Best Performing Mutual Funds in India in Last 5 Years

Over the past few years, mutual funds have proven to be a reliable and popular investment option for individuals seeking to grow their wealth. It is a good way to diversify investment risk with mutual funds since it comes with liquidity features and professional management by fund managers. Investors, both seasoned and new, are keen to identify the best return mutual fund in the last 5 years to maximise their returns and achieve their financial goals. 

Read along to explore the top-performing mutual funds considering the past 5 years and take your investment journey to new heights.

Best Performing Equity Mutual Funds in India (Based on 5-year Annualized Returns)

(As of 19th March 2025)

Overview of Best Equity Mutual Funds 2025

Quant Small Cap Fund Direct Plan Growth

• The 5-year annualised returns of Quant small cap fund are among the highest with 50.18%. 
• AUM is ₹22,832.42Cr. 
• The minimum amount required to start an SIP in this fund is ₹1000. 
• Expense Ratio: 0.68%
• Reliance Industries is given the highest allocation, with 10.58%. 
• The asset allocation is 93.4% towards equity instruments, 6% towards cash and cash equivalents, and 0.6% towards debt. 

Quant Infrastructure Fund Direct Growth

• 5-year annualised returns are 44.20%. 
• AUM is ₹2,913.62Cr
• The minimum amount required to start an SIP in this fund is ₹1000. 
• Expense Ratio: 0.75%
• The fund's holdings with the highest weightage include Reliance Industries, Larsen & Toubro, ITC, and others. 

Quant ELSS Tax Saver Fund Direct Growth

• Quant ELSS Tax Saver Fund’s 5-year annualised returns are 39.18%. 
• AUM is ₹9,486.28Cr 
• Expense Ratio: 0.50%
• Minimum SIP amount: ₹500
• 92.0% of holdings are allocated towards the equity segment, while 8.0% is held as cash. 

Nippon India Small Cap Fund Direct Growth

• 5-year annualised returns: 39.83%. 
• AUM: ₹50,826.29Cr
• Minimum SIP amount: ₹100
• Expense Ratio: 0.73%

ICICI Prudential Infrastructure Direct Growth

• 5-year annualised returns: 38.87%. 
• AUM is ₹6,886.49Cr
• Expense Ratio: 1.16%
• Minimum SIP amount: ₹100

Best Performing Hybrid Mutual Funds in India (Based on 5-year Annualized Returns)

Overview of Best Hybrid Mutual Funds 2025

Quant Multi Asset Fund Direct Growth

• 5-year annualized returns: 35.24%. 
• AUM: ₹3,004.32Cr
• Minimum SIP amount: ₹1000
• Expense Ratio: 0.60%
• Asset Allocation
• Equity: 56.1%
• Cash: 16.7%
• Debt: 10.5% 

JM Aggressive Hybrid Fund Direct Growth

• 5-year annualised returns: 28.84%. 
• AUM: ₹729.07Cr
• Minimum SIP amount: ₹100
• Expense Ratio: 0.71%
• Asset Allocation
• Equity: 69.3%
• Cash: 19.5%
• Debt: 11.2%

ICICI Prudential Equity & Debt Fund Direct Growth

• 5-year annualised returns: 28.15%. 
• AUM: ₹38,507.07Cr
• Minimum SIP amount: ₹100
• Expense Ratio: 1.02%
• Asset Allocation
• Equity: 70.3%
• Cash: 21.7%
• Debt: 5.4%

ICICI Prudential Multi Asset Fund Direct Growth

• 5-year annualised returns: 28.41%. 
• AUM: ₹52,257.08Cr
• Minimum SIP amount: ₹100
• Expense Ratio: 0.70%
• Asset Allocation
• Equity: 50.9%
• Cash: 22.8%
• Debt: 13.8%

HDFC Balanced Advantage Fund Direct Plan Growth

• 5-year annualised returns: 26.89%
• AUM: ₹90,374.53Cr
• Minimum SIP amount: ₹100
• Expense Ratio: 0.81%
• Asset Allocation
• Equity: 56.0%
• Cash: 38.0%
• Debt: 11.6%

Best Performing Debt Mutual Funds in India (Based on 5-year Annualized Returns)

(As of 20th March 2025)

Overview of Best Debt Mutual Funds 2025

Aditya Birla Sun Life Medium Term Plan Direct Growth

• 5-year annualised returns: 13.07%
• AUM: ₹2,144.49Cr
• Minimum SIP amount: ₹1000
• Expense Ratio: 0.86%
• Asset Allocation
• Debt: 91.5%
• Cash: 3.8%

Aditya Birla Sun Life Credit Risk Fund Direct Growth

• 5-year annualised returns: 10.39%
• AUM: ₹963.57Cr
• Minimum SIP amount: ₹100
• Expense Ratio: 0.67%
• Asset Allocation
• Debt: 85.7%
• Cash: 6.4%

UTI Dynamic Bond Fund Direct Growth

• 5-year annualised returns: 10.14%
• AUM: ₹626.15Cr
• Minimum SIP amount: ₹500
• Expense Ratio: 0.69%
• Asset Allocation
• Debt: 85.5%
• Cash: 14.5%

JM Low Duration Fund Direct Plan Growth

• 5-year annualised returns: 9.90%. 
• AUM: ₹219.36Cr
• Minimum SIP amount: ₹100
• Expense Ratio: 0.35%
• Asset Allocation
• Debt: 97.2%
• Cash: 2.8%

UTI Medium to Long Duration Fund Direct Growth

• 5-year annualised returns: 9.61%. 
• AUM: ₹311.56Cr
• Minimum SIP amount: ₹500
• Expense Ratio: 1.17%
• Asset Allocation
• Debt: 97.1%
• Cash: 2.9%

Factors to Consider

Here are the factors you should think about before investing in the top-performing mutual funds:

• Track Record

Look at how well the fund has performed in providing higher returns compared to its benchmark and similar funds. Analyse its performance over different market cycles, especially during downturns. A top-performing fund should hold up well even when markets are down. However, remember that past performance does not guarantee future returns.

• Investment Objective

Your financial goal determines which mutual fund suits you best. Whether it is saving for a house, education, vacation or retirement, pick a fund that aligns with your goal.

• Time Horizon

Decide how long you want to invest your money. Whether it is short-term or long-term, different funds are suited to different timeframes. For instance, if you plan to invest for more than 5 years, equity funds are an ideal choice.

• AUM Size

A fund's AUM indicates the value of assets it manages, showing how many subscriptions it has. In small-cap equity funds, a large AUM can hinder entering and exiting companies. However, for liquid and short-term debt funds, a larger AUM is beneficial as it reduces vulnerability to large investor redemptions.

• Fund Manager's Performance

A skilled manager can spot good investment opportunities, leading to better returns. Check their track record to see if they have done well in the past.

• Expense Ratio

Keep an eye on how much the fund charges you to manage your investment. Higher fees mean less money in your pocket. Make sure the expense ratio is reasonable compared to the returns.

• Risk Appetite

Decide if you prefer playing it safe or if you are okay with taking some risks with mutual funds. Your risk tolerance helps determine how well you can handle the ups and downs of the market, and it guides your choice of funds to invest in. Remember, the level of risk you are willing to take affects the potential returns.

Bottom Line

Considering investing in mutual funds can be a potentially sound financial decision. However, it is important to remember that past performance does not guarantee future outcomes.

Hence, having some understanding of the mutual fund scheme you are investing in is advisable. If required, you can seek advice from a financial expert who can guide you in choosing the fund tailored to your financial goals and risk tolerance.