Over the past few years, mutual funds have proven to be a reliable and popular investment option for individuals seeking to grow their wealth. It is a good way to diversify investment risk through mutual funds, as they offer liquidity and professional management. Investors, both seasoned and new, are keen to identify the best-performing mutual fund over the last 5 years to maximise returns and achieve their financial goals.
Read along to explore the top-performing mutual funds over the past 5 years and take your investment journey to new heights.
Best Performing Equity Mutual Funds in India 2026(Based on 5-year Annualised Returns)
(As of 20th April 2026)
Overview of Best Equity Mutual Funds 2026
SBI PSU Direct Plan Growth
- The 5-year annualised return of the SBI PSU Direct Plan Growth fund is among the highest, at 29.49%.
- AUM is ₹5,891.30Cr.
- The minimum amount required to start an SIP in this fund is ₹500.
- Expense Ratio: 0.85%
- State Bank of India receives the highest allocation, at 16.50%.
- The asset allocation is 95.13% to equity instruments, 4.79% to cash and cash equivalents, and 0.08% to debt.
Aditya Birla Sun Life PSU Equity Fund Direct Growth
- 5-year annualised returns are 29.19%.
- AUM is ₹5,334.01Cr
- The minimum amount required to start an SIP in this fund is ₹100.
- Expense Ratio: 0.62%
- The fund’s holdings with the highest weightage include State Bank of India, NTPC Ltd., Power Grid Corporation of India Ltd., and others.
ICICI Prudential BHARAT 22 FOF Direct Growth
- ICICI Prudential BHARAT 22 FOF Direct Growth’s 5-year annualised returns are 28.69%.
- AUM is ₹2,584.85Cr
- Expense Ratio: 0.12%
- Minimum SIP amount: ₹1,000
- 99.87% of holdings are allocated towards the equity segment, while 0.13% is held as cash.
Invesco India PSU Equity Fund Direct Growth
- 5-year annualised returns: 28.19%.
- AUM: ₹1,334.55Cr
- Minimum SIP amount: ₹100
- Expense Ratio: 0.91%
ICICI Prudential Infrastructure Direct Growth
- 5-year annualised returns: 27.92%.
- AUM is ₹7,553.54Cr
- Expense Ratio: 1.18%
- Minimum SIP amount: ₹100
Best Performing Hybrid Mutual Funds in India 2026(Based on 5-year Annualised Returns)
(As of 20th April 2026)
Overview of Best Hybrid Mutual Funds 2026
SBI Children’s Fund Investment Plan Direct Growth
- 5-year annualised returns: 26.90%.
- AUM: ₹5,157.53 Cr
- Minimum SIP amount: ₹500
- Expense Ratio: 0.84%
- Asset Allocation
- Equity: 80.18%
- Cash: 19.63%
- Debt: 0.19%
Quant Multi Asset Allocation Fund Direct Growth
- 5-year annualised returns: 23.97%.
- AUM: ₹4,754.57 Cr
- Minimum SIP amount: ₹1,000
- Expense Ratio: 0.58%
- Asset Allocation
- Equity: 51.42%
- Hedged Equity: 14.82%
- Cash: 12.15%
- Debt: 11.40%
- Commodities: 9.61%
- Real Estate: 0.60%
ICICI Prudential Multi Asset Fund Direct Growth
- 5-year annualised returns: 20.24%.
- AUM: ₹77,658.27Cr
- Minimum SIP amount: ₹100
- Expense Ratio: 0.64%
- Asset Allocation
- Equity: 65.14%
- Debt: 14.50%
- Commodities: 8.75%
- Hedged Equity: 5.38%
- Cash: 4.75%
- Real Estate: 1.47%
ICICI Prudential Equity & Debt Fund Direct Growth
- 5-year annualised returns: 19.47%.
- AUM: ₹46,700.42Cr
- Minimum SIP amount: ₹100
- Expense Ratio: 0.94%
- Asset Allocation
- Equity: 75.60%
- Debt: 22.12%
- Real Estate: 2.22%
- Hedged Equity: 0.30%
- Cash: -0.24%
Kotak Multi Asset Omni FoF Direct Growth
- 5-year annualised returns: 18.35%
- AUM: ₹2,274.14Cr
- Minimum SIP amount: ₹100
- Expense Ratio: 0.39%
- Asset Allocation
- Equity: 63.52%
- Commodities: 18.10%
- Debt: 12.81%
- Cash: 5.33%
- Real Estate: 0.23%
Best Performing Debt Mutual Funds in India 2026(Based on 5-year Annualised Returns)
(As of 20th April 2026)
Overview of Best Debt Mutual Funds 2026
DSP Credit Risk Fund Direct Plan Growth
- 5-year annualised returns: 13.09%
- AUM: ₹222.83Cr
- Minimum SIP amount: ₹100
- Expense Ratio: 0.40%
- Asset Allocation
- Debt: 88.22%
- Real Estate: 7.13%
- Cash: 4.65%
Aditya Birla Sun Life Medium Term Plan Direct Growth
- 5-year annualised returns: 12.72%
- AUM: ₹3,078.17Cr
- Minimum SIP amount: ₹1,000
- Expense Ratio: 0.81%
- Asset Allocation
- Debt: 92.88%
- Real Estate: 4.39%
- Cash: 2.73%
HDFC Income Plus Arbitrage Active FoF Direct Growth
- 5-year annualised returns: 12.68%
- AUM: ₹2,389.94Cr
- Minimum SIP amount: ₹100
- Expense Ratio: 0.07%
- Asset Allocation
- Debt: 73.33%
- Hedged Equity: 21.01%
- Cash: 5.46%
- Equity: 0.21%
Aditya Birla Sun Life Credit Risk Fund Direct Growth
- 5-year annualised returns: 10.81%.
- AUM: ₹1,178.19Cr
- Minimum SIP amount: ₹100
- Expense Ratio: 0.79%
- Asset Allocation
- Debt: 87.66%
- Real Estate: 8.18%
- Cash: 4.15%
Bank of India Short Term Income Fund Direct Growth
- 5-year annualised returns: 10.62%.
- AUM: ₹277.81Cr
- Minimum SIP amount: ₹1,000
- Expense Ratio: 0.52%
- Asset Allocation
Factors to Consider
Here are the factors you should think about before investing in the top-performing mutual funds:
Look at how well the fund has performed relative to its benchmark and similar funds in terms of higher returns. Analyse its performance over different market cycles, especially during downturns. A top-performing fund should hold up well even when markets are down. However, remember that past performance does not guarantee future returns.
Your financial goal determines which mutual fund suits you best. Whether it is saving for a house, education, vacation or retirement, pick a fund that aligns with your goal.
Decide how long you want to invest your money. Whether short- or long-term, different funds are suited to different timeframes. For instance, if you plan to invest for more than 5 years, equity funds are an ideal choice.
A fund’s AUM indicates the value of assets it manages, reflecting the number of subscriptions it has. In small-cap equity funds, a large AUM can hinder entry and exit of companies. However, for liquid and short-term debt funds, a larger AUM is beneficial as it reduces vulnerability to large investor redemptions.
- Fund Manager’s Performance
A skilled manager can spot good investment opportunities, leading to better returns. Check their track record to see if they have done well in the past.
Keep an eye on how much the fund charges you to manage your investment. Higher fees mean less money in your pocket. Make sure the expense ratio is reasonable compared to the returns.
Decide whether you prefer to play it safe or are okay with taking some risks with mutual funds. Your risk tolerance helps determine how well you can handle the ups and downs of the market, and it guides your choice of funds to invest in. Remember, the level of risk you are willing to take affects the potential returns.
Bottom Line
Considering mutual funds can be a sound financial decision. However, it is important to remember that past performance does not guarantee future outcomes.
Hence, having some understanding of the mutual fund scheme you are investing in is advisable. If required, you can seek advice from a financial expert who can guide you in choosing the fund tailored to your financial goals and risk tolerance.
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*Mutual Funds Selection Criteria for Top Mutual Funds Listed Above These mutual funds are listed based on the 3-year annualised returns. The selection is arranged in descending order. It is important to note that 3-year returns in no way guarantee a mutual fund’s performance. However, it can be used as a criterion for shortlisting mutual funds from within a category. Investors should recognise that other factors, such as financial health, management efficiency, and market trends, play crucial roles in determining the actual success of an investment. This mutual fund selection should not be construed as investment advice/recommendations/offer/solicitation of an offer to invest in any mutual funds by Groww Invest Tech Pvt. Ltd. (formerly known as Nextbillion Technology Pvt. Ltd.). |
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Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory. |