HDFC Mutual Fund, one of India’s largest fund houses, has delivered impressive returns in the last five years. Seven of its equity mutual fund schemes have multiplied investor wealth by up to five times during this period.
Despite market ups and downs, this growth has happened, and many of these funds have consistently outperformed their benchmarks. According to data, these equity funds have offered annual average returns ranging from 31% to 38% over five years.
Look at these top-performing HDFC Mutual Fund equity schemes and understand how they created wealth for long-term investors.
HDFC Infrastructure Fund Leads the List with 38% Average Annual Return
Among all the top schemes, the HDFC Infrastructure Fund – Direct Plan gave the highest return of 38.17% on average per year over five years. A Rs. 1 lakh lump sum investment in this fund in 2019 would be worth over Rs. 5 lakh today.
This growth shows the power of long-term investing in high-growth sectors like infrastructure. Despite being rated 3 stars by Value Research, the fund has rewarded investors handsomely.
HDFC Small Cap and Mid Cap Funds Also Perform Strongly
The HDFC Small Cap Fund – Direct Plan also delivered exceptional results. It gave an average return of 37.36% annually in the last five years. A Rs. 1 lakh investment would have grown to around Rs. 4.89 lakh.
The HDFC Mid-Cap Opportunities Fund – Direct Plan followed closely and gave a 35.23% annual return. The value of Rs. 1 lakh invested five years ago would now be Rs. 4.52 lakh. Interestingly, this fund holds a 5-star rating from Value Research, indicating its solid management and long-term track record.
HDFC Focused 30, and Flexi Cap Funds Maintain Consistent Growth
The HDFC Focused 30 Fund – -Direct Plan gave an average annual return of 33.60% in five years. It turned a Rs. 1 lakh investment into Rs. 4.26 lakh. This fund also holds a 5-star rating.
Meanwhile, HDFC Flexi Cap Fund – Direct Plan gave a return of 32.85% per year, with Rs. 1 lakh growing to Rs. 4.14 lakh. It’s also backed by a 5-star rating, showing investor confidence and reliable performance.
HDFC Large and Mid Cap Fund Shows Steady Performance
HDFC Large and Mid Cap Fund – Direct Plan offered 31.66% annual returns over five years. Investors who put Rs. 1 lakh in this fund saw their money grow to Rs. 3.96 lakh. The fund carries a 4-star rating, making it a good mix of large and mid-cap opportunities with slightly lower volatility than pure small or mid-cap funds.
HDFC Retirement Savings Equity Plan Offers Long-Term Wealth Creation
The HDFC Retirement Savings Fund – Equity Plan (Direct) is designed for long-term investors, especially those planning for retirement. It gave a 31.17% average annual return in the last five years. A Rs. 1 lakh investment would have grown to Rs. 3.88 lakh. With a 5-star rating, this fund proves that long-term disciplined investing works.
SIPs Can Help Reduce Risk and Build Wealth Slowly
While these numbers are based on lump sum investments, financial experts suggest that Systematic Investment Plans (SIPs) are safer and more practical for most investors. SIPs help reduce the impact of market volatility and average the cost over time.
Investors with low to moderate risk appetite should avoid chasing returns. Instead, they should focus on long-term goals, risk tolerance, and proper fund selection. SIPs in 4- or 5-star rated funds with consistent past performance can build wealth over time.
Essential Things to Know Before You Invest in Equity Funds
All mutual fund investments carry market risks, and past returns do not guarantee future performance. Equity funds are more volatile than debt funds but offer better returns over the long term.
Here are a few points investors must remember:
- Returns may vary: Just because a fund performed well in the past doesn’t mean it will always give the same return.
- Risk level: All top-performing HDFC equity schemes are hazardous. Investors should stay invested for 5–7 years to reduce risk.
- Fund ratings help: Star ratings from agencies like Value Research give a general idea of the fund’s consistency and management. Most of the top HDFC funds have 4 or 5-star ratings.
- Diversification matters: Avoid putting all money in one fund. Diversify across large-cap, mid-cap, and flexi-cap funds to balance return and risk.
- Check fund manager experience: Experienced fund managers often guide funds through volatile markets better. Industry veterans handle many HDFC funds.
Investors Can Use This Data to Plan Long-Term Wealth Goals
These returns show how long-term investing in good equity mutual funds can multiply wealth. A single investment of Rs. 1 lakh in a high-performing scheme like HDFC Infrastructure Fund has now become more than Rs. 5 lakh.
Even if investors start with SIPs of Rs. 2,000 or Rs. 5,000 per month, they can build substantial wealth over 10–15 years. With India’s economy growing and markets expanding, equity mutual funds remain a powerful tool for wealth creation.
Disclaimer: Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully before investing. Past performance is not a guarantee of future returns. Consult a financial advisor before making any investment decisions.
Source: Financial Express, Value Research
