Investing in mutual funds is one of the most effective ways to generate wealth in the long term. While market fluctuations can cause uncertainty, funds that have produced excellent returns over the past five years show how a medium to long-term approach works in favor of investors. In this article, we will explore 30 mutual funds that tripled investors’ money in the past five yearsanalyze key performance trends and discuss factors that investors should consider when selecting funds.
Why is it important to invest for more than five years?
Many investors enter the stock market with a short-term mindset and expect quick profits. However, equity mutual funds are usually best for medium to long term periods. For example, there is an end 20 equity mutual funds that have produced positive returns each year over the past decade.
Here’s why:
- Combined effects: Continuing to invest will reinvest your returns and accelerate your wealth creation.
- Volatility Management: The market fluctuates in the short term, but long-term investments smooth out these fluctuations. There are a few examples Mutual funds that have crashed more than 20% in the last 6 months.
- Correlations of economic growth: Over time, strong economic growth will lead to increased corporate revenues, boosting mutual fund NAV.
The decline in the stock market and the resilience of these funds
Over the past year, Indian stock markets have witnessed a sharp revision.
Despite these revisions, the 30 mutual funds listed below are able to provide significant returns and demonstrate their ability to generate long-term wealth even in volatile market conditions.
30 mutual funds tripled investors’ money in five years
Below is a list of 30 mutual funds that provided unpaid returns (data like Value Research Online’s 3-Mar-25). These funds have performed strongly across different market cycles, helping investors to significantly increase their investments. If investors had invested £1 in these funds five years ago, the amount has now grown to 3 lakh, reaching 5.5 lakh (three times in five years).
|
Mutual fund name |
3rd Year CAGR | 5 Year CAGR | In 5 years, one lark has been changed to (£) |
|---|---|---|---|
| Quant Small Cap Fund | 21.7 | 40.8 | 5,53,367 |
| Band Dance Mall Cap Fund | 25.2 | 32.9 | 4,14,596 |
| Quant Flexi Cap Fund | 17.5 | 30.6 | 3,79,941 |
| Quant ELSS Tax Saver Fund | 15.1 | 30.3 | 3,75,597 |
| Quant Mid Cap Fund | 20 | 30.3 | 3,75,597 |
| Nippon India Small Cap Fund | 21.3 | 30.1 | 3,72,723 |
| SBI Contra Fund | 22.2 | 29.1 | 3,58,617 |
| Indian Bank Lowercase Fund | 16.9 | 28.6 | 3,51,726 |
| Tata Small Cap Fund | 21.1 | 28.3 | 3,47,643 |
| Motilal Oswal Midcap Fund | 28.4 | 27.8 | 3,40,921 |
| Edelweiss Small Cap Fund | 18.1 | 27.7 | 3,39,590 |
| Kanara Robeco Small Cap Fund | 14.4 | 27.6 | 3,38,262 |
| Quant Active Fund | 13 | 27.2 | 3,32,993 |
| ICICI Prudential Value Discovery Fund | 19.3 | 26.5 | 3,23,931 |
| Edelweiss Midcap Fund | twenty two | 26.5 | 3,23,931 |
| HSBC Small Cap Fund | 17.3 | 26.4 | 3,22,653 |
| HDFC Small Cap Fund | 19.1 | 26.1 | 3,18,842 |
| Investco India Smallcap Fund | 21.9 | 25.9 | 3,16,321 |
| Bharat 22 etf | 26.3 | 25.8 | 3,15,067 |
| HDFC Mid-Cap Opportunities Fund | 23.7 | 25.5 | 3,11,328 |
| Icici Prudential Bharat 22 fof | 26 | 25.5 | 3,11,328 |
| Kotak Small Cap Fund | 13.3 | 25.2 | 3,07,625 |
| HDFC Focus 30 Fund | 23.9 | 25.2 | 3,07,625 |
| Franklin India Small Business Fund | 19.6 | 25.2 | 3,07,625 |
| Parag Parikh Flexi Cap Fund | 18.4 | 25.1 | 3,06,398 |
| PGIM India Midcap Opportunities Fund | 11.4 | 24.9 | 3,03,957 |
| Templeton India Value Fund | 19 | 24.8 | 3,02,742 |
| Nippon India Growth Fund | 21.5 | 24.8 | 3,02,742 |
| Mahindra Manulife Mid Cap Fund | 21.3 | 24.7 | 3,01,531 |
| ICICI Prudential Focused Equity Fund | 19.4 | 24.7 | 3,01,531 |
Risk factors to consider before investing
- Small and medium volatility: Recent revisions to small and intermediate segments highlight the associated risks. These funds are only suitable for medium to high risk investors. Conservative investors should instead consider large or diversified funds. If you observe, there are a few Largecup mutual funds that have generated over 13% CAGR returns over the past decade.
- Market revision: Proactive growth funds could face a sharp decline during market revisions.
- Liquidity risk: Smaller funds could suffer liquidity issues during market slump.
- Impact of fund managers: Actively managed funds rely on the expertise of fund managers.
SIP vs. Lumpsum Investment Strategy
- Benefits of SIP: It reduces market timing risks, provides an average cost of rupees, and builds discipline.
- Temporary investment: It is suitable during market revising due to its high growth potential. As an example, the NIFTY50 has revised more than 15% over the last six months, so it’s a good idea to take some into consideration. Best mutual funds to invest in Lumpsum in 2025.
How do I choose the right fund from this list?
- Cost Ratio: A lower cost ratio will allow more revenue to be sent to investors.
- Fund consistency: Look for funds with stable returns over multiple periods.
- Investment period: Align your fund’s choice with your financial goals and risk tolerance.
Common mistakes investors should avoid
- Chasing past returns: Funds that have been doing well in the past may not always maintain their performance. For example, the QUANT AMC fund performed poorly compared to its peers after the front-running scam. Such funds can be revived after a certain period of time, but investors should also weigh such parameters.
- Ignore the risk appeal: Small funds can be unstable. Invest based on your risk profile. If you are a high-risk investor who is happy with volatility, consider some investments Best Small Investment Trusts in 2025.
- Frequent switching: Long-term wealth is created by maintaining investments rather than switching funds frequently.
Conclusion: These 30 mutual funds triple investor wealth in just five years, highlighting the power of stock investment over the long term. Historic performance is a great indicator, but investors need to focus on financial goals, risk appetite and diversification before investing. By following discipline and avoiding common mistakes, you will ensure a stable wealth creation over time.
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