Which mutual funds can get you 26%+ returns?

We recently received a question from a reader: "I've seen some mutual funds deliver 26 per cent SIP returns in the last five years. Can I expect similar returns if I start investing now? Where should I invest for similar returns?" It's a fair question — and a familiar one. Every investor wants to grow their money faster. The good news is that there are 36 funds (including four ETFs ) that have delivered 26 per cent and above annualised SIP returns in the last five years. The bad news is that they are a small subset of the entire mutual fund universe. Unsurprisingly, most of them fall under small-cap , thematic or sector-specific categories. While the returns are genuine, they are not repeatable benchmarks. They are outcomes of specific cycles, and investors who enter late or exit early may not see the same results. So, should you bank on funds that performed well simply because they were in the right place, at the right time? We think not. What fund returns should you expect At Value Research, we believe in the power of rolling returns. Why? It's a more reliable way to understand what mutual funds typically deliver over different market phases. So, we computed five-year rolling returns on a daily basis across multiple years for each mutual fund category to see their average performance, not just in bull markets but during bear phases as well - and here's what we found: Category-wise SIP performance: What history tells us Category Average five-year SIP return (%) Suitable for Large Cap 12.20 Ideal for those new to equities or uncomfortable with market volatility. Invest only if you can stay invested for at least five years. Large & Mid Cap 13