Top Mutual Funds in India to Invest in 2025
Discover the best-performing mutual funds across categories like ELSS, Large-Cap, Small-Cap, and Hybrid for long-term and tax-saving investments.
Introduction
As 2025 begins, investors are looking for reliable options to grow their wealth. Mutual funds remain one of the most trusted avenues, offering a mix of professional management, diversification, and tax efficiency. This guide highlights the top-performing mutual funds across categories like Large-Cap, Mid-Cap, Small-Cap, ELSS (Tax-Saving), and Hybrid funds to help you make informed investment decisions.
Top Mutual Funds by Category
1. Large-Cap Funds
Large-Cap funds invest in blue-chip companies with a proven track record of stability and growth. Ideal for investors with a low to moderate risk appetite.
- Axis Bluechip Fund: 1-Year Return: 12.5%, 3-Year Return: 16.8%, Expense Ratio: 0.91%
- Mirae Asset Large Cap Fund: 1-Year Return: 13.2%, 3-Year Return: 17.4%, Expense Ratio: 0.82%
2. Mid-Cap Funds
Mid-Cap funds focus on companies with growth potential, offering higher returns at a slightly higher risk.
- Kotak Emerging Equity Fund: 1-Year Return: 15.8%, 3-Year Return: 19.4%, Expense Ratio: 0.84%
- DSP Midcap Fund: 1-Year Return: 16.3%, 3-Year Return: 20.2%, Expense Ratio: 0.76%
3. Small-Cap Funds
Small-Cap funds target smaller companies with high growth potential. They are best suited for aggressive investors with a long-term horizon.
- SBI Small Cap Fund: 1-Year Return: 18.2%, 3-Year Return: 24.3%, Expense Ratio: 0.76%
- Nippon India Small Cap Fund: 1-Year Return: 17.6%, 3-Year Return: 22.8%, Expense Ratio: 1.07%
4. ELSS (Tax-Saving) Funds
Equity-Linked Savings Schemes (ELSS) provide tax benefits under Section 80C of the Income Tax Act while offering equity market returns.
- Axis Long Term Equity Fund: 1-Year Return: 14.6%, 3-Year Return: 17.1%, Expense Ratio: 1.02%
- Mirae Asset Tax Saver Fund: 1-Year Return: 14.3%, 3-Year Return: 16.8%, Expense Ratio: 1.12%
5. Hybrid Funds
Hybrid funds combine equity and debt instruments, offering a balanced risk-reward ratio.
- HDFC Hybrid Equity Fund: 1-Year Return: 9.4%, 3-Year Return: 12.5%, Expense Ratio: 1.01%
- SBI Equity Hybrid Fund: 1-Year Return: 10.2%, 3-Year Return: 13.4%, Expense Ratio: 0.94%
Comparison Table
| Fund Name | Category | 1-Year Return | 3-Year Return | Expense Ratio | Risk |
|---|---|---|---|---|---|
| Axis Bluechip Fund | Large-Cap | 12.5% | 16.8% | 0.91% | Moderate |
| SBI Small Cap Fund | Small-Cap | 18.2% | 24.3% | 0.76% | High |
| Mirae Asset Tax Saver | ELSS | 14.6% | 17.1% | 1.02% | Moderate |
| Kotak Emerging Equity | Mid-Cap | 15.8% | 19.4% | 0.84% | High |
| HDFC Hybrid Equity Fund | Hybrid | 9.4% | 12.5% | 1.01% | Low |
How to Choose the Right Mutual Fund
To select the best mutual fund, consider the following factors:
- Investment Goal: Identify whether you’re saving for retirement, buying a house, or seeking tax savings.
- Risk Appetite: Assess how much risk you’re willing to take.
- Low Risk: Large-Cap and Hybrid Funds.
- Moderate Risk: ELSS and Mid-Cap Funds.
- High Risk: Small-Cap Funds.
- Expense Ratio: Lower expense ratios mean higher returns for you.
- Time Horizon: Short-term goals (1-3 years) favor Hybrid Funds, while long-term goals (5+ years) suit Equity Funds.
How to Invest in Mutual Funds
Investing in mutual funds has become simpler with digital platforms. Follow these steps:
- Open an account on platforms like Groww, Paytm Money, or Kuvera.
- Complete your KYC verification online.
- Select a fund that aligns with your financial goals.
- Start a SIP with as little as ₹500 per month to build your portfolio.
Conclusion
Mutual funds continue to be an excellent tool for wealth creation and tax saving. By carefully selecting the right funds based on your goals, risk appetite, and time horizon, you can maximize your returns in 2025. Start small with SIPs and stay invested for the long term to enjoy compounding benefits.