Top Performing Mutual Funds of 2025

Mutual funds have continued to gain investor confidence in 2025, with several equity schemes delivering outstanding returns. The top-performing mutual funds this year include a mix of small-cap, mid-cap, and flexi-cap funds that have outpaced broader market indices. Funds such as Quant Small Cap, Motilal Oswal Midcap, and Nippon India Small Cap have delivered impressive annualized returns of over 35%–50% over the past five years. These funds have capitalized on strong domestic economic growth, infrastructure development, and increased investor participation.

For moderate risk-takers, the following funds offer a blend of stability and performance:

• Axis Bluechip Fund: A large-cap fund known for consistent returns and lower volatility.
• Parag Parikh Flexi Cap Fund: Offers global diversification and steady long-term performance.

Thematic funds have also gained popularity in 2025. One such example is:

• Quant Infrastructure Fund: Benefiting from increased government spending in infrastructure and core sectors.

Investors looking for long-term wealth creation should consider building a diversified mutual fund portfolio. Key factors to evaluate include:

• Past performance and consistency
• Expense ratio and fund management
• Alignment with your financial goals and risk tolerance

A thoughtful approach to fund selection can enhance returns while managing risks effectively over time.