When choosing a mutual fund, historical performance offers valuable insights. One key metric that savvy investors often rely on is Compound Annual Growth Rate (CAGR). In this article, we dive deep into top-performing mutual funds with over 30% 5-year CAGR, all rated Rank 1 by CRISIL as of March 31, 2025. Whether you’re a long-term investor or looking to boost returns with strategic equity exposure, this guide will help you choose the best options.
Why 5-Year CAGR Matters
A 5-year CAGR offers a long-term perspective, eliminating short-term volatility and giving a more accurate picture of a fund’s performance. Mutual Funds with over 30% 5-year CAGR are not just outliers – they reflect consistent management, strong stock selection, and favorable market dynamics.
Top Mutual Funds with over 30% 5-Year CAGR
Here are the top mutual funds across different categories with 5-year CAGR greater than 30%:
1. SBI Long Term Equity Fund
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Description: A diversified ELSS fund aiming for long-term capital appreciation.
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Returns (CAGR):
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1-Year: 8.21%
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3-Year: 28.90%
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5-Year: 31.35%
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Investor Suitability: Ideal for investors seeking tax-saving options with equity exposure.
2. HDFC ELSS Tax Saver Fund
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Description: Focuses on investing in a diversified portfolio of equity and equity-related instruments.
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Returns (CAGR):
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1-Year: 12.49%
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3-Year: 26.21%
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5-Year: 30.76%
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Investor Suitability: Suitable for investors looking for tax benefits along with potential for long-term growth.
3. HDFC Flexi Cap Fund
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Description: Aims to provide long-term capital appreciation by investing in a diversified portfolio.
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Returns (CAGR):
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1-Year: 15.06%
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3-Year: 27.04%
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5-Year: 33.87%
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Investor Suitability: Suitable for investors looking for diversified equity exposure across market capitalizations.
4. HDFC Focused 30 Fund
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Description: Concentrated portfolio aiming for long-term capital appreciation.
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Returns:
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1-Year: 15.91%
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3-Year: 27.60%
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5-Year: 34.41%
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Investor Suitability: Suitable for investors with a high-risk appetite seeking focused equity investments.
5. Nippon India Large Cap Fund
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Description: This fund invests primarily in large-cap companies with strong financials and consistent performance. It aims to deliver long-term capital appreciation by targeting industry leaders.
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Returns:
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1-Year: 10%
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3-Year: 24.49%
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5-Year: 30.26%
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Investor Suitability: Suitable for investors seeking stability and consistent returns from established companies.
6. Bandhan Core Equity Fund
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Description: Combines the strength of large-cap stocks with the growth potential of mid-caps. It focuses on high-conviction bets in core sectors.
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Returns:
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1-Year: 10.61%
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3-Year: 28.55%
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5-Year: 32.46%
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Investor Suitability: Suitable for investors seeking a diversified portfolio with moderate risk and good growth prospects.
7. ICICI Prudential Large & Mid Cap Fund
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Description: This fund follows a blend strategy to capture opportunities in both segments, maintaining sectoral balance and delivering long-term growth.
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Returns:
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1-Year: 12.66%
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3-Year: 26.16%
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5-Year: 32.79%
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Investor Suitability: Ideal for investors looking for a balanced approach between stability and growth.
8. Nippon India Vision Fund
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Description: A diversified fund aiming to capitalize on both market segments. It combines quality large-caps with high-growth mid-cap stocks to maximize returns.
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Returns:
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1-Year: 10%
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3-Year: 24.49%
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5-Year: 30.26%
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Investor Suitability: Suitable for investors aiming for diversified exposure with moderate risk tolerance.
9. Motilal Oswal Midcap Fund
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Description: A focused fund following a buy-and-hold strategy in quality mid-cap companies with strong earnings potential and competitive advantages.
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Returns:
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1-Year: 16.82%
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3-Year: 33.69%
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5-Year: 40.05%
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Investor Suitability: Ideal for investors with a higher risk appetite seeking substantial long-term gains
10. Invesco India Mid Cap Fund
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Description: This fund looks for under-researched, high-growth companies in the mid-cap space. Suitable for investors with a medium to long-term horizon.
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Returns:
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1-Year: 21.40%
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3-Year: 30.10%
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5-Year: 33.58%
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Investor Suitability: Suitable for investors looking for diversification and higher returns with moderate risk.
11. Edelweiss Mid Cap Fund
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Description: A well-diversified portfolio of fundamentally strong mid-cap stocks that emphasizes growth opportunities and risk mitigation.
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Returns:
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1-Year: 16.58%
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3-Year: 30.11%
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5-Year: 36.78%
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Investor Suitability: Best suited for investors aiming for higher returns with a medium to long-term investment horizon.
12. Bandhan Small Cap Fund
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Description: A high-conviction fund that identifies scalable businesses in the small-cap universe. Ideal for investors seeking aggressive growth.
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Returns:
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1-Year: 18.59%
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3-Year: 33.11%
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5-Year: 40.24%
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Investor Suitability: Ideal for aggressive investors with a high-risk tolerance and long-term investment horizon.
13. ITI Small Cap Fund
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Description: Focuses on bottom-up stock picking and investing in companies with strong management and turnaround potential in the small-cap space.
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Returns:
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1-Year: 8.35%
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3-Year: 31.34%
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5-Year: 34.50%
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Investor Suitability: Suitable for investors seeking high returns and willing to accept higher volatility.
14. ICICI Prudential Value Discovery Fund
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Description: A veteran in the value investing space, this fund identifies and holds onto fundamentally strong but undervalued stocks until their value is recognized by the market.
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Returns:
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1-Year: 13.38%
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3-Year: 24.28%
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5-Year: 31.08%
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Investor Suitability: Ideal for investors looking for value investing opportunities with a long-term perspective.
Conclusion
Investing in equity mutual funds with high long-term CAGR can lead to substantial wealth creation. The above-listed funds not only have CRISIL Rank 1 ratings but have also proven their mettle with consistent performance over 5 years. Before investing, align your risk appetite and financial goals with the fund’s strategy and consult your financial advisor.
FAQs
- What is CAGR in mutual funds? CAGR or Compound Annual Growth Rate shows the average annual return of a fund over a period.
- Why is 5-year CAGR important? It gives a clearer picture of a fund’s long-term performance and stability.
- What does CRISIL Rank 1 mean? It indicates top 10% performance among peer funds based on risk-adjusted returns and consistency.
- Are funds with high CAGR always better? Not necessarily. Risk, consistency, and strategy also matter.
- Is it good to invest in ELSS funds with 30%+ CAGR? Yes, especially if you’re looking to save tax under Section 80C and grow wealth.
- How do Focused Funds work? They invest in a limited number of stocks (20–30), aiming for higher returns through high-conviction picks.
- What are Flexi Cap funds? These funds can invest across large, mid, and small-cap stocks, offering maximum flexibility.
- Can past performance guarantee future returns? No. However, it gives a sense of the fund manager’s capability and fund robustness.
- Is international exposure in funds beneficial? Yes, it helps diversify risk and tap into global growth opportunities.
- Should I consult a financial advisor before investing? Absolutely. A certified advisor can help match funds to your personal financial goals and risk tolerance.
- How to invest in these funds? You can invest through platforms like Zerodha Coin, Groww, or directly via AMC websites.
Disclaimer
The CAGR returns provided for each mutual fund are based on data as of May 26, 2025, which is the date this article was written. Investing in mutual funds is subject to market risks. Please read all scheme-related documents carefully before investing. Past performance is not indicative of future returns. Consult your financial advisor before making any investment decisions.
