5 Mutual Funds That Delivered Strong Returns Over the Last 5 Years

In the fast-moving financial world of today, investors have been looking for vehicles to create wealth, ensuring safety of their funds while also ensuring it grows in value. High volatility and inflationary trends remain disturbing factors, and some mutual funds, unlike many others, have given consistently great returns over the last five years. How then does one decide which mutual funds best suit his/her portfolio?

Maybe you would want to know which mutual funds performed the best over the past 5 years or which mutual funds had the best compound annual growth rate over the last five years. This detailed guide shares insights about the five mutual funds which have distinguished themselves in India on grounds of return and consistency.

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1. Quant Small Cap Fund – Focused High Growth Performer

This fund has turned heads with its aggressive approach to capturing value in the small-cap space. With a compound annual growth rate (CAGR) exceeding 30%, it has clearly been one of the high growth mutual funds in India.

• Category: Small Cap
• Fund Manager Strategy: Dynamic asset allocation and aggressive sector bets

Much like an option being high risk and high return, mutual funds carry some level of risks toward returns. If you are a high-risk investor searching for the best-performing equity mutual funds worthy of your attention, this would be one. Though highly volatile in the short term, it has remained among a few companies that have outwardly beaten the markets.

2. Parag Parikh Flexi Cap Fund – Balanced, Long-Term Approach

Well-regarded among seasoned investors, this fund balances domestic and international exposure and is known for steady, long-term wealth creation.

• Category: Flexi Cap
• Why It Stands Out:

          Invests in both Indian and US equities

          Focuses on companies with high return on invested capital (ROIC)

It’s a solid pick for long-term mutual fund investment and mutual funds for a balanced portfolio.

3. Mirae Asset Large Cap Fund – Consistent Blue-Chip Performer

This fund has maintained a healthy return profile while investing in India's top 100 companies by market capitalisation. It's often chosen by conservative investors for its stability and risk-adjusted returns.

• Category: Large Cap
• Volatility: Low compared to mid and small caps

For those looking for low risk high return mutual funds India, this large-cap option checks most boxes. It also ranks high in NAV performance over a 5-year period.

4. Axis Growth Opportunities Fund – Growth with Diversification

This fund takes a multi-cap approach and focuses heavily on sustainable growth businesses.

• Category: Large & Mid Cap
• Notable Sectors: Financials, IT, Healthcare

It’s particularly suited for SIP investors seeking best performing mutual funds for SIP or those who prefer top mutual funds for long-term investment.

5. Canara Robeco Equity Tax Saver Fund – Smart for Tax Planning

An ELSS (Equity Linked Savings Scheme), this fund combines the benefits of long-term investing with Section 80C tax deductions.

• Category: ELSS
• Expense Ratio: One of the lowest in its category

It’s ideal for those searching for tax saving mutual funds with high returns over 5 years or mutual funds for retirement planning.

Key Metrics to Consider Before Investing
When evaluating mutual funds, looking solely at returns isn’t enough. Here are a few essential fund performance metrics to assess:

• Rolling Returns: Indicates consistency over time
• Expense Ratio: Lower cost often means higher net return
• Volatility: Helps gauge risk appetite suitability
• Fund Manager Track Record: Experience can impact performance
• Benchmark Index Comparison: Helps assess outperformance

If you're trying to learn how to choose top mutual funds based on past performance, these metrics are crucial.

Final Thoughts: Are Past Returns a Reliable Guide?

Investing in mutual funds with consistent returns is a smart strategy, especially for those building a diversified portfolio. However, past performance is not a guarantee of future results. It's essential to align mutual fund selection with your financial goals, risk appetite, and investment horizon.

So, should I choose mutual funds based on 5 year returns? Not alone. Look at risk-return trade-offs, fund category performance, and how each fund fits your broader financial plan.