Top 10 Mutual Funds in India with Highest 1-Year Returns

Mutual funds continue to be one of the most popular ways for Indians to grow wealth through disciplined investing. Whether you are a beginner or have some experience with investing, knowing which funds have delivered strong performance can help you make better decisions. In this article, we explore some of the top 10 mutual funds in India based on recent 1-year returns and overall popularity, with simple explanations you can easily understand.

Understanding Mutual Funds

A mutual fund is a pooled investment where your money joins with many other investors’ money and is managed by professional fund managers. Funds invest in stocks, bonds, commodities, or a combination, depending on the fund’s objective.

Before we dive into the list, remember this important rule: past performance is not a guarantee of future results, but it gives useful insight into how well a fund has performed historically.

Top 10 Mutual Funds in India (Recent 1-Year Performance)

Here are some of the best-performing mutual funds over the last 12 months. These funds have shown strong returns but also come with varying levels of risk.

1️⃣ Edelweiss Gold and Silver ETF FoF Regular – Growth

• 1-Year Return: ~69.48% 
• AUM (Assets Under Management): ~₹469.17 Cr 
• Launch Year: 2022 
• Minimum Investment: ₹100 
• Risk Level: High 

This unique fund invests primarily in gold and silver ETFs, making it a choice for investors bullish on commodity rallies. With strong returns over the past year, it outperformed many equity funds that focused strictly on stocks.

2️⃣ HDFC Gold ETF Fund of Fund Regular – Growth

• 1-Year Return: ~59.44% 
• AUM: ~₹4,536.91 Cr 
• Launch Year: 2011 
• Minimum Investment: ₹100 
• Risk Level: High 

Run by HDFC Asset Management, this fund tracks the price of gold through ETFs and has been a favorite for risk-tolerant investors during times of commodity strength. Over the last year, it delivered steady returns as gold prices rose.

3️⃣ ICICI Prudential Gold ETF FoF Direct – Growth

• 1-Year Return: ~59.75% 
• AUM: ~₹2,384.06 Cr 
• Expense Ratio: ~0.09% 
• Minimum Investment: ₹100 

Offered by ICICI Prudential Mutual Fund, this direct plan emphasizes lower costs and gold exposure, making it attractive for investors seeking high returns without high fees.

4️⃣ SBI Gold Fund – Growth

• 1-Year Return: ~59.63% 
• AUM: ~₹4,739.69 Cr 
• Minimum Investment: ₹1,000 

This fund from SBI Mutual Fund again focuses on gold, delivering returns inline with rising global and domestic bullion prices. Its large size shows investor confidence too.

5️⃣ Nippon India Gold Savings Fund Direct – Growth

• 1-Year Return: ~59.51% 
• AUM: ~₹3,248.15 Cr 
• Launch Year: Not specified 

From Nippon India Mutual Fund, this scheme also tracks gold ETFs, showing that many gold-based funds led returns last year due to strong commodity markets.

6️⃣ Axis Gold Fund Regular – Growth

• 1-Year Return: ~58.29% 
• AUM: ~₹1,180.38 Cr 
• Minimum Investment: ₹100 

An option from Axis Mutual Fund, this gold-focused fund has shown excellent returns for those who timed their investment during the past year’s rally.

7️⃣ Kotak Gold Fund Regular – Growth

• 1-Year Return: ~58.66% 
• AUM: ~₹3,301.61 Cr 
• Minimum Investment: ₹100 

Kotak Mutual Fund’s gold scheme highlights that even established players saw strong performance through commodities.

8️⃣ ICICI Prudential Silver ETF FoF – Growth

• 1-Year Return: ~79.32% 
• AUM: ~₹1,834.84 Cr 
• Minimum Investment: ₹100 

Among all the listed funds, this silver ETF fund delivered one of the highest returns (~79.32%), showing how bullion markets were a standout performer in the last 12 months.

9️⃣ Nippon India Silver ETF FoF Regular – Growth

• 1-Year Return: ~77.14% 
• AUM: ~₹1,025.65 Cr 
• Minimum Investment: ₹100 

Similar to the ICICI silver fund, this scheme from Nippon India Mutual Fund also rode the silver price surge, making it one of the top performers.

🔟 Axis Global Equity Alpha FoF Regular – Growth

• 1-Year Return: ~25.76% 
• AUM: ~₹1,019.31 Cr 
• Minimum Investment: ₹100 

Unlike the earlier funds which focused on commodities, this equity FoF (Fund of Funds) from Axis Mutual Fund invests globally, providing diversification and solid returns for those allocating to international equities.

Key Takeaways for Investors

Here are some simple points to remember before investing:

🔹 Commodity Funds Were Big Winners

Many funds that posted massive returns (50%+) in the past year were gold or silver fund-of-funds — meaning they invest in commodity ETFs rather than stocks.

🔹 Equity Funds Still Deliver

Funds focused on mid/small caps or global equities can offer strong returns, but they’re usually more volatile. Recent broader market data also shows several equity funds delivered attractive gains this year.

🔹 Past Performance ≠ Future Performance

Remember: history gives clues, not guarantees. Always align your investment choices with your risk tolerance, time horizon, and financial goals.

🔹 SIP vs. Lump Sum

Most of these funds can be invested via Systematic Investment Plans (SIP) or lump sum investments. SIPs help average cost over time, especially when markets are uncertain.

Final Thoughts

Mutual funds can help you build wealth steadily if chosen wisely. Whether you are aiming for strong short-term returns or building long-term wealth, a diversified mix of funds — including gold, equity, and global offerings — can help balance risk and reward.

If you are just starting out, consider speaking with a financial advisor who can help match funds to your goals. The funds listed above are based on recent 1-year performance data, and while they highlight strong performers, consistent investing and patience often make the biggest difference over time.