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Investing in mutual funds remains one of the most popular and effective ways to grow wealth in India. In 2025, several mutual funds have delivered impressive returns, crossing the 20% mark in just one year, while maintaining manageable risk levels. For investors looking to capitalize on high growth without taking excessive risks, these funds represent attractive options. In this post, we’ll discuss the top 5 mutual funds that have outperformed recently, explore their categories, returns, and risk profiles, and help you make informed decisions for your investment portfolio.
| Mutual Fund Name | Category | 1-Year Return (%) | Risk Level | Key Highlights |
|---|---|---|---|---|
| Motilal Oswal Midcap Fund | Equity (Midcap) | 40.00 | Very High | Consistent strong growth potential |
| ICICI Prudential Infrastructure | Equity (Infrastructure) | 41.69 | Very High | Focused on infrastructure sector |
| Nippon India Small Cap Fund | Equity (Small Cap) | 36.73 | Very High | Aggressive small-cap exposure |
| Bandhan Small Cap Fund | Equity (Small Cap) | 40.19 | Very High | High returns, suitable for high-risk appetite investors |
| HDFC Focused 30 Fund | Equity (Focused) | 34.37 | High | Concentrated 30-stock portfolio |
Highlights of the Top Performing Funds
- Motilal Oswal Midcap Fund: Known for its consistent ability to spot midcap companies with strong growth potential, this fund delivered a 40% return over the past year. It is suitable for investors willing to accept higher volatility for better returns.
- ICICI Prudential Infrastructure: This fund focuses on the infrastructure sector, which has been a key driver of India’s economic growth. Returning over 41%, it is a good pick for those looking for exposure to this dynamic market segment.
- Nippon India Small Cap Fund: Offers aggressive growth through small-cap stocks that tend to be more volatile but can yield high profits. Investors must be prepared for fluctuations.
- Bandhan Small Cap Fund: Another strong performer in the small-cap space, this fund suits investors with a high-risk appetite seeking significant capital appreciation.
- HDFC Focused 30 Fund: Concentrated on a small basket of 30 stocks, this fund balances between focused exposure and risk management, providing healthy returns with slightly lower risk compared to typical midcap or small-cap funds.
What to Consider Before Investing
While these funds have shown impressive returns, it is crucial to understand your personal risk tolerance and investment horizon. High returns are often associated with higher risk, and market volatility can affect fund performance. Diversify your investments to balance risk, and consider consulting with a financial advisor to align your portfolio with your financial goals.
Conclusion
Choosing the right mutual fund can dramatically influence your investment outcomes. The top 5 mutual funds discussed above have delivered strong one-year returns with varying risk levels. By evaluating their fund objectives, categories, and risk profiles, investors can select funds that best match their financial aspirations for 2025 and beyond.
Remember, past performance is not indicative of future results, so stay informed and review your investments periodically to achieve the best results.
About the Author
Beyond his commitment to technology journalism, Ankit is a joyful gymgoer who believes in maintaining a balanced lifestyle.
