Top Performing Mutual Funds in India for 2025

Mutual funds have grown to be one of the most favoured vehicles of investments in India in the recent decades. It is a simple and cost-efficient way to meet your financial objectives through investments in capital markets, debt securities, and other assets. But with so many options available, which one should you go for? Let us find out more about some of the top performing mutual funds funds below:

Here are some of the best performing mutual funds based on their annual returns over a three year period:

• Mutual funds provide a mix of equity, debt, and hybrid options that allow you to diversify your investment portfolio and manage risk across sectors and asset classes with ease.

• While past returns are not always guaranteed in the near future, analysing a fund's historical performance can give you insights into its potential future returns and how well it withstands market swings.

• Lower expense ratios can help maximise your returns, as they represent the fees fund managers charge to manage your investments.

Here is a closer look at the some of the top performing mutual funds in India this year:

• Aditya Birla Sun Life PSU Equity Fund: With an AUM of Rs. 3,403.63 crores and an expense ratio of 0.50%, this high risk fund allocates 57.47% to large cap stocks, 16.97% to mid cap stocks, and 10.98% to small cap stocks. It focuses primarily on public sector companies.
• SBI PSU Fund: This fund manages Rs. 1,875.84 crores with an expense ratio of 0.92%. It allocates 91.05% to equities, primarily in public sector enterprises. Large cap stocks like NTPC and Indian Oil Corporation form the core of its portfolio.
• ICICI Prudential Infrastructure Mutual Fund: This fund has around Rs. 5,186.46 crores in assets under management and an expense ratio of 1.03%. It provides greater exposure to infrastructure-related stocks. Large cap companies such as NTPC and ICICI Bank dominate its portfolio.
• Quant Infrastructure Mutual Fund: This fund manages around Rs. 2,498.18 crores with a relatively low expense ratio of 0.73%. Its portfolio is heavily weighted towards equities, with 25.78% in large cap stocks such as Reliance Industries, alongside other smaller companies such as Adani Power and Tata Power.
• Aditya Birla Sun Life Medium Term Plan: This debt fund holds Rs. 1,863.18 crores and comes with an expense ratio of 0.85%. It focuses 93.98% of its total underlying assets on debt, with a mix of government securities and low risk corporate bonds.
• Bank of India Short-Term Income Fund: Managing around Rs. 82.58 crores, it is a relatively smaller fund that charges a low expense ratio of 0.50%. A few of its top investments are in organisations such as Power Grid Corporation and Axis Bank.
• UTI Dynamic Bond Fund: This fund manages Rs. 382.86 crores with an expense ratio of 0.71%. It concentrates its portfolio on debt securities and provides a balanced approach. It offers the added flexibility of being able to adapt to the changing interest rates.
• Quant Multi Asset Fund: This mutual fund scheme is a hybrid fund that currently manages Rs. 1,829.08 crores worth of AUM and has an expense ratio of 0.76%. It invests 65.84% in equities and the rest of its portfolio in debt securities.
• ICICI Prudential Equity & Debt Fund: With a massive AUM of Rs. 33,502.19 crores, this fund balances its portfolio between equities comprising 74% and debt 19.71%. A few of its major holdings include Bharti Airtel, ONGC, and HDFC Bank. It is one of the best funds for long term stable income generation.
• HDFC Balanced Advantage Fund: This hybrid mutual fund scheme holds Rs. 79,875.08 crores worth of assets under management. It has an expense ratio of 0.74% and invests in 67.38% equities and 27.75% debt based assets. It focuses on reliable large cap stocks such as HDFC Bank and NTPC for stable long term growth.

While mutual fund schemas come with enough diversity to suit investors of all kinds, you must review and compare various policies prior to investing in one. In this regard, there are a handful of factors that you should also consider. First, start by defining your financial objectives over the long term and the short term. Next, fix your investment horizon and investment amount. Thirdly, check the chosen fund’s past track record and historical returns, among other details. Lastly, consider the mode of investment and expense ratio, and choose the fund that best aligns with all these prerequisites.
 

Use of tools such as a Mutual Fund Calculator to plan effectively and always compare mutual funds to select the best options. Explore the Bajaj Finance mutual fund platform with over 1,000 mutual fund schemes and begin investing in mutual funds with ease.