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Around 15 equity mutual funds have provided a CAGR of more than 20 per cent on lump-sum investments in the last three, five and seven years.
Mutual Funds are subject to market risks.(Representative Image)
Mutual funds are among the best investments for a youngster to begin with, primarily because they offer key advantages like diversification, professional management and low minimum investment amounts. The longer time horizon available to young investors also allows them to take on more market risk for potentially higher returns through the power of compounding.
As you begin your investing journey, it is crucial to analyse several options to align with your financial goals by evaluating investment objectives, risk tolerance, time horizon, historical performance, risk ratios, expense ratios, and fund manager experience.
A Look At The Funds
According to an ETMutualFunds analysis, around 15 equity mutual funds have provided a CAGR of more than 20 per cent on lump-sum investments in the last three, five, and seven years. Take a look at them.
Edelweiss Mid-Cap Fund, as per the report, provided a CAGR of 25.22 per cent, 28.94 per cent and 23.04 per cent over three, five, and seven years, respectively. Four additional mid-cap funds—HDFC Mid Cap Fund, Invesco India Midcap Fund, Kotak Midcap Fund, and Mahindra Manulife Mid Cap Fund—also achieved a CAGR of more than 20 per cent during the same period.
Mahindra Manulife Multi Cap Fund, a multi-cap fund, has delivered a CAGR of 20.17 per cent over the last three years, 25.01 per cent over five years, and 20.63 per cent over seven years.
Next up is Motilal Oswal Mid Cap Fund, which delivered 26.25 per cent, 33.02 per cent and 24.46 per cent over the same time period, respectively.
Three funds from Nippon India Mutual Funds, including Nippon India Growth Mid Cap Fund, Nippon India Multi Cap Fund and Nippon India Small Cap Fund, offered over 20 per cent CAGR in the same horizons.
Parag Parikh Flexi Cap Fund, the largest active flexi-cap fund by assets, achieved CAGRs of 21.83 per cent, 22.37 per cent, and 21.01 per cent over three, five, and seven years, respectively.
Quant Small Cap Fund, Quant Mutual Fund’s largest fund, achieved CAGRs of 24.68 per cent, 33.57 per cent, and 26.50 per cent over three, five, and seven years, respectively.
SBI Contra Fund, the largest and oldest contra fund, achieved CAGRs of 20.90 per cent, 29.17 per cent, and 21.50 per cent over three, five, and seven years, respectively, whereas Sundaram Small Cap Fund also maintained a CAGR of more than 20 per cent during all three periods.
Over the last three, five, and seven years, Tata Mid Cap Fund has achieved CAGRs of 21.70 per cent, 23.97 per cent, and 20.51 per cent, respectively.
Highest and Lowest Returns
Going by the report, in the last three years, Invesco India Midcap Fund had the highest CAGR of 28.54 per cent, while Mahindra Manulife Multi Cap Fund had the lowest at 20.17 per cent. Over five years, the Quant Small Cap Fund outperformed with a CAGR of 33.57 per cent, while Parag Parikh Flexi Cap Fund had the lowest at 22.37 per cent. Across seven years, Quant Small Cap Fund produced the best CAGR of 26.50 per cent, while Sundaram Small Cap Fund produced the lowest at 20.02 per cent.
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More
Delhi, India, India
October 25, 2025, 11:32 IST
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