Top 15 Mutual Funds with 120%–380% Returns in 3 Years

Mutual funds have always been a preferred route for Indian investors who want to participate in the equity markets but do not wish to go through the complexities of picking individual stocks. Over the last three years, equity markets across the globe have seen several ups and downs. Despite this volatility, a select group of funds managed to deliver extraordinary returns, creating wealth for disciplined investors. Some of these funds generated as much as 380 percent absolute returns during this period, making them stand out in the crowd.

In this article, we will look at the top 15 mutual funds that outperformed in the last three years. We will also cover their investment objectives, past performance, who should consider them, and the risks associated with such funds.

How We Shortlisted the Funds

The selection of these funds was based on three simple criteria. First, we considered only equity-oriented mutual funds, including thematic, sectoral, and global funds. Second, only direct plans were taken into account as they usually provide higher returns compared to regular plans. Third, we filtered out the top fifteen funds with the highest returns in the last three years, based on annualised and absolute growth.

Performance Snapshot

The shortlisted funds generated returns ranging from 120 percent to a staggering 380 percent. To put things into perspective, an investment of one lakh rupees three years ago in the top-performing Mirae Asset NYSE FANG+ ETF FoF would be worth around 4.8 lakh rupees today. Even the fifteenth fund on the list, Motilal Oswal Midcap Fund, would have grown one lakh rupees into almost 2.9 lakh rupees.

Deep Dive into the Top 15 Mutual Funds

Mirae Asset NYSE FANG+ ETF FoF

This fund invests in US-based technology giants such as Meta, Amazon, Apple, Tesla, and Alphabet. Over the last three years, it has delivered around 380 percent absolute returns, making it the best performer on the list. It is suitable for aggressive investors who want exposure to global tech, though it comes with high volatility and currency risk.

DSP World Gold Mining Fund

This fund focuses on global gold mining companies and delivered more than 300 percent returns in three years. It offers diversification benefits as it is linked to gold prices. Investors looking for a hedge against inflation and currency fluctuations may consider it, though it is heavily dependent on global gold demand and price cycles.

Mirae Asset S&P 500 Top 50 ETF FoF

By tracking the top 50 companies of the US S&P 500 index, this fund provided over 200 percent returns in three years. It suits investors seeking global diversification through large-cap US companies. The risk lies in US market volatility and rupee-dollar fluctuations.

Motilal Oswal BSE Enhanced Value Index Fund

This fund follows a value investing strategy, targeting Indian companies with attractive valuations. It has delivered more than 210 percent absolute returns. Suitable for investors with a value-oriented mindset, it may underperform during momentum-driven rallies.

Nippon India Taiwan Equity Fund

With its focus on Taiwan’s semiconductor and technology industries, this fund generated over 200 percent in the last three years. It is a high-risk, high-reward option, but geopolitical risks around Taiwan remain a concern.

Edelweiss US Technology Fund

Another global technology fund, this one invests in US-based IT and digital innovation companies. It generated over 200 percent in three years. The fund is best for aggressive investors but comes with tech sector volatility.

SBI PSU Fund

This fund invests in Indian public sector undertakings and has returned close to 197 percent over three years. It is suitable for investors who believe in PSU revival and government-driven growth. Risks include heavy policy influence and sector-specific challenges.

Bandhan Small Cap Fund

Focused on small-cap companies, this fund provided nearly 195 percent absolute returns. It is ideal for long-term investors with high risk appetite. However, small-caps are known for sharp corrections during bearish phases.

Invesco India PSU Equity Fund

Similar to the SBI PSU Fund, this scheme invests in public sector enterprises and has delivered 194 percent returns. Investors bullish on India’s PSU turnaround story may find it attractive, but risks remain tied to government policies.

Franklin India Opportunities Fund

This diversified fund invests across high-growth sectors and generated nearly 194 percent returns. It suits investors looking for a long-term capital appreciation strategy. However, being opportunity-focused, it may be more volatile than large-cap funds.

Navi US NASDAQ 100 FoF

This fund mirrors the NASDAQ 100 index, which includes some of the world’s biggest technology companies. It provided more than 190 percent absolute returns. It is a good option for investors seeking global exposure but is vulnerable to US tech downturns.

ICICI Prudential Pharma Healthcare and Diagnostics Fund

This sector fund invests in pharma, healthcare, and diagnostics companies. It delivered around 190 percent returns in three years. Ideal for investors bullish on healthcare, but sector concentration risk should be considered.

ICICI Prudential NASDAQ 100 Index Fund

Similar to Navi’s FoF, this fund invests directly in NASDAQ 100 companies. It also delivered about 190 percent absolute returns. Investors must be prepared for high global market volatility.

Kotak US Equity Passive FoF

This fund offers passive exposure to US equities and delivered close to 189 percent returns. It is suitable for investors wanting simple global diversification. Currency fluctuations remain the biggest risk.

Motilal Oswal Midcap Fund

This domestic midcap-focused fund has provided nearly 188 percent absolute returns in three years. It is suitable for aggressive investors who want to capture India’s midcap growth story. However, midcaps are vulnerable to market cycles and liquidity risks.

Who Should Consider These Funds

These funds are not for every investor. Most of them are either sector-specific or global in nature, which means they carry higher risk compared to diversified equity funds. They may be suitable for aggressive investors with long investment horizons and high tolerance for volatility. Conservative investors, on the other hand, may want to stick to diversified flexi-cap funds or large-cap funds for stability.

Key Risks to Keep in Mind

High returns usually come with higher risks. Many of these funds are exposed to global markets, making them vulnerable to currency fluctuations, geopolitical risks, and foreign regulations. Sectoral funds such as technology or healthcare can outperform strongly in certain cycles but may underperform in others. Investors should diversify and avoid putting all their money into one theme or geography.

Conclusion

The last three years have been a remarkable period for mutual funds, with some delivering extraordinary returns of up to 380 percent. The 15 funds highlighted above have outperformed significantly, proving the power of professional fund management and favorable market cycles. However, investors should not chase past returns blindly. Instead, they should align their mutual fund choices with financial goals, risk appetite, and investment horizons. For aggressive investors, these funds can form part of a satellite portfolio, while conservative investors should treat them as opportunistic plays rather than core holdings.