Mutual Funds That Turned ₹1 Lakh into ₹5 Lakhs in 5 Years

For investors who dream of multiplying wealth in a relatively short span, mutual funds have proven to be one of the most rewarding options. While average funds deliver moderate returns, a handful of high-performing schemes have stood out in recent years, managing to 5X investments in just 5 years. In this article, we take a closer look at 7 mutual funds that turned ₹1 Lakh into nearly ₹5 Lakhs between 2020 and 2025, thanks to their exceptional growth stories.

What Does It Mean to 5X in 5 Years?

To turn ₹1 Lakh into ₹5 Lakhs within 5 years, a fund needs to deliver a compound annual growth rate (CAGR) of nearly 38%. Achieving this level of consistent return is no easy task and only a select group of funds with strong strategies, favorable market conditions, and efficient fund management have managed to accomplish it. These funds typically belong to small cap, mid cap, and thematic sectors where growth opportunities are higher, though risks are equally elevated.

How These Funds Were Shortlisted

To arrive at this list, only equity-oriented mutual funds were considered, including small cap, mid cap, infrastructure, and commodity-focused schemes. Direct plans with growth options were analyzed, and only those delivering a CAGR of over 37% in the last 5 years as of June 2025 made it to the final selection. The benchmark for inclusion was funds that managed to multiply a ₹1 Lakh investment to around ₹5 Lakhs or more.

List of Mutual Funds That Delivered 5X Returns in 5 Years

• Quant Small Cap Fund
• Quant Infrastructure Fund
• Nippon India Small Cap Fund
• Bandhan Small Cap Fund
• ICICI Prudential Commodities Fund
• ICICI Prudential Infrastructure Fund
• Motilal Oswal Midcap Fund

Let us now explore each fund in more detail.

Quant Small Cap Fund

The star performer of the last 5 years, Quant Small Cap Fund, delivered a CAGR of nearly 48%, turning ₹1 Lakh into an impressive ₹7.7 Lakhs. The fund focuses on smaller companies with high growth potential, leveraging tactical allocation and momentum-based strategies.

Why it performed well:

• Strong exposure to emerging businesses
• Flexible allocation across growth sectors
• Consistent alpha generation across time frames

Risks:
Small cap stocks are volatile and may fall steeply during downturns. Investors must be ready for sharp corrections and stay invested for the long term.

Quant Infrastructure Fund

This thematic fund has benefited directly from India’s infrastructure boom and government-led capex push. With a 5-year CAGR of 42%, it turned ₹1 Lakh into ₹5.42 Lakhs.

Strengths:

• Investments in construction, cement, and engineering sectors
• Tactical allocation with high-momentum stock picks
• Strong policy tailwinds supporting infrastructure growth

Risks:
Being sector-specific, performance is tied closely to economic cycles and government policies. It may underperform when infrastructure spending slows down.

Nippon India Small Cap Fund

One of the most popular small cap funds in India, Nippon India Small Cap Fund generated a 5-year CAGR of 40%, just enough to push ₹1 Lakh to ₹5.02 Lakhs. Its wide portfolio of small cap stocks across industries has made it a consistent performer.

Why investors like it:

• Proven track record across cycles
• Disciplined stock selection process
• Diversified portfolio minimizing company-specific risks

Risks:
Volatility remains high in small cap segments. The fund may face liquidity pressures in times of market stress.

Bandhan Small Cap Fund

Bandhan Small Cap Fund, though relatively new compared to others, impressed with a 39% CAGR, turning ₹1 Lakh into around ₹4.95 Lakhs. Its strategy is to focus on emerging small companies with niche advantages.

Positives:

• Excellent short-term performance consistency
• Aggressive stock picking in niche industries
• Strong potential for alpha generation

Risks:
Limited long-term history and higher exposure to micro-cap stocks make it riskier. It may see sharp swings in volatile markets.

ICICI Prudential Commodities Fund

Riding the global commodity cycle, this sectoral fund managed a CAGR of nearly 38%, multiplying investments close to 5 times. The fund invests in companies related to metals, energy, and agriculture.

Key strengths:

• Broad-based exposure across commodities
• Benefited from rising global prices and inflationary cycles
• Good option as a hedge against inflation

Risks:
Performance is heavily tied to global commodity prices and demand trends. Investors must be prepared for cyclicality.

ICICI Prudential Infrastructure Fund

This infrastructure-focused fund clocked a CAGR of 39%, growing ₹1 Lakh to nearly ₹4.94 Lakhs in 5 years. It has a balanced allocation across large, mid, and small-cap infra stocks.

Highlights:

• Direct exposure to India’s infrastructure revival
• Strong mix of cyclical and structural growth stocks
• Proven long-term track record of wealth creation

Risks:
Sensitive to policy changes and interest rates. Sector concentration can lead to underperformance in downturns.

Motilal Oswal Midcap Fund

Unlike small cap peers, Motilal Oswal Midcap Fund focuses on medium-sized companies with stable growth prospects. With a CAGR of 38%, it turned ₹1 Lakh into nearly ₹4.90 Lakhs.

Strengths:

• Quality midcap stock selection
• Relatively lower volatility compared to small caps
• Balanced risk-reward profile

Risks:
Midcap funds can underperform during weak macroeconomic phases. Liquidity risks may arise in extreme market conditions.

Final Thoughts

These 7 mutual funds have delivered extraordinary returns in just 5 years, showcasing the power of equity investing when aligned with high-growth sectors. However, investors must remember that such stellar returns are not sustainable year after year. Small cap and thematic funds can be extremely volatile and may witness periods of sharp underperformance.

For investors with a high risk appetite and long-term investment horizon, such funds can add tremendous value as part of a diversified portfolio. On the other hand, conservative investors should allocate only a small portion of their wealth to such high-risk, high-reward schemes.

The key takeaway is that wealth creation through mutual funds is possible when investors stay invested, diversify smartly, and align fund selection with personal financial goals.