8 Mutual Fund Schemes With 3 Months Returns Between 20% to 54%

If you are a mutual fund investor or planning to invest in mutual funds, then recent performance trends might surprise you. Some Mutual Fund Schemes Have Delivered Stellar Returns of UPTO 20% in just the last 3 months. In Fact, A Few Defense Sector Funds Have even Crossed 50% Returns in this short period. In this article, we will deep dive into 8 Mutual Fund Schemes That Have Delived 3-Month Returns Between 20% to 54%Understand their investment objectives, risks, and who should consider investment in Them.

Earlier we Wrote on 5 Mutual Fund Schemes With 5-Year Returns Between 426% to 619% Which can be useful to you.

What are mutual funds?

Mutual Funds Pool Money from Several Investors and Invest in a Diversified Portfolio of Stocks, Bonds, Or Other Securities. Professional Fund Managers Manage these funds aiming to generate return for investors. Mutual funds are suitable for investors looking for diversification and professional management of their investments.

Why consider the last 3 months’ Performance?

The Indian Stock Markets Experienced Sharp Corrections due to Several Macro Events in the Past Few Months. The Major triggers including global economic concerns, inflationary pressures, interest rate hikes, and geopolitical tensions. Notably, the Sudden India-Pakistan Border Tensions also LED to Market Volatily. However, the markets have recently begun a recovery phase, especially in niche segments like defense and psu sector, which benefited immensely from immmensely from budget allocation Rising Investor Interest.

How did we filter these mutual funds?

• We Considered All Equity Mutual Funds, Including Thematic, Sectoral, and Global Funds.
• We filtered mutual funds that generated the highest returns in the last 3 months.
• From this list, we further filtered funds that delivered over 20% returns.
• As a result, we identified 8 mutual funds that generated returns between 20% and 54% in the last 3 months. Earlier Write about Why Mutual Funds Can Get 30% Cagr Returns in the Last 5 yearsHowever here we are talking about
• Data is as of 18-May-25 from Value Research Online.

8 Mutual Fund Schemes With 3 Months Returns Between 20% to 54%

Let us look at the Top 8 Mutual Funds With 3-Month Returns Ranging from 20% to 54%,

Deep Dive Into 8 Mutual Fund Schemes With 3 Months Returns Between 20% to 54%

#1 – Groww Nifty India Defense ETF FOF

• Category: Sectoral/Thematic – Defense
• Objective: Invests in units of nifty India defense etc.
• 3 months return: 53.8%
• 1 year return: Na
• Annualized returns (3y/5y/10y): Na
• Risks of Investing:
  • High Volativity due to concentration in the defense sector
  • Sensitive to Government Policies and Geopolitical Developments
  • Limited Diversification Increases Sector-Specific Risks
• Who can invest: Suitable for High-Risk Investors with a Strong Belief in the Defense Theme and a long-term Horizon.

#2 – Motilal Oswal Nifty India Defense Index Fund

• Category: Index Fund – Sectorral
• Objective: Replicates performance of the nifty India defense index.
• 3 months return: 53.2%
• 1 year return: Na
• Annualized returns (3y/5y/10y): Na
• Risks of Investing:
  • Performance tied to defense sector momentum
  • Vulnerable to Sudden Market or Political Disrupties
  • Lack of sector rotation flexibility
• Who can invest: Sector Enthusiasts, Aggressive Investors Seeking Themetic Exposure.

#3 – Aditya Birla Sun Life Nifty India Defense Index Fund

• Category: Index Fund – Sectorral
• Objective: Tracks nifty India defense index.
• 3 months return: 52.9%
• 1 year return: Na
• Annualized returns (3y/5y/10y): Na
• Risks of Investing:
  • Overexposure to a single sector
  • Can underperform in broad market rallies where other sector lead
  • Performance Can Drop If Defense Allocations Reduce
• Who can invest: Investors who undress sector rotation and can handle high short-term valati.

#4 – HDFC Defense Fund

• Category: Sectoral/Thematic – Defense
• Objective: Invests in Defense and Allied Sectors Aiming Long-Term Capital Appreciation.
• 3 months return: 38.4%
• 1 year return: 22.7%
• Annualized returns (3y/5y/10y): Na
• Risks of Investing:
  • Thematic Exposure Leads to High Risk in the Short Term
  • Limited Historical performance due to recent launch
  • Market Corrections Can Severely Impact Returns
• Who can invest: Long-term investors looking to ride India’s defense growth story.

We write previous about Crisil 5 Star Rated Mutual Funds With 30% Cagr Returns in Last 6 years Article which investors can read.

#5 – Tata Nifty Capital Markets Index Fund

• Category: Index Fund – Financial Services
• Objective: Replicates Nifty Financial Services Index Which Includes Banks, Insurance and NBFCs.
• 3 months return: 25.3%
• 1 year return: Na
• Annualized returns (3y/5y/10y): Na
• Risks of Investing:
  • Sensitive to Interest Rate Changes and Monetary Policy
  • Financial Crises Can Impact Entre Portfolio
  • Performance Can Lag during Economic Downturns
• Who can invest: Investors Seeking Exposure to India’s Growing Financial Sector.

#6 – Motilal oswal nifty capital market index fund

• Category: Index Fund – Financial Services
• Objective: Mirrors Nifty Financial Services Index.
• 3 months return: 25.2%
• 1 year return: Na
• Annualized returns (3y/5y/10y): Na
• Risks of Investing:
  • Impacted by macroeconomic colicies, especially that from RBI
  • May face Volativity during Banking or NBFC Crises
  • Limited to Financial Sector Performance only
• Who can invest: Suitable for medium to long-term investors looking for diversified financial exposure.

#7 – Invesco India PSU Equity Fund

• Category: Equity – Sectorral (PSU)
• Objective: Invests in equities of public sector undertakings Across sector.
• 3 months return: 22.3%
• 1 year return: 5.5%
• Annualized returns:
  • 3y – 37.9%
  • 5Y – 18.6%
  • 10y – 37.9%
• Risks of Investing:
  • Heavily influenced by government policies and disinvestment plans
  • Political Risks and regulatory changes can impormance
  • Cyclic Sector Performance May Cause Long-Term Stagnation
• Who can invest: Investors who Believe in the PSU Growth Turnaround and Can Handle Volatily.

Earlier we also Wrote about article on 10 Mutual Fund Schemes with 10-Year Returns Between 464% and 646% Which can be helpful to you.

#8 – SBI Energy Opportunities Fund

• Category: Sectorral/Themetic – Energy
• Objective: Invests in Energy and Energy-Related Businesses.
• 3 months return: 20.0%
• 1 year return: 0.6%
• Annualized returns (3y/5y/10y): Na
• Risks of Investing:
  • High Dependence on Crude Oil Pries and Global Energy Cycles
  • Regulatory Risks and Climate-Related Policies Can Affect Growth
  • Exposure to Cyclic and Capital-Intensive Businesses
• Who can invest: Investors Bulish on Energy Sector Revival, with long-term goals.

Conclusion: The Past Three Months Have Seen Certain Sector Outperform The Browader Market Significantly, Especially Defense and Capital Market Themes. How Such High Returns May Seem Attractive, They Come with Higher Risk Due to Sector Concentration. These funds can be a part of a satellite portfolio for aggressive investors, but should not form the core of one’s investment strategy. Your Core Investment Strategy Should Be Built Based on Your Financial Goals, Risk Applicite and Tenure of Investment.

Suresh kp is a seasoned financial expert with over 20 years of experience. He is nism Certified Investment Adviser and Research Analyst. For more about his Expertise and Certifications, Visit About Suresh Kp

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