Top 9 Equity Mutual Funds Deliver Over 30% Return on SIP Investments in 1 Year. Do You Own Any?

Nine Equity Mutual Funds Delivered Over 30% SIP Returns

Nine equity mutual funds delivered more than 30% returns on SIP investments over the last one year, according to an analysis by ETMutualFunds.

The analysis covered nearly 293 equity mutual funds. Of these, 182 funds delivered positive SIP returns, while 83 generated double-digit returns. Around 111 funds recorded negative SIP returns during the period.

Among the nine funds crossing the 30% mark, eight were small-cap funds and one was a focused fund.

Top 9 Funds With More Than 30% SIP Returns

RankMutual FundCategory1-Year SIP Return1Bank of India Small Cap FundSmall Cap45.95%2TRUSTMF Small Cap FundSmall Cap41.53%3Motilal Oswal Focused FundFocused38.30%4Helios Small Cap FundSmall Cap38.17%5Motilal Oswal Small Cap FundSmall Cap35.00%6ITI Small Cap FundSmall Cap34.78%7Union Small Cap FundSmall Cap33.24%8LIC MF Small Cap FundSmall Cap32.44%9JM Small Cap FundSmall Cap31.29%

These figures represent SIP returns over the one-year period covered by the ETMutualFunds analysis.

Bank of India Small Cap Fund Tops the List

Bank of India Small Cap Fund recorded the highest SIP return among the funds in the list, at 45.95% over one year.

According to the analysis, a monthly SIP of ₹10,000 in the fund would have grown to approximately ₹1.46 lakh over the period, based on the reported SIP-return calculation.

TRUSTMF Small Cap Fund followed with a 41.53% SIP return.

Motilal Oswal Focused Fund and Helios Small Cap Fund

Motilal Oswal Focused Fund delivered a 38.30% SIP return over the one-year period.

Helios Small Cap Fund was next with a 38.17% SIP return.

Motilal Oswal Small Cap Fund delivered a reported 35% SIP return during the same period.

ITI, Union, LIC MF and JM Small Cap Funds

ITI Small Cap Fund delivered a 34.78% SIP return over one year.

The remaining three funds in the top nine were also small-cap schemes:

• Union Small Cap Fund: 33.24%

• LIC MF Small Cap Fund: 32.44%

• JM Small Cap Fund: 31.29%

This means that small-cap schemes dominated the list, accounting for eight of the nine funds identified in the analysis.

How Did Other Small-Cap Funds Perform?

Not all small-cap funds generated returns above 30%.

DSP Small Cap Fund delivered a 29.72% SIP return, just below the 30% threshold. Quant Small Cap Fund delivered 25.47%, while SBI Small Cap Fund and Edelweiss Small Cap Fund recorded 17.36% and 14.61%, respectively.

This shows that recent performance varied significantly even within the same fund category.

Large, Mid and Flexi-Cap Funds Also Saw Different Results

Nippon India Growth Mid Cap Fund delivered a 7.14% SIP return during the period.

Two flexi-cap funds mentioned in the analysis — Bajaj Finserv Flexi Cap Fund and ICICI Prudential Flexi Cap Fund — delivered 6.10% each.

Baroda BNP Paribas Large & Mid Cap Fund was the last fund in the analysis to report a positive SIP return, at 0.03%.

Some Equity Funds Delivered Negative SIP Returns

The analysis also showed that several equity funds delivered negative SIP returns over the same one-year period.

Franklin India Focused Equity Fund recorded a negative return of around 14.25%, while Samco Large Cap Fund declined 11.50%.

Parag Parikh Flexi Cap Fund reported a negative SIP return of 5.31%, while HDFC Multi Cap Fund declined 2.80%. SBI Flexicap Fund recorded a negative return of around 1.78%.

Why Small-Cap Funds Dominated the Top Performers

Small-cap funds invest predominantly in smaller companies, which can experience larger price movements than established large-cap companies.

Strong performance from smaller companies can therefore result in substantial gains during favourable market phases. However, the same characteristic can also result in sharper declines when market conditions turn negative.

The concentration of small-cap funds among the top performers does not mean that the entire small-cap category delivered similar returns.

Should Investors Choose These Funds Based on One-Year Returns?

A one-year SIP return should not be the only factor used to select a mutual fund.

Investors should also examine:

• Long-term performance across different market cycles.

• Consistency of the fund manager and investment strategy.

• Portfolio concentration.

• Risk and volatility.

• Expense ratio.

• Fund size and liquidity.

• Investment horizon.

• Overall asset allocation.

• Personal financial goals and risk tolerance.

ETMutualFunds itself stated that the analysis was not a recommendation and that investment or redemption decisions should not be based solely on these figures.

How Was the Analysis Conducted?

The analysis considered equity mutual funds while excluding sectoral and thematic schemes.

Regular plans with growth options were considered, and SIP performance was calculated for the one-year period.

Therefore, the figures should not be interpreted as lump-sum returns or annualised returns.

Key Takeaways

Nine equity mutual funds delivered more than 30% SIP returns in one year, with Bank of India Small Cap Fund leading the list at 45.95%. TRUSTMF Small Cap Fund followed at 41.53%.

Eight of the nine funds were small-cap schemes, highlighting the strong performance of several smaller-company-focused portfolios during the period. However, other small-cap funds delivered considerably lower returns, while some equity funds posted negative SIP returns.

The figures are historical and should be viewed in the context of the investment period and market conditions. Past performance does not guarantee future returns.