years. Whether these themes continue to outperform in the future remains to be seen, making diversification and disciplined investing important considerations for long-term investors.
Disclaimer: Mutual fund investments are subject to market risks. The information provided in this article is for educational and informational purposes only and should not be construed as investment advice, recommendation, or solicitation to buy or sell any financial product. Past performance is not indicative of future results. Investors should read all scheme-related documents carefully and consult a financial adviser before making investment decisions.
