30 Mutual Funds That Turned Every ₹1 Lakh Into ₹3–₹5 Lakh in Just 5 Years

Investing in mutual funds has long been recognized as one of the most effective ways to build wealth over time. While short-term market fluctuations can create uncertainty, some funds consistently deliver exceptional returns when approached with a medium- to long-term perspective. In this article, we examine 30 mutual funds that have tripled investors’ money over the last five years, analyze key performance trends, and discuss what factors investors should consider before making their choices.

Why a 5-Year Investment Horizon Matters

Many investors enter the market expecting quick profits, but equity mutual funds generally perform best when held over a longer period. Historical data shows that funds with consistent returns over five years or more tend to outperform in the long run.

Compounding Effect

Long-term investing allows returns to be reinvested, accelerating wealth growth. For instance, an initial investment of ₹1 lakh in a high-performing fund five years ago could have grown to over ₹3 lakh today.

Managing Market Volatility

Markets naturally fluctuate, and short-term dips can be alarming. Staying invested for five years or longer smooths out volatility, allowing the portfolio to benefit from long-term trends rather than reacting to short-term movements.

Economic Growth Correlation

Equity mutual funds are closely tied to corporate earnings and economic growth. Over a five-year period, funds typically benefit from overall market expansion, translating into higher NAVs for investors.

30 Mutual Funds That Tripled Investors’ Wealth

Despite corrections in the stock market over the past year, several funds have delivered outstanding returns. The Nifty 50 fell by 16%, mid-cap indices dropped around 20%, and small-cap indices fell over 25%. Even with such volatility, the following funds have managed to provide remarkable growth, turning ₹1 lakh into ₹3 lakh to ₹5.5 lakh over five years.

Mutual Fund Name	3 Yr CAGR	5 Yr CAGR	₹1 Lakh in 5 Years Turned To
Quant Small Cap Fund	21.7	40.8	5,53,367
Bandhan Small 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
Bank of India Small Cap 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
Canara 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 Mid Cap Fund	22	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
Invesco 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 Focused 30 Fund	23.9	25.2	3,07,625
Franklin India Smaller Companies 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

While these funds have performed exceptionally well, investors should be mindful of potential risks.

Small and Mid-Cap Volatility

Small- and mid-cap funds can experience significant fluctuations. They are better suited for investors with moderate to high risk tolerance.

Market Corrections

Aggressive growth funds may see sharp declines during downturns. Diversification and patience are key to managing these risks.

Liquidity Risks

Smaller funds might face liquidity challenges in a declining market.

Fund Manager Impact

Actively managed funds rely heavily on the expertise of fund managers, making experience and strategy an important factor in fund selection.

SIP Versus Lumpsum Investment

Systematic Investment Plans (SIP) offer rupee cost averaging, discipline, and mitigation of market timing risks. Lumpsum investments, however, can be advantageous during market corrections when valuations are lower, potentially yielding higher returns.

How to Pick the Right Fund

When selecting from this list, consider the following:

• Expense ratio: Lower costs lead to higher net returns.
• Consistency: Choose funds with stable performance across multiple periods.
• Investment horizon: Match your fund selection to your financial goals and risk tolerance.

Common Investor Mistakes

Avoid chasing past returns, ignoring risk appetite, or frequently switching funds. Long-term wealth creation comes from staying disciplined and invested.

Conclusion

These 30 mutual funds demonstrate the potential of long-term equity investing to create substantial wealth. While historical returns provide insight, investors should focus on their personal financial goals, risk profile, and portfolio diversification. Patience and disciplined investing remain the key drivers of long-term wealth.