Top 10 Mutual Funds in India 2025
Mutual Funds are professionally managed investment schemes. They represent a pool of funds that are professionally managed by expert Mutual Fund managers. The fund managers keep a record of the performance and growth of these funds and make required alterations so that the funds perform well and the investors receive the best possible returns.
In this article, we have summarized the top 10 mutual funds (टॉप 10 म्यूचुअल फंड) by picking one from each of the categories, so as to suit the risk appetite and investment goals of most of the investors.
- Bandhan Small Cap Fund
- ICICI Prudential Infrastructure Fund
- Motilal Oswal Midcap Fund
- Motilal Oswal Large and Midcap Fund
- Franklin Build India Fund
- ICICI Prudential BHARAT 22 FOF Fund
- HDFC Midcap Opportunities Fund
- Invesco India Small Cap Fund
- Quant Small Cap Fund
- Nippon India Multi Cap Fund
Top 10 Large Cap Equity Funds
Listed below are some of the top 10 performing large cap equity funds, as of June 2025:
Fund Name | 1-Year Returns | 3-Year Returns |
Nippon India Large Cap Fund | 10.90% | 23.30% |
ICICI Prudential Bluechip Fund | 11.60% | 20.60% |
Quant Focused Fund | -1.10% | 19.10% |
HDFC Large Cap Fund | 7.30% | 19.10% |
DSP Large Cap Fund | 17.00% | 21.40% |
Invesco India Largecap Fund | 11.76% | 22.05% |
Bandhan Large Cap Fund | 9.4% | 21.05% |
Baroda BNP Paribas Large Cap Fund | 6.6% | 20.91% |
Edelweiss Large Cap Fund | 8.2% | 20.87% |
Sundaram Nifty 100 Equal Weight Fund | 3.6% | 20.85% |
Top 10 Large and Mid Cap Equity Funds
Listed below are some of the top 10 performing large and mid cap equity funds as of June 2025:
Fund Name | 1-Year Returns | 3-Year Returns |
Motilal Oswal Large and Mid Cap Fund | 21.56% | 36.50% |
Invesco India Large & Mid Cap Fund | 20.36% | 31.31% |
PGIM India Large & Mid Cap Fund | 14.04% | - |
WhiteOak Capital Large & Mid Cap Fund | 13.81% | - |
Bandhan Core Equity Fund | 12.39% | 31.20% |
ICICI Prudential Large & Mid Cap Fund | 12.29% | 27.19% |
Edelweiss Large & Mid Cap Fund | 11.90% | 25.33% |
UTI Large & Mid Cap Fund | 11.78% | 27.52% |
Canara Robeco Emerging Equities Fund | 11.40% | - |
LIC MF Large & Mid Cap Fund | 10.88% | - |
Top 10 Multi Cap Equity Funds
Listed below are some of the top performing multi cap equity funds, as of June 2025:
Fund Name | 1-Year Return | 3-Year Return |
Axis Multicap Fund | 13.6% | 27.96% |
SBI Multicap Fund | 13.3% | 21.59% |
Invesco India Multicap Fund | 13.2% | 25.34% |
ICICI Prudential Multicap Fund | 10.4% | 25.97% |
Nippon India Multi Cap Fund | 9.4% | 29.81% |
Bandhan Multi Cap Fund | 8.0% | 24.27% |
Baroda BNP Paribas Multi Cap Fund | 7.7% | 24.23% |
HDFC Multi Cap Fund | 7.6% | 28.00% |
Kotak Multicap Fund | 7.0% | 29.83% |
ITI Multi Cap Fund | 5.4% | 25.87% |
Top 10 Mid Cap Equity Funds
Listed below are some of the top-performing Mid Cap Equity Funds as of June 2025, including both 1-year and 3-year returns:
Fund Name | 1-Year Return | 3-Year Return |
Kotak Emerging Equity Fund | 30.58% | 27.48% |
SBI Magnum Mid Cap Fund | 30.13% | 23.47% |
Invesco India Mid Cap Fund | 23.1% | 32.81% |
Edelweiss Mid Cap Fund | 18.9% | 32.19% |
Motilal Oswal Midcap Fund | 16.5% | 36.19% |
Sundaram Mid Cap Fund | 13.8% | 30.16% |
Nippon India Growth Fund | 13.5% | 31.11% |
HDFC Mid-Cap Opportunities Fund | 12.6% | 32.21% |
Mahindra Manulife Mid Cap Fund | 9.2% | 30.09% |
ITI Mid Cap Fund | 6.3% | 30.20% |
Top 10 Small Cap Equity Funds
The best-performing Small Cap Equity Funds as of June 2025, showing both 1-year and 3-year returns:
Fund Name | 1-Year Return | 3-Year Return |
Bandhan Small Cap Fund | 22.00% | 36.25% |
ITI Small Cap Fund | 11.40% | 33.46% |
Invesco India Smallcap Fund | 17.40% | 32.01% |
Nippon India Small Cap Fund | 6.30% | 30.31% |
Franklin India Smaller Companies Fund | 2.80% | 30.19% |
Quant Small Cap Fund | 0.70% | 29.95% |
HDFC Small Cap Fund | 9.10% | 29.06% |
Tata Small Cap Fund | 10.70% | 28.23% |
Bank of India Small Cap Fund | 9.20% | 27.93% |
Edelweiss Small Cap Fund | 9.20% | 27.45% |
Top 10 ELSS Tax Savings Funds in India
The best-performing ELSS (Equity Linked Savings Scheme) Funds as of June 2025, with 1-year and 3-year returns:
Fund Name | 1-Year Return | 3-Year Return |
Motilal Oswal ELSS Tax Saver Fund | 16.8% | 33.05% |
Parag Parikh ELSS Tax Saver Fund | 16.4% | 22.96% |
HDFC ELSS Tax Saver Fund | 13.2% | 26.03% |
DSP ELSS Tax Saver Fund | 12.3% | 24.57% |
Taurus ELSS Tax Saver Fund | 11.6% | 21.93% |
HDFC ELSS Tax Saver Fund (duplicate) | 11.2% | 26.03% |
Franklin India ELSS Tax Saver Fund | 10.4% | 24.31% |
SBI Long Term Equity Fund | 8.9% | 29.25% |
ITI ELSS Tax Saver Fund | 7.8% | 27.60% |
JM ELSS Tax Saver Fund | 6.3% | 24.64% |
Top 10 Dynamic Bond Funds in India 2025
The top 10 debt dynamic bonds as of June 2025 are listed below:
Fund Name | 1-Year Return | 3-Year Return |
Nippon India Dynamic Bond Fund | 11.56% | 9.57% |
360 ONE Dynamic Bond Fund | 11.28% | 8.74% |
Aditya Birla Sun Life Dynamic Bond Fund | 10.83% | 9.76% |
ICICI Prudential All Seasons Bond Fund | 10.47% | 9.55% |
Axis Dynamic Bond Fund | 10.39% | 8.92% |
Quantum Dynamic Bond Fund | 10.27% | 8.99% |
Kotak Dynamic Bond Fund | 10.05% | 8.81% |
SBI Dynamic Bond Fund | 9.93% | 9.14% |
Baroda BNP Paribas Dynamic Bond Fund | 9.78% | 9.05% |
DSP Strategic Bond Fund | 9.64% | 8.66% |
Top 10 Gilt Funds (Debt - Government Securities)
The top 10 debt - gilt mutual funds in India(as of June 2025) are as listed below:
Fund Name | 1-Year Return | 3-Year Return |
Tata Gilt Securities Fund | 10.59% | 9.22% |
ICICI Prudential Gilt Fund | 10.57% | 9.49% |
Axis Gilt Fund | 10.16% | 8.82% |
Nippon India Gilt Securities Fund | 9.42% | 8.81% |
SBI Magnum Gilt Fund | 9.57% | 9.08% |
DSP Gilt Fund | 9.65% | 8.96% |
PGIM India Gilt Fund | 9.79% | 8.52% |
Edelweiss Government Securities Fund | 9.05% | 8.69% |
Invesco India Gilt Fund | 9.26% | 8.60% |
Kotak Gilt Investment Fund | 8.81% | 8.34% |
Top 10 Hybrid Aggressive Mutual Funds in India
The top 10 best performing hybrid aggressive funds as as of June 2025 are listed below:
Fund Name | 1-Year Return | 3-Year Return |
DSP Aggressive Hybrid Fund | 15.27% | 21.74% |
Edelweiss Aggressive Hybrid Fund | 12.92% | 22.96% |
Invesco India Aggressive Hybrid Fund | 12.78% | 22.42% |
Mahindra Manulife Aggressive Hybrid Fund | 12.37% | 22.71% |
ICICI Prudential Equity & Debt Fund | 11.90% | 22.67% |
Kotak Equity Hybrid Fund | 10.53% | 20.18% |
UTI Aggressive Hybrid Fund | 10.50% | 21.04% |
Bank of India Mid & Small Cap Equity & Debt Fund | 8.90% | 25.72% |
JM Aggressive Hybrid Fund | 3.03% | 27.06% |
Quant Absolute Fund | 0.97% | 18.81% |
Top 10 Hybrid Mutual Funds (Multi-Asset / Retirement Plans etc.)
The top 10 best performing hybrid balanced funds as of June 2025 are listed below:
Fund Name | 1-Year Return | 3-Year Return |
JM Aggressive Hybrid Fund | 3.03% | 27.06% |
Bank of India Mid & Small Cap Equity & Debt Fund | 8.90% | 25.72% |
Quant Multi Asset Fund | 9.17% | 25.55% |
ICICI Prudential Retirement Fund – Hybrid Aggressive Plan | 9.40% | 25.07% |
HDFC Balanced Advantage Fund | 8.59% | 23.92% |
Nippon India Multi Asset Active FoF | 15.71% | 23.80% |
Kotak Multi Asset Allocator FoF – Dynamic | 11.10% | 23.60% |
UTI Multi Asset Allocation Fund | 10.29% | 23.07% |
Edelweiss Aggressive Hybrid Fund | 12.92% | 22.96% |
Mahindra Manulife Aggressive Hybrid Fund | 12.37% | 22.71% |
When you purchase units of a Mutual Fund, these units denote the holdings of your share in a certain fund scheme. You can purchase or even redeem a Mutual Fund at the prevailing Net Asset Value (NAV).
We have elaborated on the best-performing schemes based on categories in the sections below. More often than not, schemes from a specific category will perform the best each season. This could confuse a novice investor and bring about doubts on whether his/her investments were made in the most suitable funds.
In order to get healthy returns from mutual fund investments, it is advisable to keep the following points in mind:
- Do not start new SIPs targeting short-term gain. Continue on the SIP for a minimum period of 5 years to see substantial returns.
- Do not stop your existing SIPs when the returns are low.
- Opt for growth option of mutual funds for increased returns through compounding.
- Do not put lump sum amounts in peak performing equity mutual funds for short-term gains by capitalising on the bull run.
- It should be noted that the bull run may reverse any time and you may not get the chance to exit the fund with significant gains.
- In fact, you may have to book losses instead. Hence, you should invest a lump sum amount in equity mutual funds only after the markets correct from their peaks.
- It is not advisable to move from debt funds to fixed deposits (FDs) for assured returns.
- This is primarily because the complete interest earned from FDs get added to the taxable income of the individual and is taxed as per his/her tax slab.
- This effectively means that the people in the highest tax bracket will get low returns from fixed deposits.
- On the other hand, there are significant tax savings on debt funds that are held for a duration of 3 years or more.
What are the Best Mutual Funds?
Mutual funds are segregated into different types depending on underlying assets, such as gold, debt, or equity. The various forms of mutual funds are hybrid funds, debt mutual funds, and equity mutual funds which have different objectives and risk profiles.
- Determining the best mutual funds option depends on various factors such as risk tolerance, investment horizon, and objectives.
- Equity mutual funds are the best option for long term investment.
- Based on your risk-taking capacity, investment can be made in other sub-categories within equity mutual funds, such as large cap funds, mid-cap funds, and small-cap funds.
- While evaluating a mutual fund's historical returns, it is very important to remember that one should not look into a single time frame. This is because a certain fund may be featured in the top 5 funds over the past 6 years.
- However, the same fund may not be there even in a list of the best 30 mutual funds during the previous year.
How to Select the top-performing Mutual Funds in India?
The following are the factors that help selecting the top performing mutual funds in India:
- Investment horizon: Mutual funds are mainly of two types, short-term and long-term. If you wish to invest in short-term funds, then invest in stocks and bonds with higher risk that offer high potential returns. Invest in low-risk investments with smaller returns that offer steady growth and are suitable for long-term investment.
- Financial goals: Before making any investment decide your financial goals to opt for the suitable fund category. Consider your risk tolerance, liquidity requirement, time horizon and other factors to decide better.
- Performance of the fund: Evaluate the performance of a particular fund for over five years duration to decide whether to invest in it or not.
- Fund manager experience: Select a fund that has been managed by a fund manager for a long time. A fund managed by a seasoned fund manager is safe to invest in as the manager will have more experience and can guide you through various market situations.
- Expense ratio: Consider a fund category that has an expense ratio of less than 1.00% which is cumulative money that goes in paying advertising costs, salary of fund manager, and other expenses related to the fund.
- Risk tolerance: To have a clear impression about the return from a particular investment, evaluate your risk tolerance before making an investment.
- Tax liability: Some funds are taxed while some are not, hence select the funds depending on your requirment to avoid unnecessary tax liabilities.
How Is Tax Applied to Top Mutual Funds in India?
Here is every detail as to how is tax applied on mutual funds in India:
- There two ways to earn from mutual fund investment, and those are capital gain and dividend
- The tax on dividend depends on the current tax slab
- Tax on capital gain depends on the investment period and type of fund
- Short Term Capital Gains are those equity mutual fund investment that are redeemed within one year of investment and are taxed 15%
- Long Term Capital Gains (LTCG) are those equity mutual fund investment that are redeemed after one year and are taxed at 10% for amount more than Rs.1 lakh
- STCG are gains on debt funds are received if fund units are sold before three years and taxed as per current slab
- LTCG are gains on debt funds are received if fund units are sold after three years and are taxed at 20% after indexation
- Tax on capital gain received from hybrid mutual funds depend on the underlying asset
- Then gains from the hybrid fund will be taxed like an equity fund, if 65% of the fund is invested in equities
- If allocation is less than 65%, then the hybrid fund would be taxed like debt fund
Mutual Funds are controlled by an Asset Management Company (AMC) that collects funds from a group of investors and invest these funds in bonds, stocks, and securities.
Different Types of Mutual Funds
The following are the different types of mutual funds:
- Debt funds: A debt fund is a type of Mutual Fund that invests in fixed-income securities. Under this fund, your money will be invested in short-term bonds, long-term bonds, securitised funds, floating rate debt, and money market instruments.
- Equity funds: An equity fund is a type of Mutual Fund that invests money primarily in stocks. There are both actively or passively managed funds.
- Equity linked savings schemes: This is an equity Mutual Fund that is close-funded in nature. It helps you save taxes and also helps you grow your wealth. You can enjoy tax deductions as per the Income Tax Act under Section 80C.
- Diversified funds: This type of Mutual Fund allows you to invest your money in diverse sectors or industries. You can spread your investments across various industries in the market.
- Gilt funds: These funds allocate money to securities that are offered by the state and central governments. These funds come without any default risk.
- Index funds: Under this category of Mutual Funds, your money will be invested according to how a stock market index functions. The NAV for these funds will be closely follow the rise or fall in the index.
- Liquid Mutual Funds: Liquid Mutual Funds are investment plans that will allocate funds primarily to money market instruments such as treasury bills, term deposits, certificate of deposits, commercial papers, etc. These funds come with a lower maturity period.
- Debt-oriented hybrid funds: Under this category of Mutual Funds, your money will be primarily invested in debt and the remaining part will be invested in equity. It is a blend of both debt and equity investment.
- Arbitrage funds: These funds are treated as equity plans for taxation purposes. These funds invest both in the cash market and the derivatives market.
- Dynamic bond funds: Your money will be invested in debt and money-market instruments. The maturity of the fund will vary according to the investments that it makes.
The number of Mutual Funds made available to the general public has increased significantly over the past few years. As a result, you now have an impressive number of options to choose from, and regardless of which category you wish to invest in, following are the top 10 Mutual Funds in various categories, as rated by CRISIL.
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FAQs on Best Mutual Funds
- What factors should I consider before investing in a mutual fund?
You should consider your investment goal, risk appetite, fund performance, expense ratio, and the track record of the fund manager.
- What are the best mutual funds in India with low risk?
Debt funds, liquid funds, and conservative hybrid funds are considered low-risk mutual fund options.
- How can I compare mutual fund performance in 2025?
You can compare mutual funds based on returns over 1, 3, and 5 years, risk ratios, and expense ratios using financial websites or apps.
- What is the lock-in period for ELSS mutual funds?
ELSS mutual funds have a lock-in period of 3 years, which is the shortest among all tax-saving options under Section 80C.
- Are SIPs better than lump-sum investments?
SIPs are better for most investors as they reduce market timing risk and promote disciplined investing.
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