Highest Return Mutual Fund in 1 Year

What are the High Return Mutual Funds?

High Return Mutual Funds are the schemes that historically aim for and often deliver the highest returns are primarily Equity Mutual Funds in the volatile categories like Small-Cap, Mid-Cap, and Sectoral/Thematic Funds. These categories pursue aggressive growth by investing in riskier assets. 

Crucially, these high-return prospects are governed by three fundamental principles: High Risk – High Return Potential, the necessity of a Long-Term Horizon, and the fact that Past Performance is NOT a Future Guarantee, which is why choosing the best SIP to invest depends on risk tolerance and investment goals.

Top 10 Highest Return Mutual Funds in 1 Year

The table below consists of the highest return mutual funds in 1 Year :

1. Edelweiss Gold and Silver ETF FoF Regular - Growth

   An open-ended fund of funds aiming to generate returns by investing in both Gold ETFs and Silver ETFs, tracking the domestic prices of both commodities.

   Parameters	Details
   Fund Name	Edelweiss Gold and Silver ETF FoF Regular - Growth
   NAV	₹ 32.92 (as on 1st April, 2026)
   AUM	₹2,964.79 Crs
   Expense Ratio	0.61%
   Return 1 Year	92.72%
   Minimum Investment	SIP ₹1000 & Lumpsum ₹100
   Risk Level	Principal at very high risk
   Launch Date	14th September, 2022
   Asset Allocation	Debt: 0.59%, Others: 1.37%, Commodities: 98.05%
   Top Sectors	NA
   Top Holdings	Edelweiss Gold ETF - Growth Edelweiss Silver ETF - Growth Others CBLO Cash Net Payables
   Fund Managers	Bhavesh Jain Bharat Lahoti
   Fund Type	Open-ended

2. HDFC Gold ETF Fund of Fund Regular - Growth

   An open-ended fund of funds that seeks to provide returns in line with the performance of HDFC Gold Exchange Traded Fund (ETF), which in turn invests in physical gold.

   Parameters	Details
   Fund Name	HDFC Gold ETF Fund of Fund Regular-Growth
   NAV	₹ 43.43 (as on 31st March, 2026)
   AUM	₹11,766.04 Crs
   Expense Ratio	0.47%
   Return 1 Year	61.38%
   Minimum Investment	SIP ₹1000 & Lumpsum ₹100
   Risk Level	Principal at high risk
   Launch Date	1st November, 2011
   Asset Allocation	Others: 1.4%, Commodities: 98.6%
   Top Sectors	NA
   Top Holdings	HDFC Gold ETF Repo Net Payables
   Fund Managers	Arun Agarwal Nandita Menezes
   Fund Type	Open-ended

3. ICICI Prudential Regular Gold Savings (FOF) Direct - Growth

   A fund of funds scheme with the primary objective of generating returns by investing in units of ICICI Prudential Gold ETF, tracking the domestic price of gold.

   Parameters	Details
   Fund Name	ICICI Prudential Gold ETF FoF Direct-Growth
   NAV	₹ 46.82 (as on 31st March, 2026)
   AUM	₹6,534.72 Crs
   Expense Ratio	0.13%
   Return 1 Year	63.44%
   Minimum Investment	SIP ₹1000 & Lumpsum ₹100
   Risk Level	Principal at high risk
   Launch Date	NA
   Asset Allocation	Others: 1.78%, Commodities: 98.22%
   Top Sectors	NA
   Top Holdings	ICICI Prudential Gold Exchange Traded Fund IDCW Repo Net Payables
   Fund Managers	Manish Banthia Nishit Patel
   Fund Type	Open-ended

4. SBI Gold Fund Direct - Growth

   A fund of funds scheme that aims to provide returns that closely correspond to the returns provided by the SBI Gold Exchange Traded Scheme (SBI GETS), tracking the price of physical gold.

   Parameters	Details
   Fund Name	SBI Gold Fund-Growth
   NAV	₹ 42.78 (as on 31st March, 2026)
   AUM	₹15,700.39 Crs
   Expense Ratio	0.41%
   Return 1 Year	62.94%
   Minimum Investment	SIP ₹1000 & Lumpsum ₹5,000
   Risk Level	Principal at high risk
   Launch Date	12th September, 2011
   Asset Allocation	Others: 1.54%, Commodities: 98.46%
   Top Sectors	NA
   Top Holdings	SBI ETF Gold Repo Net Payables
   Fund Managers	Pradeep Kesavan Raviprakash Sharma
   Fund Type	Open-ended

5. Nippon India Gold Savings Fund Direct - Growth

   A fund of funds that primarily invests in units of Nippon India ETF Gold BeES (a Gold ETF), aiming to generate returns commensurate with the performance of gold.

   Parameters	Details
   Fund Name	Nippon India Gold Savings Fund Direct-Growth
   NAV	₹ 59.47 (as on 1st April, 2026)
   AUM	₹7,222.59 Crs
   Expense Ratio	0.13%
   Return 1 Year	63.12%
   Minimum Investment	SIP ₹1000 & Lumpsum ₹100
   Risk Level	Principal at high risk
   Launch Date	NA
   Asset Allocation	Debt: 0%, Others: 1.53%, Commodities: 98.47%
   Top Sectors	NA
   Top Holdings	Nippon India ETF Gold BeES IDCW Repo Others Mrgn Money Net Payables
   Fund Managers	NA
   Fund Type	Open-ended

6. Axis Gold Fund Regular-Growth

   An open-ended fund of funds investing predominantly in Axis Gold ETF to generate returns similar to the underlying ETF, which tracks the domestic price of gold.

   Parameters	Details
   Fund Name	Axis Gold Fund Regular-Growth
   NAV	₹ 42.25 (as on 31st March, 2026)
   AUM	₹2,998.08 Crs
   Expense Ratio	0.5%
   Return 1 Year	61.71%
   Minimum Investment	SIP ₹1000 & Lumpsum ₹100
   Risk Level	Principal at high risk
   Launch Date	20th October, 2011
   Asset Allocation	Debt: 0.41%, Others: 1.36%, Commodities: 98.24%
   Top Sectors	NA
   Top Holdings	Axis Gold ETF-Growth Others CBLO Net Payables
   Fund Managers	Pratik Tibrewal Aditya Pagaria
   Fund Type	Open-ended

7. Kotak Gold Fund Regular - Growth 

   A fund of funds scheme that invests in the units of the Kotak Gold ETF, to provide returns that closely correspond to the return provided by the price of physical gold.

   Parameters	Details
   Fund Name	Kotak Gold Fund Regular-Growth
   NAV	₹ 56.92 (as on 1st April, 2026)
   AUM	₹6,866.22 Crs
   Expense Ratio	0.5%
   Return 1 Year	61.93%
   Minimum Investment	SIP ₹1000 & Lumpsum ₹100
   Risk Level	Principal at high risk
   Launch Date	25th March, 2011
   Asset Allocation	Others: 1.56%, Commodities: 98.44%
   Top Sectors	NA
   Top Holdings	Kotak Gold ETF Repo Net Payables
   Fund Managers	Abhishek Bisen Jeetu Valechha Sonar
   Fund Type	Open-ended

8. ICICI Prudential Silver ETF FoF Fund - Growth

   An open-ended fund of funds with the primary objective of generating returns by investing in units of ICICI Prudential Silver ETF, tracking the domestic price of silver.

   Parameters	Details
   Fund Name	ICICI Prudential Silver ETF FoF - Growth
   NAV	₹ 33.88 (as on 31st March, 2026)
   AUM	₹7,058.51 Crs
   Expense Ratio	0.64%
   Return 1 Year	118.35%
   Minimum Investment	SIP ₹1000 & Lumpsum ₹100
   Risk Level	Principal at very high risk
   Launch Date	1st February, 2022
   Asset Allocation	Others: 0.98%, Commodities: 99.02%
   Top Sectors	NA
   Top Holdings	ICICI Prudential Silver ETF - Growth Repo Net Payables
   Fund Managers	Manish Banthia Nishit Patel
   Fund Type	Open-ended

9. Nippon India Silver ETF FoF Regular - Growth

   An open-ended fund of funds that seeks to provide returns that closely correspond to the returns provided by Nippon India Silver ETF by investing in its units.

   Parameters	Details
   Fund Name	Nippon India Silver ETF FoF Regular - Growth
   NAV	₹ 35.29 (as on 1st April, 2026)
   AUM	₹4,719.87 Crs
   Expense Ratio	0.56%
   Return 1 Year	125.12%
   Minimum Investment	SIP ₹1000 & Lumpsum ₹100
   Risk Level	Principal at very high risk
   Launch Date	2nd February, 2022
   Asset Allocation	Debt: 0%, Others: 1.5%, Commodities: 98.5%
   Top Sectors	NA
   Top Holdings	Nippon India Silver ETF - Growth Repo Others Mrgn Money Net Payables
   Fund Managers	NA
   Fund Type	Open-ended

10. Axis Global Equity Alpha FoF Regular - Growth 

    An open-ended fund of funds whose investment objective is to provide long-term capital appreciation by predominantly investing in an overseas fund, which invests in equities of companies worldwide.

    Parameters	Details
    Fund Name	Axis Global Equity Alpha FoF Regular-Growth
    NAV	₹ 21.32 (as on 1st April, 2026)
    AUM	₹1,894.93 Crs
    Expense Ratio	1.61%
    Return 1 Year	25.66%
    Minimum Investment	SIP ₹1000 & Lumpsum ₹100
    Risk Level	Principal at very high risk
    Launch Date	24th September, 2020
    Asset Allocation	Equity: 96.46%, Debt: 10.3%, Others: -6.76%
    Top Sectors	NA
    Top Holdings	Schroder ISF Global Equity Alpha Others CBLO Net Payables
    Fund Managers	NA
    Fund Type	Open-ended

How to Choose the Highest Return Mutual Fund in 1 Year

1. Avoid Equity

   Don’t look at any equity fund, like Large Cap, Flexi Cap, Small Cap, etc., focus on Debt Mutual Funds and Hybrid mutual funds that have minimal or no equity exposure, as well as other non-equity investment options.

2. Focus on Credit Quality

   For Liquid/Ultra Short Funds, choose funds that primarily hold assets with the highest credit rating (A1+ or AAA). This ensures the company or government is very unlikely to default on its debt.

3. Check Expense Ratio

   Choose the Direct Plan with the lowest Expense Ratio. Since the returns are low, every small saving on fees increases your net return.

Note: For a 1-year investment, look for a low-cost, high-credit-quality debt fund, not the one that promises the highest return.

Advantages of the Highest Return Mutual Fund in 1 Year 

1. Rapid Capital Growth

   If you happen to pick the fund that goes up 40% in a year, you experience a major, quick increase in your wealth over a very short period. This is the primary psychological driver for chasing these funds.

2. Exploiting Market Momentum

   The highest 1-year returns are often from highly volatile segments like Small-Cap or Sectoral/Thematic funds. Getting in right before a sectoral boom can lead to high, concentrated, short-term gains.

3. Liquidity for Short-Term Needs

   If you hit a high-return period and need the money for a short-term goal (like a down payment), the high return ensures your short-term corpus grows significantly. 

Wrapping Up

The pursuit of the Highest Return Mutual Fund in 1 Year reveals a market dominated by the cyclical surges of Gold and Silver FoFs, not consistent equity compounding. While the allure of 40%+ gains is strong, this short-term focus is a high-risk gamble, exposing investors to immediate market reversals and unfavorable STCG tax rates. For goals within a 1-year window, ignore the top performer list and prioritize capital preservation and stability by choosing low-risk debt alternatives.