Mirae Asset ETF Tops as Best Peforming Mutual Fund in FY25
The year 2025 has been outstanding for mutual fund investors, with many schemes providing high returns even with market fluctuations. Among them, the Mirae Asset Hang Seng TECH ETF FoF has been the best-performing mutual fund, with a return of 102.63%. It was the only scheme to show a three-digit return during this time.
Strong Growth in Investments
Mirae Asset Hang Seng TECH ETF FoF is a long-term open-ended fund-of-funds (FoF) scheme that is mainly invested in the Mirae Asset Hang Seng TECH ETF. Investors who initiated a monthly SIP of Rs.10,000 at the start of the financial year have witnessed their investments increase to Rs.1.84 lakh, with an XIRR of 120.29%. A one-time investment of Rs.1 lakh as of April 1, 2024, has swelled to Rs.2.02 lakh and earned a CAGR of 102.62%. The amounts are impacted due to the very short calculation tenure.
AUM of the scheme is higher by 42%, going from Rs. 72.50 crore as on April 2024 to Rs. 102.93 crore as of February 2025, according to the last reported data.
Performance Trends and Market Impact
Mirae Asset Hang Seng TECH ETF FoF, launched in December 2021, tracks the Hang Seng TECH TRI and is actively managed by fund managers.
In 2024, the NAV of the scheme increased by 98% from Rs.6.4610 on April 2, 2024, to Rs.12.7980 on March 21, 2024. The NAV, however, varied during the financial year, reaching Rs.10.4270 on November 11, 2024, falling to Rs.9.7180 on November 12, 2024, and reaching a low of Rs.8.7980 on January 13, 2025. The performance of the fund has been credited to a robust recovery in the Chinese technology space, led by revived policy initiatives, a more supportive regulatory environment for digital companies, and rising investor confidence in emerging technology areas like artificial intelligence and cloud computing.
The Hang Seng TECH Index, which the fund follows, was helped by a low-base effect after a period of sustained underperformance. Moreover, the foreign institutional investors’ return to Chinese markets helped ensure better liquidity and facilitated the rally. Investment Strategy and Suitability As per the Scheme Information Document (SID), this fund is appropriate for investors seeking long-term capital growth through investment in the Mirae Asset Hang Seng TECH ETF. The fund incurs an exit load of 0.50% if redeemed within three months of allotment, and no exit load in any case after that.
The minimum investment in the fund is Rs. 5,000, with further investments permitted in multiples of Re.1. The minimum amount of Rs. 99 is to be invested for SIPs with the next investment in multiples of Re.1.
The investment structure of the scheme is 95-100% in the Mirae Asset Hang Seng TECH ETF and 0-5% in money market instruments, debt securities, or liquid mutual fund units. The TER is set at 1% as per regulatory rules. Considerations for Investors Though the fund has yielded high returns, the experts note that it is associated with high volatility and geopolitical risk. Historically, steep bounces from low-base market conditions do not necessarily hold up over the long term.
High-risk appetite investors with a time horizon of more than five years might consider investing 5-7% of their portfolio in this fund as a tactical investment.
With its access to international markets of technology, it can act as satellite exposure combined with more solid core holdings in order to even out aggregate portfolio risk. Other Best-Performing Mutual Funds in FY25 As many as 487 equity mutual fund schemes have reported returns during the financial year 2025. Approximately 11 schemes provided more than 20% returns, among which are Mirae Asset Hang Seng TECH ETF FoF. Surprisingly, the first two highest return schemes were of Mirae Asset Mutual Fund. After Mirae Asset Hang Seng TECH ETF FoF, the next best performing scheme was Mirae Asset NYSE FANG+ ETF FoF, which gave a return of 37.72%.
Other good performers were:
- HDFC Pharma and Healthcare Fund – 29.89% return
- Mirae Asset S&P 500 Top 50 ETF FoF – 28.88% return
- Axis Greater China Equity FoF – 19.48% return
Conversely, 57 schemes recorded negative returns between 0.07% and 16.90% over the same period.
Mutual fund performance in FY25 shows that global technology-oriented funds have yielded the best returns. Investors need to exercise caution and not make investment decisions on the basis of short-term performance alone. Risk appetite, investment horizon, and financial objectives must be taken into account before making any investment.
