Based on the provided data, the ICICI Prudential Pharma Healthcare and Diagnostics (P.H.D) Fund currently offers the highest 1-year return among the listed equity funds.
When evaluating equity mutual funds, investors often look at their past performance, although it's important to remember that past returns do not guarantee future results. Different funds focus on various sectors or market capitalizations, which can significantly impact their performance.
Here's a comparison of the equity funds and their 1-year returns from the reference:
| Fund Name | Category | 1Y Returns |
|---|---|---|
| ICICI Prudential Pharma Healthcare and Diagnostics (P.H.D) Fund | Equity | 50.4% |
| Tata Small Cap Fund | Equity | 38.6% |
| Nippon India Multi Cap Fund | Equity | 30.9% |
| HDFC Focused 30 Fund | Equity | 27.8% |
Understanding Fund Categories and Returns
Equity mutual funds are broadly categorized based on their investment strategy, the size of companies they invest in (e.g., small-cap, large-cap), or the sectors they focus on (e.g., pharma, technology).
- Sector-Specific Funds: Funds like the ICICI Prudential Pharma Healthcare and Diagnostics (P.H.D) Fund concentrate investments in specific sectors. While they can offer high returns if that sector performs well, they also carry higher risk due to lack of diversification across industries.
- Small-Cap Funds: Tata Small Cap Fund invests primarily in small companies, which have the potential for high growth but also come with higher volatility.
- Multi-Cap Funds: Nippon India Multi Cap Fund invests across market capitalizations (large, mid, and small-cap), offering diversification and potentially stable returns.
- Focused Funds: HDFC Focused 30 Fund invests in a concentrated portfolio of up to 30 stocks, aiming for higher returns by selecting best ideas, but this also increases concentration risk.
For more detailed information on equity funds and their performance, you can explore resources like Groww's list of best equity mutual funds.
