Top 10 Best Mutual Funds in India 2025

Looking to invest in mutual funds in 2025? You’re not alone. With over ₹60 lakh crore in assets under management, mutual funds have become India’s favourite way to build wealth, save for retirement, and reach financial goals. But with thousands of schemes out there, picking the right one can feel overwhelming.

At My Mudra, we help you cut through the noise. Here’s a comprehensive, easy-to-understand guide to the Top 10 Mutual Funds in India for 2025 – perfect for SIPs, long-term growth, or building a secure future.

Why Mutual Funds? Why Now?

• SIPs are booming: Over 10 crore SIP accounts in India as of 2025.
• Long-term growth: The best mutual funds in India 2025 have delivered 12-20% annualized returns over the past decade.
• Flexibility: Start with as little as ₹500 per month.
• Professional management: Your money is handled by experts, not left to chance.

Top 10 Best Mutual Funds in India 2025

Here’s our curated list, based on consistent performance, fund manager expertise, and suitability for SIP and long-term investing.

Why These Funds? A Quick Breakdown

Choosing the Top 10 Mutual Funds in India for 2025 isn’t just about past returns. It’s about consistency, risk management, and the ability to deliver across market cycles. Here’s why each fund stands out:

• Motilal Oswal Midcap Fund: Consistently among the highest return mutual funds, with a 5-year CAGR above 34%.
• ICICI Prudential Infrastructure Fund: Infrastructure is booming in India, and this fund taps directly into that growth story.
• SBI PSU Fund: Rides India’s PSU revival, with strong long-term returns and a lower expense ratio.
• Quant Small Cap Fund: Delivers the highest 5-year CAGR (41.4%), but comes with higher risk-ideal for aggressive investors.
• Nippon India Small Cap Fund: Large AUM and proven long-term performance for those seeking high growth.
• ICICI Prudential Bluechip Fund: One of the best large-cap mutual funds 2025, offering stability and steady returns.
• HDFC Infrastructure Fund: Long-term capital appreciation by investing in equity and related securities.
• Quant Flexi Cap Fund: Aggressive flexi-cap strategy with strong recent performance.
• SBI Healthcare Opportunities Fund: Healthcare is a sunrise sector; this fund lets you ride the trend.
• Bandhan Small Cap Fund: Strong returns and growing popularity among long-term investors.

Top 10 Best Mutual Funds in India for SIP  

SIP (Systematic Investment Plan) is the smartest way to build wealth over time. Here’s what you need to look for when choosing a mutual fund in India for SIP:

• Consistent 3-5 year returns above 15-20%.
• Low minimum investment (as little as ₹500/month).
• Diversification: Across sectors and market caps.

Here are some examples of how these funds fit different goals:

• Motilal Oswal Midcap Fund: If you started a ₹2,000 monthly SIP five years ago, your investment would have grown impressively, thanks to its high CAGR.
• ICICI Prudential Infrastructure Fund: Perfect for investors wanting to ride India’s infrastructure wave with regular monthly investments.
• Quant Small Cap Fund: An SIP here can help you benefit from the high growth potential of small caps, though you expect some ups and downs along the way.
• ICICI Prudential Bluechip Fund: A steady SIP choice for risk-averse investors or those planning for children’s education or retirement.
• Bandhan Small Cap Fund: For those starting out with a smaller SIP amount, this fund’s strong track record makes it a compelling pick.

Other SIP-friendly funds to consider: 

• Axis Small Cap Fund: Known for robust long-term SIP returns.
• PGIM India Midcap Opportunities Fund: Delivers consistent performance for regular investors.
• SBI Small Cap Fund: A favourite for SIPs, especially among young investors building wealth for the long term.
• UTI Large & Mid Cap Fund: Balances growth and stability, making it a safe SIP bet.

Top 10 Best Mutual Funds in India for Long Term  

Long-term investing (7+ years) is where mutual funds truly shine. If you’re looking for the Top 10 best mutual funds in India for long term or the best mutual funds for next 10 years, focus on funds with:

• Strong 10-year CAGR (12-21%).
• Experienced fund managers and low expense ratios.
• Proven track record through market ups and downs.

Here are some examples of how these funds work for long-term wealth creation:

• Motilal Oswal Midcap Fund: Over a 10 years period, this fund has delivered a CAGR of 21.37%, turning a one-time investment of ₹1 lakh into over ₹6 lakh.
• SBI PSU Fund: With a 10-year CAGR of 12.45%, this fund has rewarded patient investors who believed in the PSU turnaround.
• ICICI Prudential Infrastructure Fund: A strong performer for those who can ride out sectoral cycles for a decade or more.
• HDFC Infrastructure Fund: Its 10-year track record makes it a top pick for long-term goals like children’s education or retirement.
• Nippon India Small Cap Fund: Ideal for investors with a long horizon and high risk appetite, as small caps tend to outperform over extended periods.

Best Mutual Funds for Retirement Planning  

Retirement planning is all about stability, steady growth, and inflation-beating returns. The best mutual funds for retirement planning in 2025 include:

• ICICI Prudential Retirement Fund Pure Equity Plan: With a 5-year annualized return of 32.28%, this fund is a top choice for equity-focused retirement portfolios.
• HDFC Retirement Savings Fund Equity Plan: Delivers 31% annualized returns over 5 years, making it ideal for those starting early.
• Nippon India Retirement Fund Wealth Creation Scheme: A solid option for investors seeking long-term growth with a 5-year CAGR of 25.96%.
• Tata Retirement Savings Fund Progressive Plan: Offers a balanced approach for those nearing retirement, with a 5-year CAGR of 22.27%.
• HDFC Retirement Savings Fund Hybrid Equity Plan: Combines equity and debt for those wanting moderate risk and steady growth.

For example, if you start a SIP of ₹5,000 per month in the ICICI Prudential Retirement Fund Pure Equity Plan at age 30, you could build a retirement corpus of ₹1 crore or more by the time you retire.

These funds are designed with retirement in mind, often with lock-in periods and automatic asset allocation as you age, making them ideal for hands-off, long-term planning.

Best Large Cap Mutual Funds 2025  

Large cap funds are the backbone of any balanced portfolio, offering stability and steady growth. The best large cap mutual funds 2025 include:

• ICICI Prudential Bluechip Fund: Known for its steady returns and low volatility, perfect for conservative investors or those closer to retirement.
• Nippon India Large Cap Fund: Delivers a 5-year annualized return of 22.35%, making it a top performer in its category.
• DSP Top 100 Equity Fund: Another top performer with a 5-year annualized return of 19.43% p.a.
• HDFC Large Cap Fund: With a 5-year annualized return of 19.16%, it’s a reliable choice for those seeking growth with lower risk.
• Kotak Bluechip Fund: A classic pick for those who want to stick with blue-chip companies and proven management.
• Edelweiss Large Cap Fund: Another strong performer with a track record of consistent returns.

Conclusion

Choosing the best mutual funds in India isn’t about chasing the highest return mutual fund. It’s about matching your goals, risk appetite, and time horizon. Whether you want to invest for 10 years, save for retirement, or start a SIP for your child’s future, the funds above offer a strong foundation.

At My Mudra, we help you compare, plan, and invest smartly for the long run. Ready to make your money work harder? Start your mutual fund journey today!

Note: All data as of April 2025. Past performance does not guarantee future results. Always consult a financial advisor before investing.