Synopsis: India’s best-performing equity mutual funds in 2025 provide the appropriate vehicle for wealth accumulation, delivering a premium to market returns as well as offering risk management practices to their portfolio.
Equity mutual funds are essential for long-term wealth creation, providing huge returns through diversification. With strong inflows and investor confidence, they are performing better than traditional investments in 2025. This article discusses the best 10 equity mutual funds along with their returns, risk, and suitability to investor needs and possibility for long-term wealth generation.
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Top 10 Equity Mutual Funds in India for 2025
1. Nippon India Growth Mid Cap Fund
- Category: Mid Cap
- 3Y CAGR: 25.9%; 5Y CAGR: 30.3%
- Fund Manager: Dhrumil Shah
- AUM: ₹39,328 Crore
- Strategy: Stock picking in emerging leaders; aggressive strategy while investing in mid-caps and full cap cycles.
- Ideal For: Growth-focused, high-risk investors.
2. Parag Parikh Flexi Cap Fund
- Category: Flexi Cap
- 3Y CAGR: 23.4%; 5Y CAGR: 25.1%
- Fund Manager: Rajeev Thakkar
- AUM: ₹119,723 crore
- Strategy: Value investing within a global investment universe, low turnover and concentrated positions.
- Ideal For: Investors in search of diversification who want a balance of stability and flexibility.
3. Mirae Asset Large Cap Fund
- Category: Large Cap
- 3Y CAGR: 14.85%; 5Y CAGR: 17.48%
- Fund Manager: Gaurav Misra
- AUM: ₹ 39,615 Crore
- Strategy: A blend of blue-chip Indian leader equity that is focused on straight line compounding.
- Ideal For: Conservative, long-term investors.
4. HDFC Flexi Cap Fund
- Category: Flexi Cap
- 3Y CAGR: 22.47%; 5Y CAGR: 27.71%
- Fund Manager: Prashant Jain
- AUM: ₹85,560 Crore
- Strategy: Bottom-up stock picking combined with sector rotation based on macro trends inflation.
- Ideal For: Investors who want exposure to both large caps and mid caps with some balance.
5. Quant Small Cap Fund
- Category: Small Cap
- 3Y CAGR: 24.8%; 5Y CAGR: 35.4%
- Fund Manager: Sanjeev Sharma
- AUM: ₹30,504 Crore
- Strategy: Tactical high conviction bets on small cap innovators.
- Ideal For: Young aggressive investors that can take risks and are comfortable with volatility.
Also read: Top Performing International Mutual Funds That Gave Up to 41.88% in Just 1 Year
6. SBI Bluechip Fund
- Fund Category: Large Cap
- 3Y CAGR: 13.54%; 5Y CAGR: 17.65%
- Fund Manager: Sohini Andani
- AUM: ₹52,829 Crore
- Investment Strategy: Investments limited to the top 100 large-caps; it also focuses on stability, with lower volatility.
- Suitable for: Moderate level of risk tolerance and preference of Blue-chip funds.
7. ICICI Prudential Bluechip Fund
- Fund Classification: Large Cap
- 3Y CAGR: 18.03%; 5Y CAGR: 18.56%
- Fund Manager: Sankaran Naren
- AUM: ₹73,034 Crore
- Investment Strategy: Combination of well-performing stocks with new-large-cap leaders, hence the list is a mix of both.
- Suitable for: A core portfolio allocation.
8. Canara Robeco Emerging Equities Fund
- Fund Classification: Large & Mid Cap
- 3Y CAGR: 16.65%; 5Y CAGR: 20.56%
- Fund Manager: Vishal Mishra
- AUM: ₹25,483 Crore
- Investment Strategy: Invest in companies that have strong balance sheets and visibility in growth.
- Suitable for: Mid-cap Alpha with downside protection with moderate risk profile.
9. Motilal Oswal Large and Midcap Fund
- Fund Type: Large & Mid Cap
- 3Y CAGR : 27.76%; 5Y CAGR: 28.66%
- Portfolio Manager: Shreyash Devalkar
- AUM: ₹13,777 Crore
- Investment Strategy: A concentrated portfolio of high-conviction stocks, focusing on the scalable businesses within the portfolio.
- Suitable for: Investors seeking aggressive returns at a moderate level of risk.
10. Axis Midcap Fund
- Fund Type: Mid Cap
- 3Y CAGR: 19.45%; 5Y CAGR: 21.84%
- Portfolio Manager: Shreyash Devalkar
- AUM: ₹31,146 crore
- Investment Strategy: Focuses on quality growth, risk management, and midcap stocks.
- Suitable for: Investors that want to invest through SIPs and are looking for a steady growth in midcap equities.
Sector and Market Trends Impacting Fund Performance
- The allocations in portfolios in 2025 are led by IT, Banking and Financial Services, Infrastructure and Manufacturing.
- Regulatory reform (PLI schemes, PSU disinvestment) and a revival in the economy has created an improvement in earnings, more specifically in banking and capital goods.
- Fund managers are looking to rotate into themes such as digital transformation, energy and financial inclusion for their next sense of outperformance in the near future.
Conclusion
For the disciplined investor, well-designed equity funds and investing through SIP remains India’s best source of long-term returns and sustained financial success in an evolving world.
Written By Rachna Rajput