Comparing one-year returns of ULIPs, Equity mutual funds, National Pension Scheme, Exchange-traded funds, Gold

Learn about the top investment options accessible to Indian investors by comparing one-year returns of these market-linked products.

Compared One-year returns from market-linked products

While selecting an investment instrument, you need to do market research to identify what fetches the best return on investment. It is evident from the market research on investment options that ETFs have performed fairly well in the previous year and offer the highest return on investment. Read on for a brief comparison of one-year returns of popular market-linked products. This will provide a better understanding of the top investment options available to investors in India.

Also Read: Choosing Between Fixed-Income And Market-Linked Investment Avenues

1. ULIPs

ULIPs or Unit-Linked Insurance Plans allow customers to avail of insurance as well as grow their money alongside. ULIPs offer customers a chance to capitalise on various investment tools such as mutual funds, bonds, stocks, and more. If you take a look at the top ULIP schemes and their performance in 2021, you would be amazed by their remarkable returns. PNB MetLife - Met Wealth Plus fetched 36.29% one-year returns in 2021, while Bharti AXA Life - Spot Guarantee Builder made 29.70%. 

2. Equity mutual funds

These schemes predominantly invest in equity stocks. The returns are largely dependent on the fund manager’s ability to generate returns. Equity mutual funds are categorised by market capitalisation or according to the sector in which they invest. They are also categorised by whether they invest in domestic or international stocks.

Equity mutual funds

Performance of Tata Large Cap Fund

Credit: https://www.moneycontrol.com/mutual-funds/nav/tata-large-cap-fund-regular-plan/MTA006 

Tata Large Cap Fund grossed the highest profit of 32.22% over entire 2021. If you have invested Rs. 1,00,000 on Jan 1, 2021, your profits would be Rs. 32,220 on Dec 31, 2021.

Performance Chart

Performance of IDBI India Top 100 Equity Fund 

Credit: https://www.moneycontrol.com/mutual-funds/nav/idbi-india-top-100-equity-fund/MIB062 

The next best performing equity fund is IDBI India Top 100 Equity Fund, which earned 31.03% returns in the same year, which means, if you had invested Rs. 1,00,000 on Jan 1, 2021, you would have earned Rs. 31,029 profit on Dec 31, 2021. 

Also Read: How To Choose An Equity Mutual Fund

3. National Pension Scheme (NPS)

NPS is a long-term retirement-focused investment product managed by the Pension Fund Regulatory and Development Authority. There are two schemes available to investors: Tier 1 and Tier 2. Tier 1 has a longer lock-in period and was designed as a pension scheme that aims to provide income after retirement. Tier 2 is more like a savings account that allows one to withdraw money whenever they want. The top performers are HDFC Pension Management Company Limited Scheme E Tier II and Kotak Pension Fund Scheme E Tier I, which fetched good returns of 24.50% and 27% respectively in the past year. 

4. Exchange-traded funds (ETFs)

ETFs are basically index funds that are listed and traded on exchanges. They have opened a whole new vista for investors looking for high-return investment in India. They also allow investors to gain broad exposure to entire stock markets in different countries and specific sectors with ease. The CPSE Exchange Traded Fund fetched a whopping 63.15% return in the past one year, which is the highest return on investment across the market-linked products segment. Kotak PSU Bank ETF fetched 61.7%, which is also quite remarkable. 

Also Read: ETFs Vs Index Funds: Which One Should You Invest In?

5. Gold

Gold returns in the past one year have been fairly good. Gold has proved to be a valuable asset class, given its ability to grow during times of inflation and help with wealth creation. Today, gold investments are available in both physical and electronic formats. Gold mutual funds are clearly the way to go, as they offer a great rate of return to investors. These do not require you to invest in physical gold; you can hold shares by investing in gold ETFs. As for returns, Kotak Gold Fund fetched 41.59 % ROI to investors. 

Last words

If you are wondering which product normally gives the highest return, there is no definitive answer. However, this article should help because it lists the best investment options in India currently, along with information on the highest return share offered by them. 

Disclaimer: This article is intended for general information purposes only and should not be construed as investment or tax or legal advice. You should separately obtain independent advice when making decisions in these areas.

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