Top 5 HDFC mutual funds: Up to 114% absolute returns in just 3 years; Rs 10 lakh becomes Rs 20 lakh

HDFC Mutual Fund is a trusted name among investors investing in mutual funds. Many of its funds have given excellent returns in the last few years. Especially over the last three years, as many as 11 HDFC Mutual Fund schemes have delivered an annual compounded return of more than 20% to investors.

Interestingly, one of these schemes has doubled the investors’ money in just three years. The remaining funds have also demonstrated consistent performance, consistently beating their respective benchmarks and category averages. In such a situation, investors would like to know which are these top HDFC funds that have shone the most in recent years.

Top 5 HDFC mutual funds with returns ranging 23% to 28.90% in 3 years

1. HDFC Infrastructure Fund

HDFC Infrastructure Fund was launched in January 2013. The fund has given 12.92% returns since inception. It tracks the BSE India Infrastructure TRI as its benchmark and falls under the ‘Very High’ risk category. Being an open-ended scheme, it manages assets worth Rs 2,540 crore as of July 31, 2025, with an expense ratio of 1.08%.

HDFC Infrastructure Fund’s 3-year return

Over the last three years, HDFC Infrastructure Fund has delivered a strong return of 28.90%. Its return is better than benchmark BSE India Infrastructure TRI, which gave 27.17% in the same period. It has also outperformed the broader category average of sectoral-infrastructure funds, which returned 24.60%.

At this rate of return, a lump sum investment of Rs 1 lakh would have turned into Rs 2.14 lakh in 3 years. The fund has given an absolute return of 114.34% during this 3-year period.

2. HDFC Mid Cap Fund

HDFC Mid Cap Fund, launched in January 2013, is an open-ended scheme from HDFC Mutual Fund. Since inception, it has delivered 21.08% returns and tracks the NIFTY Midcap 150 TRI as its benchmark. Classified under the ‘Very High’ risk category, the fund manages assets worth Rs 83,847 crore as of July 31, 2025, with a relatively low expense ratio of 0.74%.

HDFC Mid Cap Fund’s 3-year return

In the last three years, HDFC Mid Cap Fund has delivered a return of 26.11%, outperforming both its benchmark NIFTY Midcap 150 TRI at 22.36% and the category average of mid-cap funds at 21.39%. This shows the fund’s ability to generate consistent alpha over the medium term.

A lump sum investment of Rs 1 lakh made three year ago in this fund would be worth now Rs 2 lakh. Its absolute return in 3 years stood at 100.69%.

3. HDFC Small Cap Fund

HDFC Small Cap Fund, launched in January 2013, is an open-ended scheme from HDFC Mutual Fund. Since inception, it has delivered 20.01% annualised returns and tracks the BSE 250 SmallCap TRI as its benchmark. Categorised under the ‘Very High’ risk segment, the fund manages assets worth ₹36,353 crore as of July 31, 2025, with an expense ratio of 0.71%.

HDFC Small Cap Fund’s 3-year return

Over the last three years, HDFC Small Cap Fund has delivered a return of 24.34%, outperforming both its benchmark BSE 250 SmallCap TRI at 21.76% and the small-cap fund category average of 21.75%. This shows the fund’s consistent ability to stay ahead of peers and its benchmark in the medium term.

A lump sum investment of Rs 1 lakh would have turned into Rs 1.92 lakh in this fund by now if invested 3 years ago. Its absolute return is 92.34% during this period.

4. HDFC Focused Fund

HDFC Focused Fund, launched in January 2013, is an open-ended scheme from HDFC Mutual Fund. Since inception, it has delivered 15.93% annualised returns and follows the NIFTY 500 TRI as its benchmark. Classified under the ‘Very High’ risk category, the fund manages assets worth ₹21,456 crore as of July 31, 2025, with a low expense ratio of 0.59%.

HDFC Focused Fund’s 3-year return

In the past three years, HDFC Focused Fund has delivered an impressive return of 23.94%, significantly outperforming its benchmark NIFTY 500 TRI at 15.36% and the flexi-cap category average of 17.09%. This reflects the fund’s strong stock-picking ability and focused investment strategy.

In this fund, a lump sum investment of Rs 1 lakh would be worth now Rs 1.90 lakh in 3 years. The fund’s absolute return is 90.50% in 3 years.

5. HDFC Flexi Cap Fund

HDFC Flexi Cap Fund, launched in January 2013, is an open-ended scheme from HDFC Mutual Fund. Since inception, it has delivered 17.04% annualised returns and uses the NIFTY 500 TRI as its benchmark. Falling under the ‘Very High’ risk category, the fund manages assets worth ₹80,642 crore as of July 31, 2025, with an expense ratio of 0.72%.

HDFC Flexi Cap Fund’s 3-year return

Over the last three years, HDFC Flexi Cap Fund has delivered a return of 23.09%, well ahead of its benchmark NIFTY 500 TRI at 15.36% and the flexi-cap category average of 17.09%. This shows the fund’s ability to consistently outperform the broader market and its peers.

An investment of Rs 1 lakh made three years ago would have become Rs 1.86 lakh now. Its absolute return is 86.60% in this period.

(Data source: Value Research)

Past returns are not future guarantees

However, it is not wise to take investment decisions only by looking at returns. While investing in mutual funds, investors should also pay attention to other parameters such as the risk level of the fund, expense ratio, track record of the fund manager, quality of the portfolio and the goals and duration of your investment.

Remember that past returns are not a guarantee of future returns. The right strategy and patience make the investment successful in the long run.