As 2025 progresses, investors are actively seeking mutual funds that offer stability, strong performance, and alignment with their financial objectives. The critical step for both new and experienced investors, whether they prefer low-risk options or aggressive growth, is selecting the appropriate fund category. This guide explores the leading mutual fund categories, including large-cap, flexi-cap, ELSS, and hybrid funds. It also provides insights into their recent performance and highlights reputable fund houses. Each fund featured in this guide has been chosen for its consistent returns, the credibility of its fund manager, and its potential for long-term growth, facilitating informed investment decisions for the year ahead.
1. Large-Cap Mutual Funds
Large-cap mutual funds invest primarily in well-established companies with strong market reputations. These companies are usually industry leaders with stable earnings, making large-cap funds relatively less volatile. They’re ideal for investors seeking consistency, safety, and decent long-term returns.
Top Performing Large-Cap Funds:
| Fund Name | 5-Year CAGR | Fund House |
| SBI Bluechip Fund | 13-15% | SBI Mutual Fund |
| Mirae Asset Large Cap Fund | 14-16% | Mirae Asset |
| Axis Bluechip Fund | 12-14% | Axis Mutual Fund |
2. Flexi-Cap Mutual Funds
Flexi-cap funds have the flexibility to invest across large-cap, mid-cap, and small-cap companies, based on market opportunities. This broad diversification helps balance risk and return. Ideal for investors who want a mix of stability and growth.
Top Performing Flexi-Cap Funds:
| Fund Name | 5-Year CAGR | Fund House |
| Parag Parikh Flexi Cap Fund | 15-17% | PPFAS Mutual Fund |
| HDFC Flexi Cap Fund | 13-15% | HDFC Mutual Fund |
| UTI Flexi Cap Fund | 14-16% | UTI Mutual Fund |
3. Mid-Cap Mutual Funds
Mid-cap mutual funds invest in medium-sized companies with growth potential. These funds are slightly riskier than large-cap funds but can deliver higher returns over the long run. Suitable for investors with a long-term horizon and a moderate risk appetite.
Top Performing Mid-Cap Funds:
| Fund Name | 5-Year CAGR | Fund House |
| Kotak Emerging Equity Fund | 17-20% | Kotak Mutual Fund |
| Motilal Oswal Midcap Fund | 18-21% | Motilal Oswal |
| Nippon India Growth Fund | 16-18% | Nippon India |
4. Small-Cap Mutual Funds
Small-cap funds focus on relatively smaller companies that have high growth potential but also come with significant volatility. They offer excellent returns but are highly sensitive to market fluctuations. Ideal for investors with high-risk tolerance and a long-term outlook.
Top Performing Small -Cap Funds:
| Fund Name | 5-Year CAGR | Fund House |
| Quant Small Cap Fund | 24-27% | Quant Mutual Fund |
| Nippon India Small Cap Fund | 21-24% | Nippon India |
| SBI Small Cap Fund | 20-23% | SBI Mutual Fund |
5. Hybrid Mutual Funds (Balanced Funds)
Hybrid funds invest in both equity and debt instruments, balancing risk and reward. These are great for conservative investors who want stable returns without too much exposure to market volatility. They also offer smoother performance during uncertain times.
Top Performing Hybrid Funds:
| Fund Name | 5-Year CAGR | Fund House |
| ICICI Prudential Equity & Debt Fund | 12-14% | ICICI Prudential |
| HDFC Hybrid Equity Fund | 13-15% | HDFC Mutual Fund |
| Mirae Asset Hybrid Equity Fund | 13-15% | Mirae Asset |
6. ELSS (Tax-Saving) Mutual Funds
ELSS funds are equity mutual funds that come with a tax benefit under Section 80C of the Income Tax Act. They have a lock-in period of 3 years , the shortest among tax-saving instruments and have the potential to deliver high returns over time.
Top Performing ELSS Funds:
| Fund Name | 5-Year CAGR | Fund House |
| Axis Long Term Equity Fund | 12-14% | Axis Mutual Fund |
| Mirae Asset Tax Saver Fund | 14-16% | Mirae Asset |
| Canara Robeco Equity Tax Saver | 13-15% | Canara Robeco |
Disclaimer: The investment tips and opinions given here are the personal opinions of experts. These are not the opinions of Riskydollar or its team. Riskydollar advises all readers to consult a certified financial advisor before making any investment.
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