HDFC mutual funds: 5 top-rated schemes with up to 33% annual returns in 5 years — Investment grows over 4 times

HDFC Mutual Fund, one of India’s leading fund houses, has several high-performing schemes in its portfolio. As per Value Research, out of its 107 running schemes, 57 are equity-focused. In this story, we’ve shortlisted five equity mutual funds (direct plans) that have received 5-star ratings and delivered exceptional returns over 5 years. These top-rated funds have performed consistently well through both the SIP and lump sum routes. For a better perspective, we will also review the 3-year and 10-year returns of these funds.

Here are five top-rated HDFC mutual fund schemes that have delivered excellent returns on both SIP and lump sum investments over the medium to long term.

1. HDFC Mid Cap Fund

HDFC Mid Cap Fund was launched in January 2013. The mid-cap fund has delivered an impressive return of over 21% since its inception. With assets of over Rs 84,000 crore and a relatively low expense ratio of 0.75%, the fund is managed actively and comes with a “Very High” risk rating.

HDFC Mid Cap Fund’s returns on lump sum investments

Over the last 5 years, HDFC Mid Cap Fund has delivered a strong CAGR of 33.07%, outperforming its benchmark BSE 150 MidCap TRI, which gave 30.73% during the same period.

A lump sum investment of Rs 1 lakh in this fund would have turned into over Rs 4.17 lakh in just 5 years.

Even over the 3-year and 10-year periods, the fund has stayed ahead with 32.18% and 19.03% returns, respectively, compared to the benchmark’s 27.82% and 18.09%. These numbers show the fund’s consistent ability to generate solid long-term returns for patient investors.

HDFC Mid Cap Fund’s SIP returns

The fund has delivered a strong 27.99% annualised return over the last five years. At this rate of return, an SIP of Rs 10,000 started five years ago would be worth Rs 11.94 crore now.

Also read: Your smallcap fund gave 100% returns. Here are 4 reasons that might be a warning sign 

2. HDFC Focused Fund

Launched in January 2013, the fund has delivered a return of 16.12% since inception. With assets under management of over Rs 20,800 crore and a low expense ratio of 0.60%, this open-ended fund is best suited for investors who believe in focused investing. It is classified as “Very High” on the riskometer, making it ideal for those with a long-term horizon.

HDFC Focused Fund’s returns on lump sum investments

Over the last 5 years, HDFC Focused Fund has delivered a solid CAGR of 30.11%, comfortably outperforming its benchmark BSE 500 TRI, which returned 22.86% in the same period.

A lump sum investment of Rs 1 lakh in this fund five years ago would be worth Rs 3,72,865 now.

The fund has also shown strong performance over the 3-year and 10-year periods, generating 27.56% and 15.96%, respectively, compared to the benchmark’s 20.26% and 14.37%. Its focused approach has helped it maintain consistent returns for long-term investors.

HDFC Focused Fund’s SIP returns

The scheme has delivered a 26.45% annualised return, turning a Rs 10,000 monthly SIP into Rs 11.51 lakh in 5 years.

3. HDFC Flexi Cap Fund

HDFC Flexi Cap Fund was launched in January 2013. The fund has delivered a return of 17.25% since inception. With a large asset base of over Rs 79,500 crore and an expense ratio of 0.72%, it offers investors a balanced approach to equity investing. The fund carries a “Very High” risk rating and is suitable for long-term investors looking for flexible allocation across market segments.

HDFC Flexi Cap Fund’s returns on lump sum investments

Over the past 5 years, HDFC Flexi Cap Fund has delivered an impressive CAGR of 29.95%, significantly outperforming its benchmark BSE 500 TRI, which returned 22.86% during the same period.

With this rate of return, the fund would have turned a lump sum investment of Rs 1 lakh into Rs 3.70 lakh in 5 years.

The fund has also performed well over the long term, with 3-year and 10-year returns of 27.06% and 16.47% respectively, compared to the benchmark’s 20.26% and 14.37%. Its flexible investment approach across market caps has helped generate strong results for long-term investors.

HDFC Flexi Cap Fund’s SIP returns

The fund’s 5-year SIP return is 25.22% CAGR. This fund would have grown Rs 10,000 monthly SIP investment into Rs 11.18 lakh after 5 years.

Also read: Best ELSS funds: SBI vs HDFC Tax Saver Fund — Check out 20-year and 30-year returns?

4. HDFC Retirement Savings Fund Equity Plan

Launched in February 2016, the fund has delivered a strong return of 20.68% since inception. With assets under management of over Rs 6,700 crore and an expense ratio of 0.74%, this open-ended scheme suits investors with a long-term horizon who are comfortable with higher risk, as indicated by its “Very High” risk rating.

HDFC Retirement Savings Fund Equity Plan’s returns on lump sum investments

Over the last 5 years, HDFC Retirement Savings Fund Equity Plan has delivered a strong CAGR of 27.89%, beating its benchmark BSE 500 TRI, which returned 22.86% in the same period.

A lump sum investment of Rs 1 lakh in this fund would be worth Rs 3.42 lakh now after 5 years.

The fund has also maintained solid performance over the 3-year period with 23.82% returns, compared to the benchmark’s 20.26%. With no 10-year data available yet, the fund still stands out for its consistent returns, making it a suitable option for long-term retirement-focused investors.

HDFC Retirement Savings Fund Equity Plan’s SIP returns

The fund’s 5-year annualised SIP return is 22.24%. A monthly investment of Rs 10,000 in this fund started 5 years ago would have grown to Rs 10.41 lakh.

5. HDFC ELSS Tax Saver Fund

HDFC ELSS Tax Saver Fund, launched on January 1, 2013, has delivered a strong return of 15.74% CAGR since inception, outperforming over the long term while tracking the NIFTY 500 TRI as its benchmark. As of June 30, 2025, it manages assets worth Rs 16,908 crore, reflecting investor confidence. With a low expense ratio of 1.07% and a ‘Very High’ risk rating on the riskometer, this fund is suitable for long-term investors seeking tax benefits under Section 80C along with wealth creation.

HDFC ELSS Tax Saver Fund’s returns on lump sum investments

The fund has delivered an impressive 5-year CAGR of 27.25%, significantly outperforming its benchmark BSE 500 TRI, which returned 22.86% over the same period.

A lump sum investment of Rs 1 lakh made 5 years ago would have become almost Rs 3.33 lakh now.

Over the 3-year horizon, the fund generated 26.14% CAGR, while the 10-year return stands at a solid 14.55% CAGR, slightly ahead of the benchmark’s 14.37%.

HDFC ELSS Tax Saver Fund’s SIP returns

The fund has delivered an SIP return of 23.94% CAGR in 5 years, helping Rs 10,000 monthly investment to grow to Rs 10.84 lakh during this period.

(Data: Value Research)

Also read: Net equity mutual fund inflows rise 24% to Rs 23,568 crore in June 2025

Don’t go only on returns while investing

Although these funds have performed well in the medium to long term, it is not wise to take investment decisions only by looking at returns. While choosing a mutual fund, it is also important to analyse other important factors like the track record of the fund manager, assets under management, expense ratio, risk level and investment strategy of the fund.

Also, always remember that past returns are not a guarantee of future. Many factors like market movements, economic conditions and fund management strategy can affect the performance of any fund. Therefore, before investing in any scheme, definitely evaluate your financial goals, risk taking capacity and investment period.

Disclaimer: The above content is for informational purposes only. Mutual Fund investments are subject to market risks. Please consult your financial advisor before investing.