Mutual funds have gained tremendous popularity among Indian investors, particularly through Systematic Investment Plans (SIPs). Over the last few years, several new mutual funds have emerged as top performers, delivering high returns in a short time. From equity-focused funds to sector-specific schemes, these new offerings have quickly attracted attention with returns ranging from 50% to 85%.
If you’re an investor seeking options with significant growth potential, these five mutual funds might be the perfect choice for you. Whether you’re investing via SIP or lump sum, these funds have proven their ability to outperform market expectations and deliver remarkable results.
1. HDFC Defense Fund: A Strong Performer in Defense Sector
Launched in January 2023, HDFC Defense Fund has rapidly positioned itself as a leading mutual fund, providing impressive returns in a relatively short time. It focuses on companies in the defense sector, which has seen strong growth in recent times due to increased government spending and private sector involvement.
- 1-Year SIP Return: 70.02%
- Lump Sum Return in 1 Year: 82.43%
Why It’s Worth Considering:
HDFC Defense Fund offers an excellent opportunity for investors seeking exposure to the growing defense industry. With both SIP and lump sum investments yielding high returns, it has quickly become a favorite among investors. For those who invested Rs. 1 lakh in this fund one year ago, the value has now grown to Rs. 1,83,034.
2. ICICI Prudential PSU Equity Fund: Profiting from Public Sector Units
ICICI Prudential PSU Equity Fund, launched in September 2022, focuses on investing in public sector units (PSUs). It has performed exceptionally well, rewarding investors with robust returns on both SIP and lump sum investments. The fund has taken advantage of the undervaluation of several PSUs, benefiting from their potential growth.
- 2-Year SIP Return: 50.19%
- Lump Sum Return in 1 Year: 85.44%
Why It’s Worth Considering:
This fund is an excellent choice for those who believe in the long-term value of PSUs. Over the past year, the fund has delivered an 85% return on lump sum investments, meaning a Rs. 1 lakh investment would now be worth Rs. 1,85,440. Its performance makes it a rising star in the mutual fund market.
3. HDFC Pharma and Healthcare Fund: Investing in Healthcare Growth
HDFC Pharma and Healthcare Fund, launched in October 2023, focuses on the rapidly growing healthcare and pharmaceutical sectors. With healthcare becoming an increasingly important area of investment, this fund has delivered solid returns in its first year, making it an attractive option for investors looking to capitalize on this booming industry.
- 1-Year SIP Return: 64.18%
- Lump Sum Return in 1 Year: 61.55%
Why It’s Worth Considering:
With the global focus on healthcare after the pandemic, the pharma and healthcare industries are expected to continue growing. Investors in this fund have seen their investments increase by over 60% in just one year, making it one of the best-performing funds in this sector.
4. Motilal Oswal BSE Enhanced Value ETF: Focusing on Value Investing
Motilal Oswal BSE Enhanced Value ETF, launched in August 2022, focuses on value stocks listed on the Bombay Stock Exchange (BSE). This fund has performed exceptionally well, offering high returns to investors who have followed the value investment strategy. With its focus on undervalued companies, the fund has rewarded patient investors.
- 2-Year SIP Return: 57.25%
- Lump Sum Return in 1 Year: 63.36%
Why It’s Worth Considering:
Motilal Oswal’s value-focused strategy has paid off handsomely, with both SIP and lump sum investors seeing impressive gains. A Rs. 1 lakh investment one year ago would now be worth Rs. 1,63,584. For those seeking a value-based approach, this fund is a great option.
5. SBI Nifty Next 50 Index Fund: Investing in India’s Future Leaders
Launched in May 2021, SBI Nifty Next 50 Index Fund tracks the Nifty Next 50 Index, which includes companies that are likely to be future leaders in their respective industries. This fund provides exposure to some of India’s most promising companies, offering a diversified approach to long-term growth.
- 3-Year SIP Return: 27.83%
- Lump Sum Return in 1 Year: 70.29%
Why It’s Worth Considering:
This fund is perfect for investors who want to invest in a diversified set of companies with strong growth potential. With a 70% return on lump sum investments over the past year, it offers a solid opportunity for investors looking to benefit from India’s growing economy. Those who invested Rs. 1 lakh in the fund one year ago have seen their investment grow to Rs. 1,70,790.
Why These Funds Stand Out
These five funds are proving that innovation in mutual fund offerings can lead to exceptional returns. Asset management companies have been creating funds based on innovative themes, strong investment strategies, and sector-specific growth opportunities. As a result, investors are seeing returns that are comparable to the stock market, making these funds attractive to both new and seasoned investors.
Each of these funds has a different focus, from defense and healthcare to PSUs and value stocks, giving investors the chance to diversify their portfolios across various sectors. The high returns delivered by these funds in a relatively short time demonstrate their potential for future growth.
Whether you’re investing via SIP or lump sum, these funds have performed consistently well, proving their worth in the competitive mutual fund landscape. However, as with any investment, it’s important to remember that mutual funds are subject to market risks, and past performance is not necessarily an indicator of future results.
In summary, these new mutual funds have proven themselves as top performers, delivering high returns in a short time frame. If you’re looking to invest in mutual funds that provide both stability and growth, these funds might be the right fit for your financial goals.
