Introduction:
Mutual funds have become one of the most popular investment options in India due to their potential for high returns, diversification, and professional management. Among the different types of mutual funds—such as equity, debt, hybrid, and sectoral funds—equity mutual funds, in particular, have delivered impressive returns over the past year.
With the stock market's volatility, investors are constantly on the lookout for mutual funds that have generated the highest returns in the short term, especially over the last year. This article highlights the top-performing mutual funds in India over the past year, providing a comprehensive overview of each, their key attributes, and what made them stand out in terms of returns.
Why Focus on One-Year Returns?
One-year returns are often used as a benchmark for short-term performance, giving investors an idea of how well a fund has performed recently in comparison to its peers and the broader market. However, it's essential to note that past performance does not guarantee future results.
That being said, evaluating the highest return mutual funds in 1year can provide valuable insights into potential high-growth opportunities, especially in a market that has experienced both highs and lows.
Top Performing Mutual Funds in India Over the Last Year
Let’s take a look at some of the best-performing mutual funds in India based on their 1-year return. These funds have outperformed their peers and the broader market, offering a glimpse into the potential for high growth.
1. Parag Parikh Flexi Cap Fund
The Parag Parikh Flexi Cap Fund is an equity-oriented mutual fund known for its consistent performance and focus on long-term growth. Over the past year, it has delivered exceptional returns, making it one of the top performers in its category.
Key Features:
- 1-Year Return: 25%+
- Fund Type: Flexi Cap Fund
- Expense Ratio: 0.72%
- Benchmark: Nifty 500 Index
Why This Fund?
The fund's performance has been driven by its diversified portfolio across sectors and geographies. Parag Parikh’s investment approach focuses on high-quality businesses, both domestic and international, with a focus on growth. The fund also has a robust risk management framework that has helped it navigate market volatility effectively.
2. Mirae Asset Large Cap Fund
The Mirae Asset Large Cap Fund has been one of the standout performers in the large-cap equity category, providing steady returns over the last year.
Key Features:
- 1-Year Return: 23%+
- Fund Type: Large Cap Fund
- Expense Ratio: 0.51%
- Benchmark: Nifty 50 Index
Why This Fund?
Mirae Asset Large Cap Fund focuses on blue-chip stocks with high growth potential. The fund’s large-cap strategy has proven effective, particularly in a market where stable and well-established companies have been outperforming. Its strong portfolio management and focus on sector leaders have helped it provide significant returns.
3. Axis Bluechip Fund
Axis Bluechip Fund is another large-cap equity mutual fund that has seen excellent performance over the past year, delivering robust returns compared to its peers.
Key Features:
- 1-Year Return: 22%+
- Fund Type: Large Cap Fund
- Expense Ratio: 0.51%
- Benchmark: Nifty 50 Index
Why This Fund?
Axis Bluechip Fund invests primarily in large-cap companies with strong fundamentals and growth prospects. Its high-conviction stock picks have been the key to its performance, making it one of the top-performing large-cap funds in India. The fund has consistently shown resilience, even during periods of market volatility.
4. ICICI Prudential Technology Fund
The ICICI Prudential Technology Fund has been one of the best performers in the sectoral fund category, particularly for investors who are bullish on the technology sector.
Key Features:
- 1-Year Return: 30%+
- Fund Type: Sectoral Fund (Technology)
- Expense Ratio: 0.79%
- Benchmark: Nifty IT Index
Why This Fund?
The technology sector has been a high-growth area over the past year, and the ICICI Prudential Technology Fund has capitalized on this trend. The fund invests primarily in leading technology companies, including top IT and software firms, which have seen robust growth in both domestic and global markets.
5. Nippon India Small Cap Fund
Small-cap funds are known for their high volatility but also their potential for high returns. The Nippon India Small Cap Fund is one of the top-performing small-cap funds, delivering significant growth over the past year.
Key Features:
- 1-Year Return: 40%+
- Fund Type: Small Cap Fund
- Expense Ratio: 0.78%
- Benchmark: Nifty Smallcap 250 Index
Why This Fund?
Nippon India Small Cap Fund focuses on smaller companies with high growth potential. Small-cap stocks often provide higher returns due to their ability to grow faster than large-cap companies. Despite their inherent risks, this fund’s aggressive strategy has paid off, particularly in a buoyant market.