The Indian mutual fund market has witnessed a remarkable cycle over the past five years (2021-2026). Despite market volatility and uncertainty, several funds have delivered outstanding returns to their investors. If you want to know which mutual funds performed the best in the last 5 years, this blog is for you.
Top Performing Funds: 5-Year Absolute Returns
According to an analysis by ETMutualFunds, out of 216 equity funds, 37 funds delivered over 100% absolute returns in the last 5 years. Mid cap and small cap funds dominated the list.
Top 5 Funds (5-Year Absolute Returns):
| Rank | Fund Name | 5-Year Return |
|---|---|---|
| 1 | Motilal Oswal Midcap Fund | 159.59% |
| 2 | HDFC Mid Cap Fund | 140.10% |
| 3 | Invesco India Midcap Fund | 139.92% |
| 4 | Quant Small Cap Fund | 139.48% |
| 5 | Nippon India Small Cap Fund | 133-139% |
Motilal Oswal Midcap Fund topped the chart with 159.59% returns. This means if someone had invested ₹1 lakh in this fund 5 years ago, it would be worth approximately ₹2.6 lakh today.
Best Funds for SIP Investors
If you invest through SIP (Systematic Investment Plan), the wealth multiplier is the most important metric for you.
According to ETMutualFunds, 9 equity funds delivered a wealth multiplier of over 1.6x through SIP.
Top SIP Performers:
| Fund Name | Wealth Multiplier | XIRR |
|---|---|---|
| Invesco India Midcap Fund | 1.71x | 21.66% |
| Bandhan Small Cap Fund | 1.70x | 21.52% |
| ITI Small Cap Fund | 1.67x | 20.68% |
| HDFC Mid Cap Fund | 1.61x | 19.05% |
Invesco India Midcap Fund led the SIP charts. If you had invested ₹10,000 every month in this fund for 5 years, your corpus would be approximately ₹10.25 lakh today.
Which Fund Houses Lead the Race?
At the AMC (Asset Management Company) level, SBI Mutual Fund, ICICI Prudential Mutual Fund, and HDFC Mutual Fund continue to hold the top 3 positions.
- SBI Mutual Fund: ₹12.57 lakh crore AUM (Rank 1)
- ICICI Prudential MF: ₹11.14 lakh crore (Rank 2)
- HDFC MF: ₹9.35 lakh crore (Rank 3)
In the equity segment, SBI MF leads with ₹9.1 lakh crore equity AUM, followed by ICICI Prudential (₹7 lakh crore) and HDFC (₹6.2 lakh crore).
2 Important Things Every Investor Must Understand
First – Past returns do not guarantee future performance. All the data above is based on historical performance. Mid and small cap funds offer higher returns, but they also come with higher risk and volatility. If you cannot handle market downturns, think carefully before investing in these funds.
Second – Rankings change with time periods. If the 5-year window changes, the rankings can completely shift. For example, Axis Focused Fund delivered only 21.81% returns in the same 5-year period, while the top fund delivered over 159%.
Conclusion
Over the past 5 years, mid cap and small cap funds have delivered the highest returns to investors. Funds like Motilal Oswal Midcap Fund, HDFC Mid Cap Fund, and Invesco India Midcap Fund have created significant wealth for SIP investors as well.
But remember – choosing a fund based solely on past returns is not wise. Expense ratio, fund manager stability, your risk appetite, and investment goals are equally important factors.
Disclaimer: This blog is for informational purposes only. It is not investment advice. Please consult your financial advisor before investing. Mutual fund investments are subject to market risks.
