In May 2025, the Indian mutual fund industry touched a major milestone, with Assets Under Management (AUM) crossing ₹65.7 trillion, reflecting robust investor confidence despite global economic uncertainties.
The equity segment has demonstrated exceptional resilience over the past three years, backed by strong domestic economic indicators and increasing retail participation. Sectoral and thematic funds, particularly those focused on PSU and infrastructure sectors, have emerged as frontrunners in performance charts.
The best-performing mutual funds in the last three years have capitalised on government initiatives in infrastructure development and the resurgence of public sector enterprises, delivering remarkable returns for investors who maintained their investment discipline through market fluctuations.
Five Best Performing Mutual Funds in the Last Three Years
Here is a list of high-growth mutual funds that have delivered excellent returns in the last three years:
Invesco India PSU Equity Fund Direct-Growth
Invesco India PSU Equity Fund Direct-Growth has emerged as a standout performer in the PSU category with impressive top mutual fund returns over the three-year period. The fund has delivered an absolute return of 167.10%, the highest among its peers in the same category.
The fund maintains a diversified equity portfolio with 98.69% allocation to domestic equities, predominantly focusing on large-cap stocks (48.7%) while maintaining strategic exposure to mid-caps (20.4%) and small-caps (7.71%).
| Parameter | Value |
| NAV (as of 30 May 2022) | ₹28.96 |
| NAV (as of 29 May 2025) | ₹76.39 |
| Absolute Growth | 167.10% |
| Fund Size | ₹1,281.46 Cr |
| Expense Ratio | 0.94% |
SBI PSU Fund Direct-Growth
SBI PSU Fund Direct-Growth has demonstrated a strong PSU mutual fund performance with an absolute growth of 158.13% over the three-year period. This performance highlights the potential of PSU-focused investment strategies in certain market cycles.
The fund maintains a focused approach with a 96.3% allocation to domestic equities, predominantly large-cap stocks (65.48%), complemented by mid-caps (22.12%) and a small allocation to small-caps (2.69%).
| Parameter | Value |
| NAV (as of 30 May 2022) | ₹13.77 |
| NAV (as of 29 May 2025) | ₹35.11 |
| Absolute Growth | 158.13% |
| Fund Size | ₹5,035.09 Cr |
| Expense Ratio | 0.82% |
HDFC Infrastructure Fund Direct-Growth
HDFC Infrastructure Fund Direct-Growth has capitalised on the infrastructure boom in India with strong infrastructure fund returns of 149.41% over the three-year period. The fund has benefited from increased government spending on infrastructure development projects across the country.
The fund maintains a diversified portfolio with 91.34% allocation to domestic equities, including 42.03% in large-cap stocks, 8.11% in mid-cap stocks, and 20.29% in small-cap stocks.
| Parameter | Value |
| NAV (as of 30 May 2022) | ₹21.44 |
| NAV (as of 29 May 2025) | ₹52.37 |
| Absolute Growth | 149.41% |
| Fund Size | ₹2,392.5 Cr |
| Expense Ratio | 1.04% |
Nippon India Power & Infra Fund Direct-Growth
Nippon India Power & Infra Fund Direct-Growth has established itself as one of the best-performing mutual funds in the last three years in the infrastructure and power sector. With an absolute growth of 145.09%, the fund demonstrates the potential rewards of sectoral mutual fund investment in essential economic segments.
The fund maintains a high equity allocation of 99.52%, with a significant focus on large-cap stocks (45.09%), complemented by mid-caps (20.39%) and small-caps (16.31%).
| Parameter | Value |
| NAV (as of 30 May 2022) | ₹154.78 |
| NAV (as of 29 May 2025) | ₹373.57 |
| Absolute Growth | 145.09% |
| Fund Size | ₹7,026.6 Cr |
| Expense Ratio | 0.96% |
Franklin India Opportunities Fund Direct-Growth
Franklin India Opportunities Fund Direct-Growth has delivered high-growth mutual fund returns of 148.69% over the three-year period. The fund has maintained a flexible approach to identify and capitalise on emerging opportunities across sectors.
The fund maintains a diversified approach with 92.89% allocation to domestic equities, including 40.87% in large-cap stocks, 8.69% in mid-cap stocks, and 14.98% in small-cap stocks.
| Parameter | Value |
| NAV (30 May 2022) | ₹111.65 |
| NAV (29 May 2025) | ₹270.66 |
| Absolute Growth | 148.69% |
| Fund Size | ₹6,484.96 Cr |
| Expense Ratio | 0.57% |
Final Words
The Indian mutual fund industry has witnessed remarkable wealth creation opportunities through funds that have achieved consistent growth over the past three years. The best-performing mutual funds in the last three years highlighted above represent different sectoral mutual fund investment opportunities that have capitalised on favourable market conditions while maintaining operational efficiencies.
These performances demonstrate the potential rewards of equity investing over the medium term. The exceptional top mutual fund returns and infrastructure fund returns showcase the importance of sector selection in portfolio construction. The strong PSU mutual fund performance, in particular, highlights how government policies can influence certain market segments.
New to mutual fund investing? Begin your investment journey with Torus Digital today.
