Over 55% return! Mutual fund scheme of the year 2025 crown goes to HSBC Brazil Fund

The year 2025 has been remarkable for mutual fund investors, with several schemes delivering impressive returns despite market volatility. Among them, HSBC Brazil Fund has emerged as the standout performer, earning the title of mutual fund scheme of the year 2025 with a staggering return of over 55.24%

The HSBC Brazil Fund is an open-ended fund of funds scheme that invests in the HSBC Global Investment Funds - Brazil Equity Fund.

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A monthly SIP of Rs 10,000 made at the first day of the current calendar year, the current value of the investment would have been Rs 1.48 lakh now with an XIRR of 46.45%.

The lumpsum investment of Rs 1 lakh made on January 1, 2025, would have been Rs 1.55 lakh now with a CAGR of 55.24%.

The assets under management (AUM) of the scheme has surged by 645% in 2025 from Rs 40.68 crore in December 2024 to Rs 303.13 crore in November 2025. (The last available data)

In 2025, the NAV of the regular plan of the scheme increased by 54% from Rs 5.8064 on January 2, 2025, to Rs 8.9305 as of December 30, 2025. Meanwhile, the NAV of the direct plan rose by 55% from Rs 6.3323 to Rs 9.7914 as of December 30, 2025.

The investment objective of the fund is to provide long-term capital appreciation by investing predominantly in units/shares of HSBC Global Investment Funds (HGIF) - Brazil Equity Fund. The scheme may, at the discretion of the Investment Manager, also invest in the units of other similar overseas mutual fund schemes, which may constitute a significant part of its corpus.

The scheme may also invest a certain proportion of its corpus in money market instruments and/or units of liquid mutual fund schemes, in order to meet liquidity requirements from time to time.

The performance of the fund is benchmarked against MSCI Brazil 10/40 Index TRI and is managed by Sonal Gupta.

For lumpsum investments, the minimum subscription amount is Rs 5,000 per application and in multiples of Re 1 thereafter. The minimum application amount is applicable for switch-ins as well.

This international fund invests 95-100% in units/shares of HGIF Brazil Equity Fund and 0-5% in money market instruments (including TREPS & reverse repo) and/or units of liquid mutual fund schemes.

The scheme may invest in units of liquid mutual fund schemes managed by the AMC or in the schemes of any other mutual fund, provided it is in conformity with the investment objectives of the scheme and in terms of the prevailing Regulations.

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As and when the AMC decides to invest in similar overseas mutual fund schemes other than HGIF, then it shall be ensured that the investment objective, process, philosophy, asset allocation pattern etc. of such overseas schemes is similar to that of HGIF Brazil Equity Fund as disclosed in this SID

The fund is suitable for investors who are seeking to create wealth over the long term and want investment in equity and equity-related securities through feeder routes in Brazilian markets.

We considered all equity mutual funds. We considered regular and growth options. We calculated the performance of these schemes from January 1, 2025 to December 31, 2025.

There were 489 other schemes in the said period, of which 338 funds gave positive returns ranging between 0.01% to 50.74% and in the same period, 151 gave negative returns between 0.02% to 19.14%.

Nippon India Taiwan Equity Fund gave 50.74% in 2025, and Taurus Mid Cap Fund and Taurus Ethical Fund were the last ones to offer positive returns of 0.02% and 0.01%. Samco Flexi Cap Fund lost the most of around 19.14% and HDFC Housing Opp Fund lost the lowest of around 0.02% in the same period.

Note: the above exercise is not a recommendation. The exercise was to find the best performer of the current calendar year. One should not make investment or redemption decisions based on the above exercise. One should always consider risk appetite, investment horizon, and goals before making any investment decisions.

One should always make investment decisions based on risk appetite, investment horizon, and goals.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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