Top 15 Mutual Funds with 30% annualized returns in 5 years
SENSEX is reaching new highs. It crossed 38,000 mark last week. Many mutual fund schemes are showing high returns in this stock market boom. Even a mutual fund scheme that was no where is showing up in top 15 mutual funds list. It is time for us to look at the Top Mutual Fund Schemes in each category to filter out good mutual fund scheme. Which are the Top 15 Mutual Funds that gave the highest returns of over 30% in the last 5 years. Should you continue to invest in such mutual fund schemes or exit them?
Also Read: 15 Best SIP Mutual Funds for 2018
How we filtered Top 15 Mutual Funds that gave 30% annualized returns in 5 years
We have filtered these top 15 mutual funds based on below parameters
1) Mutual funds are filtered across various market capitalization / categories. This includes, large cap, multi-cap, Midcap, smallcap and balanced funds.
2) We have excluded sector funds from this filter.
3) Funds that gave more than 30% returns in the last 5 years are considered irrespective of the crisil / Value research ranking.
Top 15 Mutual Funds with 30% annualized returns in 5 years – Should you invest or exit?
Top#1 – Reliance Small Cap Fund
This is one of my favorite small cap fund in India that focuses on small cap companies for investment.
This fund gave 38% annualized returns in the last 5 years, 17% annualized returns in the last 3 years and 18% returns in the last 1 year.
Investors has been worried about Midcap and small cap stock prices fall in the last 3 months to 6 months. However, this fund has outperformed in small cap mutual fund segment in the last 1-5 years. If you are invested in this small cap mutual fund, you should continue to invest through SIP. In case there is some stock market correction, one can invest lumpsum investment too.
Top#2 – SBI Small Cap Fund
This is another good small cap fund that focuses on investing in smaller companies.
This fund gave 36% annualized returns in the last 5 years, 19% annualized returns in the last 3 years and 24% returns in the last 1 year.
Even this fund has outperformed in small cap mutual fund segment in the last 1-5 years. If you are invested in this small cap mutual fund, you should continue to invest through SIP. In case there is some stock market correction, one can invest lumpsum investment too.
Top#3 – Canara Robeco Emerging Equities Fund
The scheme seeks to generate capital appreciation by investing in a diversified portfolio of large and mid-cap stocks.
This fund gave 34% annualized returns in the last 5 years, 14% annualized returns in the last 3 years and 16% returns in the last 1 year.
Even this fund has outperformed in large cap/mid-cap mutual fund segment in the last 3-5 years. If you are invested in this mutual fund, you should continue to invest through SIP. In case there is some stock market correction, one can invest lumpsum investment too.
Top#4 – Mirae Asset Emerging Blue-chip Fund
To generate income and capital appreciation from a diversified portfolio predominantly investing in Indian equities and equity related securities of large cap and mid cap companies at the time of investment.
This fund gave 34% annualized returns in the last 5 years, 17% annualized returns in the last 3 years and 13% returns in the last 1 year.
Even this fund has outperformed in large cap/mid-cap mutual fund segment in the last 3-5 years. If you are invested in this mutual fund, you should continue to invest through SIP. In case there is some stock market correction, one can invest lumpsum investment too.
Top#5 – DSP BlackRock Small Cap Fund
The aim of the fund is to seek long-term capital appreciation by investing in a portfolio that substantially constitutes of stocks of small cap companies.
This fund gave 34% annualized returns in the last 5 years, 11% annualized returns in the last 3 years and 4% returns in the last 1 year.
This fund is under performer in the last 1 year by giving very low returns. This fund size has increased so much that it has to stop the fresh investments. Now investors started moving out of this fund due to its under performance. If you have already invested in this fund, stay invested, but you may need to hold any fresh investments for some more time.
Top#6 – HSBC Small Cap Equity Fund
The scheme seeks to generate long-term capital growth from an actively managed portfolio of equity and equity related securities of predominantly small cap companies.
This fund gave 31% annualized returns in the last 5 years, 9% annualized returns in the last 3 years and 9% returns in the last 1 year.
This fund has under performed in the last 1 year by giving very low returns. You may review and exit such non performing mutual fund schemes.
Top#7 – L&T Midcap Fund
To generate capital appreciation by investing primarily in mid cap stocks. The Scheme will invest primarily in companies whose market capitalization falls between the highest and the lowest constituent of the Nifty Free Float Midcap 100 Index.
This fund gave 31% annualized returns in the last 5 years, 15% annualized returns in the last 3 years and 10% returns in the last 1 year.
This fund has under performed, however, is in-line with Midcap stock performance. If you are investing in this fund, stay invested and continue to invest through SIP.
Top#8 – Principal Emerging Blue-chip Fund
The scheme seeks to achieve long term capital appreciation by investing in equity & equity related instruments of large cap & Midcap stocks.
This fund gave 31% annualized returns in the last 5 years, 14% annualized returns in the last 3 years and 15% returns in the last 1 year.
This fund has performed well in large cap / mid-cap segment. If you are already investing in this fund, continue to invest.
Top#9 – Kotak Emerging Equity Scheme Regular Plan
The scheme seeks to generate long-term capital appreciation from a portfolio of equity and equity related securities, by investing predominantly in mid companies.
This fund gave 31% annualized returns in the last 5 years, 13% annualized returns in the last 3 years and 11% returns in the last 1 year.
This fund has average performance in the mid-cap segment. If you are already investing in this fund, you can hold it for some more time.
Top#10 – Franklin India Smaller Companies Fund
The Fund seeks to provide long-term capital appreciation by investing predominantly in small companies.
This fund gave 31% annualized returns in the last 5 years, 13% annualized returns in the last 3 years and 11% returns in the last 1 year.
This fund has been a consistent performer in the last 8-10 years. However, this fund has average performance in the small cap segment during the last 1 year. This is mainly due to fall in Midcap/small cap stocks. If you are investing in this stock, continue to invest in such consistent performers.
Top#11 – Aditya Birla Sun Life Pure Value Fund
The scheme seeks to generate consistent long-term capital appreciation by investing predominantly in equity and equity related securities by following value investing strategy i.e buying into stocks that are trading for less than their intrinsic value – stocks that the market is undervaluing.
This fund gave 30% annualized returns in the last 5 years, 12% annualized returns in the last 3 years and 7% returns in the last 1 year.
This was one of the best value oriented mutual fund scheme earlier. However, performance in the last 1 year is below average. If you are investing in this fund, continue to invest for some more time and take a call.
Top#12 – DSP BlackRock Midcap Fund
The scheme aims to generate long term capital appreciation from a portfolio that is substantially constituted of equity and equity related securities of mid cap companies.
This fund gave 30% annualized returns in the last 5 years, 12% annualized returns in the last 3 years and 12% returns in the last 1 year.
This fund has average performance in the mid-cap segment. If you are already investing in this fund, you can hold it for some more time.
Top#13 – ICICI Prudential Midcap Fund
The scheme aims to generate long term capital appreciation from a portfolio that is substantially constituted of equity and equity related securities of mid cap companies.
This fund gave 30% annualized returns in the last 5 years, 9% annualized returns in the last 3 years and 11% returns in the last 1 year.
This fund has below average performance in the mid-cap segment. If you are already investing in this fund, you can hold it for some more time.
Top#14 – Sundaram Small Cap Fund
The scheme seeks to achieve capital appreciation by investing predominantly in diversified stocks that are generally termed as small cap stocks.
This fund gave 30% annualized returns in the last 5 years, 6% annualized returns in the last 3 years and -2% (negative) returns in the last 1 year.
This fund is under performer in the small cap segment. If you are already investing in this fund, you can review and exit such under performing funds.
Top#15 – HDFC Mid-Cap Opportunities Fund
The scheme aims to generate long term capital appreciation from a portfolio that is substantially constituted of equity and equity related securities of mid cap companies.
This fund gave 30% annualized returns in the last 5 years, 13% annualized returns in the last 3 years and 12% returns in the last 1 year.
This fund has performed well in the mid-cap segment even when Midcap stocks are falling. The moderate returns in the last 2-3 years are due to under performance of Midcap segment itself. If you are already investing in this fund, you can continue to invest in such funds.
Also Read: Best Performing IT and FMCG Funds to invest
Summary of Top 15 Mutual Funds list is here
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Suresh
Top 15 Mutual Funds with 30% annualized returns in 5 years
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Hi Suresh, thanks for the wonderful and informative article. Need an input from you please. For the past I’ve year, i have the below SIPs.. My risk appetite is above average and thinking of long term (15 years).. Let me know if the MF selections are ok for ‘above average’ return
DSP Equity opportunities – 4000
ICICI Multi asset – 4000
ICICI Equity and debt – 2500
HDFC Hybrid equity find – 2500
ABSL Pure value fund – 4500
L&T Emerging business – 5000
Hi Suresh,
Can you please help me with the above comment
Regards,
Balaji
The funds selected by you are good, you can continue to invest
Dear Suresh Ji,
Please suggest best sip plans with minimum monthly investment.
Thnx with regards
Anupam
Hi Anupam, There are no mutual funds that give you monthly interest. You can check for MIP Mutual Funds where these would provide regular returns though not guaranteed. You can check this article for more info. https://myinvestmentideas.com/2017/08/top-10-best-monthly-income-plan-mip-mutual-funds-to-invest-in-2017/
Hi, I want to invest in Kotak Standard Multicap Fund – Direct Plan (G)
This SIP will be for 10,000 per month. I already invest in SBI Blue chip fund from last 5 years with SIP of 10,000 per month. I am 27 years old now and want to buy house in 10 yrs.
Please guide me if this Kotak fund is fine or can you suggest a Multi Cap fund for a goal of 10 years. Thank you!
Hi Krishna, This is good multicap fund, you can invest. Instead of 1 fund, you can select 2 funds. You can refer this article for some of the top perfoming diversified funds or large cap funds
Hi Suresh,
I am currently investing 10000 as SIP every month in four mutual funds as below. I have a long term investment horizon. I have started my SIPs two years ago.
Mirae asset emerging bluechip : 5000
Kotak multical : 2000
SBI Bluechip : 2000
HDFC Hybrid Equity :1000
I would like to understand whether my portfolio will help me achieve the necessary amount required for my daughter’s (4 years age) higher studies & marriage in long term (15 years).
I can invest 5000 more monthly. Kindly advise me if I should start a SIP in a small cap fund to invest this amount, and if so which small cap fund would be recommended? (Reliance or DSP)
Thank you in advance.
Your portfolio is good. You can continue to invest. Regd Smallcap, you can invest in Reliance Smallcap or Franklin India Smaller cos fund. However, these are high risk.
Hi Suresh,
DSP BlackRock Small Cap Fund is in my portfolio from your suggestions in 2017. Now if I stop it, where should I divert the SIP amount to? Which small cap fund?
Also, I also had HDFC balanced fund which converted to HDFC hybrid EQUITY FUND, it seems to be giving negative return. My investment already stopped automatically in this fund when the SEBI changes took place. Can you advise if I should start it again or invest in a new fund?
Rgds
Sonal
Hi Sonal, You can continue DSP Blackrock Smallcap fund. Alternatively you can invest in Reliance Smallcap fund or Franklin India Smaller cos fund. HDFC Balanced fund is renamed now. You can re-invest
Biswanath.
Plz offer me your guidelines whether it is right time to invest a large amt (Rs.3 Lakh) received from FD maturity during this high Sensex/Nifty condition. In my opinion Emerging Equity/Hybrid/Multi Cap MFs
would have their NAVs high as well.
An urgent reply would be highly solicited
Best wishes.
Sir….generally every financial expert says that we should have long term time horizon for mutual funds. The investments should be tie up with a long term goal. I agree on that.
I want to ask that every year there are new schemes launche in the market. The fund that was Number 1 a few years back has changed to may be number 4 or 5 after six, seven years.
So how should we as a retail investor evaluate the need to change the mutual funds?
If we regularly review the funds performance and they are giving standard MF returns between 12% to 16% then should we continue in the existing funds? Or should we switch to new schemes that are giving similar returns.
Need to understand this login from someone expert like you. thanks.
Your question is valid and this is common across general investor. I feel as long as you are getting 15% to 18% returns, you don’t need to divert it. You can continue in such funds. You can also keep checking what peer funds are performing so that you don’t end up to stick to under performing fund for long term.
Hi Suresh, I have been reading your posts on investments for quite some time and it is very enlightening and helpful to understand investments. My question is, is it a good idea to invest a lumpsum like 1 or 2 lakhs in a fund and to continue with SIP in the same fund for relatively quicker asset build up, rather than starting off with small amount monthly through SIP and growing it from there?
Hello Raj, SIPs are good in long term as these would get adjusted with market fluctuations. Investing in lumpsum is good idea when markets are taking correction. Now markets are in boom, if thre is correction, your lumpsum value would be reduced. I advice you to invest in liquid funds or short term debt funds and do STP to diversified fund or large cap fund in 9-12 SIPs.
Sir,
I am a regular reader of your blog, You are doing great job! I suggested so many friends to follow this. With half knowledge, we invested in several modes and got nothing except losses. I want to invest 5 lacks for my daughter education (she is 2 now), kindly suggest a suitable method,
regards,
San
Good to hear about you. Thanks for recommending our blog to your friends. You can invest your Rs 5 Lakh in short term or liquid funds and do STP to largecap, diversified and balanced funds in 9-12 SIPs. This way you are not timing the market.
Hi sir m currently investing in :-
1. Mirae asset emerging bluechip fund – 2k/m
2. Icici value discovery fund – 2k/m
3. Franklin focused india fund – 2k/m
4. Franklin smaller companies fund – 2k/m
5. Dsp blackroack smallcap fund -2k/m
6.Uti trans and logistic fund – 2k/m
7. Sbi healthcare opportunities fund -1.5/m
hwz my portfolio nd funds need to invest more 5k/m in which should i diversify dis amount or add a new.my horizon is of long term i.e 20 years.want to take high risk plz give ur suggestion.
sir rply toh krdo plz
Hello dikshant, You have provided the same comment in 2 posts and I already answered on other post. Pls check this response. Let me know in case you have any other query. https://myinvestmentideas.com/2018/08/lic-hfl-sanchay-fd-scheme/
Hi
What is stock market correction and how can one know that it is happening? Thanks
Hello Parag, when I said stock market correction, it can be over 2,000 points sensex down
The other thing which I wanted to say is that, if we would have checked this 5 years before, may be the list of funds would have been different…funds like ICICI pru discovery would have been part of it. The tragedy is that once AUM becomes more than 10k cr, there is no place else to go but to large cap, for funds. The capital market is low limited in India and midcaps and small caps, don’t provide liquidity for large funds to buy. If you see the above list, here are some observations
1) no large cap fund in the list
2) the chart topper in all equity, just months ago, DSPBR Microcap has slided
3) Can Robeco and Mirae Emerging Equity will now become Multipcap fund and may not be as stellar
4) almost all the funds are either midcap/ small cap or value funds
So, invest for long…it is unlikely that this will be the chart 5 years hence…and hence time in market is more important than specific fund.. That said, if u want to beat the also rans, the right fund is important…that is the lesson, I have penciled in for myself
Hi Kalyan, I value your comments. I look mutual fund performance in 2 angles 1) Good mutual fund schemes that are consistent performers and provide 12% – 18% annualised returns even in difficult times 2) Top Funds that have performed well in some cycles and are in top 15 category now. It is difficult for any one to predict that a mutual fund should be always in top 10 or top 15 list. I believe in point on.1. It may be immaterial whether my fund is there in 5th position or 10th position or 20th position.
good one suresh…you continue to be of valuable service to fellow investors
Thank you Kalyan