Investing in Mutual Funds has been one of the most effective ways to generate wealth over the long term. While Market Fluctuations May Create Uncertainty, Funds that Have Delived Exceptional Returns over the Past five Years Indicate How A Medium- To Long-Term Approach can work in Investors’ Favor. In this article, we will explore 30 mutual funds that have tripled investors’ money in the last five yearsAnalyze key performance trends, and discus factors investors Should Consider when Choosing A Fund.
Why Investing for 5+ Years is Crucial?
Many investors enter the stock market with a short-term mindset, expecting Quick Gains. However, Equity Mutual Funds Typically Perform Best Over the Medium to long term. As an example, there are over 20 equity mutual funds that generated positive returns every year in the last 10 years,
Here’s why:
- Compounding effect: The longer you are invested, the more your returns get reinvested, Accelerating Wealth Creation.
- Volativity Management: Markets Fluctate in the short term, but long-term investment smooths out these fluctuations. As an example, there are several Mutual Funds that Crashed Over 20% in the last 6 months,
- Economic growth correlation: Over time, Strong Economic Growth Translates Into Higher Corporate Earnings, Boosting Mutual Fund Navs.
Stock market decline and resilience of these funds
Over the past year, the Indian stock markets have witnessed a sharp correction:
Despite these corrections, the 30 mutual funds listed below have managed to deliver outstanding returns, showcasing their ability to generate long-term wealth ever
30 Mutual Funds that Tripled Investors’ Money in 5 Years
Below is a list of 30 mutual funds that delivered outstanding returns (Data as on 3-Mar-25 from 25 from Value Research Online). These funds have showcased strong performance in different market cycles, helping investors multiply their investments significantly. If an investor would have invested ₹ 1 Lakh in these funds 5 years back, the Amount would have no group
Mutual Fund Name |
3 yr cagr | 5 yr Cagr | 1 Lakh in 5 years Turned To (₹) |
---|---|---|---|
Quant Small Cap Fund | 21.7 | 40.8 | 5,53,367 |
Bandhan Small Cap Fund | 25.2 | 32.9 | 4,14,596 |
Quant flexi cap fund | 17.5 | 30.6 | 3,79,941 |
Quant Els Tax Sver Fund | 15.1 | 30.3 | 3,75,597 |
Quant Mid Cap Fund | 20 | 30.3 | 3,75,597 |
Nippon India Small Cap Fund | 21.3 | 30.1 | 3,72,723 |
SBI Contra Fund | 22.2 | 29.1 | 3,58,617 |
Bank of India Small Cap Fund | 16.9 | 28.6 | 3,51,726 |
Tata Small Cap Fund | 21.1 | 28.3 | 3,47,643 |
Motilal Oswal Midcap Fund | 28.4 | 27.8 | 3,40,921 |
Edelweiss Small Cap Fund | 18.1 | 27.7 | 3,39,590 |
Canara Robeco Small Cap Fund | 14.4 | 27.6 | 3,38,262 |
Quant Active Fund | 13 | 27.2 | 3,32,993 |
ICICI PRDENIL VALUE DISCOVERY Fund | 19.3 | 26.5 | 3,23,931 |
Edelweiss Mid Cap Fund | 22 | 26.5 | 3,23,931 |
HSBC Small Cap Fund | 17.3 | 26.4 | 3,22,653 |
HDFC Small Cap Fund | 19.1 | 26.1 | 3,18,842 |
Invesco India Smallcap Fund | 21.9 | 25.9 | 3,16,321 |
Bharat 22 ETF | 26.3 | 25.8 | 3,15,067 |
HDFC Mid-Cap Opportunities Fund | 23.7 | 25.5 | 3,11,328 |
Icici prudential bharat 22 fof | 26 | 25.5 | 3,11,328 |
Kotak Small Cap Fund | 13.3 | 25.2 | 3,07,625 |
HDFC Focused 30 Fund | 23.9 | 25.2 | 3,07,625 |
Franklin India Smaller Companies Fund | 19.6 | 25.2 | 3,07,625 |
Parag Parikh Flexi Cap Fund | 18.4 | 25.1 | 3,06,398 |
Pgim India Midcap Opportunities Fund | 11.4 | 24.9 | 3,03,957 |
Templeton India Value Fund | 19 | 24.8 | 3,02,742 |
Nippon India Growth Fund | 21.5 | 24.8 | 3,02,742 |
Mahindra Manulife Mid Cap Fund | 21.3 | 24.7 | 3,01,531 |
Icici prudential focused equity fund | 19.4 | 24.7 | 3,01,531 |
Risk Factors to Consider Before Investing
- Small & Mid-Cap Volativity: The Recent Correction in Small and Mid-Cap Segments Highlights the Risks involved. These funds are suitable only for moderate- to high-Risk investors. Conservative Investors Should the Consider Large-Cap or Diversified Funds Intead. If you observe there are several Largecap Mutual Funds that Generated Over 13% Cagr Returns in Last 10 Years,
- Market Corrections: Funds with aggressive growth may face sharp declines during market corrections.
- Liquidity risks: Small-Cap Funds can have liquidity issues during market downturns.
- Fund manager impact: Actively managed funds depend on the expertise of fund manners.
Sip vs. Lumpsum investment strategy
- Sip benefits: Mitigates Market Timing Risk, Provides Rupee Cost Averaging, and Builds Discipline.
- Lumpsum investments: Supitable during Market Corrections for Higher Growth Potential. As an example nifty50 has corrected over 15% in the last 6 months, hence it is good to consider some of the Best Mutual Funds to Invest in Lumpsum Now in 2025,
How to pick the right fund from this list?
- Expense ratio: Lower Expense ratios ensure more returns go to investors.
- Fund Consistency: Look for Funds with Stable Returns Across Multiple Periods.
- Investment Horizon: Align Fund Selection With Your Financial Goals and Risk Tolerance.
Common Mistakes Investors Should Avoid
- Chasing past returns: A fund performing well in the past may not always sustain its performance. As an example quant amc funds have been underperforming compared to peers post front running scam. How Such Funds Can Revive after a Certain Period, Investors Should Weight on Such Parameter Too.
- Ignoring Risk Appetite: Small-Cap Funds Can Be Votile; Invest Based on Your Risk Profile. If you are a high-Risk Investor Comfortable With Volativity, Consider Investing in Some of the Best Small-Cap Mutual Funds in 2025,
- Frequent switching: Long-term wealth is created by Staying Invested Rather Than Frequently Switching Funds.
Conclusion: These 30 mutual funds have tripled investors’ Wealth in just five years, highlighting the power of equity investment over the long term. While Historical Performance is a Great Indicator, Investors Should Focus on their Financial Goals, Risk Appetite, and Diversification Before Investing. Staying disciplined and avoiding common mistakes will ensure steady wealth creation over time.
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