5 Mutual Fund Schemes with 1-Year Returns between 66% to 90% (2024)

Yes, the title of the article is correct. Due to a bull run, several mutual funds have jumped and generated superior returns in the last 1 year. It is always good to analyze such funds to determine whether they could be made a part of our mutual fund portfolios or not. This article provides information on 5 mutual fund schemes that yielded returns between 66% and 90% in the last 1 year from 15-Jan-23 to 14-Jan-2024.

Also Read: 10 Worst Performing Funds in the last 10 years

5 Mutual Fund Schemes with 1-Year Returns Between 66% to 90%

Here is the list of Top Performing Mutual Funds in the last 1 year that generated over 66% returns.

#1 – Mirae Asset NYSE FANG+ ETF FoF – 1 Year Return: 90%

#2 – ABSL Nifty Smallcap 50 Index – 1-Year Return: 69.3%

#3 – Axis Nifty Smallcap 50 Index – 1-Year Return: 69.1%

#4 – ABSL Pru Equity Fund – 1 Year Return: 66.3%

#5 – Mahindra Manulife Smallcap Fund – 1-Year Return: 66.1%

Note: ETFs are excluded while filtering these top performing funds.

5 Mutual Fund Schemes with 1-Year Return Over 66% – Investment Objective and Performance Details

Let’s get into more information about these funds.

#1 – Mirae Asset NYSE FANG+ ETF FoF

Investment Objective:

The investment objective of the scheme is to provide long-term capital appreciation from a portfolio investing predominantly in units of Mirae Asset NYSE FANG+ ETF. The underlying index invests in the stocks of NYSE FANG+ index.

In simple terms, NYSE FANG+ Index provides exposure to 10 of today’s highly-traded tech giants. Currently the list includes Meta (Facebook), Apple, Amazon Netflix, Microsoft, Google, Tesla, NVIDA, Snowflake and Broadcom Inc.

Performance Details:

• 1-Year Return: 90%
• 2-Year Annualized Return: 15.4%
• Annualized Return Since Inception: 17.3%

Our View:

NYSE FANG+ Index outperformed other key US indices. The Index has returned a 26% annualized in the last 10 years compared to 17% for the NASDAQ-100, 11.39% for the S&P 500 and 20.4% for the S&P 500 Information Technology Index

While this index outperformed all other US indexes in the past, however since it invests in top 10 stocks that are highly traded giants, it is high risk too. One can see huge volatality in such funds. High risk investors can add such funds in their portfolio. Alternatively one can also look for Nasdaq 100 index funds which have better diversification compared to FANG+ index funds.

#2 – ABSL Nifty Smallcap 50 index

Investment Objective:

The investment objective of the scheme is to provide returns that closely correspond to the total returns of securities as represented by Nifty Smallcap 50 Index, subject to tracking errors.

This fund was launched couple of years back, hence let us the performance of the underlying index instead.

Performance Details:

• 1-Year Return: 65.5%
• 5-Year Annualized Return: 18.7%
• Annualized Return Since Inception: 12.3%

Our View:

Please see below chart of Nifty smallcap 50 index. If you observe, it generated negative returns in the last 15 years (2008 peak to 2022). It has been almost stagnant for several years. Can we still invest then? Are there any alternatives then?

While this fund has outperformed all equity funds in the short term (1 year), there are other smallcap indices like Nifty Smallcap 250 Index and Nifty Smallcap 100 Index that have better risk-adjusted performance in the medium to long term.

Nifty Smallcap 250 Index’s risk is diversified to 250 companies instead of Nifty Smallcap 50 Index, which invests in only 50 companies. This Nifty Smallcap 250 index generated 49%, 22.7%, and 16.5% annualized returns in the last 1 year, 5 years, and since inception.

Even if we consider Nifty Smallcap 100 Index, it generated 56%, 20%, and 16% annualized returns in the last 1 year, 5 years, and since inception.

In conclusion, Nifty Smallcap 250 Index or Nifty Smallcap 100 Index has better diversification compared to Nifty Smallcap 50 Index. However, one should note that investing in smallcap funds is high risk, hence only high-risk investors can invest in such funds.

#3 – Axis Nifty Smallcap 50 index Fund

Investment Objective

The investment objective of this fund is to provide returns that closely correspond to the total returns of securities as represented by the Nifty Smallcap 50 Index, subject to tracking errors.

Our View:

Like we indicated above, while, in the short term, this category of mutual funds generated very high returns, in the medium to long term, one can consider Nifty Smallcap 100 Index Fund or Nifty Smallcap 250 Index Fund, which have diversification of over 100 companies. Again, only high-risk investors should consider investing in such funds.

#4 – ABSL PSU Equity Fund

Investment Objective:

To provide capital appreciation and income distribution to the investors by using a blend of equity derivatives strategies, arbitrage opportunities and pure equity investments.

Performance Details:

This fund was launched 4 years back.

• 1-Year Return: 60%
• 3-Year Annualized Returns: 41.3%
• Annualized Returns since inception: 31.6%

Our View: This funds invests in PSU companies. PSU theme has been outperforming in the last few years. However since it invests only one segment i.e. PSU, it is high risk. In future we may or may not see such growth in such segment. If you are a long term investor, instead of going for such theme of mutual funds, one can stick to regular category of funds like largecap, midcap, smallcap or flexicap funds.

You may like: Top 10 SIP Mutual Funds to invest in 2024

#5 – Mahindra Manulife Smallcap fund

Investment Objective:

The Scheme seeks to generate long-term capital appreciation by investing in a diversified portfolio of equity & equity-related securities of small-cap companies.

Performance Details:

• 1-Year Return: 66%

Our View:

This small-cap fund was launched a year back, and we do not know how the performance would be in the medium to long term. While we all know that small-cap funds invest in small-cap stocks, which are high risk in nature, historically, these funds generated 20% to 30% annualized returns in the last 10 years. Even in the medium term, this category of funds generated 17% to 33% annualized returns. High-risk investors can consider investing in such funds for a medium to long-term perspective.