Mutual funds are often known for their long-term wealth generation, but some schemes have defied expectations by delivering exceptional returns in a short span. For those who made monthly SIPs (Systematic Investment Plans), the returns over the last year from certain schemes were significant. ET Now identified five mutual fund schemes that delivered over 55% returns in just one year, transforming small investments into a much larger corpus.
Let’s take a closer look at these top-performing mutual fund schemes.
1. Quant Healthcare Fund – A Strong Performer in Healthcare
Quant Healthcare Fund has been a solid performer in the healthcare sector. The direct plan of this scheme offered a return of 59.91% in just one year. A SIP of ₹6,500 every month would have turned into ₹1,03,679, reflecting the strong potential of the healthcare sector.
2. HDFC Transportation & Logistics Fund – A Rapid Climber
HDFC Transportation & Logistics Fund, launched in August 2022, has shown remarkable growth, offering a 63.25% return within the last year. Investors who consistently contributed ₹6,500 each month saw their investment grow to ₹1,04,317. This fund benefited from the rapid development in the transportation and logistics sectors.
3. Quant Business Cycle Fund – Riding the Business Wave
The Quant Business Cycle Fund capitalized on favorable economic cycles, resulting in a 67.35% return. With SIP investments of ₹6,500 each month, the total would have become ₹1,02,572. This scheme, launched in May 2023, gained traction due to its strategic focus on business cycles.
4. Quant Manufacturing Fund – Manufacturing Gains
Launched in August 2023, Quant Manufacturing Fund has been another high-growth performer. Over the past year, this fund has yielded a return of 68.44%. Monthly SIPs of ₹6,500 would have turned into ₹1,02,206. The focus on India’s growing manufacturing sector proved to be a rewarding strategy.
5. HDFC Defence Fund – The Top Performer
The best performer on this list is the HDFC Defence Fund, which delivered a staggering 82.11% return in just one year. A consistent monthly SIP of ₹6,500 in this scheme resulted in a corpus of ₹1,03,695. The fund’s investments in the defense sector have paid off as the industry sees massive growth potential.
Why These Mutual Funds Performed Good
These mutual funds, particularly sectoral and thematic schemes, have managed to deliver substantial short-term returns due to their focus on high-growth industries. While mutual funds are typically associated with long-term wealth creation, these schemes have shown that under certain market conditions, significant short-term gains are possible.
Investors who were fortunate to invest early or consistently in these funds reaped big benefits. However, it is essential to remember that past performance does not guarantee future results, and investments should be made with thorough research or advice from financial experts.
(Disclaimer: Mutual Funds investments are subject to risks. Always consult with a financial expert before making any investment decisions.)
