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Mutual funds have always been a reliable investment choice for individuals who want professional management and diversified exposure without directly handling stocks and bonds. While most mutual funds aim to generate stable, long-term wealth, a few have delivered extraordinary short-term performance. In the last one year, certain mutual funds surprised investors by generating returns ranging from 37% to as high as 82%, far outpacing traditional benchmarks.
This article takes a closer look at the top 10 mutual funds that outperformed in the last year. We will explore their investment objectives, past performance, risk factors, and the type of investors who should consider them.
Why Look at 1-Year Mutual Fund Performance?
While long-term returns are usually the focus for investors, short-term outperformance highlights specific sectors and global trends that are driving growth. The last year has seen massive shifts in technology, gold, consumer behavior, and global equities. By studying the top-performing funds, investors can understand which themes are currently delivering and whether they align with their personal financial goals.
List of Top 10 Mutual Funds That Outperformed in the Last 1 Year
Rank | Mutual Fund Scheme | 1-Year Return (%) |
---|---|---|
1 | Mirae Asset Hang Seng TECH ETF FoF | 82.07 |
2 | DSP World Gold FoF | 74.67 |
3 | Mirae Asset NYSE FANG+ ETF FoF | 69.15 |
4 | Invesco India – Invesco Global Consumer Trends FoF | 58.08 |
5 | Nippon India Taiwan Equity Fund | 46.96 |
6 | Mirae Asset S&P 500 Top 50 ETF FoF | 45.91 |
7 | Edelweiss US Technology Equity FoF | 45.59 |
8 | Mirae Asset Global X Artificial Intelligence & Technology ETF FoF | 45.54 |
9 | Edelweiss Greater China Equity Off-shore Fund | 42.60 |
10 | ICICI Prudential NASDAQ 100 Index Fund | 36.96 |
Data as of 8-Aug-25
Mirae Asset Hang Seng TECH ETF FoF – 82.07%
This fund invests in Hong Kong-listed technology giants through the Hang Seng TECH Index. The impressive growth comes from strong performance in Asian tech, particularly in internet and semiconductor companies. However, investors should note the high volatility due to its concentrated exposure to Chinese markets. It is best suited for aggressive investors with a high-risk appetite.
DSP World Gold FoF – 74.67%
By investing in BlackRock Global Funds – World Gold Fund, this scheme has benefited from rising gold prices and mining sector strength. Gold funds are often considered a hedge against inflation and market uncertainty. While the one-year returns are outstanding, investors must be ready for commodity-linked fluctuations.
Mirae Asset NYSE FANG+ ETF FoF – 69.15%
This fund gives exposure to top US tech and consumer companies like Meta, Apple, Amazon, Netflix, and Google. With global tech booming again, the FANG+ index has delivered strong growth. It is ideal for investors bullish on US innovation, but concentration in tech makes it a risky bet if the sector slows down.
Invesco India – Global Consumer Trends FoF – 58.08%
Consumer-driven companies worldwide have gained from changing habits and digital adoption. This fund invests in firms capturing these lifestyle shifts. It provides diversification but comes with risks related to consumer demand cycles and global volatility.
Nippon India Taiwan Equity Fund – 46.96%
Taiwan’s dominance in semiconductors has made this fund a strong performer. The focus on global chip demand has boosted returns, but geopolitical risks in the Taiwan Strait remain a concern. It suits investors who want to capitalize on the semiconductor boom.
Mirae Asset S&P 500 Top 50 ETF FoF – 45.91%
This scheme tracks the top 50 US companies in the S&P 500. It offers exposure to blue-chip stocks like Microsoft, Apple, and Johnson & Johnson. While it provides stability compared to pure tech funds, it is still tied to US market trends.
Edelweiss US Technology Equity FoF – 45.59%
This fund invests in JP Morgan US Technology Fund, focusing purely on the American technology sector. With digital transformation driving growth, it has consistently rewarded investors. However, high dependence on the US tech cycle makes it more suitable for long-term growth seekers comfortable with volatility.
Mirae Asset Global X AI & Technology ETF FoF – 45.54%
Artificial intelligence has been one of the hottest global investment themes. This fund invests in AI-driven companies, offering exposure to one of the fastest-growing sectors. While exciting, AI stocks can be volatile and speculative, so this fund is better for aggressive investors.
Edelweiss Greater China Equity Off-shore Fund – 42.60%
Focused on Chinese and neighboring markets, this fund has delivered decent growth amid global uncertainty. Long-term performance, however, has been mixed due to regulatory and political challenges in China. It is suitable only for investors with strong conviction in the region’s future growth.
ICICI Prudential NASDAQ 100 Index Fund – 36.96%
This index fund mirrors the NASDAQ 100, giving exposure to large US non-financial companies. While its one-year return is the lowest in this list, it remains one of the most popular global funds among Indian investors due to its diversification across tech, biotech, and consumer firms.
Key Takeaways for Investors
- Thematic and international funds led the rally, particularly those focused on technology, gold, and consumer trends.
- Returns as high as 82% in one year are exceptional but not guaranteed in the future.
- High-growth funds come with higher risks, such as market volatility, sector downturns, and currency fluctuations.
- Investors should align fund selection with their risk appetite and investment horizon rather than chasing past performance.
Conclusion
The past year has been extraordinary for select global and thematic mutual funds, with returns ranging from 37% to 82%. Funds focusing on technology, artificial intelligence, gold, and consumer trends dominated the performance charts. While such numbers are attractive, investors should be cautious and consider them as part of a diversified portfolio. Short-term gains should not overshadow long-term wealth-building strategies.
If you are planning to invest in 2025, study the fund objectives carefully, evaluate your risk profile, and think long-term before making any decision.