When stock markets are under pressure, most investors simply hope to limit losses. But what if some mutual funds not only protected investor wealth better but also delivered double-digit gains? That is exactly what has happened with a select group of equity mutual funds over the past year.
At a time when Indian equity markets have seen sharp volatility due to global tensions, foreign investor selling, inflation worries, and rising crude oil prices, a few well-managed mutual funds have managed to generate returns of up to 15.46% in just one year.
For context, benchmark indices have struggled during this period. The Sensex has fallen nearly 8%, while the Nifty 50 has declined around 5%, reflecting the difficult environment investors have faced.
The market pressure has not come from one single reason.
A major trigger has been rising geopolitical tensions in the Middle East, especially involving Iran, Israel and the US. India imports a large portion of its crude oil needs, so any risk of supply disruption immediately worries markets. Concerns around tanker movement pushed crude oil prices higher, creating uncertainty.
Then there has been a sustained selling by foreign portfolio investors (FPIs). Global investors increasingly moved money toward safer assets, especially amid a strong US dollar and fears of currency volatility in emerging markets like India.
At the same time, rising crude prices have added inflation pressure. Higher energy costs increase production expenses for companies, reduce profit margins, and can weaken the rupee. This combination often creates a difficult backdrop for equity markets.
And yet, despite all this, some equity mutual funds have delivered strong returns.
What makes this even more notable is that these are not just high-return funds. This shortlist focuses on funds that combine three important filters: 5-star Value Research rating, relatively low expense ratios, and strong 1-year performance.
Why does expense ratio matter? Because when markets are under pressure, every percentage point counts. A lower expense ratio means less money goes toward fund management costs, helping investors keep more of their returns.
Here are five funds that stood out.
| Fund Name | Value Research Rating | Expense Ratio | 1-Year Return |
| WhiteOak Capital Mid Cap Fund Direct | 5-Star | 0.72% | 15.46% |
| ICICI Prudential Retirement Fund Pure Equity Direct | 5-Star | 0.71% | 12.82% |
| Nippon India Growth Mid Cap Fund Direct | 5-Star | 0.81% | 11.30% |
| Edelweiss Mid Cap Fund Direct | 5-Star | 0.60% | 10.39% |
| Bandhan Small Cap Fund Direct | 5-Star | 0.80% | 9.00% |
WhiteOak Capital Mid Cap Fund Direct
This fund emerged as the strongest performer in the list.
- Value Research Rating: 5-star
- 1-year return: 15.46%
- Expense ratio: 0.72%
- AUM: Rs 5,293 crore
- Fund age: 3 years 8 months
- Risk level: Very High
ICICI Prudential Retirement Fund Pure Equity Direct
This fund scores high not just on returns but also on category leadership.
- Value Research Rating: 5-star
- 1-year return: 12.82%
- Expense ratio: 0.71%
- AUM: Rs 1,869 crore
- Fund age: 7 years 2 months
- Risk level: Very High
Nippon India Growth Mid Cap Fund Direct
A long-established name among mid-cap investors.
- Value Research Rating: 5-star
- 1-year return: 11.30%
- Expense ratio: 0.81%
- AUM: Rs 45,820 crore
- Fund age: 13 years 4 months
- Risk level: Very High
Edelweiss Mid Cap Fund Direct
This fund stands out on the cost front.
- Value Research Rating: 5-star
- 1-year return: 10.39%
- Expense ratio: 0.60%
- AUM: Rs 15,911 crore
- Fund age: 13 years 4 months
- Risk level: Very High
Bandhan Small Cap Fund Direct
For investors looking at the small-cap space, this fund makes the list.
- Value Research Rating: 5-star
- 1-year return: 9.00%
- Expense ratio: 0.80%
- AUM: Rs 25,346 crore
- Fund age: 6 years 2 months
- Risk level: Very High
Why do these funds deserve attention?
This is not a recommendation list, but a performance snapshot based on specific filters.
The key takeaway is this: when broader markets struggle, fund selection matters. Strong fund management, disciplined stock selection, and lower costs can create meaningful differences in investor outcomes.
That said, investors should not chase returns blindly.
A fund that performed well over one year may not necessarily repeat that performance in the future. Market conditions change, leadership changes, and sector cycles turn.
Caution for investors
Past performance does not guarantee future returns. Mutual fund investments are subject to market risks. Investors should review scheme objectives, risk levels, costs, and suitability before investing.
Disclaimer: This article is for informational purposes only and is based on publicly available fund data, including Value Research ratings, expense ratios, and recent performance figures. The funds mentioned are shortlisted using specific screening criteria and should not be treated as investment recommendations. Mutual fund returns are market-linked and past performance is not a guarantee of future returns. Investors should assess their financial goals, risk appetite, and investment horizon, and consider consulting a qualified financial advisor before making any investment decision.
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