Best Mutual Funds: Top Funds to Invest in India 2025

Whether you prefer to invest through a lump sum or SIPs, mutual funds can assist you in achieving various goals by adjusting your risk levels. Nowadays, investing in the best performing mutual funds in India is easier than ever, with options starting at just ₹100 a month.

Moreover, a 24% jump in net equity inflows (AMFI, May–June) shows how more people are turning to mutual funds. But with so many choices, how do you pick the right one? Let us explore how to shortlist these funds to maximise gains. 

Quick Synopsis

• Top mutual funds in India have consistently outperformed, delivering strong 3-year and 5-year returns.
• Equity, debt, and hybrid funds cater to different risk appetites and financial goals for the investors.
• It is essential to assess a fund manager's track record, expense ratio, and fund house reputation before investing for the long term.

List of 7 Best-Rated Mutual Funds in India to Invest in 2025

Despite sector-specific market downturns, the following mutual funds have demonstrated resilient performance in recent years:

Note: The returns displayed in the table are as of 24 July 2025. For current rate information, please consult the websites of the respective fund houses.

Invesco India PSU Equity Fund Direct-Growth 

Producing an average return of 17.2% since its inception, this fund is regarded as one of the best-performing mutual funds in India for long-term investment. 

• Fund Size: ₹1,439 Cr
• Expense Ratio: 0.94%
• Exit Load: 1.00%
• Risk Profile: Very High

SBI PSU Direct Plan-Growth

One can start investment in this fund with a minimum SIP amount of ₹500 and a lump sum amount of ₹5,000. 

• Fund Size: ₹5,427 Cr
• Expense Ratio: 0.85%
• Exit Load: 0.50%
• Risk Profile: Very High

Bandhan Small Cap Fund Direct-Growth

This mutual fund's growth is consistent within its category, holding almost 30% in the financial and healthcare sectors.

• Fund Size: ₹12,981.57 Cr
• Expense Ratio: 0.39%
• Exit Load: 1.00%
• Risk Profile: Very High

Aditya Birla Sun Life PSU Equity Fund Direct-Growth

This mutual fund has generated absolute returns of 10.38% over the past six months. 

• Fund Size: ₹5,687.15 Cr
• Expense Ratio: 0.53%
• Exit Load: 1.00%
• Risk Profile: Very High

ICICI Prudential Infrastructure Direct-Growth

ICICI Prudential Mutual Fund launched this scheme on January 1, 2013. Since then, it has produced 17.62% CAGR returns.

• Fund Size: ₹8,042.75 Cr
• Expense Ratio: 1.14%
• Exit Load: 1% (if redeemed within 15 days)
• Risk Profile: Very High

Franklin India Opportunities Direct Fund-Growth

The latest NAV published for this mutual fund is ₹281.81 as on 24th July, 2025.

• Fund Size: ₹7,199.55 Cr
• Expense Ratio: 0.49%
• Exit Load: 1.00% 
• Risk Profile: Very High

HDFC Infrastructure Direct Plan-Growth

Due to its superior wealth-to-contribution ratio, this scheme consistently holds the top position among the best-performing mutual funds in India.

• Fund Size: ₹2,591.14 Cr
• Expense Ratio: 1.08%
• Exit Load: 1.00%
• Risk Profile: Very High

How to Choose the Best Performing Mutual Funds in India for the Long Term? 

• Evaluate Past Performance: Look for consistent returns over 5-10 years rather than short-term spikes.
• Check Fund Manager's Track Record: Experience and stability of the fund manager matter greatly.
• Consider Expense Ratio: Lower expense ratios help in higher net returns.
• Assess Fund House Reputation: Choose established and reliable fund houses.
• Review Regularly: Periodic review helps adjust your portfolio as per market conditions.

Types of Instruments to Include in Your Investment Portfolio 

1. Equity Mutual Funds

Equity funds invest primarily in stocks of companies, offering the potential for higher returns compared to other asset classes. They can be suitable for long-term wealth creation but come with higher risk due to equity market volatility.

2. Debt Mutual Funds

Debt mutual funds invest in fixed-income securities like government bonds, corporate bonds, and treasury bills. Compared to equity funds, they are less risky and offer more predictable returns.

3. Hybrid Funds

Hybrid funds are perfect for investors who wish for growth and stability in one fund. They provide moderate returns while managing risk through diversification.

4. Fixed Deposit

Fixed deposits are the best option if you want consistent appreciation of your hard-earned money. For returns as high as 8.50% per annum, you can open a digital FD today via Stable Money. 

Final Words

Comparing the best-performing mutual funds in India is merely the first step towards taking your investment journey seriously. You must consider balancing your equity fund investments with the stability of FDs and bonds to mitigate market risk. 

For stable returns through fixed-income instruments that can fulfil your financial goals, you can rely on Stable Money. Book an FD today through the Stable Money platform and get up to 8.40% interest rate!