The Indian mutual fund sector has grown phenomenally in recent years. With more and more individuals choosing SIP (Systematic Investment Plan) and lump sum, mutual funds have become one of the most popular ways to gain wealth. In fact, investors are investing more than ₹20,000 crore in a month through SIPs, which also points to confidence and demand for mutual funds with Best Returns in India.
But with so many options available, new investors often ask:
“What are the Mutual Funds with Best Returns in India?”
“Which category gives the highest average returns?”
Let’s break down some of the top Mutual Funds with Best Returns.
Mutual Funds with Best Returns in India
Mutual funds are divided into different categories, based on risk level and growth potential:
- Large-cap mutual funds → Invest in big, established companies. Safer for long-term wealth creation.
- Mid-cap and small-cap funds → Invest in growing companies. Higher returns but also higher risk.
- Debt funds → Safer option, invest in bonds and fixed-income securities.
- Gold funds → Invest in gold ETFs, good for diversification.
If you want steady growth with lower risk, large-cap funds are usually a good choice.
Top Performing Mutual Funds with Best Returnsin 2025
If you are looking for safe and steady investment options, large-cap mutual funds with Best Returns are a good choice. These funds usually invest in big and well-established companies that have a strong reputation in the market. Because they invest in large companies, the risk is lower compared to small-cap or mid-cap funds. At the same time, they offer good returns for long-term wealth building.
Here, we will explore some of the best-performing large-cap mutual funds with Best Returns in 2025, along with a few other strong investment options like gold funds and debt funds.
1. Nippon India Large Cap Fund
The Nippon India Large Cap Fund is handled by Nippon India Mutual Fund and is among the most sought-after schemes for investors. The fund invests in large firms having good market positions and stable earnings. The primary aim is to deliver long-term capital appreciation by investing in leading players of their respective industries. If you are interested in a fund that provides growth along with safety, this is the one for you.
2. Canara Robeco Bluechip Equity Fund
A familiar face in the large-cap segment is the Canara Robeco Bluechip Equity Fund. It invests in blue-chip shares, that is, big, solid finance companies that have consistent performance. The fund tries to give investors steady long-term growth by investing in various sectors. If you prefer stability and want your money to grow steadily but surely, this fund could be for you.
3. HDFC Gold ETF Fund of Fund Direct (G)
Not a conventional equity fund, HDFC Gold ETF Fund of Funds is an excellent option for diversification. The fund invests in gold and has yielded spectacular returns. In the 1-year period, it provided a 39.4% return, in 3 years it provided a 22.6%, and in 5 years it provided a 12.5%. The expense ratio is a mere 0.2%, and it has an AUM of ₹4,537 crores as of August 2025. Minimum investment required is ₹5,000.
This fund is a great means to hedge risk in your portfolio because gold tends to be a safe investment during turbulent times.
4. ICICI Prudential Bluechip Fund
It is managed by ICICI Prudential Mutual Fund and invests in fundamentally strong large-cap companies. It invests in businesses that are leaders in their respective industries with good long-term prospects. It aims to reduce risks but maintain steady growth in the long term. For investors who desire peace of mind with capital appreciation, this is a good option.
5. Invesco India Largecap Fund
The Invesco India Largecap Fund is another consistent performer in the large-cap space. This one invests in large, established companies with a history of producing results. High-quality, growth-oriented businesses are the focus here. That makes it a safe option for those who are willing to see their money grow slowly and steadily over the years.
6. HDFC Floating Rate Debt Fund Direct (G)
For investors seeking a safer alternative to equity, the HDFC Floating Rate Debt Fund can be helpful. It is a debt fund that has been consistently performing well. It returned 8.7% over the last 1 year, 8.3% in 3 years, and 6.9% in 5 years. The expense ratio is 0.3%, and it has an AUM of ₹15,497 crores as of August 2025.
As it invests in debt securities, this fund is safer than equity funds. It requires a minimum investment of ₹5,000 and is best suited for conservative investors.
7. Kotak Bluechip Fund
The Kotak Bluechip Fund, managed by Kotak Mahindra Mutual Fund, is another dominant player in this category. It invests predominantly in the best companies that are listed in the Nifty 100 index. Long-term wealth creation through prudent stock selection and judicious risk management is the prime objective of the fund. This fund is a reliable one for those who have faith in the strength of large companies.
Top Equity Mutual Funds
When we talk about the best mutual funds, most people mean equity mutual funds. These funds invest mainly in the stocks of companies with the aim of generating higher returns over the long term. By investing in businesses that are growing, equity funds give investors a chance to benefit directly from that growth.
Of course, with higher returns comes higher risk. Unlike debt or hybrid funds, equity mutual funds are linked to stock market ups and downs. But for investors who have a long-term horizon and a higher risk appetite, they can be one of the best wealth-building options.
In fact, equity funds have become increasingly popular among Indian investors. This clearly shows how more people are trusting equity funds to grow their money.
If you are planning to invest, here’s the good news: some top-performing equity Mutual Funds with Best Returns in India have delivered excellent returns over the last 10 years. These funds not only beat inflation but also helped investors create long-term wealth.
| Fund Name | 3-Year Return | 5-Year Return | Expense Ratio |
| Motilal Oswal Midcap Fund Direct Growth | 16.8% | 40% | 0.69% |
| HDFC Focused 30 Fund Direct Growth | 15.9% | 34.4% | 0.61% |
| Nippon India Small Cap Fund Direct Growth | 7.4% | 36.7% | 0.73% |
| ICICI Prudential Infrastructure Direct Growth | 6.5% | 41.7% | 1.16% |
| Bandhan Small Cap Fund Direct Growth | 6.0% | 40.2% | 0.38% |
Top Debt Mutual Funds
Debt mutual funds are Mutual Funds with Best Returns that invests mostly in fixed income products like government bonds, treasury bills, and corporate bonds. The main aim of debt funds is to provide stable returns and help investors maintain the security of their money.
As an investor who may be thinking about investing in investing, you would be pleased to know that we have many debt Mutual Funds with Best Returns in India that have done very well over the last ten years and have generated decent and stable returns. These investment instruments have allowed the investors to increase their wealth without carrying any major risk.
| Fund Name | Category | 1-Year Return |
| Aditya Birla Sun Life Medium Term Plan Direct | Government/Corp | 15.7% |
| ICICI Prudential Gilt Fund Direct Plan Growth | Sovereign | 11.1% |
| Nippon India Credit Risk Fund Direct Growth | Corp/Gov | 10.5% |
| Tata Money Market Fund Direct Growth | Short Term | 8.4% |
| Franklin India Corporate Debt Fund | Corporate | 11.2% |
Top Hybrid Mutual Funds
Balanced funds, or hybrid funds, have investments in a mixture of debt (bonds or fixed-income securities) and equity (stocks). This balance makes hybrid funds a suitable option for those who are not bold but want decent returns in the long term.
Hybrid mutual funds with Best Returns have become extremely popular in India in the past couple of years. Some hybrid mutual funds have performed phenomenally over the past decade. Going by the recent numbers, till August, assets under management of hybrid Mutual Funds with Best Returns have gone up steadily. By investing a portion of their money in equity and the rest in debt, they have managed to give stable returns while keeping overall risk minimal.
Funds such as HDFC Hybrid Equity Fund, ICICI Prudential Equity & Debt Fund, SBI Equity Hybrid Fund, and Mirae Asset Hybrid Equity Fund tend to rank among the best performers. These funds demonstrated that the hybrid strategy is effective, particularly during market volatility.
| Fund Name | Equity:Debt Ratio | Profile | Returns |
| DSP Aggressive Hybrid Fund | 66:34 | Lower Risk | Consistent |
| SBI Equity Hybrid Fund | 72:20 | Low Risk | Consistent |
| ICICI Prudential Multi Asset Fund | 65:25 | High Risk | Above Average |
| Mirae Asset Multi-Asset Allocation Fund | 65:25 | High Risk | Average |
Conclusion
When considering Mutual Funds with Best Returns by category, it is evident that small-cap and mid-cap funds have achieved the highest long-term returns. They are, however, accompanied by greater volatility, in other words, the price of your investment will fluctuate more drastically.
Conversely, if we look at mutual fund with Best Returns based on investment horizon, we notice a plain fact, the longer you are invested, the more likely you are to earn higher average returns, particularly with equity funds.
