Choosing the best mutual fund schemes 2025 can help you build wealth systematically through SIP options starting from ₹500 per month..
Investing in mutual funds is one of the smartest ways to grow your wealth in 2025. With SIP options starting from just ₹500, anyone can begin their financial journey. Here, we share some of the best mutual fund schemes you can consider.
Top 6 Best Mutual Fund Schemes in India 2025
1. ICICI Pru Blue Chip Fund (Large Cap)
Fund Overview
- Fund Name: ICICI Prudential Large Cap Fund – Growth (previously Bluechip Fund)
- Category: Large-Cap Equity
- Launch Date: 5 May 2008
- Fund House: ICICI Prudential Mutual Fund — India’s second-largest AMC
- Fund Manager: Anish Tawakley
- AUM: ₹71,787 Cr
Fund Performance (as of mid-2025)
| Period | Fund Return % |
| 3 Years(CAGR) | 19.04% |
| 5 Years(CAGR) | 20.58% |
| 10 Years(CAGR) | 14.34% |
| Since Inception (CAGR) | 14.84% |
Risk Metrics & Ratios
- Sharpe Ratio: 1.08 — indicates strong risk-adjusted returns (higher than benchmark)
- Alpha: 4.48 — shows the fund has outperformed its benchmark by ~4.5% more
- Beta: 0.89 — indicates lower volatility than the benchmark (more stable)
- Standard Deviation: 11.76 — lower than many peers, signaling consistency
2. Bandhan Core Equity Fund (Mix of Large & Midcap)
Fund Overview
- Name: Bandhan Core Equity Fund – Growth
- Category: Large & Mid Cap Equity
- Launch Date: 01 January 2013 → 12 years, 7 months of history.
- AUM: ₹9,997 Crores (as on mid-2025).
- Fund Manager : Manish Gunwani
Fund Performance
| Period | Return % |
| 3 Years (CAGR) | +23.34% |
| 5 Years (CAGR) | +24.22% |
| 10 Years (CAGR) | +15.87% |
| Since Inception | +13.72% |
Risk Metrics & Ratios
- Sharpe Ratio: 1.25 — (indicating strong risk-adjusted performance)
- Alpha: 2.57% — shows the fund has outperformed its benchmark by ~2.6% more
- Beta: 0.99 — closely mirrors market moves
- Standard Deviation: 13.41% — signaling moderate volatility
3. HDFC Flexicap Fund
Fund Overview
- Name: HDFC Flexi Cap Fund – Growth Plan
- Category: Dynamic Flexi-Cap (Equity across Large, Mid & Small caps)
- Launch Date: 1 January 1995
- AUM: approx. ₹80,000 cr as of mid-2025
- Expense Ratio: ~1.38% (Regular Plan)
- Fund Managers: Roshi Jain
Fund Performance
| Period | Return % |
| 3 Years (CAGR) | +22.1% |
| 5 Years (CAGR) | +27.95% |
| 10 Years (CAGR) | +14.77% |
| Since Inception | +18.78% |
Risk & Efficiency Metrics
- Sharpe Ratio: ~1.23 (strong risk-adjusted returns)
- Alpha: ~7.71 % (outperformed benchmark)
- Beta: ~0.88 (lower volatility)
- Standard Deviation: ~12.12 (well-controlled fluctuations)
4. Motilal Oswal Midcap Fund
Fund Overview
- Category: Mid-Cap Equity
- Launch Date: 2 February 2014
- Expense Ratio: ~1.56%
- AUM: ₹33,608 Crore (as of July 2025)
- Benchmark: NIFTY Midcap 150 TRI
- Fund Managers: Niket Shah, Rakesh Shetty, Sunil Sawant and Ajay Khandelwal
Fund Performance
| Period | Return % |
| 3 Years (CAGR) | +28.0% |
| 5 Years (CAGR) | +32.27% |
| 10 Years (CAGR) | +17.52% |
| Since Inception | +22.39% |
Risk & Efficiency Metrics
- Standard Deviation: 13.31%
- Sharpe Ratio: 1.26 A Sharpe Ratio above 1 indicates strong risk-adjusted returns.
- Alpha: 5.96% An Alpha of nearly 6% shows the fund outperformed its benchmark significantly.
- Beta: 0.88 A Beta below 1 suggests lower volatility relative to the benchmark.
5. Bank of India Small Cap Fund
Fund Overview
- Launch Date: December 19, 2018
- Category: Small-Cap Equity (Very High Risk)
- Benchmark: NIFTY Smallcap 250 Total Return Index (TRI)
- Expense Ratio: 2.03%
- AUM: ~₹1,937 Crore (as of mid-2025)
- Fund Managers: Alok Singh and Nav Bhardwaj
Fund Performance
| Period | Return % |
| 3 Years (CAGR) | +21.15% |
| 5 Years (CAGR) | +29.44% |
| Since Inception | +27.28% |
Risk & Efficiency Ratios
- Sharpe Ratio: –0.39 (indicates risk-adjusted performance below benchmark)
- Alpha: 9.61 (indicates outperformance over expected return)
- Standard Deviation: 22.58 (shows high volatility)
6. SBI Long Term Equity (ELSS Fund for Tax Saving)
Fund Overview
- Scheme name: SBI Long Term Equity Fund
- Category: Equity — ELSS (Tax-saving with 3-year statutory lock-in).
- Inception / Launch: 7 May 2007
- AUM: ₹30,000+ crore .
- Fund manager: Dinesh Balachandran
Performance snapshot
| Period | Return % |
| 3 Years (CAGR) | +24.4% |
| 5 Years (CAGR) | +24.7% |
| Since Inception | +16.9% |
Key risk & efficiency ratios
- Sharpe Ratio: ~1.3 — indicating good risk-adjusted returns vs category average
- Standard Deviation: ~13.3%–13.4% moderate volatility vs peers
- Beta: ~0.95–1.0 (close to market behaviour).
Why Choose These Schemes?
- Good past performance
- Diversified portfolio
- SIP available from ₹500
- Tax saving (ELSS) benefit up to ₹1.5 lakh under Section 80C
Start small, stay consistent, and let compounding grow your money. Mutual funds are designed for long-term wealth creation, and 2025 is the right time to begin.
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🚀 Start Your SIP NowDisclaimer: Mutual Fund investments are subject to market risks. Please read all scheme-related documents carefully before investing.
Which type of investors should choose Large Cap, Midcap, Flexicap, and Small Cap funds?
Large Cap (ICICI Pru Bluechip Fund): For conservative investors seeking stability.
Large & Midcap (Bandhan Core Equity Fund): For balanced investors who want growth + stability.
Flexicap (HDFC Flexicap Fund): For investors who want diversification without worrying about market cap.
Midcap (Motilal Oswal Midcap Fund): For investors with high risk appetite and long-term vision.
Small Cap (Bank of India Small Cap Fund): For aggressive investors aiming for high growth with high risk.
ELSS/Tax Saving (SBI Long Term Equity Fund): For investors who want tax benefits + wealth creation.
Which of these funds are suitable for tax saving?
SBI Long Term Equity Fund (ELSS) qualifies for tax deduction under Section 80C (up to ₹1.5 lakh).
How risky are these funds?
Low to Moderate Risk: Large Cap, Flexicap
Moderate to High Risk: Large & Midcap, Midcap
High Risk: Small Cap
Moderate Risk + Tax Saving: ELSS
Which fund is best for long-term wealth creation?
Stable wealth: ICICI Pru Bluechip (Large Cap), HDFC Flexicap
Balanced growth: Bandhan Core Equity Fund
Aggressive growth: Motilal Oswal Midcap, BOI Small Cap
Tax-saving + growth: SBI Long Term Equity Fund
