More Than 15% Returns in Mutual Funds, Despite Muted Equity Performance

Several investors have received robust returns through their Systematic Investment Plans (SIPs) over the last year, despite Nifty's poor showing. It took 14 months for Nifty to hit the fresh record level since September 2024. However, many funds recorded double-digit gains, marking the significance of adopting a long-term investment strategy.

The Nifty 50's return in the past 14 months, from September 27, 2024, when it reached an all-time high of 26,277, until November 27, 2025, was merely 0.13%. However, the one-year return of mutual fund investments through SIPs ranged from -15.76% to +16.64%.

Top 10 Funds-1-Year Return

• SBI Focused Fund: 16.64%
• ICICI Prudential Focused Equity Fund: 14.80%
• The ICICI Prudential Retirement Fund - Pure Equity Plan has a return of 14.35%.
• Invesco India Mid Cap Fund: 14.26%
• Motilal Oswal BSE Enhanced Value (ETF-14.23%)
• Motilal Oswal BSE Enhanced Value Index Fund, 14.05%
• ICICI Prudential Large & MidCap Fund: Fund:13.26%
• Motilal Oswal Large Cap Fund: 13.02%
• ICICI Prudential Value Fund: 12.03%.
• Invesco India Large & Mid Cap Fund: 12.26%

Underperforming Funds:

• Quant Small Cap Fund - Direct Plan: Returned about -16% in the past year.
• Motilal Oswal Nasdaq 100 Fund of Fund - Direct Plan: Returned about -15%, hit by weakness in global technology stocks.
• Tata Small Cap Fund - Direct Plan: Returned about -14%, reflecting volatility in small-cap shares.
• ICICI Prudential Technology Fund - Direct Plan: Returned about -13%, impacted by correction in IT sector valuations.
• Aditya Birla Sun Life Digital India Fund - Direct Plan: Returned about -12%, also affected by the tech sector downturn.

Why These Funds Struggled

Small-cap funds fell because smaller companies are more sensitive to market volatility and economic cycles. Technology funds underperformed due to the global IT slowdown, margin pressures, and valuation corrections. Thematic funds tied to narrow sectors (like digital or Nasdaq-linked funds) suffered when those specific sectors weakened.

If we look at the achievements of the past year, we can see that focused funds are ahead. The highest return in this category is 16.64 per cent. Meanwhile, large-cap funds have performed consistently. Most funds have given returns between 7.5 per cent and 9.3 per cent. The performance of value funds has also been excellent. The highest return in this category is 12.03 per cent. Small-cap funds, however, suffered heavy losses.

Focused Funds

Focused funds are aiming for precise targets. When you focus on a few stocks (focused) or medium-sized companies with growth potential (mid cap), there is a high return potential. Similarly, focused funds have high risk.

SIP for Excellence

Investors can invest in more units at reduced prices through SIP during the frequent market corrections. SIP can be used to make healthy returns long-term, beyond one year.

Market Reaction

The one-year period ending November 28, 2025, was favourable for large-cap stocks and unfavourable for small- and mid-cap stocks. One-year figures indicate that the Momentum strategies underperformed over the one-year window amid leadership rotation, benefiting large caps over small/mid caps. This strategy follows the 'buy high, sell higher' principle with buying the stocks that are rising and selling as they are falling.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.