Last year, in October 2024, the Nifty 50 declined by 6.2%, while the Sensex fell by 5.83%. This return was recorded as the worst monthly performance since the COVID-19 market crash in March 2020. Not only in October, but the bear phase continued for a few more months. Despite the majority of sectors being in the red, some mutual fund schemes have managed to deliver impressive returns over the past year. Let’s discuss these best-performing mutual funds in the last 1 year.
Top Performing Mutual Funds in the Last 1 Year
Here are the three mutual fund schemes that have delivered outstanding results despite the long bear phase in the market.
HDFC Pharma And Healthcare Fund (Direct – Growth)
HDFC Pharma and Healthcare Fund has delivered an impressive absolute return of 30.68% in the last year. As of April 30, 2025, the scheme has assets under management (AUM) of ₹1,666 crores, an expense ratio of 0.83%, and an exit load of 1% if redeemed within 30 days. BSE HealthCare TRI serves as the benchmark for this health sector fund.
As of May 30, 2025, the NAV of this scheme is ₹16.55. You can invest in this scheme with a minimum of ₹100 in both SIP and lump sum. The scheme holds 32 stocks, with the following five key holdings:
| Stock | Weightage |
| Sun Pharmaceutical | 12.3% |
| Divis Laboratories | 9.6% |
| Cipla | 7.6% |
| Lupin | 5.6% |
| Max Healthcare Institute | 4.8% |
DSP Banking & Financial Services Fund (Direct – Growth)
With a return of 28.62% in the span of a year, this thematic fund has an AUM of ₹1,210 crore as of April 30, 2025. DSP Banking & Financial Services Fund has an expense ratio of 0.7% and an exit load of 0.5% if redeemed within a month. As of May 28, 2025, the scheme has an NAV of ₹13.46. The minimum investment requirement here is ₹100 for both lump sum and SIP.
DSP Banking & Financial Services Fund tracks the performance of Nifty Financial Services TRI. Out of 22 stocks the scheme holds, five with maximum holdings are:
| Stock | Weightage |
| Treps/Reverse Repo Investment | 15.8% |
| ICICI Bank | 14.1% |
| Bajaj Finserv | 9.0% |
| State Bank of India | 6.8% |
| Axis Bank | 6.8% |
Motilal Oswal Midcap (Direct – Growth)
Motilal Oswal Midcap Fund has delivered an absolute return of 20.79% in a year. As of May 30, the NAV of this fund stood at ₹114.06, while the AUM, as of April 2025, was ₹27,780 crores. Motilal Oswal Midcap tracks the performance of Nifty Midcap 150 TRI and has managed to outperform the benchmark significantly. The fund has an expense ratio of 0.70%. If you redeem it within a year, you will incur a 1% exit load. Whether you want to invest through a lump sum or SIP, the minimum required amount is ₹500.
Out of 34 stocks in the portfolio, the weightage of the top five is as follows:
| Stock | Weightage |
| Persistent Systems | 10.06% |
| Coforge | 9.47% |
| Kalyan Jewellers | 8.09% |
| Polycab | 4.97% |
| Dixon Technologies | 4.25% |
Conclusion
While mutual funds can offer good returns, you must remember that they are subject to market risks. Past performance is not a guarantee of future results. Always read the scheme-related documents carefully before investing. Don’t invest blindly based solely on returns; consider your financial goals, risk tolerance, and investment timeframe. Markets can be volatile, and even the best-performing funds may see dips. Avoid making emotional decisions during market swings, and ensure you have a well-diversified investment portfolio. Review it regularly and make adjustments based on your evolving needs and market conditions.
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