Mutual funds stay one of the vital enticing funding choices for people aiming to create long-term wealth by means of skilled fund administration. They permit buyers to take part in fairness and debt markets with out instantly selecting and managing particular person securities. Whereas market tendencies can change quickly, sure funds have persistently delivered excellent efficiency over the past two years. On this article, we spotlight the Prime 12 mutual funds that outperformed within the final 2 years, delivering returns starting from 75% to a outstanding 118% in absolute phrases. We’ll talk about their funding targets, previous efficiency, potential dangers, and suitability for various kinds of buyers.
Earlier we wrote about 10 Mutual Funds that Outperformed in Final 1 12 months with 37% to 82%.
Record of Prime 12 Mutual Funds Outperformed in Final 2 Years
| Rank | Mutual Fund Scheme | 2-12 months Annualised Return (%) | Absolute Return (%) | 1 Lakh would have been (₹) |
|---|---|---|---|---|
| 1 | HDFC Defence Fund | 47.6 | 118% | 2,18,000 |
| 2 | DSP World Gold Fund of Fund | 46.3 | 114% | 2,14,000 |
| 3 | Bandhan Small Cap Fund | 34.4 | 82% | 1,82,000 |
| 4 | Nippon India Taiwan Fairness Fund | 33.5 | 80% | 1,80,000 |
| 5 | Invesco India Mid Cap Fund | 33.5 | 80% | 1,80,000 |
| 6 | LIC MF Infrastructure Fund | 32.7 | 78% | 1,78,000 |
| 7 | Invesco India Giant & Mid Cap Fund | 32.4 | 77% | 1,77,000 |
| 8 | Invesco India PSU Fairness Fund | 32.2 | 76% | 1,76,000 |
| 9 | Motilal Oswal Midcap Fund | 32.1 | 76% | 1,76,000 |
| 10 | Mirae Asset International X Synthetic Intelligence & Know-how ETF Fund of Fund | 32.1 | 76% | 1,76,000 |
| 11 | SBI PSU Fund | 31.6 | 75% | 1,75,000 |
| 12 | ICICI Prudential PSU Fairness Fund | 31.6 | 75% | 1,75,000 |
Deep Dive into Every Mutual Fund Scheme
#1 – HDFC Defence Fund
Fund Goal: Invests primarily in firms working within the defence and allied sectors, aiming to seize the expansion potential in India’s defence modernization.
Annualised Returns:
- 1 12 months: 10.0%
- 2 Years: 47.6% (Absolute: 118%, 1 Lakh would have been: 2.18 Lakhs)
Who Can Make investments: Appropriate for aggressive buyers with a high-risk urge for food and long-term horizon.
Threat Components:
- Sector focus danger
- Coverage and regulatory adjustments in defence procurement
Traders shouldn’t overlook that this fund is a part of 10 Mutual Funds that misplaced 20% in in 6 months in 2025 earlier, therefore excessive danger.
#2 – DSP World Gold Fund of Fund
Fund Goal: Invests in BlackRock International Funds – World Gold Fund, specializing in firms engaged in gold mining worldwide.
Annualised Returns:
- 1 12 months: 66.8%
- 2 Years: 46.3% (Absolute: 114%, 1 Lakh would have been: 2.14 Lakhs)
- 3 Years: 33.9%
- 5 Years: 10.2%
- 10 Years: 15.4%
Who Can Make investments: Very best for buyers trying to hedge in opposition to inflation and diversify by way of commodity publicity.
Threat Components:
- Gold worth volatility
- Foreign money fluctuations
#3 – Bandhan Small Cap Fund
Fund Goal: Focuses on small-cap firms with excessive progress potential.
Annualised Returns:
- 1 12 months: 5.7%
- 2 Years: 34.4% (Absolute: 82%, 1 Lakh would have been: 1.82 Lakhs)
- 3 Years: 31.4%
- 5 Years: 34.0%
Who Can Make investments: Appropriate for buyers with a long-term horizon prepared to deal with excessive volatility.
Threat Components:
- Excessive volatility in small-cap phase
- Liquidity dangers
This fund is a part of 13 Greatest Mutual Funds Rated as 5 Star by ValueResearch with over 30% CAGR in final 5 years.
#4 – Nippon India Taiwan Fairness Fund
Fund Goal: Invests in Taiwanese firms, particularly within the semiconductor and expertise sectors.
Annualised Returns:
- 1 12 months: 39.8%
- 2 Years: 33.5% (Absolute: 80%, 1 Lakh would have been: ₹ 1.8 Lakhs)
- 3 Years: 28.6%
Who Can Make investments: Traders trying to profit from Taiwan’s tech business growth.
Threat Components:
- Geopolitical tensions
- Foreign money volatility
#5 – Invesco India Mid Cap Fund
Fund Goal: Focuses on mid-cap firms with robust progress potential.
Annualised Returns:
- 1 12 months: 16.6%
- 2 Years: 33.5% (Absolute: 80%, 1 Lakh would have been: ₹ 1.8 Lakhs)
- 3 Years: 29.2%
- 5 Years: 30.4%
- 10 Years: 19.2%
Who Can Make investments: Appropriate for buyers looking for greater progress than massive caps with average danger.
Threat Components:
- Increased volatility than massive caps
- Sector focus dangers
We mentioned about this fund earlier in Prime 10 Mutual Funds that turned 1 Lakh to 10 Lakhs in 15 years.
#6 – LIC MF Infrastructure Fund
Fund Goal: Invests in firms within the infrastructure sector, benefiting from India’s improvement tasks.
Annualised Returns:
- 1 12 months: -2.5%
- 2 Years: 32.7% (Absolute: 78%, 1 Lakh would have been: 1.78 Lakhs)
- 3 Years: 28.1%
- 5 Years: 33.0%
- 10 Years: 15.8%
Who Can Make investments: Appropriate for buyers bullish on India’s infrastructure progress story.
Threat Components:
- Sector-specific dangers
- Coverage adjustments
#7 – Invesco India Giant & Mid Cap Fund
Fund Goal: Invests in a balanced combine of huge and mid-cap firms.
Annualised Returns:
- 1 12 months: 14.1%
- 2 Years: 32.4% (Absolute: 77%, 1 Lakh would have been: 1.77 Lakhs)
- 3 Years: 26.4%
- 5 Years: 26.1%
- 10 Years: 16.8%
Who Can Make investments: Traders on the lookout for a mix of stability and progress.
Threat Components:
- Market volatility
- Financial slowdown dangers
#8 – Invesco India PSU Fairness Fund
Fund Goal: Invests in Public Sector Undertakings throughout sectors.
Annualised Returns:
- 1 12 months: -4.4%
- 2 Years: 32.2% (Absolute: 76%, 1 Lakh would have been: 1.76 Lakhs)
- 3 Years: 32.3%
- 5 Years: 29.4%
- 10 Years: 17.4%
Who Can Make investments: Appropriate for buyers assured in PSU turnaround tales.
Threat Components:
- Coverage adjustments
- Sector-specific volatility
#9 – Motilal Oswal Midcap Fund
Fund Goal: Focuses on mid-cap firms with robust earnings potential.
Annualised Returns:
- 1 12 months: 4.9%
- 2 Years: 32.1% (Absolute: 76%, 1 Lakh would have been: 1.76 Lakhs)
- 3 Years: 29.4%
- 5 Years: 35.4%
- 10 Years: 18.3%
Who Can Make investments: Progress-focused buyers looking for mid-cap publicity.
Threat Components:
- Increased volatility
- Sector rotation dangers
We analysed this mutual fund amongst 7 Mutual Funds that turned 1 Lakh to five Lakh in 5 years.
#10 – Mirae Asset International X Synthetic Intelligence & Know-how ETF Fund of Fund
Fund Goal: Tracks firms targeted on AI and expertise innovation.
Annualised Returns:
- 1 12 months: 39.6%
- 2 Years: 32.1% (Absolute: 76%, 1 Lakh would have been: 1.76 Lakhs)
Who Can Make investments: Aggressive buyers betting on rising tech tendencies.
Threat Components:
- Excessive volatility
- Rising expertise dangers
#11 – SBI PSU Fund
Fund Goal: Invests in PSU firms with progress potential.
Annualised Returns:
- 1 12 months: -4.5%
- 2 Years: 31.6% (Absolute: 75%, 1 Lakh would have been: 1.75 Lakhs)
- 3 Years: 32.5%
- 5 Years: 31.3%
- 10 Years: 13.5%
Who Can Make investments: Appropriate for buyers optimistic about PSU revival.
Threat Components:
- Market volatility
- Authorities coverage adjustments
Lengthy Time period buyers can add some portion of the portfolio in any of the beneficial mutual funds in Greatest Worldwide Mutual Funds to put money into 2025.
#12 – ICICI Prudential PSU Fairness Fund
Fund Goal: Focuses on PSU firms throughout sectors.
Annualised Returns:
- 1 12 months: -5.2%
- 2 Years: 31.6% (Absolute: 75%, 1 Lakh would have been: 1.75 Lakhs)
Who Can Make investments: Traders on the lookout for sector-specific alternatives.
Threat Components:
- Coverage dependency
- Sector volatility
Conclusion
The final two years have been distinctive for sure thematic, sectoral, and mid-cap mutual funds. Whereas these returns are spectacular, it is very important keep in mind that high-performing funds typically include greater dangers. Traders ought to assess their danger urge for food, funding horizon, and monetary objectives earlier than committing capital to such schemes.
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