Top 5 mutual funds in India by AUM: Returns comparison over 1, 3 and 5 years

India's top 5 biggest mutual funds by AUM: Which one delivered better returns? (AI-Generated Image)AI Quick ReadIndia's biggest mutual fund schemes manage several lakh crores of investors' money. The country's biggest scheme by assets under management (AUM), Parag Parikh Flexi Cap Fund, manages over ₹1.41 lakh crore, followed by HDFC Balanced Advantage Fund.

But does the biggest fund also deliver the best returns? Here’s a look at how the top five mutual funds by AUM have performed over the past one, three, and five years.

Assets Under Management (AUM) refers to the total market value of the investments managed by a mutual fund scheme. A higher AUM generally reflects a larger investor base and the fund's popularity.

Here is the list of the top 5 funds by AUM.

*AUM as on 31 May, 2026, Direct Plans, Source: Value Research

Parag Parikh Flexi Cap Fund is the country's largest mutual fund scheme, with an AUM of ₹1.41 lakh crore, making it the only scheme on this list to cross ₹1.4 lakh crore.

It is followed by HDFC Balanced Advantage Fund with an AUM of ₹1.04 lakh crore, while HDFC Flexi Cap Fund ranks third at ₹1.02 lakh crore.

HDFC Mid Cap Fund occupies the fourth spot with assets of ₹97,350 crore, and ICICI Prudential Multi Asset Fund comes last with an AUM of ₹84,165 crore.

* CAGR Returns as on 1 July, 2026, Direct Plans, Source: Value Research

If you had invested ₹1 lakh in Parag Parikh Flexi Cap Fund one year ago, your investment would have fallen to around ₹96,700. On the other hand, ICICI Prudential Multi Asset Fund delivered the highest one-year return among these five funds, taking your ₹1 lakh investment to ₹1,05,840.

Over the last three years, Parag Parikh Flexi Cap Fund delivered the lowest CAGR among the five at 14.62%. In comparison, HDFC Mid Cap Fund posted the highest three-year CAGR of 20.62%.

Over the last five years, Parag Parikh Flexi Cap Fund again had the lowest CAGR at 14.65%. The highest five-year return came from HDFC Mid Cap Fund, which generated a 20.69% CAGR.

Among the five, ICICI Prudential Multi Asset Fund delivered the highest return over the last year, while HDFC Mid Cap Fund gave the highest returns over the last 3 and 5 years.

A higher AUM generally indicates strong investor participation and sustained inflows, but it should not be the sole factor while selecting a mutual fund.

Investors can also evaluate the fund's long-term performance, investment strategy, risk profile, and expense ratio, and check whether it aligns with their financial goals before making an investment decision.