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 :

Mutual Funds with Best Returns in 5 Years - At a Glance
Fund Name 1Y 3Y 5Y Expense Ratio Turnover Ratio Category Risk
Reliance Small Cap Fund - Direct - Growth -8.7% 20.69% 27.76% 1.15% 131% Equity
(Small Cap)
Moderately High
UTI Transportation and Logistics Fund - Direct - Growth -17.6% 8.21% 19.24% 1.27% 10% Equity
(Sectoral/Thematic)
High
Mirae Asset Emerging Bluechip Fund - Direct - Growth 7.4% 22.42% 27.32% 0.87% 35% Equity
(Large & Mid Cap)
Moderately High
Canara Robeco Emerging Equities - Direct - Growth 1.18% 20.86% 27.39% 0.95% 19% Equity
(Large & Mid Cap)
Moderately High
Franklin India Smaller Companies Fund - Direct - Growth -8.68% 15.24% 23.08% 0.88% 15% Equity
(Small Cap)
Moderately High
L&T Midcap Fund - Direct - Growth -5.86% 18.82% 24.35% 0.93% 46% Equity
(Mid Cap)
High
Aditya Birla Sun Life Small Cap Fund - Direct - Growth -13.03% 16.11% 21.41% 1.07% 18% Equity
(Small Cap)
Moderately High
UTI Mid Cap Fund - Direct - Growth -7.95% 11.96% 20.08% 1.39% 39% Equity
(Mid Cap)
Moderately High

Mutual Funds with Best Returns in 5 Years – Details

1.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 :

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?

2.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 :

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.

3.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 :

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.

4.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 :

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.

5.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 :

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