9 Equity Mutual Funds That Delivered Over 30% SIP Returns in One Year
Small-cap funds dominate the list as several equity mutual fund schemes deliver more than 30% SIP returns over the past year
Equity mutual funds have delivered a mixed performance in recent months as investors have dealt with market volatility. However, some schemes have managed to generate exceptionally strong returns for investors who continued their monthly Systematic Investment Plans (SIPs).
An analysis of nearly 293 equity mutual fund schemes found that nine funds delivered more than 30% returns on SIP investments over the one-year period. Interestingly, eight of these nine schemes belonged to the small-cap category, while one was a focused fund.
The data offers an interesting look at where the strongest recent performance came from, although one-year returns should not automatically be treated as a guide to future performance.
Bank of India Small Cap Fund Leads the List
The Bank of India Small Cap Fund recorded the highest SIP return among the schemes analysed, at 45.95% over one year.
For illustration, a monthly SIP of ₹10,000 generated a value of around ₹1.46 lakh over the period cited in the analysis. The total amount invested through the monthly SIP would have been ₹1.20 lakh, with the remaining amount representing the gain.
The fund's strong one-year performance also stands out against its longer-term record. Separate recent analysis found that Bank of India Small Cap Fund had delivered a 25.21% CAGR over seven years, although different periods and return calculations should not be directly compared.
TRUSTMF Small Cap Fund Also Crosses 40%
The TRUSTMF Small Cap Fund ranked next with a one-year SIP return of 41.53%.
A ₹10,000 monthly SIP was worth approximately ₹1.44 lakh in the period highlighted by the analysis.
TRUSTMF's appearance near the top is notable because the scheme is relatively young compared with many established small-cap funds. This is one reason investors should look beyond a single year's return before making an investment decision.
Complete List of the Nine Funds
The nine schemes that crossed the 30% SIP-return mark were:
| Mutual Fund Scheme | One-Year SIP Return |
|---|---|
| Bank of India Small Cap Fund | 45.95% |
| TRUSTMF Small Cap Fund | 41.53% |
| Motilal Oswal Focused Fund | 38.30% |
| Helios Small Cap Fund | 38.17% |
| Motilal Oswal Small Cap Fund | 35.00% |
| ITI Small Cap Fund | 34.78% |
| Union Small Cap Fund | 33.24% |
| LIC MF Small Cap Fund | 32.44% |
| JM Small Cap Fund | 31.29% |
Eight of the nine funds are small-cap schemes, while Motilal Oswal Focused Fund is the only focused fund in the group.
What Happened Across the Wider Mutual Fund Universe?
The performance becomes more interesting when the entire group of funds is considered.
The analysis covered approximately 293 equity mutual fund schemes. Of these, 182 schemes generated positive SIP returns, while 83 delivered double-digit returns. At the same time, 111 schemes recorded negative SIP returns over the period.
That means the headline-grabbing 30%-plus returns were achieved by only a relatively small portion of the equity-fund universe.
This is an important point for investors: the performance of a few high-return schemes should not be interpreted as representative of all equity mutual funds.
Why Are Small-Cap Funds Dominating the List?
The concentration of small-cap schemes among the top performers is significant.
Small-cap funds invest predominantly in smaller companies, which can experience faster earnings growth and stronger share-price movements when market sentiment is favourable. But the same characteristic can also produce sharper declines when sentiment turns negative.
Recent mutual-fund data has also shown strong investor interest in the small- and mid-cap segments. In July 2026, small-cap mutual funds attracted record monthly inflows of ₹7,767 crore, while mid-cap funds received ₹6,192 crore.
Therefore, the latest one-year performance needs to be viewed alongside the broader market environment rather than in isolation.
A 30% Return Does Not Mean a Guaranteed 30% Every Year
One of the biggest mistakes an investor can make is assuming that a fund delivering 30% or 40% in one year will repeat that performance every year.
Equity mutual fund returns fluctuate with the market. Small-cap funds, in particular, can experience substantial volatility.
For example, recent five-year analysis showed that equity mutual fund performance can vary considerably across categories and individual schemes. Even funds with strong long-term records can go through periods of underperformance.
Therefore, investors should avoid choosing a fund solely because it appears near the top of a one-year return table.
SIP Returns Are Different From Simple One-Year Returns
Another important point is that the figures discussed here relate to SIP performance, rather than simply comparing the NAV on two dates.
With a SIP, money is invested at regular intervals. Consequently, each instalment purchases units at a different NAV.
This is why SIP returns are generally expressed using measures such as XIRR, which takes the timing of individual investments into account.
A monthly SIP can therefore produce a different return figure from a lump-sum investment made at the beginning of the same period.
What Should Investors Check Before Choosing a Fund?
Recent returns can be useful as one piece of information, but they should not be the only selection criterion.
Investors considering equity mutual funds should examine factors such as:
- Long-term performance across different market cycles
- Fund category and investment strategy
- Portfolio concentration
- Expense ratio
- Assets under management
- Fund manager's track record
- Volatility and downside performance
- Consistency compared with the appropriate benchmark
- Personal investment horizon and risk tolerance
For small-cap funds especially, investors need to be comfortable with potentially larger fluctuations in portfolio value.
The Bigger Lesson From the Latest Data
The latest numbers demonstrate two different realities of equity investing.
On one side, a handful of funds have generated very strong one-year SIP returns, with the top scheme crossing 45%. On the other, more than 100 equity schemes in the analysed universe recorded negative SIP returns during the same period.
That gap highlights why chasing recent winners can be risky.
SIPs are generally designed around disciplined, regular investing rather than attempting to identify which fund will produce the highest return in the next few months. A fund's suitability ultimately depends on the investor's goals, time horizon and ability to tolerate market fluctuations.
Bottom Line
The latest one-year SIP data shows strong performance from several small-cap mutual funds, led by Bank of India Small Cap Fund at 45.95%, followed by TRUSTMF Small Cap Fund at 41.53%.
But these are historical returns, not guaranteed future returns. Investors should treat the numbers as a starting point for research rather than as a signal to immediately invest in the funds at the top of the table.
For long-term wealth creation, consistency, diversification, appropriate asset allocation and staying invested through different market cycles can be more relevant than simply chasing the previous year's highest return.
Disclaimer: Mutual fund investments are subject to market risks. Past performance does not guarantee future results. Investors should read scheme-related documents carefully and consider their financial goals, risk tolerance and investment horizon before investing. Professional financial advice may be appropriate for individual investment decisions.
