SIP: Top 5 Mutual Funds with Remarkable 1-Year Returns – Your Investment Strategy Guide

By | April 11, 2025

In times of market volatility, finding safe and reliable ways to grow wealth is a common concern for many investors. While the stock markets have faced significant ups and downs, several mutual funds have emerged as strong performers over the past year. For those looking to build wealth steadily, Systematic Investment Plans (SIPs) provide a disciplined approach to investing, allowing individuals to weather market fluctuations while reaping the benefits of long-term growth.


This article highlights five top-performing mutual funds that have delivered impressive returns over the last year. We will also explore how SIPs work, why they’re suitable for all investors, and how you can align your investment strategy for maximum returns.

What Is an SIP and Why Should You Consider It?

A Systematic Investment Plan (SIP) allows you to invest a fixed sum regularly—be it monthly or quarterly—into a mutual fund. Rather than making a lump-sum investment, SIPs enable investors to consistently contribute to their chosen mutual fund, capitalizing on the power of rupee-cost averaging and compounding over time.

Some key benefits of SIPs include:

  • Flexible Investment Amounts: Investors can start with a minimum amount as low as ₹500 and adjust contributions as needed based on their financial goals.
  • Automated Contributions: Payments are automatically debited from your bank account, reducing the need for manual transactions.
  • Units Allocation: Based on the NAV (Net Asset Value) on the day of purchase, units of the mutual fund are allocated to the investor’s account.
  • Consistent Investment Discipline: SIPs help investors stick to a regular investment schedule, even during market downturns.

Top 5 Mutual Funds Delivering Exceptional Returns in the Past Year

Despite market volatility, certain mutual funds—especially in the gold and hybrid categories—have delivered impressive returns. Here are five standout mutual funds that have shown robust performance over the last year:

1. DSP Equity & Bond Fund – 1-Year Return: 27.48%

The DSP Equity and Bond Fund is a hybrid scheme that blends equity and debt investments, aiming for long-term growth while minimizing risks. This balanced strategy has proven successful, yielding a solid 27.48% return in the past year. The fund offers a combination of stability and growth potential, making it ideal for investors seeking a diversified approach.

2. LIC MF Gold ETF Fund of Fund – 1-Year Return: 25.81%

Gold has long been considered a safe haven during uncertain times. The LIC MF Gold ETF Fund of Fund capitalizes on this by investing in gold exchange-traded funds (ETFs). In the last year, this fund delivered a 25.81% return, benefiting from the rising demand for gold as a hedge against market instability. It’s an attractive option for conservative investors looking for a commodity-focused investment.

3. ICICI Prudential Regular Gold Savings Fund – 1-Year Return: 24.37%

Managed by ICICI Prudential Asset Management, this fund uses a fund-of-funds (FoF) strategy, channeling investments into gold ETFs. It offers a convenient way to invest in gold without the need for physical purchases or storage. With a 24.37% return over the past year, it’s an excellent option for those seeking indirect exposure to gold in their SIP portfolio.

4. UTI Gold ETF Fund of Fund – 1-Year Return: 24.31%

The UTI Gold ETF Fund of Fund is another popular option for investors looking to gain exposure to gold prices without owning the physical asset. This fund, which invests in a diversified range of gold ETFs, has posted a 24.31% return in the last year. It’s suitable for medium-risk investors who want to balance risk and reward through commodities.

5. SBI Gold Fund – 1-Year Return: 24.09%

The SBI Gold Fund Direct Plan – Growth offers a way for investors to benefit from gold price growth through an ETF investment. This fund has achieved a 24.09% return over the past year and is managed by the trusted SBI Mutual Fund team. It’s ideal for investors who want gold exposure in their portfolio without the complications of physical gold ownership.

How to Develop a Smart SIP Investment Strategy

When selecting mutual funds for your SIP, consider more than just past returns. Here are a few tips to guide you in creating an effective investment plan:

  • Set Clear Financial Goals: Whether you’re saving for retirement, a home, or your children’s education, align your SIP investment timeline with your financial objectives.
  • Evaluate Risk Tolerance: Different funds carry varying levels of risk. Hybrid and gold funds have unique risk profiles, so make sure you’re comfortable with the level of volatility in your portfolio.
  • Diversify Your Investments: To reduce risk, avoid concentrating all your investments in one category. A balanced mix of equity, hybrid, and gold funds can provide better stability.
  • Review and Rebalance Periodically: The market changes, and so should your portfolio. Regularly check your investments every 6–12 months to ensure they align with your goals.
  • Stay Consistent, Even During Market Volatility: The true benefits of SIPs are seen when you stick with your investment plan, especially during market downturns. SIPs help smooth out the effects of market fluctuations over time.

  • Conclusion

Despite the economic challenges and fluctuating market conditions, these five mutual funds have emerged as leaders in terms of 1-year performance. SIPs continue to be an effective and disciplined way to build wealth over time. Whether you’re new to investing or looking to enhance your portfolio, these top-performing funds can serve as strong contenders for your SIP strategy.

Start small, stay consistent, and let the power of compounding and disciplined investing work for you. There’s no better time than now to make smart financial decisions and secure your future.