10 Mutual Funds That Gave 108% to 131% Returns in Final 3 Years (Might-26 Replace)

Might 2026 has as soon as once more highlighted how sure mutual fund classes can create distinctive wealth throughout beneficial market cycles. Traders who stayed invested in choose small cap, PSU, infrastructure, healthcare, and midcap mutual funds over the past three years have seen their investments greater than double.

A number of mutual funds generated large 3-year returns ranging between 108% and 131% in cumulative phrases. Curiously, PSU funds, infrastructure funds, healthcare funds, and small cap funds dominated this record.

Nevertheless, buyers ought to do not forget that such extraordinary returns usually include excessive volatility and market threat. Funds that outperform sharply throughout bull phases may witness steep corrections throughout weak market situations.

On this article, we are going to assessment 10 mutual funds that delivered distinctive 3-year returns as of Might-2026, together with their funding goals, threat components, suitability, and our view.

Discover – Prime 5 Finest Flexi Cap Funds for 2026 primarily based on Rolling Returns

How We Filtered These Mutual Funds?

• We thought of solely fairness mutual funds
• Included small cap, midcap, PSU, healthcare, infrastructure, and value-oriented funds
• Excluded worldwide/world mutual funds
• Chosen funds with highest 3-year returns
• Included Direct Plans for consistency
• Knowledge thought of as of 12-Might-2026

10 Mutual Funds That Gave 108% to 131% Returns in Final 3 Years

Right here is the record of high performing mutual funds primarily based on 3-year returns.

1) Bandhan Small Cap Fund

Fund Goal

This fund invests predominantly in small cap corporations which have robust development potential and rising enterprise alternatives.

Annualised Returns

• 1 Month: 8.0%
• 3 Months: 4.1%
• 6 Months: 2.9%
• 1 12 months: 20.2%
• 3 Years: 32.2% (₹ 1 Lakh would have grow to be roughly ₹ 2.30 Lakhs)
• 5 Years: 24.5%

Who Can Make investments?

• Aggressive buyers
• Traders with funding horizon of 5+ years
• Traders in search of high-growth alternatives

Danger Components

• Very excessive volatility on account of small cap publicity
• Liquidity dangers throughout market corrections
• Sharp drawdowns attainable in bearish markets

My View

Bandhan Small Cap Fund has generated spectacular long-term returns within the final three years. Nevertheless, small cap funds could be extraordinarily risky and buyers ought to choose SIP investments as a substitute of lump sum investments.

2) SBI PSU Fund

Fund Goal

The fund invests primarily in public sector undertakings (PSUs) throughout sectors aiming for long-term capital appreciation.

Annualised Returns

• 1 Month: -0.2%
• 3 Months: -3.3%
• 6 Months: 4.2%
• 1 12 months: 18.2%
• 3 Years: 31.2% (₹ 1 Lakh would have grow to be roughly ₹ 2.26 Lakhs)
• 5 Years: 25.4%
• 10 Years: 16.6%

Who Can Make investments?

• Traders with excessive threat urge for food
• Traders bullish on PSU sector development
• Lengthy-term buyers

Danger Components

• Sector focus dangers
• Authorities policy-related dangers
• PSU shares could be cyclical in nature

My View

PSU funds have delivered distinctive returns in the previous couple of years on account of robust rally in defence, railway, and energy-related PSU shares. Traders ought to keep away from overexposure to thematic sectors.

3) Motilal Oswal BSE Enhanced Worth Index Fund

Fund Goal

This index fund follows a price investing strategy by investing in basically robust shares accessible at enticing valuations.

Annualised Returns

• 1 Month: 0.1%
• 3 Months: -7.8%
• 6 Months: 0.7%
• 1 12 months: 18.8%
• 3 Years: 30.5% (₹ 1 Lakh would have grow to be roughly ₹ 2.22 Lakhs)

Who Can Make investments?

• Traders preferring passive investing
• Traders looking for value-oriented methods
• Reasonable to aggressive buyers

Danger Components

• Market corrections can influence worth shares
• Index focus dangers
• Cyclical underperformance attainable

My View

Worth investing methods are likely to carry out nicely throughout particular market cycles. Traders in search of passive investing with worth tilt could take into account such funds.

Discover extra on 10 Mutual Funds That Gave 14% to 67% Returns in 3 Months (Might-26 Replace)

4) LIC MF Infrastructure Fund

Fund Goal

The fund invests in infrastructure-related corporations together with capital items, building, power, and engineering sectors.

Annualised Returns

• 1 Month: 6.3%
• 3 Months: 4.2%
• 6 Months: 6.1%
• 1 12 months: 23.6%
• 3 Years: 29.7% (₹ 1 Lakh would have grow to be roughly ₹ 2.18 Lakhs)
• 5 Years: 26.1%
• 10 Years: 18.6%

Who Can Make investments?

• Traders snug with sectoral publicity
• Lengthy-term buyers
• Excessive threat buyers

Danger Components

• Sector focus threat
• Financial slowdown can influence infrastructure spending
• Cyclical earnings volatility

My View

Infrastructure theme has carried out nicely on account of elevated authorities spending and capital expenditure. Nevertheless, sectoral funds could be extremely risky throughout financial slowdowns.

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5) ICICI Prudential Pharma Healthcare and Diagnostics (P.H.D) Fund

Fund Goal

The scheme invests in pharmaceutical, healthcare, hospitals, and diagnostics corporations.

Annualised Returns

• 1 Month: 9.7%
• 3 Months: 8.1%
• 6 Months: 4.1%
• 1 12 months: 14.5%
• 3 Years: 29.2% (₹ 1 Lakh would have grow to be roughly ₹ 2.16 Lakhs)
• 5 Years: 17.0%

Who Can Make investments?

• Traders looking for healthcare sector publicity
• Aggressive buyers
• Traders with long-term horizon

Danger Components

• Sector-specific dangers
• Regulatory dangers in pharma business
• Forex fluctuations could influence export-oriented corporations

My View

Healthcare sector has proven resilience throughout unsure market situations. Nevertheless, buyers ought to restrict allocation to sectoral funds inside their diversified portfolio.

6) Invesco India PSU Fairness Fund

Fund Goal

This fund invests in fairness and equity-related devices of public sector corporations.

Annualised Returns

• 1 Month: 1.3%
• 3 Months: -1.7%
• 6 Months: 0.6%
• 1 12 months: 16.0%
• 3 Years: 29.1% (₹ 1 Lakh would have grow to be roughly ₹ 2.15 Lakhs)
• 5 Years: 24.9%
• 10 Years: 19.5%

Who Can Make investments?

• Traders with excessive threat urge for food
• Traders bullish on PSU themes
• Lengthy-term buyers

Danger Components

• Concentrated sector publicity
• Coverage and regulatory dangers
• Excessive volatility in PSU shares

My View

PSU-focused funds have created robust wealth in recent times. Nevertheless, buyers ought to perceive that sectoral rallies could not maintain without end.

7) Aditya Birla Solar Life PSU Fairness Fund

Fund Goal

The scheme primarily invests in public sector endeavor corporations throughout sectors.

Annualised Returns

• 1 Month: 2.4%
• 3 Months: -1.4%
• 6 Months: 5.9%
• 1 12 months: 18.6%
• 3 Years: 28.9% (₹ 1 Lakh would have grow to be roughly ₹ 2.14 Lakhs)
• 5 Years: 25.9%

Who Can Make investments?

• Aggressive buyers
• Traders looking for thematic publicity
• Lengthy-term buyers

Danger Components

• Excessive dependence on authorities insurance policies
• Focus dangers
• Sectoral volatility

My View

This fund has benefited from the sharp rally in PSU shares over the previous couple of years. Traders ought to keep away from placing massive allocation in single-theme funds.

8) HSBC Midcap Fund

Fund Goal

The fund invests in midcap corporations throughout sectors with concentrate on growth-oriented companies.

Annualised Returns

• 1 Month: 8.0%
• 3 Months: 6.4%
• 6 Months: 8.5%
• 1 12 months: 26.6%
• 3 Years: 28.3% (₹ 1 Lakh would have grow to be roughly ₹ 2.11 Lakhs)
• 5 Years: 20.6%
• 10 Years: 18.8%

Who Can Make investments?

• Reasonable to excessive threat buyers
• Traders looking for long-term wealth creation
• Traders in search of high quality midcap publicity

Danger Components

• Midcap valuation dangers
• Larger volatility in comparison with massive cap funds
• Earnings slowdown can influence efficiency

My View

HSBC Midcap Fund has proven comparatively constant efficiency throughout a number of durations. Midcap funds can provide a steadiness between development and stability in comparison with small cap funds.

Discover – Prime Performing Midcap Mutual Funds in India

9) ITI Small Cap Fund

Fund Goal

This fund invests in rising small cap companies with long-term development alternatives.

Annualised Returns

• 1 Month: 10.6%
• 3 Months: 8.8%
• 6 Months: 5.9%
• 1 12 months: 20.3%
• 3 Years: 28.3% (₹ 1 Lakh would have grow to be roughly ₹ 2.11 Lakhs)
• 5 Years: 19.5%

Who Can Make investments?

• Excessive threat buyers
• Lengthy-term SIP buyers
• Traders looking for aggressive development

Danger Components

• Small cap volatility
• Liquidity issues throughout corrections
• Sharp drawdowns attainable throughout bearish phases

My View

ITI Small Cap Fund has generated robust returns in recent times. Traders ought to ideally make investments by means of SIP mode to handle volatility threat higher.

10) SBI Healthcare Alternatives Fund

Fund Goal

The scheme invests predominantly in healthcare, pharmaceutical, biotechnology, and diagnostics corporations.

Annualised Returns

• 1 Month: 9.2%
• 3 Months: 9.4%
• 6 Months: 7.6%
• 1 12 months: 13.1%
• 3 Years: 27.9% (₹ 1 Lakh would have grow to be roughly ₹ 2.09 Lakhs)
• 5 Years: 16.9%
• 10 Years: 14.1%

Who Can Make investments?

• Traders looking for sector-specific publicity
• Aggressive buyers
• Lengthy-term buyers

Danger Components

• Sector focus threat
• Regulatory and pricing dangers
• Export-related uncertainties

My View

Healthcare funds can present diversification throughout unsure financial situations. Nevertheless, sector funds ought to kind solely a restricted portion of an investor’s portfolio.

Discover – 10 Mutual Funds That Gave 23% to 34% Returns in Final 1 12 months (Might-26 Replace)

Prime Performing Mutual Funds Primarily based on 3-12 months Returns

Abstract of Mutual Fund Efficiency

• PSU funds dominated the 3-year efficiency chart
• Small cap funds continued to generate robust long-term returns
• Infrastructure and healthcare themes carried out nicely
• Midcap funds confirmed robust consistency throughout durations
• Sectoral and thematic funds carry greater volatility dangers
• SIP investing stays a greater technique for risky classes

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Conclusion

The final three years have been extremely rewarding for buyers in PSU, small cap, infrastructure, and healthcare mutual funds. A number of schemes greater than doubled investor wealth throughout this era.

Nevertheless, buyers ought to keep away from investing purely primarily based on previous returns. Many of those classes are extremely risky and might witness steep corrections throughout weak market situations.

Traders ought to align mutual fund investments with their monetary objectives, threat urge for food, and funding horizon. Diversification throughout classes together with disciplined SIP investing might help handle market volatility successfully.

Disclaimer: Mutual fund investments are topic to market dangers. Please learn all scheme-related paperwork rigorously earlier than investing.

Suresh KP is a seasoned monetary skilled with over 23 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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