15 Mutual Funds Delivering 3-Year Annualized Returns Above 22.5% (Data as of Sept 10, 2026)

# Quick summary Between market lows and sector rallies, several equity schemes produced unusually strong short-term performance. As of September 10, 2026, 15 mutual funds had 3-year annualized returns above 22.5%. The list mixes sectoral/thematic funds (defence, transportation, infrastructure), healthcare funds, small-cap and mid-cap funds, plus some large & mid-cap offerings.

# The top performers (3-year CAGR)

• HDFC Defence Fund: 36.93%
• HDFC Transportation and Logistics Fund: 25.48%
• ITI Small Cap Fund: 25.19% (5-year: 19.53%)
• Bandhan Small Cap Fund: 24.71% (5-year: 20.25%)

• LIC MF Healthcare Fund: 23.29% (5-year: 13.04%)
• Mirae Asset Healthcare Fund: 23.20% (5-year: 16.02%)

• Motilal Oswal Large and Midcap Fund: 22.86% (5-year: 19.17%)

• Invesco India Small Cap Fund: 22.76% (5-year: 20.62%)
• ICICI Prudential Transportation and Logistics Fund: 22.50%

Data source: NAV-based returns for Direct Plan – Growth option, as of Sept 10, 2026.

# Where outperformance is concentrated

• Sectoral/Thematic (Defence, Transportation & Logistics, Infrastructure): 4 funds
• Healthcare/Pharma: 4 funds
• Small-cap: 3 funds
• Mid-cap: 2 funds
• Large & Mid-cap: 2 funds

Healthcare and sectoral/thematic funds together account for 8 of the 15 entries, which indicates that recent gains were concentrated in a limited set of market pockets rather than spread evenly across diversified equity funds.

# What the multi-period numbers show

# Practical checks before you act

• Concentration risk: Sectoral and thematic funds invest in a narrow set of stocks and can amplify both gains and drawdowns.
• Expense ratio and fund size: Higher costs and capacity constraints can affect net investor returns, especially for small-cap and niche thematic funds.
• Past returns are not predictive: Use multi-period returns and portfolio fit rather than a single headline number.

# Bottom line A headline 3-year CAGR above 22.5% signals strong recent performance but often reflects concentrated sector or size exposures. Use the 3-, 5- and 10-year comparison where available, check fund characteristics, and factor in volatility and expense differences before reallocating capital.