When you invest in mutual funds, your returns don’t just depend on luck; they are based on several key factors. Market conditions, fund type, expense ratio, and the fund manager’s strategy all play a role. Equity funds may offer higher returns, but they come with greater risk, while debt funds are more stable but often grow more slowly. Even the timing of your investment and how long you stay invested can impact your overall gains. This is part of a research discussion; here, we will present you with the best-performing mutual funds of the last 5 years.
Best Performing Mutual Funds in the Last Five Years
Here are some mutual fund schemes that have delivered exceptional returns.
Bandhan Small Cap Fund (Regular-Growth)
Bandhan Small Cap fund has delivered 393.23% of absolute returns and 34.85% of annualised returns. The scheme has a portfolio turnover ratio of 47%, which is better than the category average of 125.6%, reflecting less frequent updates to its portfolio. Bandhan Small Cap tracks the performance of BSE 250 SmallCap TRI. It has an exit load of 1% if redeemed within a year of investment.
As of May 29, the scheme has an NAV of ₹45.35, and as of April 30, 2025, its total assets under management stand at ₹10,244 crores.
The top five holdings of Bandhan Small Cap Fund are:
| Stocks | Weightage |
| Sobha Ltd. | 3.13% |
| LT Foods Ltd. | 2.38% |
| South Indian Bank Ltd. | 2.33% |
| Cholamandalam Financial Holdings Ltd. | 2.19% |
| PCBL Ltd. | 1.89% |
Bank of India Small Cap Fund (Regular-Growth)
Bank of India Small Cap Scheme has delivered an absolute return of 369.87% and an annualised return of 36.25%. With Nifty Smallcap 250 TRI as its benchmark, the scheme has a turnover ratio of 48%. The expense ratio stands at 0.48%, and there is an exit load of 1% if you switch or redeem your holdings within one year of investment.
As of May 29, the scheme has an NAV of ₹45.9, while the AUM for April 2025 stood at ₹1,639 crores.
The top five holdings of the Bank of India Small Cap Fund are:
| Stocks | Weightage |
| Treps | 3.48% |
| Lloyds Metals & Energy | 3.12% |
| HUDCO | 2.73% |
| Kaynes Technology | 2.63% |
| Ami Organics | 2.59% |
Motilal Oswal Large & Midcap Fund (Regular-Growth)
The Motilal Oswal Large & Midcap Fund has delivered an absolute return of 294.37% and an annualised return of 31.56%. The scheme uses the Nifty LargeMidcap TRI as its benchmark. The turnover ratio of this fund is 41%, much better than the category average of 181% annually.
As of May 29, 2025, the scheme’s NAV stands at ₹33.27, while the AUM as of April 30, 2025, was ₹9,176 crores. The Motilal Oswal Large & Midcap scheme has an expense ratio of 0.68% and requires a minimum investment of ₹1,000 either through a lump sum or a SIP.
The top five holdings of Motilal Oswal Large & Midcap Fund are:
| Stocks | Weightage |
| Eternal | 5.67% |
| Trent | 5.06% |
| Bharat Dynamics | 4.26% |
| Bharat Electronics | 3.90% |
| Bharti Airtel | 3.87% |
Mirae Asset Midcap Fund (Regular-Growth)
Mirae Asset Midcap Fund delivered an absolute return of 286.40% over the last five years, with annualised returns of 31.02% for the same period. The scheme uses the Nifty Midcap150 TRI as its benchmark index; however, it failed to outperform it in terms of performance. The turnover ratio of this midcap scheme, at 106%, is better than the category average of 260% but is still relatively high.
Mirae Asset has an NAV of ₹34.59 as of May 29, 2025, and an AUM of ₹15,415 crores as of April 30, 2025. The expense ratio for this scheme is 0.60%.
Out of 74 stocks that make up Mirae Asset Midcap Fund, the top five in terms of weightage are:
| Stocks | Weightage |
| Lupin | 3.42% |
| Mphasis | 2.77% |
| Federal Bank | 2.72% |
| Tata Communications | 2.55% |
| Prestige Estate | 2.33% |
Edelweiss Small Cap Fund (Regular-Growth)
The absolute return of Edelweiss Small Cap Fund stands at 347.8%, while the annualised returns are 34.95% over five years. The scheme has a portfolio turnover ratio of 16%, which is better than the overall category average. Edelweiss Small Cap Fund tracks the performance of Nifty Smallcap 250 TRI, with an expense ratio of 0.43% and an exit load of 1% if redeemed within 90 days of investment.
As of May 29, 2025, the scheme has an NAV of ₹42.41, with an AUM of ₹4,237 crores as of April 30, 2025.
Out of the 78 schemes in its portfolio, the following five have a higher weightage.
| Stocks | Weightage |
| Clearing Corporation of India | 3.45% |
| Radico Khaitan | 2.65% |
| City Union Bank | 2.65% |
| Krishna Institute of Medical Sciences | 2.50% |
| Karur Vysya Bank | 2.36% |
Quant Small Cap Fund (Regular-Growth)
Quant Small Cap has delivered an impressive 665.85% absolute and 50.22% annualised return in the last five years. The scheme tracks the performance of Nifty Smallcap 250 TRI but has significantly outperformed the benchmarks.
As of May 29, 2025, the scheme has an NAV of ₹272.46, while the AUM, as of April 30, 2025, stands at ₹26,222 crores. The expense ratio of the Quant Small Cap Fund is 0.68%, while the exit load is 1% if redeemed within a year.
The scheme holds 91 stocks in its portfolio, with the five highest-weighted stocks being:
| Stocks | Weightage |
| Reliance Industries | 10.48% |
| Jio Financial Services | 5.23% |
| Aegis Logistics | 3.95% |
| Aditya Birla Fashion | 3.24% |
| Poly Medicure | 3.09% |
Conclusion
Investing in mutual funds carries several risks, including market volatility that affects returns, potential losses due to economic downturns, and specific risks associated with each fund type. To maximise returns and spread risk in the long run, consider diversifying across asset classes and geographic regions. You must also regularly review and adjust your portfolio to ensure it aligns with changing goals and market conditions.
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