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

In today’s fast-changing financial world, most investors want the same thing: steady wealth creation without exposing their hard-earned money to unnecessary risk.

But with market ups and downs and rising inflation, finding the right investment options is not always easy. Interestingly, a few mutual funds have managed to perform consistently well over the past five years, even during volatile periods.

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This often leads to a common question: how do you choose the right mutual funds for your portfolio?

Many investors look at past performance, especially five-year returns and CAGR, to gain clarity. In this guide, we take a closer look at five mutual funds in India that have stood out for their strong returns, consistency, and ability to weather market fluctuations.

ICICI Prudential Infrastructure Fund

Launched in August 2005, ICICI Prudential Infrastructure Fund focuses on companies driving India’s infrastructure growth, including construction, energy, transportation, and logistics.

• AUM (Nov 2025): ₹8,160.5 crore
• Expense Ratio: 1.85%
• 5-Year CAGR Returns: 30.21%

The fund benefits from India’s continued push toward infrastructure development, making it suitable for investors seeking cyclical growth exposure.

SBI PSU Fund

Launched in July 2010, the SBI PSU Fund invests in public sector undertakings across energy, banking, and manufacturing.

• AUM: ₹5,762.5 crore
• Expense Ratio: 1.85%
• 5-Year CAGR Returns: 28.91%

With increased government focus on disinvestment and capital expenditure, PSU-focused funds like this are gaining renewed investor interest.

Quant Small Cap Fund

Quant Small Cap Fund is a high-growth fund operating in the small-cap space, known for its aggressive and data-driven investment strategy.

• Launch Date: October 1996
• AUM: ₹30,169.7 crore
• Expense Ratio: 1.59%
• 5-Year CAGR Returns: 28.83%

The fund dynamically shifts across sectors and stocks to capture emerging opportunities in fast-growing businesses.

Aditya Birla Sun Life PSU Equity Fund

Launched in December 2019, this fund focuses on unlocking value in government-owned enterprises.

• AUM: ₹5,627.5 crore
• Expense Ratio: 1.84%
• 5-Year CAGR Returns: 28.36%

The fund follows a disciplined sector-rotation strategy, targeting undervalued PSUs aligned with India’s economic recovery.

Motilal Oswal Midcap Fund

Started in February 2014, Motilal Oswal Midcap Fund invests in high-growth mid-sized companies with strong leadership and scalable business models.

• AUM: ₹38,002.7 crore
• Expense Ratio: 1.54%
• 5-Year CAGR Returns: 27.38%

The fund follows the philosophy of “Buy Right, Sit Tight,” focusing on quality midcaps that can compound returns over time.

Conclusion: Are Past Returns a Reliable Guide?

Investing in mutual funds with consistent historical performance can be a smart approach, especially when building a diversified portfolio.

However, past returns are not a guarantee of future performance. Investors should always align fund selection with their financial goals, risk tolerance, and investment horizon.

So, should you choose mutual funds based only on five-year returns? Not entirely.

It is equally important to evaluate risk-return trade-offs, category-level performance, fund management quality, and how each fund fits into your overall financial plan.