Mutual fund investments, especially through Systematic Investment Plans (SIPs), have gained massive popularity among Indian investors in recent years. With rising interest, asset management companies (AMCs) have introduced several new schemes aiming to deliver higher returns by leveraging strong investment strategies. Over the last 1 to 3 years, some newly launched mutual fund schemes have emerged as top performers, offering returns ranging between 50% and 70% via SIPs.
Below, we discuss five standout mutual fund schemes that are gaining attention for their high returns in SIPs as well as lump sum investments. These schemes have quickly become superstars in the mutual fund space, attracting investors looking for strong returns in a short period.
1. HDFC Defense Fund: 70% Return in 1 Year SIP
HDFC Defense Fund, launched on January 2, 2023, is making waves with its impressive returns. For those who invested through SIPs, the fund has delivered a return of 70.02% within just one year. Investors who opted for lump sum investments have seen even better results, with an 82.43% return in one year.
- SIP Returns (1 Year): 70.02%
- Monthly SIP Investment: Rs. 10,000
- Value of SIP in 1 Year: Rs. 3,31,646
- Lump Sum Returns (1 Year): 82.43%
- Value of Rs. 1 Lakh Investment: Rs. 1,83,034
Since its launch, the fund has shown a consistent annual return of 80.24%. This makes it a highly attractive option for those looking to invest in the defense sector, which is gaining momentum in India.
2. ICICI Prudential PSU Equity Fund: Strong Performer in PSU Sector
Launched on September 9, 2022, ICICI Prudential PSU Equity Fund focuses on public sector undertakings (PSUs). The fund has given a remarkable 50.19% annualized return for those investing via SIPs for two years. On the lump sum investment front, the fund has provided an 85.44% return in one year.
- SIP Returns (2 Years): 50.19%
- Monthly SIP Investment: Rs. 10,000
- Value of SIP in 2 Years: Rs. 6,02,025
- Lump Sum Returns (1 Year): 85.44%
- Value of Rs. 1 Lakh Investment: Rs. 1,85,440
The fund’s overall return since launch stands at 50.30%, making it a great option for investors interested in the PSU space.
3. HDFC Pharma and Healthcare Fund: Healthcare Sector Shining
HDFC Pharma and Healthcare Fund, launched on October 4, 2023, has already shown its potential within one year. It has delivered a strong 64.18% return for SIP investors in just 12 months. For those opting for a lump sum investment, the fund has given a return of 61.55% in the same period.
- SIP Returns (1 Year): 64.18%
- Monthly SIP Investment: Rs. 10,000
- Value of SIP in 1 Year: Rs. 3,22,559
- Lump Sum Returns (1 Year): 61.55%
- Value of Rs. 1 Lakh Investment: Rs. 1,61,760
Since its inception, the fund has posted a 59.97% return, making it a solid choice for investors eyeing the pharmaceutical and healthcare sectors, which continue to be in high demand.
4. Motilal Oswal BSE Enhanced Value ETF: 57% Return in 2 Years SIP
Motilal Oswal’s BSE Enhanced Value ETF, launched on August 22, 2022, has become a strong performer. In the last two years, SIP investors have earned a 57.25% annualized return, while lump sum investors have seen 63.36% returns over one year.
- SIP Returns (2 Years): 57.25%
- Monthly SIP Investment: Rs. 10,000
- Value of SIP in 2 Years: Rs. 6,44,720
- Lump Sum Returns (1 Year): 63.36%
- Value of Rs. 1 Lakh Investment: Rs. 1,63,584
The fund has delivered a consistent 53.27% return since its launch, making it an attractive option for those who wish to invest in value-based ETFs.
5. SBI Nifty Next 50 Index Fund: A Reliable Performer
SBI Nifty Next 50 Index Fund, launched on May 19, 2021, has been providing steady returns over the last three years. For SIP investors, it has given a 27.83% annualized return over three years. Lump sum investors have enjoyed 70.29% returns in just one year.
- SIP Returns (3 Years): 27.83%
- Monthly SIP Investment: Rs. 10,000
- Value of SIP in 3 Years: Rs. 7,46,135
- Lump Sum Returns (1 Year): 70.29%
- Value of Rs. 1 Lakh Investment: Rs. 1,70,790
With a 24.29% return since its launch, this fund is a solid choice for those looking to invest in Nifty Next 50 companies, which represent the future leaders of the stock market.
Key Takeaways for Investors
These new mutual fund schemes have quickly risen to the top with their impressive returns, especially in SIPs. They offer high growth potential, catering to different sectors like defense, PSUs, healthcare, and value ETFs. If you’re an investor seeking high returns within a short period, these funds could be worth considering. However, it’s essential to remember that past performance does not guarantee future results, and mutual fund investments are subject to market risks.
