Best Mutual Funds for 1 Year 2026
Best performing mutual funds in India for the past 1 year. Top equity funds with highest 1-year returns.
20
Top Funds
Top Ranked by 1-Year Returns
SBI Quality Fund - Direct Plan - Income Distribution Cum Capital Withdrawal
SBI Mutual Fund · Sectoral/ Thematic
Mirae Asset NYSE FANG + ETF Fund of Fund Direct Growth
Mirae Asset Mutual Fund · Thematic
Mirae Asset NYSE FANG + ETF Fund of Fund Regular Growth
Mirae Asset Mutual Fund · Thematic
Navi NASDAQ100 US Specific Equity Passive FOF- Regular- Growth
Motilal Oswal Mutual Fund · Flexi Cap
Mirae Asset Global X Artificial Intelligence & Technology ETF Fund of Fund - Regular Plan - Growth
Mirae Asset Mutual Fund · Sectoral
Mirae Asset Nifty Metal ETF
Mirae Asset Mutual Fund · Thematic
Mirae Asset Global X Artificial Intelligence & Technology ETF Fund of Fund - Direct Plan- Growth
Mirae Asset Mutual Fund · Sectoral
BANK OF INDIA Small Cap Fund Direct Plan IDCW
Bank of India Mutual Fund · Small Cap
BANK OF INDIA Small Cap Fund Regular Plan Growth
Bank of India Mutual Fund · Small Cap
Kotak-Small Cap Fund - Payout of Income Distribution cum capital withdrawal option - Direct
Bank of India Mutual Fund · Small Cap
BANK OF INDIA Small Cap Fund Regular Plan IDCW
Bank of India Mutual Fund · Small Cap
BANK OF INDIA Small Cap Fund Direct Plan Growth
Bank of India Mutual Fund · Small Cap
Kotak-Small Cap Fund - Payout of Income Distribution cum capital withdrawal option
Bank of India Mutual Fund · Small Cap
BANK OF INDIA MID & SMALL CAP EQUITY & DEBT FUND - REGULAR PLAN IDCW
Bank of India Mutual Fund · Small Cap
BANK OF INDIA MID & SMALL CAP EQUITY & DEBT FUND - REGULAR PLAN GROWTH
Bank of India Mutual Fund · Small Cap
BANK OF INDIA MID & SMALL CAP EQUITY & DEBT FUND - DIRECT PLAN GROWTH
Bank of India Mutual Fund · Small Cap
BANK OF INDIA MID & SMALL CAP EQUITY & DEBT FUND - DIRECT PLAN IDCW
Bank of India Mutual Fund · Small Cap
TRUSTMF SMALL CAP FUND -DIRECT PLAN-GROWTH
TRUST Mutual Fund · Small Cap
TRUSTMF SMALL CAP FUND -DIRECT PLAN-IDCW
TRUST Mutual Fund · Small Cap
TRUSTMF SMALL CAP FUND -REGULAR PLAN-GROWTH
TRUST Mutual Fund · Small Cap
How to Choose the Best Mutual Funds for 1 Year 2026?
Ranking equity funds by 1-year return is worth approaching carefully — a single year's number is heavily influenced by whatever happened to be in favor that specific year, whether that's a sector rally, a particular market-cap segment outperforming, or simply a fund that took a concentrated bet that happened to pay off. This is the timeframe most exposed to what's often called recency bias: chasing last year's winner, which frequently isn't next year's winner.
More importantly, one year is genuinely too short a horizon for equity investing as a rule of thumb — equity markets can and do fall 20-30% in a single year, and there's no time within a 1-year window to recover from a bad stretch. If the actual goal behind this search is a genuine 1-year investment horizon (not just curiosity about recent performers), liquid, overnight, or short-duration debt funds are the category built for that timeframe, not equity.
Frequently Asked Questions
How much should I invest per month?
There is no fixed rule. Start with an amount you can consistently invest every month without straining your budget. Even ₹500-₹1,000/month compounded over 10+ years can build significant wealth.
Should I invest in a SIP or lump sum?
SIP (Systematic Investment Plan) is recommended for most investors as it averages out the purchase cost over time (rupee cost averaging). Lump sum is suitable when markets are significantly undervalued or you have a large amount to invest.
How are returns taxed?
Equity fund LTCG (held > 1 year) above ₹1 lakh is taxed at 10%. STCG (held < 1 year) is 15%. For ELSS, gains after 3-year lock-in are LTCG. Debt fund gains are taxed per your income tax slab (post-2023).
What is CAGR?
CAGR stands for Compounded Annual Growth Rate — the rate at which your investment would have grown each year if it had grown at a steady rate. It is the standard way to compare mutual fund returns across different time periods.
Is it a good idea to invest based on last year's top-performing fund?
Generally not recommended as a sole strategy — a fund's 1-year outperformance is often driven by a specific sector or theme being in favor that year, which frequently rotates. Fund selection is usually better based on longer track records (3-5+ years) across different market conditions.
What should I actually invest in if my goal is only 1 year away?
For a genuine 1-year horizon, debt fund categories built for capital stability — liquid, overnight, or short-duration funds — are more appropriate than equity funds, since equity carries a real risk of being down at the exact moment you need the money.
Related Pages
* Data is for informational purposes only. Mutual fund investments are subject to market risks. Past performance does not guarantee future returns. Consult a SEBI-registered investment advisor.