High return mutual funds in 1 year often belong to small-cap or sector-specific categories due to their growth potential. However, they come with higher risks.
Examples of High-Return Funds
- Small-Cap Funds: Focus on emerging companies.
- Sectoral Funds: Target industries like technology or healthcare.
Considerations
- Consistency: High returns in one year may not sustain.
- Risk Management: Understand the volatility involved.
Investors should focus on long-term consistency rather than short-term spikes when selecting funds.