A lot of people follow stock markets and wish to invest in the shares offered by various companies, but they fear that they don’t have enough knowledge or don’t have sufficient time to keep track on and follow the latest buzz about the dynamic market.

A mutual fund is a perfect solution for them as investing directly in the equity market is a risk, not everyone willing to take.

The biggest advantage of investing through a mutual fund is that it gives small investors access to professionally-managed, diversified portfolios of equities, bonds and other securities, which would be quite difficult to create with a small amount of capital.

Read More : 9 Reasons Why SIP Investment Is the Best Way to Invest

Mutual Funds with Best Returns in Last 5 years

Returns have always been the basic benchmarks for investor while going for any investments. These indicate how much the fund has lost or gained during particular investment duration. Here’s the list of 10 Mutual Funds which have given best return on investment in last 5 years :

Reliance Small Cap Fund

This is a small cap equity oriented mutual fund launched in September 16, 2010. It is a fund with high risk and have given a return of 22.74 % since its launch. Returns per annum over the years from this fund are :

Reliance Small Cap Fund
Fund Name 1Y 3Y 5Y Category Risk
Reliance Small Cap Fund - Direct - Growth -5.54% 16.42% 31.9% Equity Moderately High

Here’s the key features of Reliance Small Cap Fund :

  • This fund has been rated as a 5 star fund by Groww.
  • AUM of close to ₹ 6371 Cr.
  • Age is nearly 7 years. So its performance can be easily judged.
  • Has consistently outperformed its benchmark S&P BSE Small Cap since its launch.
  • The top portfolio holdings of the fund include Navin Fluorine International Ltd., Deepak Nitrite Ltd., Aditya Birla Finance Ltd. ( 91D ), V I P Industries Ltd., RBL Bank Ltd., Cyient Ltd., CBLO ( CCIL ) etc.
  • The holdings are balanced across various sectors with maximum weightage given to Consumer Goods ( 21.7 % ) followed by Industrial Manufacturing ( 15.1 % )
  • Minimum SIP = ₹ 100
  • Equity share = 93 % , Debt share = 0 % and Cash = 7 %
  • Large Cap share = 5.4 % , Mid Cap share = 46.4 % and Small Cap share = 48%

This funds have exponential growth potential and give high returns on investment and is best suited for investors with high risk appetite or for seasoned investors.

Also, this best for investors who have very good ideas of mutual funds and the risks associates with them. Associated with this fund for some good numbers of years for getting benefit of its high return on investment.

Reliance Small Cap Fund: Is this the right small-cap fund for you?

UTI Transportation and Logistics Fund 

This is a sector equity oriented mutual fund launched in March 9, 2004. It is a fund with high risk and have given a return of 19.77 % since its launch. Returns per annum over the years from this fund are :

UTI Transportation and Logistics Fund
Fund Name 1Y 3Y 5Y Category Risk
UTI Transportation and Logistics Fund - Direct - Growth -12.56% 6.95% 25.05% Equity High

Here are the key features of UTI Transportation and Logistics Fund :

  • This fund has been rated as a 5 star fund by Groww.
  • AUM of close to ₹ 1540 Cr.
  • Age is nearly 13 years. So its performance can be easily judged.
  • Has consistently outperformed its benchmark UTI Transportation & Logistics Index since its launch.
  • The top portfolio holdings of the fund include Maruti Suzuki India Ltd., Tata Motors Ltd., Mahindra & Mahindra Ltd., Hero MotoCorp Ltd., Adani Ports and Special Economic Zone Ltd. etc.
  • Being a sector mutual fund, the holding is confined to transportation sector only with maximum weightage Automobile ( 77.8 % ) followed by Services ( 13.6 % ) and Industrial Manufacturing ( 6.9 % ).
  • Minimum SIP = ₹ 500
  • Equity share = 95.5 % , Debt share = 0.3 % and Cash = 4.2 %
  • Large Cap share= 68.4 % , Mid Cap share = 25.9 % and Small Cap share = 5.7%

This is a well performing sector fund available in market right now and with the budget 2018 announcement, a lot of emphasis is given on development of infrastructure sector which will boost growth in Indian transportation and logistics sectors. So, in coming years this sector is expected to show good growth.

The performance of this fund is dependent on the performance of the whole Transportation and Logistics industry in India. Associated with this fund for some good numbers of years for getting benefit of its high return on investment.

Mirae Asset Emerging Bluechip Fund

This is a multi-cap equity oriented mutual fund launched in July 9, 2010. It is a fund with moderately high risk and have given a return of 23.40 % since its launch. Returns per annum over the years from this fund are :

Mirae Asset Emerging Bluechip Fund
Fund Name 1Y 3Y 5Y Category Risk
Mirae Asset Emerging Bluechip Fund - Direct - Growth -1.93% 17.62% 29.52% Equity Moderately High
    • Here are the key features of

Mirae Asset Emerging Bluechip Fund

  • This fund has been rated as a 5 star fund by Groww.
  • AUM of close to ₹ 5364 Cr.
  • Age is nearly 7 years. So its performance can be easily judged.
  • Has consistently outperformed its benchmark Nifty Free Float Midcap 100 since its launch.
  • The top portfolio holdings of the fund include Tata Global Beverages Ltd., ICICI Bank Ltd., Kotak Mahindra Bank Ltd., Raymond Ltd., HDFC Bank Ltd., Federal Bank Ltd., Info Edge Ltd., IndusInd Bank Ltd., Ceat Ltd. etc.
  • The holdings are balanced across various sectors with maximum weightage given to Financial Services ( 25.9 % ) followed by Consumer Goods ( 12.8 % )
  • Minimum SIP = ₹ 1000
  • Equity share = 98.8 % , Debt share = 0.1 % and Cash = 1.1 %
  • Large Cap share= 36.8 % , Mid Cap share = 57.6 % and Small Cap share = 5.6%.

This is one of the best performing Multi cap fund available in market right now. This is a diversified fund with holding in companies of different market capitalization. Multi-cap funds are risky as compared to large cap funds and depend a lot on the ability of fund manager. Associated with this fund for some good numbers of years for getting benefit of its high return on investment.

Canara Robeco Emerging Equities

This is a mid-cap equity oriented mutual fund launched in March 11, 2005. It is a fund with high risk and have given a return of 18.85 % since its launch. Returns per annum over the years from this fund are :

Canara Robeco Emerging Equities
Fund Name 1Y 3Y 5Y Category Risk
Canara Robeco Emerging Equities - Direct - Growth -4.27% 14.3% 29.04% Equity Moderately High

Here are the key features of Canara Robeco Emerging Equities :

  • This fund has been rated as a 4 star fund by Groww.
  • AUM of close to ₹ 3208 Cr.
  • Age is nearly 12 years. So its performance can be easily judged.
  • Has consistently outperformed its benchmark Nifty Free Float Midcap 100 since its launch.
  • The top portfolio holdings of the fund include CBLO ( CCIL ), Reliance Industries Ltd., Bajaj Finserv Ltd., Minda Industries Ltd., Container Corporation Of India Ltd., Piramal Enterprises Ltd., ITC, Atul Ltd. etc.
  • The holdings are balanced across various sectors with maximum weightage given to Consumer Goods ( 14.5 % ) followed by Financial Services ( 13.8 % ) and Automobile ( 11.9 % )
  • Minimum SIP = ₹ 1000
  • Equity share = 96.4 % , Debt share = 0 % and Cash = 3.6 %
  • Large Cap share= 46.1 % , Mid Cap share = 47.2 % and Small Cap share = 6.7%.

Recently in Indian market, big investors like mutual fund houses, started investing in mid-cap stock, because the share price of large caps has increased substantially. That results in the prices of the mid-caps, climbing upwards steadily and made them an attractive investment category with high growth potential.

This is a well performing mid cap fund available in market, but there better option available in this category with lower minimum SIP amount. So, associated with this fund if you want to invest in funds with high return possibilities, without the volatility of small caps and index-related returns like those of large cap funds.

Franklin India Smaller Companies Fund 

This is a small cap equity oriented mutual fund launched in June 13, 2006. It is a fund with moderately high risk and have given a return of 16.05 % since its launch. Returns per annum over the years from this fund are :

Franklin India Smaller Companies Fund
Fund Name 1Y 3Y 5Y Category Risk
Franklin India Smaller Companies Fund - Direct - Growth -10.41% 11.75% 25.57% Equity Moderately High

Here are the key features of Franklin India Smaller Companies Fund :

  • This fund has been rated as a 3 star fund by Groww.
  • AUM of close to ₹ 7497 Cr.
  • Age is nearly 11 years. So its performance can be easily judged.
  • Has consistently outperformed its benchmark S&P BSE Small Cap since its launch.
  • The top portfolio holdings of the fund include Cash, Finolex Cables Ltd., Repco Home Finance Ltd., Shankara Building Products Ltd., HDFC Bank Ltd., Healthcare Global Enterprises Ltd., Brigade Enterprises Ltd.etc.
  • The holdings are balanced across various sectors with maximum weightage given to Financial Services ( 16.4 % ) followed by Construction ( 15.8 % ) and Industrial Manufacturing ( 15.6 % ).
  • Minimum SIP = ₹ 500
  • Equity share = 90.7 % , Debt share = 0 % and Cash = 9.3 %
  • Large Cap share= 8 % , Mid Cap share = 72.9 % and Small Cap share = 19 %

This fund have shown good growth in last 5 years but is not performing in last 2-3 years as per its potential and is best suited for investors with high risk appetite or for seasoned investors. Fund manager is changing portfolio from more risky small cap to mid cap companies to bring stability to this fund.

Also, this is best for investors who have very good ideas of mutual funds and the risks associates with them. Associated with this fund for some good numbers of years for getting benefit of its high return on investment.

Aditya Birla Sun Life Pure Value Fund

This is a mid-cap equity oriented mutual fund launched in March 27, 2008. It is a fund with high risk and have given a return of 20.61 % since its launch. Returns per annum over the years from this fund are :

    • Here are the key features of

Aditya Birla Sun Life Pure Value Fund :

  • This fund has been rated as a 4 star fund by Groww.
  • AUM of close to ₹ 1456 Cr.
  • Age is nearly 9 years. So its performance can be easily judged.
  • Has consistently outperformed its benchmark S&P BSE 200 since its launch.
  • The top portfolio holdings of the fund include Hindustan Petroleum Corporation Ltd., Gujarat Alkalies & Chemicals Ltd., Tata Global Beverages Ltd., Tata Chemicals Ltd., CBLO ( CCIL ), Steel Authority of India Ltd. etc.
  • The holdings are balanced across various sectors with maximum weightage given to Energy ( 19.1 % ) followed by Chemical ( 15.2 % ) and Consumer Goods ( 11.1 % )
  • Minimum SIP = ₹ 1000
  • Equity share = 95.3 % , Debt share = 0.5 % and Cash = 4.2 %
  • Large Cap share= 27.1 % , Mid Cap share = 60.7 % and Small Cap share = 12.2 %

These funds are relatively less volatile as compared to small-cap funds due to their larger capitalization.

This is a well performing mid-cap fund available in market, but there are better option available in this category with lower minimum SIP amount. So, associated with this fund if you want to invest in funds with high return possibilities, without the volatility of small caps and index-related returns like those of large cap funds.

L&T Midcap Fund 

This is fund wad launched in August 09, 2004. It is a fund with high risk and have given a return of 21.75 % since its launch. Returns per annum over the years from this fund are :

L&T Midcap Fund
Fund Name 1Y 3Y 5Y Category Risk
L&T Midcap Fund - Direct - Growth -9.15% 15.4% 27.01% Equity High
    • Here are the key features of

L&T Midcap Fund :

  • This fund has been rated as a 5 star fund by Groww.
  • AUM of close to ₹ 1323 Cr.
  • Age is nearly 13 years. So its performance can be easily judged.
  • Has consistently outperformed its benchmark Nifty Free Float Midcap 100 since its launch.
  • The top portfolio holdings of the fund include Mphasis Ltd., CBLO ( CCIL ), The Ramco Cements Ltd., Emami Ltd., Mindtree Ltd., Engineers India Ltd., Jindal Steel and Power Ltd., Sundaram Finance Ltd. etc.
  • The holdings are balanced across various sectors with maximum weightage given to Financial Services ( 18.5 % ) followed by Construction ( 13.5 % ) and Industrial Manufacturing ( 12.5 % )
  • Minimum SIP = ₹ 500
  • Equity share = 86.6 % , Debt share = 0 % and Cash = 13.4 %
  • Large Cap share= 14.8 % , Mid Cap share = 79.2 % and Small Cap share = 6 %

This is one the best performing mid cap fund available in market for 2018. Mid cap fund are in high demand, because the share price of large caps has increased substantially. That results in the prices of the mid-caps, climbing upwards steadily and made them an attractive investment category with high growth potential.

Associated with this fund if you want to invest in funds with high return possibilities, without the volatility of small caps and index-related returns like those of large cap funds.

Sundaram Small Cap Fund

This is a small-cap equity oriented mutual fund launched in February 15, 2005. It is a fund with high risk and have given a return of 19.68 % since its launch. Returns per annum over the years from this fund are :

Sundaram Small Cap Fund
Fund Name 1Y 3Y 5Y Category Risk
Sundaram Small Cap Fund - Direct - Growth -23.9% 4.54% 22.57% Equity Moderately High

Here are the key features of Sundaram Small Cap Fund :

  • This fund has been rated as a 4 star fund by Groww.
  • AUM of close to ₹ 1481 Cr.
  • Age is nearly 7 years. So its performance can be easily judged.
  • Has consistently outperformed its benchmark S&P BSE Small Cap since its launch.
  • The top portfolio holdings of the fund include Navin Fluorine International Ltd.,Rane Holdings Ltd., J K Cement Ltd., V-Guard Industries Ltd., Heritage Foods Ltd., ITD Cementation India Ltd., NRB Bearings Ltd. etc.
  • The holdings are balanced across various sectors with maximum weightage given to Industrial Manufacturing ( 19.3 % ) followed by Construction ( 13 % ) and Financial Services ( 12.8 % ).
  • Minimum SIP = ₹ 1000
  • Equity share = 98.7 % , Debt share = 0 % and Cash = 1.3 %
  • Large Cap share= 0 % , Mid Cap share = 60.3 % and Small Cap share = 39.7 %

This fund has shown good growth in the last 5 years but is not performing in the last 3 years as per its potential and is best suited for investors with a high-risk appetite or for seasoned investors.

The fund manager changes portfolio from riskier small cap to mid-cap companies to bring stability to this fund.

Also, this is best for investors who have a very good idea of mutual funds and the risks associated with them. Associated with this fund for some good numbers of years for getting the benefit of its high return on investment.

Aditya Birla Sun Life Small Cap Fund

This fund was launched in May 31, 2007. It is a fund with high risk and have given a return of 14.24 % since its launch. Returns per annum over the years from this fund are :

Aditya Birla Sun Life Small & Midcap Fund
Fund Name 1Y 3Y 5Y Category Risk
Aditya Birla Sun Life Small Cap Fund - Direct - Growth -17.5% 12.73% 22.75% Equity Moderately High

Here’s the key features of Aditya Birla Sun Life Small & Midcap Fund :

  • This fund has been rated as a 5 star fund by Groww.
  • AUM of close to ₹ 1866 Cr.
  • Age is nearly 10 years. So its performance can be easily judged.
  • Has consistently outperformed its benchmark Nifty Free Float Midcap 100 since its launch.
  • The top portfolio holdings of the fund include Cyient Ltd., CBLO ( CCIL ), Chennai Petroleum Corporation Ltd.etc., DCB Bank Ltd., Gujarat State Petronet Ltd., KEC International Ltd., PNC Infratech Ltd. etc.
  • The holdings are balanced across various sectors with maximum weightage given to Financial Services ( 20.1 % ) followed by Construction ( 13 % ) and Consumer Goods ( 12.1 % )
  • Minimum SIP = ₹ 1000
  • Equity share = 84.9 % , Debt share = 0 % and Cash = 15.1%
  • Large Cap share= 0 % , Mid Cap share = 70.8 % and Small Cap share = 29.2 %

This is one of the best performing mid cap funds available in the market.

Mid cap fund are in high demand, because the share price of large caps has increased substantially. This results in the prices of the mid-caps, climbing upwards steadily and makes them an attractive investment category with high growth potential.

Associated with this fund if you want to invest in funds with high return possibilities, without the volatility of small caps and index-related returns like those of large cap funds.

UTI Mid Cap Fund

This is a mid cap equity oriented mutual fund launched in April 7, 2004. It is a fund with high risk and have given a return of 19.84 % since its launch. Returns per annum over the years from this fund are :

UTI Mid Cap Fund
Fund Name 1Y 3Y 5Y Category Risk
UTI Mid Cap Fund - Direct - Growth -10.13% 8.69% 23.68% Equity Moderately High

Here’s the key features of UTI Mid Cap Fund :

  • This fund has been rated as a 3 star fund by Groww.
  • AUM of close to ₹ 4441 Cr.
  • Age is nearly 13 years. So its performance can be easily judged.
  • Has consistently outperformed its benchmark SNifty Free Float Midcap 100 since its launch.
  • The top portfolio holdings of the fund include Mahindra & Mahindra Financial Services Ltd., Escorts Ltd., Bharat Forge Ltd., NCC Ltd., Torrent Power Ltd., Container Corporation Of India Ltd., Tata Chemicals Ltd. etc.
  • The holdings are balanced across various sectors with maximum weightage given to Consumer Goods ( 21.7 % ) followed by Industrial Manufacturing ( 15.1 % )
  • Minimum SIP = ₹ 500
  • Equity share = 99.7 % , Debt share = 0.7 % and Cash = 1.7 %
  • Large Cap share= 18.9 % , Mid Cap share = 71.9 % and Small Cap share = 9.2 %

This funds gave high returns on investment in lat 5 years and is best suited for investors with high risk appetite or for seasoned investors. But it is not the best fund available in mid cap fund category.

This best for investors who have very good ideas of mutual funds and the risks associates with them. Associated with this fund for some good numbers of years for getting benefit of its high return on investment.

Things to Remember

Don’t just run for returns from investments. There are a lot of things you should look into before selecting a fund which will match your investment goals. Following are the 3 things you should always remember before investing in Mutual Funds :

  • Higher rates : don’t blindly invest in the fund with the highest returns. Invest based on the duration you want to invest for.
  • Every person’s financial condition is different. Evaluate the funds you invest in yourself – don’t invest in a fund because of its popularity.
  • Review your investment from time to time but not too often. Once a few weeks is good enough.

If you are a beginner to investing in mutual funds, especially in equity mutual fund, thinking of the small/mid cap mutual funds may not be the best idea for you.

These are best for investors who have a very good idea of mutual fund and the risk associated with them.

To ensure that the fund is in good hands, choose a fund house that has a good fund manager with a good amount of experience.

To look at some of the best performing funds from every category of mutual funds, check out Groww 30 best mutual funds to invest in 2018.

Happy Investing!

Disclaimer: the views expressed here are of the author and do not reflect those of Groww.