A timely investment in the right equity mutual funds has always been highly rewarding for investors. Top-performing mutual funds have continued to beat the broader market despite the recent sell-off on D-Street. Investors can consider investing in top-performing funds as they are less risky than putting money in individual stocks due to their diverse portfolios.
We have listed ten mutual funds that have delivered 60 percent plus returns to investors in the last one year.
In comparison, the benchmark BSE Sensex is up 25 percent while NSE Nifty 50 has rallied 28 percent in the last one year.
The BSE Mid Cap and BSE Small Cap Index have done relatively better and have delivered 48 percent and 46 percent returns respectively during the period. Obviously, these high-performing mutual funds have been better investment options for investors than stock hunting in the market. They are as follows:
1. At the top of our list is Nippon India CPSE ETF which invests in listed central government-owned companies such as Oil & Natural Gas Corporation, NTPC, State Bank of India and Coal India among others. The fund tops the charts with 72.5 percent returns in the last one year and 44 percent annualised returns in the last three years. It is a large fund with total assets under management (AUM) of nearly Rs 44,200 crore currently.
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2. HDFC Defence Fund is ranked second with 69.6 percent returns in the last one year. As the name suggests, it largely invests in defence sector-related companies such as Hindustan Aeronautics and Bharat Electronics, most of which are central government-owned firms. It’s a one-year-old fund with a total AUM of around Rs 4000 crore.
3. Motilal Oswal Midcap Fund is at the third spot in our list with 63.9 percent returns in the last one-year and 3-year CAGR returns of 33.6 percent. The fund has an AUM of Rs 18,600 crore currently.
4. Mirae Asset NYSE FANG Plus ETF is at the fourth ranked in our list with 63 percent returns in the last one-year and 3-year CAGR returns of 20.4 percent. As the name suggests, the fund invests in world's top technology companies such as Nvidia Corp, Broadcom Corp, Facebook and Apple Inc among others. The fund AUM is around Rs 2400 crore currently.
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5. Invesco India Focussed Fund is next on our list with 1-year returns of 62.8 percent and 3-year CAGR returns of 20.5 percent respectively. It’s a large cap-oriented equity fund with an AUM of Rs 3250 crore currently.
6. Motilal Oswal ELSS Tax Saver Fund is next on our list with 61.3 percent returns in the last one year and 25 percent CAGR returns in the last three years. It’s a tax saving fund with a 3-year lock-in and invests across large, mid and small-cap stocks. Its maximum exposure is however in mid-cap stocks. The fund AUM is around Rs 4200 crore currently.
7. LIC Infrastructure Fund is next on our list with 60.7 percent returns in the last one-year and 31.1 percent annualised returns in the last three years. It’s a sectoral fund and its portfolio is tilted towards small-cap stocks in capital goods, construction, power and transport sectors. It is a small fund with an AUM of Rs 750 crore currently.
8. Motilal Oswal BSE Enhanced Value ETF comes next in our list with 60.5 percent returns in the last one year. It is a new fund launched in August 2022. It is a thematic fund and invests in stocks with beaten-down valuations. It is a small fund with an AUM of Rs 137 crore currently.
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9. Invesco India PSU Equity Fund is next with 60.3 percent returns in the last one-year and 3-year CAGR returns of 30.8 percent. As the name suggests, the fund invests in government-owned companies such as NTPC, SBI, ONGC, Bharat Electronics and Bharat Petroleum among others. The fund has a total AUM of Rs 1435 crore currently.
10. ICICI Prudential PSU Equity Fund is the last fund on our list with 60.1 percent returns in the last one year and 3 years. It’s a relatively new fund and was launched in September 2022. It’s a thematic fund that invests in government-owned companies with an AUM of around Rs 2540 crore currently.
Happy Investing!
(Karan Deo Sharma is a Mumbai-based finance and equity markets specialist).
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