The stock market has experienced some correction in recent weeks. However, there are some mutual funds that have still delivered strong returns over the past year. Even the worst funds produced returns of 8% over the past year. This article provides information about 5 mutual funds that returned between 46% and 58% in the past year from November 15, 2023 to November 14, 2024.
5 mutual fund schemes with 1-year returns of 46% to 58%
Below is a list of the best mutual funds that have returned more than 46% over the past year.
#1 – Motilal Oswal Midcap Fund – 1 year return: 58%
#2 – Bandhan Small Cap Fund – 1 year return: 53%
#3 – Invesco India Concentrated Fund – 1 year return: 52%
#4 – Motilal Oswal ELSS Tax Savings Fund – 1 year return: 48%
No. 5 – Japan India Nifty Next 50 Junior BeES FoF Fund – 1 year return: 46%
Note: ETFs are excluded when filtering for these top-performing funds.
5 Mutual Funds with 1-Year Returns of 46% or More – Investment Objectives and Performance Details
Let’s take a closer look at these funds.
#1 – Motilal Oswal Midcap Fund – 1 year return: 58%
Investment purpose:
The scheme’s investment objective is to achieve long-term capital appreciation by investing in high quality mid-cap companies with long-term competitive advantages and growth potential. However, there is no guarantee that the scheme’s investment objective will be achieved.
Absolute return:
- 1 year return: 61.5%
- 2 year return: 107.1%
- 3 year return: 133%
- 5 year return: 320%
- 10-year rate of return: 621% (Rs 100,000 to Rs 7.2 million)
- Revenue since inception: 1083%
Annual rate of return:
- 1 year return: 61.5%
- 2-year annualized return: 43.7%
- 3-year annualized return: 32.5%
- 5-year annualized return: 33.1%
- 10-year annualized return: 21.8%
- Annualized return since inception: 25.9%
Our thoughts on the fund:
This is a mid-cap fund that currently invests 98% in equities and 2% in debt.
Of the company’s stock portfolio, 13% is invested in large-cap stocks, 9% in mid-cap stocks, 26% in small-cap stocks, and the rest in other stocks.
As part of its equity portfolio, the fund has investments in Coforge, Kalyan Jewelers, Polycab India, Persistent Systems, Jio Financials, Bajaj Auto, Tube Investments, M&M, Voltas and Zomato.
With a direct plan expense ratio of 0.58% and a beta of 0.82, the fund has generated an annualized return of 25.9% since inception.
The fund outperformed its benchmark over one, three, five, and 10-year periods.
I personally invested in this fund and have previously covered it as part of an article. 7 High Yield Mutual Funds I’m Investing in.
This company is a high-risk fund as it invests in mid-cap and small-cap stocks. If you are a high-risk investor and are willing to make medium- to long-term investments, you should include such funds in your portfolio.
#2 – Bandhan Small Cap Fund – 1 year return: 53%
Investment purpose:
Generates long-term capital growth by investing primarily in equities and equity-linked securities in the small-cap segment.
Absolute return:
- 1 year return: 59.7%
- 2 year return: 121%
- Return over 3 years: 108% (Rs 100,000 to Rs 2,080,000)
- Revenue since inception: 392%
Annual rate of return:
- 1 year return: 59.7%
- 2-year annualized return: 48.7%
- 3-year annualized return: 27.6%
- Annualized return since inception: 40.1%
Our thoughts on the fund:
This is a small-cap fund currently invested 93% in stocks and 7% in TREPS.
Of the company’s stock portfolio, 5% is invested in large-cap stocks, 9% in mid-cap stocks, 46% in small-cap stocks, and the rest in other stocks.
The fund has investments in LT Foods, PCBL, Cholamandal Financial, Arvind, Sobha, Karnataka Bank, Apar Industries, South India Bank, Rashi Peripherals and Shaily Engineering Plastics as part of its equity portfolio.
With a direct plan expense ratio of 0.36% and a beta of 0.91, the fund has generated an annualized return of 40.1% since inception.
This fund was launched four and a half years ago (February 2020). The fund outperformed its benchmark in one-year and three-year time frames. I’ve explained this before, but Best performing mutual funds in 2024.
This company invests primarily in small-cap stocks, making it a very high-risk fund. High-risk investors can invest in such funds with a medium- to long-term perspective.
#3 – Invesco India Concentrated Fund – 1 year return: 52%
Investment purpose:
Generate capital gains by investing in up to 20 stocks across market capitalization. There is no guarantee that the investment objective of this plan will be achieved.
Absolute return:
- 1 year return: 56.4%
- 2 year return: 85.9%
- Return over 3 years: 72.1% (Rs 100,000 to Rs 1,720,000)
- Revenue since launch: 192.8%
Annual rate of return:
- 1 year return: 56.4%
- 2-year annualized return: 36.2%
- 3-year annualized return: 19.8%
- Annualized return since inception: 29.7%
Our thoughts on the fund:
This fund focuses on certain restrictions on stocks. In this case, we will focus on 20 stocks. Currently, I have 95% invested in stocks and 5% in TREPS.
Of the company’s stock portfolio, 25% is invested in large-cap stocks, 14% in mid-cap stocks, 8% in small-cap stocks, and the rest in other stocks.
As part of its equity portfolio, the fund has investments in ICICI Bank, HDFC Bank, Infosys, Dixon Technologies, Torrent, L&T, ABB Power, Zomato, Century Textiles and Voltas.
The expense ratio for the Direct Plan is 0.58%.
The beta value is 0.95, indicating higher volatility compared to the index/category average.
This fund was established 4 years and 2 months ago (September 2020). The fund outperformed its benchmark in one-year and three-year time frames.
This fund focuses on investing in a limited number of stocks, including large-cap, mid-cap and small-cap stocks, with no limit on market capitalization, similar to a flexi-cap fund. High-risk investors can invest in such funds with a medium- to long-term perspective.
#4 – Motilal Oswal ELSS Tax Savings Fund – 1 year return: 48%
Investment purpose:
The scheme’s investment objective is to generate long-term capital growth primarily from a diversified portfolio of equities and equity-related instruments.
Absolute return:
- 1 year return: 54%
- 2 year return: 93.8%
- 3-year return: 89.6%
- Return over 5 years: 197.7% (Rs 100,000 to Rs 2,970,000)
- Revenue since inception: 484%
Annual rate of return:
- 1 year return: 54%
- 2 year annualized return: 39%
- 3-year annualized return: 23.7%
- 5-year annualized return: 24.3%
- Annualized return since inception: 19.7%
Our thoughts on the fund:
This is an ELSS tax-saving mutual fund that currently invests 99% in stocks and 1% in TREPS.
Of the company’s stock portfolio, 8% is invested in large-cap stocks, 14% in mid-cap stocks, 34% in small-cap stocks, and the rest in other stocks.
As part of its equity portfolio, the fund has investments in Torrent, Zomati, Kalyan Jewelers, Inox Wind, Gujarat Fluurochemicals, Prestige Estates, Keynes Tech, Suzlon, MCEX and Apart Industries.
The expense ratio for the Direct Plan is 0.64%.
The beta value is 0.98, indicating higher volatility compared to the index/category average.
The fund outperformed its benchmark over one-, three-, five-, and seven-year periods.
Such ELSS funds offer income tax benefits starting from 80 cents up to Rs 1.5 million in a financial year with a fixed period of three years.
I explained this in an article a few months ago: Best performing ELSS fund If this fund has returned more than 100% over the past three years.
If you are looking for 80c income tax benefits and are comfortable investing for more than three years, you can invest in such a fund.
No. 5 – Japan India Nifty Next 50 Junior BeES FoF Fund – 1 year return: 46%
Investment purpose:
The investment objective of the Scheme is to seek to provide returns approximately equivalent to the returns offered by the Nippon India ETF Nifty Next 50 Junior BeES by investing in units of the Nippon India ETF Nifty Next 50 Junior BeES.
Absolute return:
- 1 year return: 49.8%
- 2 year return: 59.4%
- 3-year return: 57.2%
- Return over 5 years: 145% (Rs. 100,000 to Rs. 2.45 million)
- Return since inception: 155.8%
Annual rate of return:
- 1 year return: 49.8%
- 2 year annualized return: 26.1%
- 3-year annualized return: 16.2%
- 5-year annualized return: 19.5%
- Annualized return since inception: 17.9%
Our thoughts on the fund:
Invest in an ETF that is 100% invested in Japan Nifty Next 50 Junior BeES.
As part of its equity portfolio, the underlying ETF invests in Nifty Next 50 stocks.
The expense ratio for the Direct Plan is 0.11%.
The beta value is 0.81, indicating high volatility.
This fund invests in ETFs that invest in NiftyNext 50 stocks, which have a relatively higher risk than Nifty 50. This is a fund that high-risk investors can invest in over the medium to long term.
Can I invest in these funds now during a market correction?
As I have repeatedly pointed out in previous articles, you should invest in mutual funds based on your financial goals, investment horizon, and risk tolerance. If any of these funds match your goals, you can go ahead and invest in such funds.
Suresh KP is the founder of Myinvestmentideas. He is a NISM Certified – Investment Advisor and a NISM Certified – Research Analyst. He has been analyzing financial markets for the past 20 years. He can be reached at suresh@myinvestmentideas.com.
