{"id":8782,"date":"2025-10-10T04:30:00","date_gmt":"2025-10-10T04:30:00","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/?p=8782"},"modified":"2026-04-10T13:54:26","modified_gmt":"2026-04-10T13:54:26","slug":"best-performing-mutual-funds-india-5-years","status":"publish","type":"post","link":"https:\/\/lemonn.co.in\/blog\/mutual-fund\/best-performing-mutual-funds-india-5-years\/","title":{"rendered":"Best Performing Mutual Funds in India in the Last 5 Years (2026 Guide)"},"content":{"rendered":"<figure class=\"wp-block-post-featured-image\"><img loading=\"lazy\" decoding=\"async\" width=\"885\" height=\"590\" src=\"https:\/\/lemonn.co.in\/blog\/wp-content\/uploads\/2025\/10\/best-mutual-fund.jpg\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"Best Performing Mutual Funds in India in the Last 5 Years\" style=\"object-fit:cover;\" srcset=\"https:\/\/lemonn.co.in\/blog\/wp-content\/uploads\/2025\/10\/best-mutual-fund.jpg 885w, https:\/\/lemonn.co.in\/blog\/wp-content\/uploads\/2025\/10\/best-mutual-fund-300x200.jpg 300w, https:\/\/lemonn.co.in\/blog\/wp-content\/uploads\/2025\/10\/best-mutual-fund-768x512.jpg 768w\" sizes=\"auto, (max-width: 885px) 100vw, 885px\" \/><\/figure>\n\n\n<h2 id='overview-of-5-year-performance-trends'  id=\"boomdevs_1\" class=\"wp-block-heading\"><strong>Overview of 5-Year Performance Trends<\/strong><\/h2>\n\n\n\n<h3 id='growth-of-indian-equity-market-nifty-sensex-returns'  id=\"boomdevs_2\" class=\"wp-block-heading\"><strong>Growth of Indian Equity Market (Nifty, Sensex returns)<\/strong><\/h3>\n\n\n\n<p>Over the last 5 years (2020\u20132025), Indian equity markets delivered strong returns:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Nifty 50 CAGR:<\/strong> ~12\u201314%<\/li>\n\n\n\n<li><strong>Sensex CAGR:<\/strong> ~11\u201313%<\/li>\n<\/ul>\n\n\n\n<p>This growth was driven by:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Economic recovery post-COVID<\/li>\n\n\n\n<li>Corporate earnings growth<\/li>\n\n\n\n<li>Strong domestic participation<\/li>\n<\/ul>\n\n\n\n<h3 id='role-of-retail-participation-and-domestic-inflows'  id=\"boomdevs_3\" class=\"wp-block-heading\"><strong>Role of Retail Participation and Domestic Inflows<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>SIP inflows crossed \u20b920,000 crore per month<\/li>\n\n\n\n<li>Retail investors became key market drivers<\/li>\n\n\n\n<li>Reduced dependence on foreign investors<\/li>\n<\/ul>\n\n\n\n<h2 id='top-performing-equity-funds-by-category'  id=\"boomdevs_4\" class=\"wp-block-heading\"><strong>Top-Performing Equity Funds by Category<\/strong><\/h2>\n\n\n\n<h2 id='large-cap-leaders'  id=\"boomdevs_5\" class=\"wp-block-heading\"><strong>Large-Cap Leaders<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>Fund Name<\/th><th>5Y CAGR (%)<\/th><th>Category<\/th><\/tr><\/thead><tbody><tr><td>Axis Bluechip Fund<\/td><td>~12\u201314<\/td><td>Large Cap<\/td><\/tr><tr><td>ICICI Prudential Bluechip Fund<\/td><td>~13\u201315<\/td><td>Large Cap<\/td><\/tr><tr><td>SBI Bluechip Fund<\/td><td>~12\u201314<\/td><td>Large Cap<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 id='large-mid-cap-picks'  id=\"boomdevs_6\" class=\"wp-block-heading\"><strong>Large &amp; Mid-Cap Picks<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>Fund Name<\/th><th>5Y CAGR (%)<\/th><th>Category<\/th><\/tr><\/thead><tbody><tr><td>Mirae Asset Large &amp; Midcap Fund<\/td><td>~18\u201320<\/td><td>Large &amp; Mid<\/td><\/tr><tr><td>Canara Robeco Emerging Equities<\/td><td>~17\u201319<\/td><td>Large &amp; Mid<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 id='mid-cap-flexi-cap-outperformers'  id=\"boomdevs_7\" class=\"wp-block-heading\"><strong>Mid-Cap &amp; Flexi-Cap Outperformers<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>Fund Name<\/th><th>5Y CAGR (%)<\/th><th>Category<\/th><\/tr><\/thead><tbody><tr><td>Kotak Emerging Equity Fund<\/td><td>~20\u201322<\/td><td>Mid Cap<\/td><\/tr><tr><td>Parag Parikh Flexi Cap Fund<\/td><td>~18\u201320<\/td><td>Flexi Cap<\/td><\/tr><tr><td>Motilal Oswal Flexi Cap Fund<\/td><td>~22\u201325<\/td><td>Flexi Cap<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 id='small-cap-high-growth-picks'  id=\"boomdevs_8\" class=\"wp-block-heading\"><strong>Small-Cap High-Growth Picks<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>Fund Name<\/th><th>5Y CAGR (%)<\/th><th>Category<\/th><\/tr><\/thead><tbody><tr><td>Nippon India Small Cap Fund<\/td><td>~25\u201330<\/td><td>Small Cap<\/td><\/tr><tr><td>SBI Small Cap Fund<\/td><td>~22\u201326<\/td><td>Small Cap<\/td><\/tr><tr><td>Quant Small Cap Fund<\/td><td>~28\u201332<\/td><td>Small Cap<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><em>Note: Small-cap funds delivered the highest returns but also carried higher risk.<\/em><\/p>\n\n\n\n<h2 id='other-noteworthy-funds-strategies'  id=\"boomdevs_9\" class=\"wp-block-heading\"><strong>Other Noteworthy Funds &amp; Strategies<\/strong><\/h2>\n\n\n\n<h2 id='elss-tax-saver-funds'  id=\"boomdevs_10\" class=\"wp-block-heading\"><strong>ELSS &amp; Tax-Saver Funds<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>Fund Name<\/th><th>5Y CAGR (%)<\/th><\/tr><\/thead><tbody><tr><td>Mirae Asset Tax Saver Fund<\/td><td>~18\u201320<\/td><\/tr><tr><td>Axis Long Term Equity Fund<\/td><td>~14\u201316<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 id='debt-hybrid-funds-overview'  id=\"boomdevs_11\" class=\"wp-block-heading\"><strong>Debt &amp; Hybrid Funds Overview<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Lower returns (~6\u20139%)<\/li>\n\n\n\n<li>Suitable for stability<\/li>\n\n\n\n<li>Useful for asset allocation<\/li>\n<\/ul>\n\n\n\n<h3 id='factor-based-and-value-oriented-funds'  id=\"boomdevs_12\" class=\"wp-block-heading\"><strong>Factor-Based and Value-Oriented Funds<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Focus on quality, value, or momentum<\/li>\n\n\n\n<li>Growing popularity in 2026<\/li>\n\n\n\n<li>Example: Quant funds, value funds<\/li>\n<\/ul>\n\n\n\n<h2 id='how-to-interpret-5-year-returns'  id=\"boomdevs_13\" class=\"wp-block-heading\"><strong>How to Interpret 5-Year Returns<\/strong><\/h2>\n\n\n\n<h3 id='cagr-vs-trailing-returns-methodology'  id=\"boomdevs_14\" class=\"wp-block-heading\"><strong>CAGR vs Trailing Returns Methodology<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>CAGR shows annual growth over time<\/li>\n\n\n\n<li>Trailing returns show historical performance<\/li>\n<\/ul>\n\n\n\n<h3 id='rolling-returns-and-consistency'  id=\"boomdevs_15\" class=\"wp-block-heading\"><strong>Rolling Returns and Consistency<\/strong><\/h3>\n\n\n\n<p>Consistent performers:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Parag Parikh Flexi Cap<\/li>\n\n\n\n<li>SBI Small Cap<\/li>\n\n\n\n<li>Kotak Emerging Equity<\/li>\n<\/ul>\n\n\n\n<p>Rolling returns give a better picture than point-to-point returns.<\/p>\n\n\n\n<h3 id='risks-to-consider'  id=\"boomdevs_16\" class=\"wp-block-heading\"><strong>Risks to Consider<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Small and mid-cap volatility<\/li>\n\n\n\n<li>High expense ratios<\/li>\n\n\n\n<li>ELSS 3-year lock-in<\/li>\n\n\n\n<li>Market cycles impact returns<\/li>\n<\/ul>\n\n\n\n<h2 id='building-a-diversified-portfolio'  id=\"boomdevs_17\" class=\"wp-block-heading\"><strong>Building a Diversified Portfolio<\/strong><\/h2>\n\n\n\n<h3 id='allocating-across-categories'  id=\"boomdevs_18\" class=\"wp-block-heading\"><strong>Allocating Across Categories<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Large Cap: 30\u201340%<\/li>\n\n\n\n<li>Mid Cap: 20\u201330%<\/li>\n\n\n\n<li>Small Cap: 10\u201320%<\/li>\n\n\n\n<li>Flexi Cap: 20\u201330%<\/li>\n<\/ul>\n\n\n\n<h3 id='tax-efficient-elss-for-long-term-goals'  id=\"boomdevs_19\" class=\"wp-block-heading\"><strong>Tax-Efficient ELSS for Long-Term Goals<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Save tax under Section 80C<\/li>\n\n\n\n<li>Lock-in ensures discipline<\/li>\n<\/ul>\n\n\n\n<h3 id='when-to-include-debt-or-international-funds'  id=\"boomdevs_20\" class=\"wp-block-heading\"><strong>When to Include Debt or International Funds<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Add debt for stability<\/li>\n\n\n\n<li>Add international funds for diversification<\/li>\n<\/ul>\n\n\n\n<h2 id='data-methodology'  id=\"boomdevs_21\" class=\"wp-block-heading\"><strong>Data &amp; Methodology<\/strong><\/h2>\n\n\n\n<h3 id='source-date-of-returns'  id=\"boomdevs_22\" class=\"wp-block-heading\"><strong>Source &amp; Date of Returns<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Based on <strong>5-year CAGR (June 2020 \u2013 June 2025)<\/strong><\/li>\n\n\n\n<li>Derived from fund disclosures and industry averages<\/li>\n<\/ul>\n\n\n\n<h3 id='emphasis-on-direct-plans'  id=\"boomdevs_23\" class=\"wp-block-heading\"><strong>Emphasis on Direct Plans<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Lower expense ratios<\/li>\n\n\n\n<li>Better long-term returns<\/li>\n<\/ul>\n\n\n\n<h2 id='conclusion'  id=\"boomdevs_24\" class=\"wp-block-heading\"><strong>Conclusion<\/strong><\/h2>\n\n\n\n<p>Over the last 5 years, mutual funds in India have delivered strong returns, especially in mid-cap and small-cap categories.<\/p>\n\n\n\n<p>However, higher returns come with higher risk. A balanced portfolio across categories remains the best approach for long-term investors in 2026.<\/p>\n\n\n\n<h2 id='faqs'  id=\"boomdevs_25\" class=\"wp-block-heading\"><strong>FAQs<\/strong><\/h2>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1775829163151\" class=\"rank-math-list-item\">\n<h3 id='q-which-mutual-funds-gave-the-highest-returns-in-the-last-5-years'  id=\"boomdevs_26\" class=\"rank-math-question \"><strong>Q. Which mutual funds gave the highest returns in the last 5 years?<\/strong><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Small-cap funds like Nippon India Small Cap and Quant Small Cap delivered the highest returns.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1775829178460\" class=\"rank-math-list-item\">\n<h3 id='q-are-small-cap-funds-safe-for-long-term-investment'  id=\"boomdevs_27\" class=\"rank-math-question \"><strong>Q. Are small-cap funds safe for long-term investment?<\/strong><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>They offer high returns but come with high volatility.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1775829190624\" class=\"rank-math-list-item\">\n<h3 id='q-what-is-a-good-5-year-cagr-for-mutual-funds'  id=\"boomdevs_28\" class=\"rank-math-question \">Q. <strong>What is a good 5-year CAGR for mutual funds?<\/strong><\/h3>\n<div class=\"rank-math-answer \">\n\n<p> &#8211; 10\u201312% for large-cap<br \/> &#8211; 15\u201320% for mid-cap<br \/> &#8211; 20%+ for small-cap<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1775829215262\" class=\"rank-math-list-item\">\n<h3 id='q-should-i-invest-based-on-past-performance'  id=\"boomdevs_29\" class=\"rank-math-question \"><strong>Q. Should I invest based on past performance?<\/strong><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Past performance is important, but consistency and risk should also be considered.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1775829228564\" class=\"rank-math-list-item\">\n<h3 id='q-is-sip-better-for-investing-in-mutual-funds'  id=\"boomdevs_30\" class=\"rank-math-question \"><strong>Q. Is SIP better for investing in mutual funds?<\/strong><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Yes, SIP helps average costs and reduces market timing risk.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Overview of 5-Year Performance Trends Growth of Indian Equity Market (Nifty, Sensex returns) Over the last 5 years (2020\u20132025), Indian equity markets delivered strong returns: This growth was driven by: Role of Retail Participation and Domestic Inflows Top-Performing Equity Funds by Category Large-Cap Leaders Fund Name 5Y CAGR (%) Category Axis Bluechip Fund ~12\u201314 Large [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":8729,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_ayudawp_aiss_exclude":false,"footnotes":""},"categories":[23],"tags":[],"class_list":["post-8782","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mutual-fund"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/posts\/8782","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/comments?post=8782"}],"version-history":[{"count":2,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/posts\/8782\/revisions"}],"predecessor-version":[{"id":11228,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/posts\/8782\/revisions\/11228"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media\/8729"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=8782"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/categories?post=8782"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/tags?post=8782"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}