Are you looking for mutual funds that delivered extraordinary returns in recent years? While many funds perform moderately well, only a less standout performs have managed to multiply investments significantly over a short span. In this article, we brings you a list of 7 mutual funds that turned ₹ 1 lakh ₹ 5 Lakhs in Just 5 years, Delivering Over 37% CAGR, Based on Performance as of 11-June-2025.
Earlier we Wrote on Top 5 Mutual Funds that turned ₹ 1 Lakh to ₹ 2 Lakhs in 2 Years,
What does it mean to 5x in 5 years?
To grow ₹ 1 Lakh to ₹ 5 Lakhs in 5 years, a mutual fund Must Deliver a Compound Annual Growth Rate (CAGR) of Approx. 37.97%. Only a few funds have crossed this benchmark, making them potential candidates for high-road portfolios.
How We Shortlisted These Funds
- Considered All Equity Fund Categories (Small Cap, Mid Cap, Sectorral)
- Evaluated 5-Year Cagr as of 10-Jun-2025
- Included only direct plans with growth option
- Filted Mutual Funds that Generated Highest Returns in the Last 5 Years
- Considered funds that turned ₹ 1 lakh ₹ 5 Lakhs in the Last 5 years
List of 7 Mutual Funds that Turned ₹ 1 Lakh INTO ₹ 5 Lakhs in 5 years
|
Mutual Fund Scheme |
5 YR CAGR (%) | ₹ 1 Lakh Turned INTO (₹) |
|---|---|---|
| Quant Small Cap Fund | 47.87% | ₹ 7.70 Lakhs |
| Quant infrastructure fund | 42.32% | ₹ 5.42 Lakhs |
| Nippon India Small Cap Fund | 40.00% | ₹ 5.02 Lakhs |
| Bandhan Small Cap Fund | 39.00% | ₹ 4.95 Lakhs |
| ICICI PRDENIAL Commodities Fund | 37.98% | ₹ 5.00 Lakhs |
| Icici prudential infrastructure fund | 38.93% | ₹ 4.94 Lakhs |
| Motilal Oswal Midcap Fund | 38.31% | ₹ 4.90 Lakhs |
Detailed Analysis of Top Performing Funds
#1 – Quant Small Cap Fund
- Category: Small Cap Fund
- Investment Objective,
Seeks long-term capital appreciation by investment primarily in equity and equity-reserved instruments of Small-Cap Companies. - Annualized returns,
- 3-Year: 29.95%
- 5-Year: 47.87%
- 10-Year: 20.63%
Benefits:
- Strong Alpha Generation Through Active Management
- Tactical shifts in sector and stock weights
- Exposure to Emerging, High-Growth Businesses
- Top Performer Across 3, 5, and 10-Year Periods
Risk factors:
- Highly Volaty Due to Small-Cap Nature
- Sensitive to market corrections and sentiments
- May underperform in bear markets
- Higher Exposure to Illique Stocks
#2 – Quant infrastructure fund
- Category: Sectoral – Infrastructure
- Investment Objective,
AIMS to Generate Capital Appreciation by Investing in Infrastructure-Related Sector Such as Engineering, Construction, Cement, and Allied Industries. - Annualized returns,
- 3-Year: 25.37%
- 5-Year: 42.32%
- 10-Year: 20.13%
Benefits:
- Strong Theme Support from India’s Infra Growth
- Smart allocation to high-momentum infra stocks
- Well-Suited for Themetic Exposure Seekers
- Tactical sector rebalancing by experience
Risk factors:
- High Sector Concentration Risk
- Performance tied to Government Policy and Capex Trends
- May underperform during Economic Slowdowns
- Not suitable for conservative investors
#3 – Nippon India Small Cap Fund
- Category: Small Cap Fund
- Investment Objective,
AIMS for long-term capital growth through investments predominantly in small-cap companies with high growth potential. - Annualized returns,
- 3-Year: 30.31%
- 5-Year: 40.00%
- 10-Year: 23.41%
Benefits:
- Consistent outperformance across cycles
- Strong Research and Disciplined Stock Picking
- Broad-Based Portfolio Minimizes Stock-Specific Risk
- Proven long-term wealth creator
Risk factors:
- High Volativity during Market Downturns
- Vulnerable to liquidity issues in smaller companies
- Requires long investment Horizon for Best Results
- Risk of Short-Term underperformance
We discuceed this mutual fund as part of some of the Best Mutual Funds to Invest ₹ 10 Lakhs in 2025,
#4 – Bandhan Small Cap Fund
- Category: Small Cap Fund
- Investment Objective,
Targets Capital Appreciation Through a Diversified Portfolio of Small-Cap Stocks Across Sector and Themes. - Annualized returns,
- 3-Year: 36.25%
- 5-Year: 39.00%
- 10-Year:-
Benefits:
- Strong 3 and 5-Year Performance Consistency
- Focused stock selection in niche segments
- Excellent Alpha Generation in Short Duration
- Aggressive growth strategy
Risk factors:
- Limited long-term track record (newer fund)
- Higher Exposure to Micro-Cap Names
- Higher Volativity during Market Corrections
- May Lack Stability in Market Downturns
#5 – ICICI PRDENIL Commodities Fund
- Category: Sectoral – Commodities
- Investment Objective,
Seeks to provide long-term capital appreciation by investment in equity and equity-Related Securities of Commodity-Related Sector Like Metals, Energy, and Agriculture. - Annualized returns,
- 3-Year: 23.18%
- 5-Year: 37.98%
- 10-Year:-
Benefits:
- Benefited from Global Commodity Cycles
- Diversified Commodity Theme (Across Sector)
- Good Hedge Against Inflation Trends
- Suitable for tactical satellite allocation
Risk factors:
- Highly cyclic and sensitive to global trends
- May underperform during commodity downcycles
- Currency Risk Due to Global Commodity Exposure
- Requires active monitoring
If you are more concerned about sectoral funds, you can check 10 Crisil 5 Star Rated Mutual Funds That Generated Over 30% Cagr Returns in Last 5 Years,
#6 – icici prudential infrastructure fund
- Category: Sectoral – Infrastructure
- Investment Objective,
To generate long-term capital appreciation by investment in equity and equity-resurved instruments of infrastructure companies. - Annualized returns,
- 3-Year: 34.44%
- 5-Year: 38.93%
- 10-Year: 17.92%
Benefits:
- Direct Play on India’s Capex Revival
- Blend of Large-Cap and Mid-Cap Exposure
- Actively managed with strong track record
- Positive Momentum from Infra Spending and Pli Schemes
Risk factors:
- Cyclic in nature; Sensitive to interest rates
- Sector-Specific regulatory/Policy Risk
- May Lag during Market Rotation to Defensive Sector
- Limited Diversification
#7 – Motilal Oswal Midcap Fund
- Category: Mid Cap Fund
- Investment Objective,
Seeks Capital Appreciation by Investing in Mid-Cap Companies with Robust Business Models and High Earnings Potential. - Annualized returns,
- 3-Year: 36.19%
- 5-Year: 38.31%
- 10-Year: 19.28%
Benefits:
- Focus on Quality Mid-Cap Stocks
- Lower Volativity Compared to Small Caps
- Good balance of growth and stability
- Consistent bottom-up stock selection
Risk factors:
- Mid-Cap segment Vulnerable during Macro Slowdown
- Liquidity may drop during market panic
- Can Underperform Large-Cap Funds during Weak Markets
- Requires 5+ Year Holding Period for Best Returns
Investors can also take advantage and investment in some of the Best Mutual Funds to Invest in 2025 during RBI Rate Cut,
Final Thoughts
These 7 Mutual Funds Have Delivered Exceptional 5-Year Returns, but investors must Remember that Past Performance is not a Gujrantee of Future Returns. These funds are best suited for investors who:
- Has a high risk appetiite
- Are investment with a long-term Horizon
- Undersrstand the cyclicity and valati of equity markets
Always Consult a Financial Advisor and Align Fund Choices With Your Financial Goals and Risk Profile.
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(Tagstotranslate) 7 mutual funds that turned Rs 1 lakh into Rs 5 lakhs in 5 years