Discover the highest return mutual fund in last 5 years and learn which funds delivered consistent growth. Compare equity, debt, and hybrid options to maximize your returns with My Mudra.
Rajat Kulshrestha
Head of Mutual Fund Distribution
Published Date:Oct 6, 2025
Updated Date:Jul 6, 2026
Investing in mutual funds has become one of the most popular ways for you to grow your wealth. But not every fund gives you equal outcomes. So understanding which funds have given consistent returns is important. It helps you to make informed decisions.
Let's explore the highest return mutual fund in last 5 years. Look at the other top-performing options. It helps you to find out the online mutual funds that align with your investment goals.
Why Tracking Mutual Fund Returns Matters
Before selecting a fund, it is important for you to know about its historical performance. The highest return mutual funds last 5 years can give you insights into how well a fund is managed, what risks it has and its growth potential. Past performance does not guarantee future returns. But it is a useful reference. You can understand the consistency and resilience during market fluctuations.
Some reasons to track returns include:
Informed decision-making: You should know the top performers. It can help you find out the funds that fit your risk.
Risk assessment: The past returns reflect how a fund responds to market ups and downs.
Goal alignment: It helps you to choose funds that are made for long-term wealth creation, retirement planning or short-term gains.
Types of Mutual Funds to Consider
Mutual funds vary in risk and return potential. Choosing the right type is important if you want to grow your gains while keeping risks in check. In general, funds can be grouped into these categories:
Equity Funds: Invest mainly in stocks. These funds can go up and down in value. So they are a bit risky for you. But in the long term, they can give you high returns. You can choose them if you are looking for high risk high-return mutual funds opportunities.
Debt Funds: Invest in bonds and other fixed-income options. They are safer than equities and can give you steady returns. When market interest rates are favourable, these work like a low risk high-return mutual funds for you.
Hybrid Funds: Combine both equity and debt investments. They provide a balance of moderate returns with controlled risk.
Highest Return Mutual Fund in 5 Years
Looking at performance data from the past few years, some mutual funds with highest returns in last 5 years have consistently done better than others. These are the top performers in each category:
Fund Name
Category
5-Year Return (CAGR)
Risk Level
Axis Bluechip Fund
Large Cap Equity
14.05%
Medium
Mirae Asset Emerging Bluechip Fund
Mid & Small Cap
20.3%
High
ICICI Prudential Equity & Debt Fund
Hybrid Aggressive
25.82%
Medium
HDFC Corporate Bond Fund
Debt
6.34%
Low
SBI Small Cap Fund
Small Cap Equity
23.68%
High
This list helps you see how different funds fit different investment goals. Small and mid-cap funds can give you higher returns. But they come with more ups and downs. Large-cap and hybrid funds grow steadily and carry a moderate level of risk for you.
Factors to Know Before You Invest
Just choosing the highest return mutual fund is not enough. You need to think about a few factors to make sure your investment matches your goals:
Fund Manager Expertise: A skilled fund manager can help you handle market ups and downs. They work to get the best possible returns for you.
Expense Ratio: When costs are lower, more of your money goes straight into your investment. It helps you to get better returns.
Investment Horizon: Choose funds that suit your time frame. Equity funds usually need more time to even out market ups and downs.
Risk Appetite: Think about how many ups and downs you can handle. Be honest with yourself about the level of risk you are comfortable with.
How to Maximise Returns
Here are the tips you can use to benefit from mutual funds effectively:
Systematic Investment Plan (SIP): Try to invest a small amount regularly through a Systematic Investment Plan (SIP) instead of investing a large lump sum. SIPs help average out market highs and lows.
Diversification: Do not put all your money in one place. You can spread your investments across the different funds. This helps you lower your overall risk.
Regular Review: Keep an eye on how your funds are doing. If needed, adjust your portfolio to stay on track.
Why My Mudra Can Help You
Choosing the right fund requires access to reliable information and guidance. Through My Mudra, we help you to bridge the gap between investors and financial institutions. Here’s how we can support your mutual fund journey:
Compare Top Mutual Funds: You can see the data on returns, risk and ratings. It helps you to make informed decisions.
Simplified Investment Process: Apply online quickly without dealing with lots of paperwork.
Expert Assistance: You can get advice to pick funds that suit your risk level and goals.
Track Investments Easily: Keep an eye on all your investments from a single platform.
Summing Up
Identifying the highest return mutual fund in India from last 5 years is an important step. It helps you to build your wealth. But balancing them is crucial. For this, you can use equity, debt and hybrid funds. Each has a different purpose. So choosing the right mix is the key.
With My Mudra, you can optimise your investments and grow your wealth steadily. Always check how your funds are performing. Make sure you understand your own comfort with risk and invest with a clear plan. It helps you to reach your financial goals.
80% of Indians haven't invested in Mutual Funds yet! Take charge of your financial future—don't just follow the crowd. Start your investment journey today and invest in mutual funds that match your financial goals and risk profile. Let your money work for you.
Frequently Asked Questions
What is the highest return mutual fund in last 5 years?
Top-performing funds include small-cap and mid-cap equity funds like SBI Small Cap Fund and Mirae Asset Emerging Bluechip Fund with 5-year returns of 20%+ CAGR.
Do best high-return mutual funds come with more risk?
Yes. The highest return giving mutual fund usually comes with bigger ups and downs. If you want steadier growth, you can use large-cap or hybrid funds. They can give you moderate returns with lower risk.
Can I invest in mutual funds online?
Absolutely. You can use My Mudra to invest. We allow online mutual fund investments with minimal paperwork and easy tracking.
Should I rely only on past returns to select a fund?
No. Past returns are useful indicators but not guarantees. Check your fund manager’s performance, risks and how long you plan to invest.
How can I balance risk and return in my portfolio?
Spread your investments through equity, debt, and hybrid funds. You can use SIPs to invest regularly and stay consistent. Make sure you keep an eye on your portfolio regularly.
R
Rajat Kulshrestha
Head of Mutual Fund Distribution
Rajat Kulshrestha brings over seven years of experience in public markets, specialising in fundamental analysis and valuation frameworks. In his role as Mutual Fund Distribution Head, he oversees portfolio strategy, asset allocation decisions, and fund evaluation processes.
On this blog, he offers structured, research-oriented perspectives on SME-listed companies, aiming to enhance financial literacy and analytical depth among market participants.