Investing in the Indian mutual fund market offers a variety of options.
However, selecting the right fund is essential for every investor to maximize returns and manage risk effectively.
Top Performing Mutual Funds in 2025
Here are the three highest returning mutual funds in 2025, which have demonstrated excellent performance across different categories.
Nippon India Multi Cap Fund
Type: Multi-cap Equity Fund
1-Year Return: 39.4% (till January 2024)
3-Year Return: 31.37% (till January 2024)
Risk Level: Very High
This fund invests across companies of various market capitalizations, providing diversification and helping to mitigate risk.
Its strong performance in recent years makes it a solid option for investors aiming for high returns.
Motilal Oswal Midcap Fund
Type: Mid-cap Equity Fund
1-Year Return: 58.95%
3-Year Return: 34.51%
5-Year Return: 33.48%
Risk Level: Very High
Focusing on mid-cap stocks, this fund offers significant return potential.
It has shown consistent performance, making it suitable for investors who are willing to accept higher risks for better returns.
Quantum Small Cap Fund
Type: Small-cap Equity Fund
Regular Plan Annual Return (5 Years): 38.22%
Direct Plan Annual Return (5 Years): 39.96%
This fund has delivered excellent returns over the last five years, ranking it among the top investment options.
Both its regular and direct plans have performed strongly, reflecting consistent growth potential.
Each of these funds caters to different risk appetites and investment strategies.
Investors should consider their financial goals and risk tolerance before choosing the right mutual fund.