Investors are constantly on the lookout for high-growth opportunities, and mutual funds that have delivered over 30% annualized returns in recent years naturally draw attention. While such returns are exceptional, they also come with higher volatility and risk. If you are willing to take some risk for potentially higher rewards, this article is for you. In this article, we will explore 7 mutual funds that have delivered over 30% annualised returns in the last 3 years and 5 years. We’ll delve into each fund’s objective, historical returns, portfolio composition, benefits, risks, and whether they might suit your investment profile.
What are Mutual Funds?
Mutual funds are professionally managed investment vehicles that pool money from multiple investors to invest in diversified asset classes like equities, debt, and other instruments. They offer an easy way for retail investors to participate in the markets with expert fund management and diversification.
How did we fitler these mutual funds?
- We have considered all equity mutual funds including thematic / sector mutual funds
- We have filtered direct plan of mutual funds whose returns are more than 30% for 3 years and 5 years time frame.
- We could get 7 mutual funds which were consistent performers in short to medium term.
Earlier we wrote an article about 5 Mutual Fund Schemes with 5 Year returns of 426% to 616% which is worth reading.
List of 7 Mutual Funds That Generated Over 30% Returns in Last 3 and 5 Years
Here is the list of mutual funds that have delivered exceptional returns. All these funds have CAGR returns more than 30% for 3 years and for 5 years period.
#1 – Motilal Oswal Midcap Fund
#2 – HDFC Infrastructure Fund
#3 – Franklin Build India Fund
#4 – Nippon India Power & Infra Fund
#5 – Franklin India Opportunities Fund
#6 – SBI PSU Fund
#7 – Invesco India PSU Equity Fund
Earlier we wrote about Best Mutual Funds as per Google Gemini AI or ChatGPT or Grok AI etc., where none of the above mutual funds are part of it except Motilal Oswal Midcap Fund.
7 Mutual Funds That Generated Over 30% Returns in Last 3 / 5 Years – Deep Dive
Now, let’s dive into the mutual funds that have delivered exceptional performance in recent years.
#1 – Motilal Oswal Midcap Fund
Investment Objective:
To achieve long-term capital appreciation by primarily investing in midcap companies with potential for growth.
Annualised Returns:
- 3-Year: 30.72%
- 5-Year: 39.31%
- 10-Year: 19.20%
Current Portfolio Allocation:
The fund predominantly invests in midcap companies across sectors such as financials, consumer goods, and industrial manufacturing.
Benefits:
- Strong track record of consistent outperformance.
- Focus on growth-oriented midcap stocks.
Risks:
- Midcap stocks tend to be more volatile.
- Sector concentration risk during market downturns.
This fund was listed earlier in our article on 10 Mutual Fund Schemes with 10 Year returns between 464% to 646%.
#2 – HDFC Infrastructure Fund
Investment Objective:
To seek long-term capital appreciation by investing in infrastructure and infrastructure-related sectors.
Annualised Returns:
- 3-Year: 31.23%
- 5-Year: 37.36%
- 10-Year: 11.73%
Current Portfolio Allocation:
Exposure to infrastructure, power, construction, cement, and engineering sectors.
Benefits:
- Plays on India’s long-term infra push and economic development.
- High return potential during sectoral uptrend.
Risks:
- Highly cyclical sector.
- Delay in infra projects can impact fund performance.
#3 – Franklin Build India Fund
Investment Objective:
To provide long-term capital growth by investing in companies involved in infrastructure and related sectors.
Annualised Returns:
- 3-Year: 30.38%
- 5-Year: 36.91%
- 10-Year: 17.95%
Current Portfolio Allocation:
The fund has high exposure to sectors like construction, engineering, energy, and capital goods.
Benefits:
- Aligned with India’s long-term infrastructure growth story.
- Strong historical performance.
Risks:
- Cyclical nature of infrastructure sector.
- Regulatory and policy risks.
#4 – Nippon India Power & Infra Fund
Investment Objective:
To generate long-term capital growth by investing in equity and equity-related securities of companies in the power and infrastructure sectors.
Annualised Returns:
- 3-Year: 30.32%
- 5-Year: 36.32%
- 10-Year: 16.94%
Current Portfolio Allocation:
The fund invests in power utilities, construction, capital goods, and infrastructure developers.
Benefits:
- Direct exposure to India’s infrastructure expansion.
- Strong sectoral tailwinds.
Risks:
- Limited diversification.
- Sensitive to economic and political changes.
#5 – Franklin India Opportunities Fund
Investment Objective:
To seek long-term capital appreciation by investing in stocks across market capitalisation with special focus on undervalued opportunities.
Annualised Returns:
- 3-Year: 33.18%
- 5-Year: 33.89%
- 10-Year: 16.58%
Current Portfolio Allocation:
Multi-cap approach with investments in financials, IT, and industrials.
Benefits:
- Flexibility to pick undervalued stocks across market caps.
- Opportunity to benefit from turnaround stories.
Risks:
- Higher stock-specific risk.
- Performance highly dependent on fund manager’s stock selection skills.
#6 – SBI PSU Fund
Investment Objective:
To provide investors with opportunities for long-term growth in capital through active management of investments in a diversified basket of PSU stocks.
Annualised Returns:
- 3-Year: 32.30%
- 5-Year: 33.11%
- 10-Year: 13.60%
Current Portfolio Allocation:
Focus on government-owned entities in banking, oil & gas, and engineering sectors.
Benefits:
- Revival in PSU performance and dividend yields.
- Beneficiary of government’s reform and monetisation plans.
Risks:
- Susceptible to policy and administrative decisions.
- Limited innovation and competitiveness.
You may also read – 20 Equity Mutual Funds with Low Beta and High Alpha
#7 – Invesco India PSU Equity Fund
Investment Objective:
To generate capital appreciation by investing predominantly in equity and equity-related instruments of Public Sector Undertakings (PSUs).
Annualised Returns:
- 3-Year: 31.81%
- 5-Year: 31.39%
- 10-Year: 17.88%
Current Portfolio Allocation:
Heavy allocation in PSUs across sectors such as energy, banking, defence, and metals.
Benefits:
- Beneficiary of government’s disinvestment plans and PSU reforms.
- Value buying opportunities.
Risks:
- Political and regulatory intervention.
- Lower agility compared to private sector peers.
Conclusion
Mutual funds that have delivered over 30% annualized returns in the last 3 to 5 years are mostly sector-specific or midcap-focused. These funds have performed well in the backdrop of India’s economic growth, government reforms, and infrastructure development.
However, such high-return funds come with higher risk and volatility. Investors should assess their risk appetite, investment horizon, and financial goals before investing in these schemes. A diversified approach with a mix of high-growth and stable funds can help balance risk and return in your mutual fund portfolio.
If you are a high-risk investor looking for aggressive growth, these funds could be valuable additions to your portfolio. However investors should note this article analyses past performance and there is no guarantee that such returns would be delivered in future too.
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