A number of sectoral and thematic mutual funds have delivered robust short-term returns within the final 6 months regardless of market volatility and world uncertainty. Buyers who stayed invested in themes like energy, defence, healthcare, capital markets, and pure sources have seen enticing positive aspects ranging between 12% and 22% throughout this era.
Apparently, many of those top-performing mutual funds belong to thematic and sectoral classes, that are identified for top progress potential but in addition increased threat. Whereas such funds can generate superior returns throughout favorable market cycles, they will underperform sharply when sector momentum weakens.
On this article, we are going to assessment 10 mutual funds that generated 12% to 22% returns within the final 6 months as of Might-2026, together with their funding goal, threat elements, suitability, and our view on every fund.
Discover – 10 Mutual Funds That Gave 23% to 34% Returns in Final 1 Yr (Might-26 Replace)
How We Filtered These Mutual Funds
To arrange this listing of top-performing mutual funds, we thought of all fairness mutual fund classes together with:
- Sectoral mutual funds
- Thematic mutual funds
- Index funds
- ETF Fund of Funds (FoFs)
- Diversified fairness mutual funds
Nonetheless, we excluded:
- Worldwide mutual funds / World fairness funds
- Abroad FoFs
- ETFs
Further filtering standards used:
- Solely Direct Plans have been thought of
- Returns are primarily based on 6-month efficiency
- Information is as of 22-Might-2026
- Information sources embody from Moneycontrol and Worth Analysis
The aim of this text is to offer an academic snapshot of current mutual fund efficiency tendencies throughout fairness classes.
Record of Prime 10 Mutual Funds With 12% to 22% Returns in Final 6 Months – Might-2026 Replace
1) Groww BSE Energy ETF FOF – Direct Plan
Fund Goal
This fund invests in models of ETFs monitoring firms within the energy sector. It goals to learn from alternatives in energy technology, transmission, and associated infrastructure companies.
Annualised Returns
Who might take into account this class?
- Buyers with excessive threat urge for food
- Buyers bullish on India’s energy and infrastructure progress story
- Buyers in search of sectoral publicity
Danger Elements
- Sector focus threat
- Excessive volatility throughout market corrections
- Regulatory and policy-related dangers
Our Statement
Energy sector funds have seen robust momentum on account of elevated infrastructure spending and rising energy demand. Nonetheless, buyers ought to do not forget that sectoral funds might be cyclical and unstable.
2) DSP Pure Sources and New Power Fund – Direct Plan
Fund Goal
This fund invests in firms engaged in pure sources, power, mining, utilities, and new power themes.
Annualised Returns
- 6 Months: 18.0%
- 1 Yr: 27.1%
- 3 Years: 26.0%
- 5 Years: 19.0%
- 10 Years: 20.8%
Who might take into account this class?
- Aggressive buyers
- Buyers in search of commodity and power sector publicity
- Lengthy-term buyers with excessive volatility tolerance
Danger Elements
- Commodity worth fluctuations
- World financial slowdown dangers
- Sector cyclicality
Our Statement
The fund has demonstrated robust long-term consistency throughout a number of time frames. Nonetheless, commodity-linked sectors can witness sharp ups and downs.
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3) Motilal Oswal Nifty Capital Market Index Fund – Direct Plan
Fund Goal
The scheme tracks firms working in inventory exchanges, brokerage companies, asset administration, and capital market infrastructure.
Annualised Returns
- 6 Months: 17.7%
- 1 Yr: 36.5%
Who might take into account this class?
- Buyers optimistic about India’s capital market progress
- Excessive threat buyers
- Buyers in search of thematic alternatives
Danger Elements
- Market sentiment impacts earnings considerably
- Excessive dependence on buying and selling exercise volumes
- Sector focus threat
Our Statement
Capital market themes have carried out exceptionally properly on account of rising retail participation in fairness markets. Nonetheless, buyers ought to keep away from overexposure to a single sector.
4) Tata Nifty Capital Markets Index Fund – Direct Plan
Fund Goal
This index fund invests in firms linked to India’s capital market ecosystem.
Annualised Returns
- 6 Months: 17.5%
- 1 Yr: 36.0%
Who might take into account this class?
- Aggressive buyers
- Buyers in search of thematic index publicity
- Buyers with medium to long-term horizon
Danger Elements
- Market cycle dependency
- Sector focus dangers
- Earnings slowdown throughout weak market phases
Our Statement
The fund has benefited from the continuing progress in India’s financialization pattern. Buyers might consider allocation limits for thematic funds primarily based on their diversification wants and threat urge for food.
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5) HDFC Defence Fund – Direct Plan
Fund Goal
The fund invests in firms working in defence manufacturing, aerospace, and allied sectors.
Annualised Returns
- 6 Months: 13.9%
- 1 Yr: 16.6%
Who might take into account this class?
- Buyers in search of publicity to India’s defence manufacturing progress
- Excessive threat buyers
- Lengthy-term buyers
Danger Elements
- Defence sector valuation dangers
- Coverage and authorities spending dangers
- Excessive thematic focus
Our Statement
Defence sector mutual funds have gained investor consideration on account of robust authorities deal with home manufacturing and exports. Nonetheless, valuations on this section seem elevated.
6) HDFC Pharma and Healthcare Fund – Direct Plan
Fund Goal
This fund primarily invests in pharmaceutical, healthcare, hospitals, diagnostics, and allied healthcare companies.
Annualised Returns
- 6 Months: 13.1%
- 1 Yr: 21.7%
Who might take into account this class?
- Reasonable to aggressive buyers
- Buyers in search of defensive sector publicity
- Lengthy-term healthcare theme buyers
Danger Elements
- Regulatory dangers
- World pricing stress on pharma firms
- Foreign money fluctuation dangers
Our Statement
Healthcare funds can present comparatively defensive traits throughout unstable markets. This class is commonly thought of by buyers in search of sector diversification.
7) Mirae Asset Healthcare Fund – Direct Plan
Fund Goal
The scheme invests throughout pharmaceutical, biotech, diagnostics, and healthcare service firms.
Annualised Returns
- 6 Months: 13.0%
- 1 Yr: 17.8%
- 3 Years: 29.8%
- 5 Years: 16.8%
Who might take into account this class?
- Buyers with reasonable to excessive threat urge for food
- Buyers in search of healthcare sector alternatives
- Lengthy-term buyers
Danger Elements
- Sector-specific volatility
- Regulatory and export dangers
- Focus threat
Our Statement
The fund has proven robust 3-year efficiency. Healthcare themes tend to carry out higher throughout unsure financial environments.
8) Kotak Healthcare Fund – Direct Plan
Fund Goal
This fund invests in firms from the pharmaceutical and healthcare sectors.
Annualised Returns
- 6 Months: 13.0%
- 1 Yr: 18.1%
Who might take into account this class?
- Buyers in search of sector diversification
- Lengthy-term buyers
- Reasonable to aggressive buyers
Danger Elements
- Pharma sector regulatory challenges
- Export market dangers
- Healthcare valuation dangers
Our Statement
Healthcare sector funds can add diversification to fairness portfolios. Healthcare sector funds are typically evaluated with a long-term funding horizon.
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9) Kotak MNC Fund – Direct Plan
Fund Goal
The fund invests in multinational firms working in India throughout sectors.
Annualised Returns
- 6 Months: 13.0%
- 1 Yr: 23.6%
Who might take into account this class?
- Buyers in search of high quality companies
- Reasonable threat buyers
- Lengthy-term wealth creation buyers
Danger Elements
- Restricted sector diversification
- Valuation dangers
- World enterprise publicity dangers
Our Statement
MNC funds typically spend money on established and financially robust firms. Such funds typically spend money on established multinational companies throughout sectors.
10) Groww Nifty India Defence ETF FoF – Direct Plan
Fund Goal
The scheme invests in ETFs monitoring defence sector firms.
Annualised Returns
- 6 Months: 12.4%
- 1 Yr: 10.4%
Who might take into account this class?
- Excessive threat buyers
- Buyers in search of defence sector publicity
- Buyers comfy with thematic volatility
Danger Elements
- Sector focus threat
- Authorities coverage dependency
- Sharp corrections attainable after rallies
Our Statement
Defence-themed funds proceed to draw buyers on account of robust sector momentum. Concentrated publicity to a single sector can improve portfolio volatility.
Discover – 10 Mutual Funds That Gave 23% to 34% Returns in Final 1 Yr (Might-26 Replace)
Fast Comparability Desk – Prime Performing Mutual Funds
| Fund Identify | 6 Month Return | 1 Yr Return | 3 Yr Return | 5 Yr Return | Class |
|---|---|---|---|---|---|
| Groww BSE Energy ETF FOF | 22.3% | NA | NA | NA | Energy/Thematic |
| DSP Pure Sources and New Power Fund | 18.0% | 27.1% | 26.0% | 19.0% | Power/Thematic |
| Motilal Oswal Nifty Capital Market Index Fund | 17.7% | 36.5% | NA | NA | Capital Markets |
| Tata Nifty Capital Markets Index Fund | 17.5% | 36.0% | NA | NA | Capital Markets |
| HDFC Defence Fund | 13.9% | 16.6% | NA | NA | Defence |
| HDFC Pharma and Healthcare Fund | 13.1% | 21.7% | NA | NA | Healthcare |
| Mirae Asset Healthcare Fund | 13.0% | 17.8% | 29.8% | 16.8% | Healthcare |
| Kotak Healthcare Fund | 13.0% | 18.1% | NA | NA | Healthcare |
| Kotak MNC Fund | 13.0% | 23.6% | NA | NA | MNC |
| Groww Nifty India Defence ETF FoF | 12.4% | 10.4% | NA | NA | Defence |
Key Observations From Mutual Fund Efficiency
- Sectoral and thematic mutual funds dominated the highest performers listing
- Energy and capital market themes generated robust short-term returns
- Healthcare and defence funds additionally delivered wholesome positive aspects
- A number of top-performing funds carry excessive focus threat
- Buyers ought to keep away from investing primarily based purely on current returns
- SIP funding technique might assist scale back volatility dangers in thematic classes
Ought to You Put money into These Mutual Funds Now?
Buyers ought to perceive that short-term returns might not proceed ceaselessly. Sectoral and thematic mutual funds typically carry out properly throughout favorable enterprise cycles however can witness sharp underperformance throughout weak market phases.
As a substitute of chasing current winners, buyers ought to consider:
- Their monetary targets
- Danger urge for food
- Funding horizon
- Present portfolio diversification
Many buyers want diversified mutual funds as core portfolio holdings, whereas sectoral and thematic funds are sometimes evaluated as tactical or satellite tv for pc allocations.
Conclusion
The final 6 months have been rewarding for buyers in choose sectoral and thematic mutual funds. Energy, capital market, healthcare, and defence themes delivered robust returns regardless of market volatility.
Nonetheless, buyers ought to do not forget that increased returns often include increased dangers. Sectoral and thematic mutual funds might be extraordinarily unstable and should not go well with conservative buyers.
Buyers ought to diversify investments throughout classes and proceed disciplined SIP investing as a substitute of creating selections purely primarily based on current efficiency.
Disclaimer: This text is for instructional and informational functions solely and shouldn’t be construed as funding recommendation or suggestion. Mutual fund investments are topic to market dangers. Buyers ought to seek the advice of a monetary advisor earlier than making funding selections and skim all scheme-related paperwork rigorously.
