Equity mutual funds are one of the types of investments that pools up the investor’s money and then invests it in the stock market. The money from these investors is utilized to purchase stock in various businesses. The goal is to increase your money over time. The risk level is comparatively higher as they offer the higher potential of yielding more returns than your RD or FD could ever yield.
Mutual funds have become the go to choice for many to multiply their wealth in the longer run. These mutual funds are usually managed by experienced experts like fund managers or wealth managers. Typically, seasoned professionals such as wealth managers or fund managers oversee these mutual funds. These experts make financial decisions on your behalf to build your wealth. In this article, let us discover the top equity mutual funds to invest in 2025. Stay tuned!
What to Look for in an Equity Mutual Fund in 2025
Key Criteria
- Examine the selected fund’s historical performance over the last three to five years. The past performance indicates how the funds are handled in the different market conditions.
- A skilled and experienced fund manager can make smart investment decisions. Hence, accessing the fund manager’s reputation is significant.
- Expense Ratio is the annual fees charged by the fund managers. Your return will be higher if the expense ratio is lower.
- Assets Under Management (AUM): This factor shows the amount of money that the fund manager manages. Very large funds may struggle to be nimble while small ones may come with higher risk.
- Portfolio Composition is a criteria to not forget. the industries and businesses in which the fund has investments. Portfolio diversification can lower risk.
- Consistency Vs. Recent Growth: A fund that performs consistently over time is often safer than a fund that shows a higher growth. Sustainable returns reflect good management and balanced risk-taking.
Top 5 Equity Mutual Funds in 2025
1. Invesco India PSU Equity Growth Fund
- Fund Type: Large cap fund
- Fund Size: INR 1,281.46 Crores
- 3-year Returns: 32.85%
- 5-year Returns: 30.86%
- Risk profile: very high
- Ideal for: investors wanting steady growth with moderate risk appetite.
2. ICICI Prudential Infrastructure Fund
- Fund Type: Large cap fund
- Fund Size: INR 7,415.53 Crores
- 3-year Returns: 32.62%
- 5-year Returns: 39.65%
- Risk profile: Very high
- Ideal for: investors who are aware of macro trends and prefers high return bets
3. Motilal Oswal Midcap Fund
- Fund Type: Mid cap fund
- Fund Size: INR 27,780.18 Crores
- 3-year Returns: 31.83%
- 5-year Returns: 37.91%
- Risk profile: very high
- Ideal for: investors looking for substantial growth and having a higher risk appetite.
Also read: FD, PPF or Mutual Funds: Which One Can Make You Rich in the Long Run?
4. Tata India Tax Savings Fund
- Fund Type: Equity – ELSS
- Fund Size: INR 4,405 Crores
- 3-year Returns: 17.8%
- 5-year Returns: 23.7%
- Risk profile: moderately high
- Ideal for: any investor who wants to save tax with an investment option and potential for capital appreciation
5. IDFC Infrastructure Fund Growth
- Fund Type: Equity – Sectoral
- Fund Size: INR 1,577 Crores
- 3-year Returns: 31.5%
- 5-year Returns: 37.4%
- Risk profile: High
- Perfect for: investors with a lengthy investing horizon and a high risk tolerance.
New Equity Mutual Funds to Keep an Eye on in 2025
- Quant ESG Equity Fund – invests in companies with ESG practice that ensures sustainability and ethical governance.
- ICICI Prudential Technology Fund – The focus is on IT, telecom, electronic sector, capitalizing on India’s digital transformation.
- DSP Natural Resources and New Energy Fund – Invests in companies that are involved in clean energy and natural resource management.
Conclusion
Equity mutual funds remain as a stronger choice for the wealth expansion and creation specifically in today’s dynamic financial markets. But, analyzing the various factors involved are to be given more importance to assess which fund suits best to your financial needs and habits. Equity mutual funds work best for long-term wealth maximization. With patience and financial discipline, they can be a powerful tool to build long lasting wealth.
Written by Kavitha Sugumar
