The latest ranking of thematic mutual funds shows HDFC Defence Fund as the best performer over the past three years, earning a 37.9% compound annual growth rate. SBI PSU Fund earned 22.5% and ICICI Pru Transportation and Logistics Fund earned 22.2%.
Only funds with assets under management of at least Rs 1,500 crore were considered. Among the top five, HDFC Defence Fund has the biggest corpus, standing at Rs 10,529.2 crore.
Against its benchmark, the fund outperformed by 29.3 percentage points over three years, while the benchmark returned 8.5%. Over one year, HDFC Defence beat the benchmark by 25.5 points, with the benchmark recording a -1.2% return.
In the one‑month comparison, ICICI Pru Transportation and Logistics topped the list with a 6.2% gain. For the three‑month window, ICICI Pru delivered the strongest return at 10.0%.
On the one‑year basis, HDFC Defence again led with a 24.3% return, matching its long‑term dominance.
Looking at different time frames gives investors a clearer view. A fund that shines in a short window may not lead over longer periods, and vice versa.
Thematic funds focus on a specific investment theme instead of a single market‑cap segment. This focus can cause returns to differ markedly from diversified equity categories.