Quick Summary
Best mutual funds to invest in India include Axis Bluechip (equity), SBI Corporate Bond (debt), and Quant Tax Plan (ELSS), tailored for goals like growth, safety, or tax savings.
Start with ₹500/month via SIP on apps like Groww, complete KYC, and pick funds based on your risk appetite and goals.
SIPs reduce risk, ELSS saves tax, and equity funds have higher returns (but higher risk). Avoid chasing past performance or high fees.
Investing in mutual funds can be a smart way to grow your wealth, especially if you’re looking to build long-term financial stability. With so many options available in the market, it can be overwhelming to decide which mutual fund is the best for your needs. If you’re wondering, “What are the best mutual funds to invest in?”, you’ve come to the right place.
This guide will take you through everything you need to know about the best mutual funds to invest in India in 2025. From understanding how mutual funds work to knowing the top-performing funds, we’ve got you covered!
Mutual funds are investment vehicles that pool money from several investors to invest in a diversified portfolio of stocks, bonds, or other assets. Instead of investing in individual stocks or bonds, you invest in a mutual fund managed by professionals.
When you invest in mutual funds, you buy units of the fund. The value of these units depends on the performance of the underlying assets. The net asset value (NAV) of a fund is calculated daily based on the total value of its assets.
If you’re looking for steady growth over time and prefer a disciplined approach to investing, SIP (Systematic Investment Plan) is one of the best ways to invest in mutual funds. It allows you to invest a fixed amount regularly, making it a perfect choice for beginners or those who can’t make a large lump sum investment. Here are some of the best mutual funds to invest in via SIP in 2025:
Here are some of the best mutual funds to invest in through SIP in 2025:
Why Choose It?
The HDFC Hybrid Equity Fund is one of the best mutual funds to invest in for those who seek a blend of equity and debt. This fund aims to strike a balance between the high growth potential of equity and the stability of debt. With a moderate risk level, it provides solid returns while ensuring your investments are not overly volatile. This makes it ideal for long-term SIP investors who want growth with a safety net.
Why Choose It?
For investors who prefer to focus on top, well-established companies, the Axis Bluechip Fund is one of the best mutual funds to invest in through SIP. This fund invests in large-cap stocks, which are considered stable and less risky compared to mid or small-cap stocks. It has delivered consistent growth over the years, making it a safe bet for long-term investors who are looking for low to moderate risk with stable returns.
Why Choose It?
The ICICI Prudential Equity & Debt Fund offers the best of both worlds with a mix of equity and debt. It provides balanced growth while managing risk through diversification. This fund is perfect for investors who want to reduce their exposure to volatility but still earn good returns over time. With a moderate risk level and steady performance, it is one of the best mutual funds to invest in for SIP, especially for those looking to maintain a diversified portfolio.
Why Choose It?
This fund focuses on a mix of equities and fixed-income securities, ensuring a balanced risk-reward ratio. With solid returns over the years and a relatively low expense ratio, Mirae Asset Hybrid Equity Fund is among the best mutual funds to invest in for SIP investors aiming for steady growth.
Why Choose It?
Franklin India Equity Fund has delivered consistent returns by investing in high-quality large-cap stocks. This fund is a great option for long-term SIP investors looking for reliable growth with moderate risk, making it one of the best mutual funds to invest in for stability and steady returns.
SIP investments are a great way to grow wealth gradually, and these funds are among the best mutual funds to invest in 2025. Whether you’re looking for a mix of equity and debt or a fund focused on large-cap stability, these options can help you achieve steady growth while managing risk effectively.
For those with a longer investment horizon, long-term mutual funds are perfect for leveraging the power of compounding. These funds typically focus on equities, offering higher returns over time, but they also come with higher risks. Here are some of the best mutual funds to invest in for long-term wealth creation in India:
Why Choose It?
Mirae Asset Large Cap Fund has shown consistent performance, delivering strong returns over the long term. With its focus on stable, large-cap companies, it is one of the best mutual funds to invest in for those who want steady growth with moderate risk.
Why Choose It?
SBI Small Cap Fund is ideal for investors who are willing to take on more risk in exchange for the potential of higher returns. This fund invests in small-cap stocks, which have the potential to grow rapidly over the long term, making it one of the best mutual funds to invest in for high-risk, high-reward investors.
Why Choose It?
With its focus on mid-cap stocks, Nippon India Growth Fund offers a good balance between stability and high growth potential. It’s one of the best mutual funds to invest in for those looking for solid returns with moderate risk.
Why Choose It?
HDFC Top 100 Fund has consistently outperformed many of its peers, investing in large-cap stocks with solid growth potential. It is one of the best mutual funds to invest in for investors looking for long-term stability and consistent returns.
Why Choose It?
This fund invests across large-cap, mid-cap, and small-cap stocks, offering investors exposure to different segments of the market. Its diversified approach makes it one of the best mutual funds to invest in for long-term growth with a moderate risk level.
Equity-Linked Savings Schemes (ELSS) are tax-saving mutual funds that allow you to claim deductions under Section 80C of the Income Tax Act. Here are the top best mutual funds to invest in for tax-saving in 2025:
Why Choose It?
Aditya Birla Sun Life Tax Relief 96 is one of the top performers in the ELSS category, providing the dual benefit of tax-saving and long-term capital appreciation. It’s ideal for those who want to reduce their taxable income while earning good returns, making it one of the best mutual funds to invest in for tax-saving purposes.
Why Choose It?
This fund is known for its strong returns and low expense ratio, making it an excellent option for those looking to invest in a high-growth portfolio while saving on taxes. Mirae Asset Tax Saver Fund is one of the best mutual funds to invest in for tax saving, with the added benefit of a diversified equity portfolio.
Why Choose It?
Franklin India Taxshield has been a reliable choice for investors seeking tax savings along with capital appreciation. With its consistent track record, it remains one of the best mutual funds to invest in for tax saving while offering moderate risk.
Why Choose It?
Axis Long Term Equity Fund has consistently provided solid returns over the years while maintaining a relatively low expense ratio. This makes it one of the best mutual funds to invest in for both tax-saving benefits and long-term growth.
Why Choose It?
This fund has delivered strong returns and is a great choice for those looking to invest in a well-managed tax-saving fund. Its consistent performance makes it one of the best mutual funds to invest in for tax-saving purposes.
Whether you’re looking to build wealth through SIP, invest for long-term growth, or save on taxes, the best mutual funds to invest in India in 2025 offer a wide range of options. Always consider your financial goals, risk tolerance, and investment horizon before making a decision. Diversifying your investments across different categories, such as hybrid, large-cap, mid-cap, small-cap, and tax-saving funds, is an effective strategy to balance risk and return.
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Choosing the best mutual funds to invest in is an important decision that can impact your financial future. Whether you’re planning to save for retirement, a child’s education, or a big purchase, selecting the right mutual fund is essential to achieving your financial goals. Here’s a detailed guide to help you make an informed decision:
One of the first things to consider when choosing a mutual fund is your investment horizon, or how long you plan to keep your money invested. Your investment horizon directly influences the type of mutual fund you should choose.
Everyone has a different level of comfort with risk, and it’s essential to align your risk tolerance with the mutual fund you choose.
Past performance is an important indicator of how well a mutual fund is managed. While it’s not guaranteed that the fund will continue to perform the same way in the future, it can provide insight into the fund manager’s ability.
The expense ratio is the annual fee that mutual funds charge their investors to cover management, administration, and operational costs. A lower expense ratio means that a smaller percentage of your returns are being eaten up by fees, leaving you with more of your gains.
If saving on taxes is part of your financial plan, you may want to look into tax-saving mutual funds, also known as ELSS (Equity Linked Savings Schemes).
Choosing the best mutual funds to invest in involves carefully considering your investment goals, risk tolerance, and time horizon. Understanding your financial needs and how much risk you’re willing to take will help you make an informed decision. By focusing on factors like fund performance, expense ratios, and tax-saving options, you can select a mutual fund that aligns with your objectives.
By following these steps, you can choose the best mutual funds to invest in and secure your financial future.
If you’re new to investing, you might prefer funds that are easier to understand and manage. Here are the best mutual funds to invest in for beginners:
These mutual funds offer a mix of risk and return levels that are suitable for those just starting their investment journey. By choosing from these best mutual funds to invest in for beginners, you can set a solid foundation for your investment portfolio.
Investing in mutual funds is a great way to grow your money over time, and with the right approach, it can be easy to start. Here’s a simple, step-by-step guide to help you invest in the best mutual funds to invest in:
Before you can invest in any mutual fund, you must complete the KYC process. This is required by the government and helps in verifying your identity.
Once your KYC is complete, the next step is to choose a platform through which you will make your investments. There are many options available, and you should choose one that fits your needs.
If you’re new to mutual fund investing, Groww might be the better choice as it has an easy-to-understand interface. On the other hand, if you’re looking for low-cost options and are comfortable with basic investment tools, Zerodha Coin is a great option for you.
A SIP is a disciplined way of investing in mutual funds by contributing a fixed amount regularly. Even small monthly contributions can grow into substantial sums over time thanks to the power of compounding.
SIP allows you to invest a fixed amount every month. You can start with as little as ₹500/month. The money is then invested in the best mutual funds to invest in, and over time, you’ll accumulate more units as the value of the fund increases.
Example:
Let’s say you decide to invest ₹5000 every month in a mutual fund like Axis Bluechip Fund, which has an expected return of about 12% per year. Over 10 years, your ₹5000 monthly investment could grow to approximately ₹12 lakhs.
When selecting funds, focus on the ones that align with your risk tolerance and financial goals. Some funds might offer better returns over time, and picking the right one can significantly impact your wealth creation.
By following these simple steps, you can begin investing in the best mutual funds to invest in today, starting with small amounts that will grow over time. Whether you are new to investing or have some experience, a SIP is one of the most effective ways to build wealth in mutual funds.
Here’s a quick comparison of the top best mutual funds to invest in India for 2025:
Fund Name | Category | 5-Year Return | Risk | Expense Ratio |
---|---|---|---|---|
HDFC Hybrid Equity Fund | Hybrid Fund | 12.5% | Moderate | 1.10% |
Axis Bluechip Fund | Large Cap Fund | 14.2% | Moderate | 0.57% |
ICICI Prudential Equity & Debt Fund | Hybrid Fund | 10.7% | Moderate | 1.30% |
Mirae Asset Large Cap Fund | Large Cap Fund | 15.3% | Moderate | 0.47% |
SBI Small Cap Fund | Small Cap Fund | 18.5% | High | 1.45% |
Aditya Birla Sun Life Tax Relief 96 | ELSS Fund | 13.1% | High | 1.02% |
Choosing the best mutual funds to invest in 2025 is crucial for securing your financial future. Whether you’re looking for steady SIP investments, high returns from equity funds, or tax-saving ELSS options, there are a variety of funds to suit your needs. Always remember to consider your investment goals, risk tolerance, and investment horizon when making your choice.
By following the guidance in this article on best mutual funds to invest, you can make informed decisions and grow your wealth through mutual fund investments. Happy investing!
Want to explore helpful techniques to save and grow your hard earned money? Dive in to our guide on Save Money.
For 2025, Quant Small Cap Fund (25% annual returns) and Parag Parikh Flexi Cap Fund (16% returns) are top picks. Choose based on your goal:
• Short-term (3-5 years): SBI Corporate Bond Fund (7% returns).
• Long-term (10+ years): Axis Bluechip Fund (14% returns).
Quant Small Cap Fund delivered ~25% annual returns over 5 years. However, high-return funds like small-cap or sectoral funds carry high risk. Always check past 5-year performance before investing.
Top 5 mutual funds in India are:
1. Quant Small Cap Fund (25% returns).
2. Nippon India Small Cap Fund (22% returns).
3. Mirae Asset Emerging Bluechip (18% returns).
4. HDFC Hybrid Equity Fund (15% returns).
5. SBI Equity Hybrid Fund (14% returns).
No mutual fund guarantees 40% SIP returns. The Quant Small Cap Fund (25% returns) and Nippon India Growth Fund (22% returns) are top performers. Avoid schemes promising unrealistic returns—they’re likely scams.
For long-term wealth:
1. Axis Bluechip Fund (Large-Cap).
2. Parag Parikh Flexi Cap Fund (Multi-Cap).
3. Mirae Asset Emerging Bluechip (Mid-Cap).
Stick to funds with 10+ years of stable returns and low expense ratios.
2025’s top performers:
1. Equity: Quant Small Cap (25% returns).
2. Debt: SBI Corporate Bond (7% returns).
3. ELSS: Quant Tax Plan (20% returns).
Note :- Performance changes yearly—always review before investing.
Top SIP-friendly funds:
1. Parag Parikh Flexi Cap Fund (16% returns).
2. Axis Bluechip Fund (14% returns).
3. Quant Tax Plan (20% returns).
Pro Tip: Invest ₹500/month for 10+ years to maximize gains.
1. Nippon India Small Cap Fund – Equity Small Cap
2. Edelweiss Mid Cap Fund – Equity Mid Cap
3. Nippon India Growth Fund – Equity Mid Cap
4. HDFC Small Cap Fund – Equity Small Cap
5. Invesco India Mid Cap Fund – Equity Mid Cap
6. ICICI Prudential Smallcap Fund – Equity Small Cap
7. Kotak Small Cap Fund – Equity Small Cap
8. DSP Small Cap Fund – Equity Small Cap
9. Kotak Emerging Equity Fund – Equity Mid Cap
10. Axis Small Cap Fund – Equity Small Cap
High returns = High risk. Never invest short-term!
Quant Small Cap Fund gave ~28% annual returns in 10 years. Small-cap funds often outperform long-term but are volatile.
Here are the top 10 mutual funds with the highest returns over the past year in India:
1. Bandhan Small Cap Fund – 41.50%
2. Motilal Oswal Midcap Fund – 57.85%
3. Quant Large Cap Fund – 13.25%
4. JM Flexicap Fund – 32.62%
5. Quant Value Fund – 23.25%
6. LIC MF Infrastructure Fund – 45.42%
7. HSBC Multi Cap Fund – 28.28%
8. Motilal Oswal ELSS Tax Saver Fund – 45.47%
9. UTI-Nifty 500 Value 50 Index Fund – 19.45%
10. Invesco India Focused Fund – 43.06%
1. Quant Small Cap Fund (25% returns).
2. Nippon India Small Cap Fund (22% returns).
3. SBI Small Cap Fund (20% returns).
Small-cap = High risk. Invest via SIP for 7+ years.
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