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 people look at past performance, especially five-year returns and CAGR, to get a clearer picture. 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

Since kicking off back in August 2005, ICICI Prudential Infrastructure Fund has focused on companies fueling India’s infrastructure surge, think construction, energy, transportation, logistics. As of November 2025, it manages ₹8,160.5 crore, with an expense ratio of 1.85%. Over the past five years, it’s handed long-term investors a hefty 30.21% return. The fund rides the wave of India’s push on infrastructure, so it’s a solid pick for anyone looking for cyclical growth in this space.

SBI PSU Fund

Launched in July 2010, the SBI PSU Fund puts its money into public sector undertakings, big names in energy, banking, manufacturing. It’s got an AUM of ₹5,762.5 crore and the expense ratio sits at 1.85%. Five-year returns CAGR stands at 28.91%. With the government doubling down on disinvestment and capital spending, PSU-focused funds like this are getting fresh attention from investors.

Quant Small Cap Fund

If you want a fund with some real firepower in the small-cap arena, Quant Small Cap Fund stands out. It’s been around since October 1996, racking up ₹30,169.7 crore in assets and keeping expense ratio at 1.59%. Over five years, it delivered a standout 28.83% return. The secret sauce? Quant’s bold, data-driven approach constantly shifts between sectors and stocks to catch the next wave in emerging businesses.

Aditya Birla Sun Life PSU Equity Fund

Launched in December 2019, Aditya Birla Sun Life PSU Equity Fund aims to unlock value in government-owned enterprises. It manages ₹5,627.5 crore and runs with a 1.84% expense ratio. Over five years, it’s shown a strong return of 28.36%. The fund sticks to a disciplined game plan, rotating across sectors and zeroing in on undervalued PSUs, lining up well with India’s ongoing economic recovery.

Motilal Oswal Midcap Fund

Motilal Oswal Midcap Fund, which started in February 2014, focuses on high-growth mid-sized companies with real potential and solid leadership. It’s got ₹38,002.7 crore under management and keeps its expense ratio at 1.54%. Over five years, it’s notched up a 27.38% CAGR. The approach is simple: “Buy Right, Sit Tight.” The fund bets on quality midcaps that can keep compounding returns year after year.

Conclusion: 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...