Mutual funds remain a popular investment choice among Indian investors looking for long-term growth and security. As 2025 brings with it new market trends and economic shifts, finding suitable mutual fund options has never been more crucial. Here we present our guide of the Top 10 mutual funds in India options suitable for India in 2025, with particular attention paid to medium- and large-cap funds with strong, consistent growth with potential for long-term growth.
What Are Large-Cap and Mid-Cap Mutual Funds?
Large-Cap Mutual Funds
These funds invest in businesses with market capitalizations exceeding Rs20 lakh crores. Large-cap funds provide steady returns with less risk than their small and mid cap counterparts, making these ideal options for investors who seek ongoing, long-term growth.
Mid-Cap Mutual Funds
Mid-cap mutual funds provide investors with an attractive combination of risk and return. Mid-cap mutual funds are suitable for investors willing to take moderate risks with potential higher growth prospects.
Top 10 Mutual Funds In India For 2025: Large and Mid Cap Funds
Top Five Large-Cap Mutual Funds.
Here are the top ten mutual funds and five large-cap mutual funds that stand out.
1. SBI Bluechip Fund
(AUM: Rs 45,000+ crores and average 5-Year Returns of 14% CAGR)
Why Invest? It stands out as an outstanding large-cap fund, boasting AUM over Rs 45,000 crores with average 5-year returns over 14% CAGR over time. It has become a leading performer among these AUMs; one such large-cap is the SBI Bluechip Fund, with 14% compound annualized returns over 5 years, with an average 5-year ROL of 14% CAGR since its inception in 2025.
SBI Bluechip Fund is one of the most reliable large-cap funds, investing in blue-chip stocks known to deliver consistent returns over time. Furthermore, this fund can diversify across different industries, such as IT, banking, and FMCG, to offer more diverse portfolios.
2. HDFC Top 100 Fund
(AUM: Rs38,000+ crores, 5Y R/U Average Return: 13.5% CAGR)
Why Invest? This fund has a proven record of outstripping its benchmark, investing primarily in large-cap companies with potential for rapid expansion.
3. ICICI Prudential Bluechip Fund
AUM of Rs50+ crores, 5 years returns exceeding 14% compound annually.
Why invest? This fund offers lower-risk returns by investing in established businesses with stable business practices that minimize volatility for predictable returns.
4. Axis Bluechip Fund WIP
- AUM: ₹ 35,000+ crores 5-Year Returns: ~12.8% CAGR Expense Ratio: 0.98%
Why Invest? The Axis Bluechip Fund has proven itself over time as an excellent option for those who prioritize risk-averse strategies. It offers superior returns with less risk, making it a suitable investment option.
5. Mirae Asset Large Cap Fund
AUM: Rs 30,000 crores 5-Year Returns: 13.9% CAGR
Why invest? This fund offers excellent diversification and regularly outperforms its benchmark, making it an excellent long-term wealth-building option.
Top Five Mid-Cap Mutual Funds
6. Kotak Emerging Equity Fund
AUM: Rs 25,000+ crores. CAGR Returns in 5 Years = 17.5%.
Why invest? This fund boasts an exceptional track record for outperforming mid-cap index benchmarks, making it an attractive option for investors seeking aggressive returns.
7. Nippon India Growth Fund
AUM: Rs 18000+ crores CAGR Returns in Five Years: 18.2%
Why invest? The Nippon India Growth Fund specializes in mid-cap stocks with significant upside potential and boasts an expense ratio of 1.355%.
8. DSP Midcap Fund
AUM: Rs 22,000+ crores CAGR Returns in 5 Years: 16.8%
Why invest? This fund utilizes an exhaustive research-driven strategy for investing in mid-cap stocks with potential for long-term capital appreciation.
9. HDFC Mid-Cap Opportunities Fund
AUM on March 31st 2011, and 5-Year CAGR Returns of 17.1%
Why Should You Invest? A balanced mid-cap fund specializing in companies with strong fundamentals may be the ideal investment vehicle.
10. Sundaram Mid Cap Fund
Assets Under Management and Five-Year Returns are over Rs 15,000 crores with average compounded returns of 16.5% CAGR over five years.
Why invest? By targeting companies with the potential to become major market players over time.
How Can You Select an Appropriate Mutual Fund?
Risk Aversion: When selecting mutual funds that match your risk appetite, larger-cap funds provide more security, while mid-cap funds offer higher returns but may entail greater risks.
Long-term investors (five years or longer): It can reap significant returns from both mid-cap and large-cap funds.
Increased Rate of Expenses: Increases in expense ratio can translate to increased profits for investors.
Track record of fund managers: managing your portfolio under an experienced and knowledgeable fund manager is more likely to deliver long-term success.
FAQs:-
Q1. What is Mutual Fund Ideal Investment Timeframe?
Ans: In general, large-cap funds require seven to ten years as the minimum investment timeframe to maximize returns, while mid-cap funds may require three or four years so as to avoid market fluctuations and maximize potential gains.
Q2. What mutual funds should I consider investing in for long-term investments by 2025?
Ans: Large-cap funds such as SBI Bluechip Fund and ICICI Prudential Bluechip Fund offer long-term stability, while Kotak Emerging Equity Fund may provide opportunities for fast mid-cap growth strategies.
Q3. How and when should I review my mutual fund portfolio?
Ans: We suggest reviewing your mutual fund portfolio every six months to ensure it aligns with both your financial objectives and market conditions.
Q4. How can I calculate the tax implications associated with investing with mutual funds in India?
Ans. Equity mutual funds with more than one calendar year of tenure will incur 10 percent long-term capital gains tax when profits surpass Rs. 1 lakh; short-term gains (less than one calendar year) may incur 15 percent taxation.
CONCLUSION
Succeeding with mutual fund investments requires conducting thorough research and possessing an in-depth knowledge of their risks. Large-cap funds are suitable for cautious investors, while middle-cap funds provide greater growth potential. Below is a selection of 2025’s most popular mutual funds analyzed for past results, risks and future growth projections. before making financial decisions, it’s wise to take note of your financial goals, risk tolerance, as well as market trends before making investment decisions.
If you’re considering investing, seek guidance from an experienced financial advisor for tailored guidance—and enjoy investing!