Mutual Funds with Best 5 Year Performance

Investors looking for long-term wealth creation often rely on a fund's 5-year performance as a benchmark of consistency. In 2025, several mutual funds delivered exceptional returns over five years, particularly in the equity segment. These funds have outperformed their benchmarks and peers, thanks to robust stock selection, strong economic tailwinds, and effective fund management.

Here are some of the top-performing mutual funds over a 5-year period:

• Quant Small Cap Fund: Delivered over 45–50% annualized returns by targeting fast-growing small-cap companies.
• Motilal Oswal Midcap Fund: Focused on mid-cap stocks with high growth potential, delivering impressive multi-year performance.
• Nippon India Small Cap Fund: Benefited from India's expanding domestic economy and increased investor interest in small caps.
• Quant Infrastructure Fund: Achieved a 5-year CAGR of over 44% by concentrating on infrastructure and industrial sector plays.

These returns are exceptional but come with high volatility and associated risks. Investors should only consider such funds if they have:

• A long-term investment horizon (minimum of 5 years)
• A high risk tolerance
• A strategy to invest systematically through SIPs to mitigate market timing risks

Before investing, always evaluate:

• The consistency of the fund's past performance
• The fund's expense ratio
• The experience and track record of the fund manager

High-performing funds can be valuable tools for long-term wealth creation if chosen wisely and aligned with your financial goals.