Indian equity mutual funds have shown strong resilience and selective outperformance over the last one year, even as markets went through phases of volatility, sector rotation, and valuation concerns. While broad indices delivered moderate returns, several sector-focused and thematic domestic mutual funds surprised investors by generating 20% to 30% returns since last Christmas. Unlike the earlier phase where global and overseas funds dominated performance charts, this time the leadership clearly shifted towards financial services, auto, and transportation & logistics themes within India. In this article, we analyse 15 mutual funds that delivered 20% to 30% returns since last Christmas, look at what drove their performance, and understand who should consider investing in them.
Earlier we wrote about 10 Mutual Funds that Delivered 24% to 66% Returns in 6 Months and many readers commented saying most of them are global funds, hence in this article we have excluded global or international mutual funds.
How We Filtered These Mutual Funds
To maintain consistency and avoid cherry-picking, we used the following filtering criteria:
- Considered only domestic equity mutual funds and index funds
- Excluded global, international, and overseas FoFs
- Shortlisted funds based on 1-year absolute returns since last Christmas
- Included funds that delivered returns in the 20% to 30% range
- Focused on Direct Plans wherever applicable
The selected funds primarily belong to Banking & Financial Services, Auto, and Transportation & Logistics sectors, which benefited from economic recovery, credit growth, infrastructure push, and improving demand cycles.
List of 15 Mutual Funds that Delivered 20% to 30% Returns Since Last Christmas
| S No | Mutual Fund Name | 1-Year Return (%) |
|---|---|---|
| 1 | Motilal Oswal Nifty MidSmall Financial Services Index Fund | 29.9 |
| 2 | Kotak Nifty Financial Services Ex-Bank Index Fund | 27.8 |
| 3 | Quant BFSI Fund | 24.2 |
| 4 | Nippon India Nifty Auto Index Fund | 23.5 |
| 5 | ICICI Prudential Nifty Auto Index Fund | 23.4 |
| 6 | Tata Nifty Auto Index Fund | 23.2 |
| 7 | Motilal Oswal BSE Financials ex Bank 30 Index Fund | 23.0 |
| 8 | HDFC Transportation and Logistics Fund | 22.2 |
| 9 | DSP Banking & Financial Services Fund | 22.1 |
| 10 | ITI Banking and Financial Services Fund | 21.5 |
| 11 | SBI Automotive Opportunities Fund | 21.5 |
| 12 | Bandhan Transportation and Logistics Fund | 20.9 |
| 13 | UTI Transportation and Logistics Fund | 20.9 |
| 14 | SBI Banking & Financial Services Fund | 20.6 |
| 15 | ICICI Prudential Transportation and Logistics Fund | 19.7 |
While these have outperformed, there are 10 Mutual Funds That Crashed the Most Since Last Christmas (-12% to -18%).
Deep Dive into Each Mutual Fund Scheme
1. Motilal Oswal Nifty MidSmall Financial Services Index Fund
Fund Objective:
Tracks the Nifty MidSmall Financial Services Index, offering exposure to mid and small-sized financial companies beyond large banks.
Mutual Fund Performance:
- 1 Year Return: 29.9%
- 3 Year Return: Not Available
₹1 Lakh Investment Value:
- Grew to approximately: ₹1.30 lakh in one year
Why to Invest:
- The sector is witnessing strong earnings visibility supported by economic recovery and policy tailwinds.
- Suitable for investors looking to tactically benefit from sectoral upcycles.
- Can add return-enhancing exposure as a satellite allocation in a diversified portfolio.
Risk Factors:
- Sector concentration can lead to higher volatility during downturns.
- Performance may underperform during adverse economic or regulatory cycles.
2. Kotak Nifty Financial Services Ex-Bank Index Fund
Fund Objective:
Provides exposure to non-banking financial companies, insurance firms, and other financial service providers, excluding banks.
Mutual Fund Performance:
- 1 Year Return: 27.8%
₹1 Lakh Investment Value:
- Turned into nearly: ₹1.28 lakh in one year
Why to Invest:
- The sector is witnessing strong earnings visibility supported by economic recovery and policy tailwinds.
- Suitable for investors looking to tactically benefit from sectoral upcycles.
- Can add return-enhancing exposure as a satellite allocation in a diversified portfolio.
Risk Factors:
- Sector concentration can lead to higher volatility during downturns.
- Performance may underperform during adverse economic or regulatory cycles.
3. Quant BFSI Fund
Fund Objective:
Actively managed fund focusing on banking, financial services, and insurance companies with a dynamic allocation strategy.
Mutual Fund Performance:
- 1 Year Return: 24.2%
₹1 Lakh Investment Value:
- Increased to around: ₹1.24 lakh in one year
Why to Invest:
- The sector is witnessing strong earnings visibility supported by economic recovery and policy tailwinds.
- Suitable for investors looking to tactically benefit from sectoral upcycles.
- Can add return-enhancing exposure as a satellite allocation in a diversified portfolio.
Risk Factors:
- Sector concentration can lead to higher volatility during downturns.
- Performance may underperform during adverse economic or regulatory cycles.
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4. Nippon India Nifty Auto Index Fund
Fund Objective:
Tracks the Nifty Auto Index, providing exposure to automobile manufacturers and auto ancillary companies.
Mutual Fund Performance:
- 1 Year Return: 23.5%
₹1 Lakh Investment Value:
- Grew to approximately: ₹1.24 lakh in one year
Why to Invest:
- The sector is witnessing strong earnings visibility supported by economic recovery and policy tailwinds.
- Suitable for investors looking to tactically benefit from sectoral upcycles.
- Can add return-enhancing exposure as a satellite allocation in a diversified portfolio.
Risk Factors:
- Sector concentration can lead to higher volatility during downturns.
- Performance may underperform during adverse economic or regulatory cycles.
5. ICICI Prudential Nifty Auto Index Fund
Fund Objective:
Replicates the Nifty Auto Index with exposure to leading auto and ancillary companies.
Mutual Fund Performance:
- 1 Year Return: 23.4%
- 3 Year Return: 31.8%
₹1 Lakh Investment Value:
- Turned into nearly: ₹1.23 lakh in one year
Why to Invest:
- The sector is witnessing strong earnings visibility supported by economic recovery and policy tailwinds.
- Suitable for investors looking to tactically benefit from sectoral upcycles.
- Can add return-enhancing exposure as a satellite allocation in a diversified portfolio.
Risk Factors:
- Sector concentration can lead to higher volatility during downturns.
- Performance may underperform during adverse economic or regulatory cycles.
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6. Tata Nifty Auto Index Fund
Fund Objective:
Offers passive exposure to India’s automobile sector through the Nifty Auto Index.
Mutual Fund Performance:
- 1 Year Return: 23.2%
₹1 Lakh Investment Value:
- Became approximately: ₹1.23 lakh in one year
Why to Invest:
- The sector is witnessing strong earnings visibility supported by economic recovery and policy tailwinds.
- Suitable for investors looking to tactically benefit from sectoral upcycles.
- Can add return-enhancing exposure as a satellite allocation in a diversified portfolio.
Risk Factors:
- Sector concentration can lead to higher volatility during downturns.
- Performance may underperform during adverse economic or regulatory cycles.
7. Motilal Oswal BSE Financials ex Bank 30 Index Fund
Fund Objective:
Tracks the BSE Financials ex Bank 30 Index, focusing on NBFCs, insurance, and other financial companies.
Mutual Fund Performance:
- 1 Year Return: 23.0%
- 3 Year Return: 23.7%
₹1 Lakh Investment Value:
- Grew to nearly: ₹1.23 lakh in one year
Why to Invest:
- The sector is witnessing strong earnings visibility supported by economic recovery and policy tailwinds.
- Suitable for investors looking to tactically benefit from sectoral upcycles.
- Can add return-enhancing exposure as a satellite allocation in a diversified portfolio.
Risk Factors:
- Sector concentration can lead to higher volatility during downturns.
- Performance may underperform during adverse economic or regulatory cycles.
8. HDFC Transportation and Logistics Fund
Fund Objective:
Invests in companies across transportation, logistics, ports, railways, and infrastructure-linked services.
Mutual Fund Performance:
- 1 Year Return: 22.2%
₹1 Lakh Investment Value:
- Turned into around: ₹1.22 lakh in one year
Why to Invest:
- The sector is witnessing strong earnings visibility supported by economic recovery and policy tailwinds.
- Suitable for investors looking to tactically benefit from sectoral upcycles.
- Can add return-enhancing exposure as a satellite allocation in a diversified portfolio.
Risk Factors:
- Sector concentration can lead to higher volatility during downturns.
- Performance may underperform during adverse economic or regulatory cycles.
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9. DSP Banking & Financial Services Fund
Fund Objective:
Actively managed fund investing across banks, NBFCs, and financial institutions.
Mutual Fund Performance:
- 1 Year Return: 22.1%
₹1 Lakh Investment Value:
- Increased to approximately: ₹1.22 lakh in one year
Why to Invest:
- The sector is witnessing strong earnings visibility supported by economic recovery and policy tailwinds.
- Suitable for investors looking to tactically benefit from sectoral upcycles.
- Can add return-enhancing exposure as a satellite allocation in a diversified portfolio.
Risk Factors:
- Sector concentration can lead to higher volatility during downturns.
- Performance may underperform during adverse economic or regulatory cycles.
10. ITI Banking and Financial Services Fund
Fund Objective:
Focuses on banking and financial services stocks with selective exposure across market caps.
Mutual Fund Performance:
- 1 Year Return: 21.5%
- 3 Year Return: 16.8%
₹1 Lakh Investment Value:
- Grew to nearly: ₹1.22 lakh in one year
Risk Factors:
- Underperformance during financial sector downturns
11. SBI Automotive Opportunities Fund
Fund Objective:
Actively managed fund focusing on automobile manufacturers and ancillary companies.
Mutual Fund Performance:
- 1 Year Return: 21.5%
Why to Invest:
- The sector is witnessing strong earnings visibility supported by economic recovery and policy tailwinds.
- Suitable for investors looking to tactically benefit from sectoral upcycles.
- Can add return-enhancing exposure as a satellite allocation in a diversified portfolio.
Why to Invest:
- The fund is positioned to benefit from sectoral tailwinds driven by economic growth, policy support, and improving demand conditions.
- Suitable for investors seeking tactical exposure to the theme as part of a diversified portfolio.
- Helps capture medium- to long-term opportunities without directly picking individual stocks.
Risk Factors:
- Sector concentration can lead to higher volatility during downturns.
- Performance may underperform during adverse economic or regulatory cycles.
12. Bandhan Transportation and Logistics Fund
Fund Objective:
Invests in transportation, logistics, and supply chain-related businesses.
Mutual Fund Performance:
- 1 Year Return: 20.9%
- 3 Year Return: 28.4%
Why to Invest:
- The fund is positioned to benefit from sectoral tailwinds driven by economic growth, policy support, and improving demand conditions.
- Suitable for investors seeking tactical exposure to the theme as part of a diversified portfolio.
- Helps capture medium- to long-term opportunities without directly picking individual stocks.
Risk Factors:
- Cyclical business nature
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13. UTI Transportation and Logistics Fund
Fund Objective:
Focuses on transportation, logistics, and infrastructure-linked sectors.
Mutual Fund Performance:
- 1 Year Return: 20.9%
- 3 Year Return: 28.3%
- 5 Year Return: 25.1%
- 10 Year Return: 14.3%
Why to Invest:
- The fund is positioned to benefit from sectoral tailwinds driven by economic growth, policy support, and improving demand conditions.
- Suitable for investors seeking tactical exposure to the theme as part of a diversified portfolio.
- Helps capture medium- to long-term opportunities without directly picking individual stocks.
Risk Factors:
- Long project gestation periods
14. SBI Banking & Financial Services Fund
Fund Objective:
Invests across banking and financial services with a long-term perspective.
Mutual Fund Performance:
- 1 Year Return: 20.6%
- 3 Year Return: 22.1%
- 5 Year Return: 18.6%
- 10 Year Return: 18.7%
Why to Invest:
- The fund is positioned to benefit from sectoral tailwinds driven by economic growth, policy support, and improving demand conditions.
- Suitable for investors seeking tactical exposure to the theme as part of a diversified portfolio.
- Helps capture medium- to long-term opportunities without directly picking individual stocks.
Risk Factors:
- Market-linked volatility
15. ICICI Prudential Transportation and Logistics Fund
Fund Objective:
Invests in transportation and logistics companies benefiting from economic growth.
Mutual Fund Performance:
- 1 Year Return: 19.7%
- 3 Year Return: 31.9%
Why to Invest:
- The fund is positioned to benefit from sectoral tailwinds driven by economic growth, policy support, and improving demand conditions.
- Suitable for investors seeking tactical exposure to the theme as part of a diversified portfolio.
- Helps capture medium- to long-term opportunities without directly picking individual stocks.
Risk Factors:
- Sector concentration risk
Summary and Conclusion
These 15 mutual funds delivered 20% to 30% returns since last Christmas, driven largely by financial services, auto, and transportation themes. The performance highlights how sector-focused domestic funds can outperform during favourable economic and policy cycles.
However, investors should remember that sectoral and thematic funds are inherently volatile. Such funds are best suited as satellite allocations within a diversified portfolio rather than core holdings. Avoid chasing short-term performance and align investments with long-term goals, risk appetite, and asset allocation strategy.
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