Best Mutual Funds to Invest in India (2025)

In India, mutual fund investment has become one of the most popular and easy ways of growing one's money. Unlike direct stock or bond investments, mutual funds basically pool money together from individual investors and allow professional fund managers to operate on their behalf. This makes it easier to diversify investments and reduce risks while going for higher returns.

Coming into 2025, the scope for the best mutual funds to invest in India is pretty much limitless, from large-cap funds to mid-cap, small-cap, hybrid, and flexi-cap schemes. So many different options can act as a real deterrent while figuring out which are the best mutual funds in India for one's particular financial objectives. Some want stability with steady returns, and others want higher growth avenues with slightly higher risk.

This investment guide showcases the top-performing funds in different categories in 2025, which will help you invest in the best mutual funds. Whether beginner or experienced, knowing about India's best mutual funds and knowing their performance will get you halfway through the methods of investing. You will learn which are the best mutual funds to invest in India now and how to choose the best mutual funds in alignment with your goals and risk inclination.

Best Mutual Funds to Invest in 2025

The following are the best mutual fund to invest in India now:

1. IDBI Small Cap Fund Direct Growth: For risk-taking investors seeking higher returns, this fund invests in small-cap companies with good prospects for growth. While the small-cap funds do carry volatility, they have the potential for wealth creation over the long term.

2. SBI PSU Direct Plan Growth: If you desire exposure to Public Sector Undertakings (PSUs), this fund is worth considering. It invests in government-supported companies that are beneficiaries of policies and reforms. Having generated almost 37.89% returns, it lends itself to be an attractive option for an SIP portfolio, offering a bit of growth, stability, and diversification.

3. The ICICI Prudential Nifty Next 50 Index Fund Direct Growth: This is an investor-friendly fund for those who want to invest in the next batch of companies after the first fifty listed on the Nifty 50. It follows the Nifty Next 50 index, which consists of companies ranked just after the top 50. It gives an economical way of diversification and can be a smart choice for SIPs, given that the stocks fall in both large and mid-sized companies.

4. Motilal Oswal Midcap Fund Direct Growth: The fund serves to explore avenues in mid-caps with prospective investors. It has, in the recent past, clocked nearly 36.89% returns, thus beating many other mid-cap funds. It could be a good choice for investors interested in finding companies that could become future market leaders.

5. ICICI Prudential Infrastructure Direct Growth: This fund mainly invests in infrastructure-related companies in transport, energy, construction, and capital goods. It has given a decent record of 36.42% in three years, but it suits aggressive investors owing to sector-specific risks.

6. Aditya Birla Sun Life Medium Term Plan Direct Growth: This is a hybrid fund investing in both debt and equity. It invests in medium-term debt securities, the safekeeping of which lends reasonably well to growth potential. It has returned about 14.53% so far and is a safe choice for SIP investors who want to combine security with returns.

7. ICICI Prudential Nifty Next 50 Index Fund Direct Plan-Growth: Investors looking for exposure to the next set of big companies after the Nifty 50 will find this fund suitable. The Nifty Next 50 index tracks 50 companies just after the top 50. It is one of the cheaper ways to obtain diversification, making it good for SIPs, holding a blend of large and mid-sized companies. 

Mutual Fund Investment Strategies in India

By implementing the following strategies for mutual fund investment in India, you can maximise your returns:

• Systematic Investment Plan: You can invest small amounts at regular intervals with these plans; thus, they enable you to do cost averaging on the rupee. 
• Lump Sum: For the investor with a large amount of cash in the pocket, it would work best; higher returns can be realised if the market is conducive to that.
• Diversification: Invest across large-cap, mid-cap, small-cap, and hybrid funds to reduce risk.
• Keep a Regular Check: Keep a close watch on your investments, and whenever required, assess changes that might help you stay on track with your financial goals.

How to Choose the Best Mutual Funds to Invest in India?

Consider these methods when investing in mutual funds:

• Investment Goals: Select mutual funds according to your financial needs. It can be long-term wealth creation, retirement planning, or short-term gains.
• Risk Tolerance: Decide on the amount of risk you are willing to take under consideration that certain funds are more volatile than others.
• Fund Performance: Historical returns and the consistency of returns over time must be considered to speculate about the possible future returns.
• Expense Ratio: Also consider the expense ratio of the funds; a lower expense ratio means less reduction in your net returns.
• Fund Manager Experience: The next thing is to consider the skill level and past performance of the fund manager, as this can play a very important role in the performance of the fund itself.

Final Thought

Selecting the best platform to invest in mutual funds in India in 2025 can mark a turning point in your financial journey. Whether you are a beginner with a SIP or a long-term investor for wealth creation, there are sufficient options to suit your objectives.

At My Mudra, our aim is to show you specific places to invest in mutual funds, remove all doubts concerning investing in mutual funds in India, and help you arrive at your own informed decision. Through the resources available, coupled with My Mudra's insight into the industry, you should be able to tread the path towards financial freedom.

Speak to our team members to find the best performing mutual funds in India from 2025. Invest wisely, be disciplined, and steadily watch your wealth get created over time.

Also Read:
- Best Platform to Invest in Mutual Funds in India
- How to Invest in Mutual Funds for Beginners