5 Index Mutual Funds with Over 30% CAGR within the Final 3 Years

Traders usually understand index funds as secure and conservative selections for long-term wealth creation. Nevertheless, current information proves that some index mutual funds should not nearly passive investing — they’ve delivered distinctive returns, beating even many actively managed funds. On this article, we are going to discover into the High 5 Index Mutual Funds which have generated over 30% CAGR within the final 3 years.

Have you learnt that there are 7 mutual funds that turned ₹ 1 Lakh to ₹ 5 Lakhs in 5 years ?

What Are Index Mutual Funds?

Index mutual funds are passively managed funds that intention to copy the efficiency of a selected inventory market index just like the Nifty 50, Nifty Midcap 150, or Nifty Smallcap 50. They don’t try to outperform the index however mirror its motion by investing in the identical shares in the identical proportion.

These funds include low expense ratios, are perfect for long-term buyers, and supply returns aligned with market efficiency. With SEBI encouraging passive investing, the recognition of index funds has been on the rise.

How Did We Shortlist These Funds?

Right here’s the straightforward method we adopted to shortlist these high-performing index mutual funds:

• Thought of solely index mutual funds throughout smallcap and midcap classes.
• Filtered primarily based on 3-year CAGR efficiency.
• Chosen schemes with over 30% annualised returns within the final 3 years.

Earlier we analysed 10 CRISIL 5-Star Rated Mutual Funds to spend money on 2025.

Listing of High 5 Index Mutual Funds with Over 30% CAGR in 3 Years

Let’s take a better have a look at the 5 index mutual funds which have constantly delivered over 30% CAGR returns within the final 3 years.

*Returns are rounded off

Deep Drive into High 5 Index Mutual Funds with Over 30% CAGR in 3 Years

Now let’s do a deep dive into every of those top-performing index funds.

#1 – Aditya Birla Solar Life Nifty Smallcap 50 Index Fund

Class: Index – Smallcap

Funding Goal: The scheme goals to offer returns that carefully correspond to the efficiency of the Nifty Smallcap 50 Index, topic to monitoring errors.

Annualised Returns:

• 1 Yr: 7%
• 2 Yr: 37%
• 3 Years: 32% ₹1 Lakh Turned to: ~₹2.26 Lakhs
• 5 Years: Not Relevant

Why to Take into account: This fund affords publicity to high-growth potential smallcap corporations with minimal expense ratio and strict index-based choice. It’s excellent for aggressive buyers trying to faucet into the smallcap rally.

Dangers: Excessive volatility, cyclical nature of smallcap shares, and monitoring error.

#2 – Axis Nifty Smallcap 50 Index Fund

Class: Index – Smallcap

Funding Goal: The fund goals to copy the Nifty Smallcap 50 Index by investing in the identical proportion and shares.

Annualised Returns:

• 1 Yr: 7%
• 2 Yr: 37%
• 3 Years: 32% ₹1 Lakh Turned to: ~₹2.26 Lakhs

5 Years: Not Relevant Why to Take into account: Much like the Aditya Birla fund, this scheme provides diversified publicity to 50 smallcap corporations. The fund has gained traction resulting from India’s financial revival and investor optimism in smallcap area.

Dangers: Increased threat resulting from smaller firm shares; market downturns can impression returns sharply.

There are 13 Mutual Funds with 5 Star Ranking from Worth Analysis with over 30% CAGR within the final 5 years.

#3 – Axis Nifty Midcap 50 Index Fund

Class: Index – Midcap

Funding Goal: Goals to generate returns by investing in corporations that kind a part of the Nifty Midcap 50 Index.

Annualised Returns:

• 1 Yr: 7%
• 2 Yr: 30%
• 3 Years: 31% ₹1 Lakh Turned to: ~₹2.2 Lakhs

Why to Take into account: Midcap corporations supply a steadiness between stability and progress. This fund advantages from a rising midcap phase with comparatively decrease volatility than smallcaps.

Dangers: Nonetheless reasonably unstable and topic to market and sector dangers.

#4 – Motilal Oswal Nifty Midcap 150 Index Fund

Class: Index – Midcap

Funding Goal: The scheme seeks funding return that corresponds to the Nifty Midcap 150 Index.

Annualised Returns:

• 1 Yr: 6%
• 2 Yr: 29%
• 3 Years: 30% ₹1 Lakh Turned to: ~₹2.17 Lakhs

Why to Take into account: With broader publicity to 150 midcap shares, this fund supplies diversification inside the midcap area and has delivered sturdy constant returns in recent times.

Dangers: Publicity to giant variety of midcap shares can result in elevated monitoring error.

#5 – Aditya Birla Solar Life Nifty Midcap 150 Index Fund

Class: Index – Midcap

Funding Goal: To generate returns that carefully correspond to the efficiency of the Nifty Midcap 150 Index.

Annualised Returns:

• 1 Yr: 5%
• 2 Yr: 29%
• 3 Years: 30% ₹1 Lakh Turned to: ~₹2.17 Lakhs

Why to Take into account: A stable performer with broad-based midcap publicity. Decrease expense ratio and passive technique make it a sexy choice for long-term buyers.

Dangers: Midcap threat and potential underperformance throughout market corrections.

Take a look at our article on High 5 Mutual Funds that turned ₹ 1 Lakh to ₹ 2 Lakhs in 2 years.

Conclusion:  Whereas index funds are sometimes really helpful for conservative and long-term buyers, the above schemes have confirmed that even passive investing can ship aggressive progress — supplied you select the fitting phase.

These 5 index mutual funds with over 30% CAGR in 3 years present how smallcap and midcap index funds are thriving in India’s present financial surroundings. Traders searching for easy, low-cost, and high-performing investments can contemplate these funds primarily based on their threat profile.

One necessary factor to notice — 3 of the 5 funds come from simply two AMCs: Axis and Aditya Birla Solar Life, indicating AMC focus. Moreover, these are targeted on midcap and smallcap indices, which suggests sector/index focus. Traders might need to diversify past these to keep away from focus threat.

Bear in mind, previous efficiency just isn’t a assure of future outcomes. At all times align investments along with your monetary targets and threat tolerance.

Notice: Axis Mutual Fund was beforehand concerned in a front-running case in 2022, the place sure fund managers had been alleged to have acted on insider data. The AMC has taken corrective actions since, together with workers adjustments and inner course of enhancements. Traders ought to nonetheless keep knowledgeable about AMC-level governance as a part of their due diligence.

Suresh KP is a seasoned monetary professional with over 20 years of expertise. He’s NISM Licensed Funding Adviser and Analysis Analyst. For extra about his experience and certifications, go to About Suresh KP

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