Best Mutual Funds for 5 Years in India (2026)
Live · updated 2026-09-16 Ranked by data, refreshed from daily NAVs
Instead of one lucky 5-year window, these funds are ranked by their median return across every 5-year holding period in their history - the honest way to judge a 5-year horizon. This page is recomputed from NAV data every day, so it cannot go stale, and every fund on it links to a full research page with returns, risk, SIP outcomes, holdings and manager track record.
Five years is the awkward middle of investment horizons - long enough that pure debt feels wasteful, short enough that a badly-timed equity entry may not recover. The right lens for this horizon is not last year's winners but a harder question: across every possible 5-year window in a fund's history, what did investors typically get, and how bad was the unluckiest window?
That is exactly how this list is ranked - by median 5-year rolling returns across each fund's full history, so no single lucky window can flatter a fund. Look at the worst-fall column alongside: a fund you would abandon in year two at a 40% loss never delivers its year-five numbers to you. For genuinely five-year money, many investors blend a fund from this list with a hybrid or debt component rather than going all-equity.
Tap any column heading to sort. Every fund name links to its full review.
| # | Fund | RS | King | 3M | 6M | 1Y | 3Y CAGR | 5Y CAGR | 10Y CAGR | Sharpe | Roll 3Y | Worst fall |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | BANK OF INDIA Small Cap Fund | 99 | 79 | 8.5% | 39.1% | 24.3% | 20.7% | 19.4% | n/a | 0.72 | 29.9% | -32.4% |
| 2 | ICICI Prudential Commodities Fund | 32 | 60 | -5.2% | 3.9% | 6.8% | 13.4% | 13.5% | n/a | 0.34 | 23.0% | -41.2% |
| 3 | Bandhan Small Cap Fund | 59 | 87 | 5.3% | 21.4% | 9.8% | 23.9% | 19.1% | n/a | 0.94 | 31.3% | -24.3% |
| 4 | Edelweiss Small Cap Fund | 37 | 69 | 3.3% | 16.2% | 6.9% | 14.5% | 16.4% | n/a | 0.48 | 28.6% | -37.1% |
| 5 | Aditya Birla Sun Life PSU Equity Fund | 40 | 70 | -2.9% | 0.4% | 9.7% | 18.7% | 22.2% | n/a | 0.52 | 32.8% | -33.8% |
| 6 | Tata Small Cap Fund | 45 | 47 | 6.4% | 22.1% | -1.9% | 11.6% | 14.9% | n/a | 0.28 | 29.4% | -36.6% |
| 7 | Invesco India Smallcap Fund | 66 | 86 | 6.4% | 22.3% | 14.0% | 22.2% | 19.6% | n/a | 0.83 | 28.7% | -37.7% |
| 8 | Canara Robeco Small Cap Fund | 28 | 55 | 3.3% | 16.2% | 4.7% | 11.9% | 14.4% | n/a | 0.32 | 29.8% | -36.2% |
| 9 | ICICI Prudential India Opportunities Fund | 22 | 66 | -1.9% | 1.3% | -1.1% | 12.9% | 16.9% | n/a | 0.51 | 26.7% | -40.1% |
| 10 | ICICI Prudential Manufacturing Fund | 53 | 74 | -1.3% | 9.7% | 6.3% | 18.4% | 18.2% | n/a | 0.7 | 26.2% | -37.6% |
| 11 | Motilal Oswal Large and Midcap Fund | 96 | 88 | 2.9% | 15.6% | 7.8% | 21.1% | 18.0% | n/a | 0.73 | 27.4% | -37.4% |
| 12 | Mirae Asset Midcap Fund | 82 | 62 | 3.7% | 12.8% | 7.9% | 15.1% | 14.8% | n/a | 0.51 | 24.0% | -37.4% |
| 13 | Mahindra Manulife Mid Cap Fund | 46 | 73 | -2.0% | 10.7% | 7.7% | 16.8% | 17.1% | n/a | 0.58 | 25.8% | -33.1% |
| 14 | DSP Healthcare Fund | 90 | 75 | 8.1% | 23.0% | 13.8% | 20.8% | 14.7% | n/a | 1.03 | 22.9% | -21.7% |
| 15 | Tata Digital India Fund | 38 | 19 | 5.4% | 5.4% | -12.8% | 4.0% | 3.0% | 17.5% | -0.11 | 20.9% | -33.3% |
This list returns: 1 month to 10 years𝕏 Share this statWhatsApp
Over the last 1 year, the funds on this list averaged 2.3% - the best, Franklin Asian Equity Fund, returned 33.0% while the weakest managed -19.4%. That spread is why picking within the funds on this list matters. Over 10 years the average compounding rate is 13.0% a year, which turned ₹1 lakh into about ₹339,500.
| Period | Average | Median | Best fund | Weakest |
|---|---|---|---|---|
| 1 month | -3.2% | -3.6% | Bandhan Focused Fund (2.0%) | -7.2% |
| 3 months | 1.0% | 0.6% | Axis Innovation Fund (12.4%) | -5.7% |
| 6 months | 7.0% | 4.8% | BANK OF INDIA Small Cap Fund (39.1%) | -4.4% |
| 1 year | 2.3% | 2.4% | Franklin Asian Equity Fund (33.0%) | -19.4% |
| 3 years (CAGR) | 11.6% | 10.9% | Bandhan Small Cap Fund (23.9%) | -3.6% |
| 5 years (CAGR) | 11.3% | 11.1% | SBI PSU Fund (22.4%) | -2.3% |
| 10 years (CAGR) | 13.0% | 13.3% | Nippon India Small Cap Fund (20.9%) | -0.5% |
Averages across every qualifying fund, refreshed daily. Best-fund links open that fund's full review.
What ₹1 lakh became
The same returns, translated into money - at the average pace and at the best fund's pace:
| Held for | Average pace | ₹1 lakh → (average) | ₹1 lakh → (best fund) |
|---|---|---|---|
| 1 year | 2.3% a year | ₹102,300 | ₹133,000 |
| 3 years | 11.6% a year | ₹139,000 | ₹190,200 |
| 5 years | 11.3% a year | ₹170,800 | ₹274,700 |
| 10 years | 13.0% a year | ₹339,500 | ₹667,200 |
Pre-tax, from historical returns. The averages smooth over a very bumpy ride - see the worst-fall column in the ranking above for what the journey involved.
This list by the numbers
| Funds that qualify | 399 |
| Combined assets | ₹4,343,503 Cr |
| Average 3-year return | 11.6% a year (best 23.9%, weakest -3.6%) |
| Average 5-year return | 11.3% a year |
| Average worst-ever fall | -32.0% (deepest: -64.8%) |
| Average expense ratio (Direct) | 0.79% |
| Largest fund by assets | Parag Parikh Flexi Cap Fund (₹141,446 Cr) |
Put the risk number in rupees: at the average worst fall of -32.0%, ₹1 lakh temporarily becomes about ₹68,000. That is the stretch every ranked fund's investors had to sit through at some point - the ranking rewards the funds that made that wait worthwhile.
Momentum check: what is hot right now
As of 2026-09-16, 48 of the 399 funds here rate RS 90 or above (top-decile recent momentum versus peers). The strongest momentum belongs to Nippon India Conservative Hybrid Fund (RS 99/99). Average return over the last 3 months: 1.0%; over 6 months: 7.0%. Momentum is a snapshot, not a ranking criterion here - but it tells you whether this corner of the market is currently in favour.
Before you pick a fund for a 5-year horizon: four checks
- Look up each fund's worst 5-year window on its page - that is your realistic downside for a hard 5-year deadline.
- Prefer funds whose median and worst windows sit close together: a tight range means dependable, not lucky.
- Check the drawdown column - a fund you would abandon mid-way never delivers its 5-year numbers to you.
- For money with a fixed end date, consider how much of it belongs in equity at all - no ranking fixes an allocation mismatch.
Filter the entire Indian mutual fund universe by 40+ metrics - returns, consistency, drawdown, RS Rating, King Score, cost - then chart, compare and backtest anything you find.
How to read the table
RS (1-99) is recent momentum versus category peers - 99 is the hottest right now. King (0-100) is the long-term quality composite this list is ranked by. 3M/6M are recent returns; 3Y and 5Y CAGR are annualised longer records. Sharpe is return earned per unit of volatility - higher means smoother compounding. Roll 3Y is the median of every 3-year holding period in the fund's history, the fairest single return number a fund has. Worst fall is the deepest peak-to-bottom loss ever - the number that tests whether you would have stayed invested. Missing values show as n/a, usually because the fund is too young for that measurement.
The top 10, decoded𝕏 Share this statWhatsApp
- BANK OF INDIA Small Cap Fund (Small Cap Fund) - King Score 79/100, RS 99/99 right now. 3-year return 20.7% a year, against a worst-ever fall of 32.4% (₹1 lakh briefly ₹67,600). 5-year pace 19.4% a year, median 3-year rolling return 29.9%, sharpe 0.72.
- ICICI Prudential Commodities Fund (Sectoral/ Thematic) - King Score 60/100, RS 32/99 right now. 3-year return 13.4% a year, against a worst-ever fall of 41.2% (₹1 lakh briefly ₹58,800). 5-year pace 13.5% a year, median 3-year rolling return 23.0%, sharpe 0.34.
- Bandhan Small Cap Fund (Small Cap Fund) - King Score 87/100, RS 59/99 right now. 3-year return 23.9% a year, against a worst-ever fall of 24.3% (₹1 lakh briefly ₹75,700). 5-year pace 19.1% a year, median 3-year rolling return 31.3%, sharpe 0.94.
- Edelweiss Small Cap Fund (Small Cap Fund) - King Score 69/100, RS 37/99 right now. 3-year return 14.5% a year, against a worst-ever fall of 37.1% (₹1 lakh briefly ₹62,900). 5-year pace 16.4% a year, median 3-year rolling return 28.6%, sharpe 0.48.
- Aditya Birla Sun Life PSU Equity Fund (Sectoral/ Thematic) - King Score 70/100, RS 40/99 right now. 3-year return 18.7% a year, against a worst-ever fall of 33.8% (₹1 lakh briefly ₹66,200). 5-year pace 22.2% a year, median 3-year rolling return 32.8%, sharpe 0.52.
- Tata Small Cap Fund (Small Cap Fund) - King Score 47/100, RS 45/99 right now. 3-year return 11.6% a year, against a worst-ever fall of 36.6% (₹1 lakh briefly ₹63,400). 5-year pace 14.9% a year, median 3-year rolling return 29.4%, sharpe 0.28.
- Invesco India Smallcap Fund (Small Cap Fund) - King Score 86/100, RS 66/99 right now. 3-year return 22.2% a year, against a worst-ever fall of 37.7% (₹1 lakh briefly ₹62,300). 5-year pace 19.6% a year, median 3-year rolling return 28.7%, sharpe 0.83.
- Canara Robeco Small Cap Fund (Small Cap Fund) - King Score 55/100, RS 28/99 right now. 3-year return 11.9% a year, against a worst-ever fall of 36.2% (₹1 lakh briefly ₹63,800). 5-year pace 14.4% a year, median 3-year rolling return 29.8%, sharpe 0.32.
- ICICI Prudential India Opportunities Fund (Sectoral/ Thematic) - King Score 66/100, RS 22/99 right now. 3-year return 12.9% a year, against a worst-ever fall of 40.1% (₹1 lakh briefly ₹59,900). 5-year pace 16.9% a year, median 3-year rolling return 26.7%, sharpe 0.51.
- ICICI Prudential Manufacturing Fund (Sectoral/ Thematic) - King Score 74/100, RS 53/99 right now. 3-year return 18.4% a year, against a worst-ever fall of 37.6% (₹1 lakh briefly ₹62,400). 5-year pace 18.2% a year, median 3-year rolling return 26.2%, sharpe 0.7.
Frequently asked questions
Which is the best fund for a 5-year horizon right now?
On our data-driven ranking as of 2026-09-16, BANK OF INDIA Small Cap Fund scores highest (King Score 79/100). That is a description of its record versus peers, not a recommendation - rankings move as NAVs update, and the right fund depends on your goals and risk tolerance.
Why rank by rolling returns instead of recent returns?
Because recent returns depend on one start date - yours. Rolling returns test every start date in a fund's history: the median across all 5-year windows is what a typical investor actually got, not what one lucky entry got. A fund at the top of this list delivered for most of its investors, not just the well-timed ones.
What if I need the money in exactly 5 years?
Then the worst window matters more than the median. Across these funds' histories, individual 5-year windows have varied enormously - check each fund's rolling section for its worst 5-year outcome, and consider whether an all-equity choice fits money with a hard deadline. Many investors de-risk the final two years regardless of fund choice.
What is the average 1-year return of fund for a 5-year horizons right now?
As of 2026-09-16, the 399 qualifying funds averaged 2.3% over the last year (median 2.4%). The best, Franklin Asian Equity Fund, returned 33.0%; the weakest returned -19.4%. One year is weather, not climate - check the 5 and 10 year columns before drawing conclusions.
Which fund for a 5-year horizon gave the highest return in the last 10 years?
Nippon India Small Cap Fund leads with 20.9% a year over 10 years - ₹1 lakh became about ₹667,200 pre-tax. The average across funds with a 10-year record is 13.0% a year. A decade-long record says a lot about the past and nothing certain about the next decade.
How is this list ranked?
Equity and hybrid schemes ranked by median 5-year rolling CAGR across their full history (AUM above ₹100 crore). The full formulas are public - see our methodology page. No fund pays to be here and rankings cannot be bought.
Should I invest in the #1 fund on this list?
We cannot tell you that - MF Terminal is descriptive research, not investment advice. A top rank says the past record was strong versus peers. Read the fund's full page, check the drawdowns you would have to sit through, and decide against your own horizon.
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All figures pre-tax, from AMFI NAV history. Rankings are descriptive and change with the data. Nothing here is investment advice or a recommendation to buy, sell or hold any fund. Past performance does not guarantee future returns.