Top 20 Mutual Funds With Consistent Returns in 5 Years
Many investors in India want to earn good returns without taking unnecessary risks. Mutual funds are one of the most popular ways to do this. Some funds perform very well for a short time but fail to maintain their performance later. However, a few mutual funds manage to deliver steady and strong returns year after year.
In this article, we look at the top 20 mutual funds that have given consistent returns over the last five years. The data and trends are based on the Indian mutual fund market as of October 2025.
What “consistent returns” means
When we talk about consistency in mutual funds, it means:
- The fund performs well in both bull and bear markets.
- The fund gives stable returns every year, not just in one or two years.
- The fund beats its category average and benchmark regularly.
- The fund manages risk properly and avoids large losses.
Funds that show all these qualities over a long period are considered consistent performers.
How we selected these funds
The funds below appear regularly in mutual fund performance studies and financial reports. They show strong and steady returns over five years and good risk control.
We included different fund types like large-cap, mid-cap, flexi-cap, ELSS (tax-saving), and debt funds to show variety. The returns are approximate five-year Compound Annual Growth Rates (CAGR) up to mid-2025.
Top 20 Mutual Funds With Consistent 5-Year Returns
| # | Fund | Approx. 5-Year CAGR | Why It’s Consistent |
|---|---|---|---|
| 1 | HDFC Flexi Cap Fund (Direct-Growth) | ~29.8% | The fund moves between large, mid, and small-cap stocks. This flexibility helps it perform well in different market cycles. |
| 2 | HDFC Large & Mid Cap Fund (Direct) | ~26.9% | The fund invests in both large and mid-sized companies, which keeps returns steady. |
| 3 | DSP ELSS Tax Saver Fund (Direct) | ~24.5% | This tax-saving fund performs well across years and gives strong post-tax returns. |
| 4 | ICICI Prudential Large Cap Fund (Direct) | ~22.6% | This large-cap fund focuses on stable, well-managed companies that grow consistently. |
| 5 | Parag Parikh Flexi Cap Fund (Direct) | ~23.0% | It invests in Indian and foreign stocks. The global exposure reduces risk and adds consistency. |
| 6 | HDFC Gold ETF Fund of Fund (Direct) | ~16.8% | The fund tracks gold prices. It helps investors balance their portfolio when markets fall. |
| 7 | Kotak Gold Fund (Direct) | ~16.6% | Another strong gold fund that has given solid five-year returns. |
| 8 | Kotak US Equity Fund of Fund (Direct) | ~33.7% (3-year CAGR) | This fund invests in U.S. companies, offering growth from international markets. |
| 9 | ICICI Prudential US Bluechip Equity Fund (Direct) | ~16.0% | It invests in top U.S. blue-chip stocks, adding global balance to an Indian portfolio. |
| 10 | HDFC Floating Rate Debt Fund (Direct) | ~6.9% | A good debt option that gives stable income and protects capital. |
| 11 | Bharat Bond FOF – April 2031 (Direct) | ~6.8% | This government-backed bond fund provides steady returns with low risk. |
| 12 | Bharat Bond FOF – April 2030 (Direct) | ~7.0% | Another bond fund that offers predictable returns over the medium term. |
| 13 | Nippon India Large Cap Fund | ~20% | It invests in top 100 companies. The fund has a long record of strong performance. |
| 14 | Nippon India Growth Mid Cap Fund | ~25% | This mid-cap fund focuses on high-growth companies with solid fundamentals. |
| 15 | Invesco India Mid Cap Fund | ~26% | This fund has been among the top mid-cap performers for several years. |
| 16 | Edelweiss Mid Cap Fund | ~24% | It focuses on quality mid-cap companies that show steady earnings growth. |
| 17 | Nippon India Small Cap Fund | ~17% | This small-cap fund performs well over long periods despite short-term volatility. |
| 18 | Axis Large Cap Fund | ~14% | A conservative large-cap fund that offers stability during market corrections. |
| 19 | Franklin India Large Cap Fund | ~15% | One of the oldest funds in India, with a strong long-term performance record. |
| 20 | Quant ELSS Tax Saver Fund (Direct) | ~39.1% | This tax-saving fund has delivered very high returns while maintaining good consistency. |
Key Takeaways
1. Equity funds dominate the list
Most of these consistent performers are equity-oriented. Indian equities have grown strongly in the last five years due to a robust economy, rising corporate profits, and increasing retail participation.
2. Flexi-cap funds adapt better
Flexi-cap funds like HDFC Flexi Cap and Parag Parikh Flexi Cap move between different types of companies depending on market conditions. This flexibility helps them perform well across market cycles.
3. Mid-cap and small-cap funds give higher returns
Funds like Invesco Mid Cap and Nippon Small Cap delivered strong five-year returns. However, these funds can fluctuate more than large-cap funds, so they suit investors with longer horizons.
4. Gold and bond funds add stability
Funds that invest in gold or bonds, such as HDFC Gold Fund or Bharat Bond FOF, reduce overall risk in a portfolio. They perform well when stock markets are uncertain.
5. International funds add diversification
Funds that invest abroad, like Kotak US Equity FoF and ICICI US Bluechip Fund, offer exposure to global markets. This diversification reduces the impact of Indian market volatility.
Recent Market Trends in 2025
Retail investors invest more in mutual funds
Indian investors continue to pour money into mutual funds. In 2025, mid-cap and small-cap schemes received huge inflows of over ₹20,000 crore. This shows growing trust in mutual funds as a long-term investment tool.
Gold and silver ETFs attract attention
Gold and silver funds have become very popular. Many investors are turning to gold ETFs for safety during market uncertainty. Gold ETF assets crossed ₹80,000 crore in 2025, a new record for India.
Launch of new passive funds
Several fund houses launched passive funds that track popular indices. Companies like Jio BlackRock introduced new low-cost index and bond funds. This gives investors more options with lower expenses.
Large-cap funds face challenges
Some large-cap funds struggled to beat their benchmarks in the last few years. Many investors now prefer index funds or flexi-cap funds that offer better performance with similar risk.
Growth in smaller cities
Mutual fund investments from smaller cities (beyond top 30 cities) have grown faster than those from metro cities. More people across India now invest through SIPs, showing a healthy shift toward long-term investing.
How to Choose Consistent Mutual Funds
- Check long-term performance – Look at returns over 5, 7, and 10 years, not just one year.
- Focus on rolling returns – See how the fund performs during different market phases.
- Study volatility – Prefer funds with low volatility and steady growth.
- Look at fund manager’s track record – Experience and stability of fund managers matter a lot.
- Diversify across categories – Mix equity, debt, and gold funds for balanced growth.
- Use SIPs for regular investing – SIPs help you invest steadily and handle market ups and downs better than lump-sum investing.
- Watch expenses – Always choose direct plans with lower expense ratios.
- Review performance yearly – Check once a year if your fund still performs better than peers.
Conclusion
The past five years have been rewarding for Indian mutual fund investors. Many funds have delivered strong and steady returns, even through market corrections and global uncertainties.
The top 20 mutual funds listed above show that consistency comes from disciplined management, smart diversification, and strong research. While equity funds have led the performance charts, adding debt and gold funds helps reduce risk and balance your portfolio.
Before investing, always match your fund choice with your financial goals, risk comfort, and time horizon. Long-term investors who stay patient and disciplined usually benefit the most from consistent performers.
Mutual funds remain one of the best ways to grow wealth in India — provided you invest with a clear plan, stay diversified, and think long term.
Also Read – How Zepto Won the 10-Minute Delivery Race
