Yearender: Mutual funds that delivered high returns in 2025
The year 2025 has been one of steady advancement of the mutual fund market. SIP or Systematic Investment Plan inflows kept rising and new records were created in the latter half of the calendar year. Here we take at some of the best performing mutual fund schemes.
Kolkata: The year 2025 is going to be remembered as one when investor interest in mutual funds reached a new high. According to data collated by AMFI (Association of Mutual Funds In India) the record for monthly SIP (Systematic Investment Plan) inflow was set up this year -- in September 2025, the amount was Rs 29,361 crore and in the very next month the record broken to set up a new peak of Rs 29,529 crore. Needless to say, it signaled consistent buoyancy and investor participation in disciplined investing.
By the way, the September SIP inflow amount of Rs 29,361 crore was itself a 4% increase over the inflow in August 2025. This is extremely important since it signals consistent and rising retail participation in the mutual fund market. It also signals how a growing number of Indian households are channelising their savings into the mutual fund market in search of inflation-beating returns. Therefore, long-term wealth creation, which is the core of the mutual fund industry, is coming into sharper focus. What must not be missed in the flurry of numbers is that a Rs 30,000 crore SIP inflow a month means more than Rs 1,300 crore flow every trading day of a month since there are 22 trading days in an average month.
Record AUM
The Indian mutual fund industry's total AUM (Assets Under Management) has also reached record highs this year with the figure nearing close to Rs 80 lakh crore. Compare that against the AUM of Rs 24.55 lakh crore in May 2020. But then the question that is always on the lips of most investors which fund is generating the highest returns. Standing in the last month of the year, it is interesting to try to find out the best performing funds. According to a report, the following mutual fund schemes came out on top of the stack of the best performing mutual fund schemes.
SBI PSU Fund
Return: 26.25%
Min investment: Rs 3,000
AUM: Rs 5714 cr
Invesco India PSU Equity Fund
Return: 25.03%
Min investment: Rs 3,000
AUM: Rs 1,445 cr
ICICI Prudential Infrastructure Fund
Return: 24.84%
Min investment: Rs 2,000
AUM: Rs 8,232 cr
Motilal Oswal Midcap Fund
Return: 24.80%
Min investment: Rs 500
AUM: Rs 38,003 cr
Franklin Build India Fund
Return: 22.95%
Min investment: Rs 3,000
AUM: Rs 3,088 cr
Nippon India Power & Infra Fund
Return: 22.31%
Min investment: Rs 3,000
AUM: Rs 7,530 cr
DSP India TIGER Fund
Return: 21.87%
Min investment: Rs 3,000
AUM: Rs 5,506 cr
Canara Robeco Infrastructure Fund
Return: 21.70%
Min investment: Rs 3,000
AUM: Rs 936 cr
HDFC Flexi Cap Fund
Return: 21.44%
Min investment: Rs 500
AUM: Rs 91,041 cr
HSBC Value Fund
Return: 20.06%
Min investment: Rs 3,000
AUM: Rs 14,342 cr
Bandhan Infrastructure Fund
Return: 19.88%
Min investment: Rs 3,000
AUM: Rs 1,625 cr
Quant Small Cap Fund
Return: 19.79%
Min investment: Rs 3,000
AUM: Rs 30.504 cr
Dominant NFOs in 2025
Like the primary equity market, there are a lot of NFOs or new fund offers in the mutual fund market. Many people like to invest in NFOs since it provides an opportunity to invest in the face value of an unit of a mutual fund scheme. After trading begins, the NAV or net asset value of a schemed can rise and investors have to buy it at a higher price. According to reports, this year the highest number of NFOs were mainly in the equity category, specifically in thematic, sectoral and small-cap funds. The numbers were high in commodity-focused ETFs/FoFs of gold and silver. However equity NFOs were lower than those in 2024. The reason in understandable since the bull run ended in late 2024 and the equity markets became wobbly in 2025.
The key categories this year are: Sectoral/thematic funds, small-cap and mid-cap funds and commodity ETFs and Fund of Funds. A large number of NFOs were focused on specific sectors like innovation, rural opportunities, energy, and financial services. In the small-cap and mid-cap funds schemes were launched to take advantage of the growth potential of small-cap and mid-cap companies. Gold and silver are having a bull run in 2025 and FoFs focussed o these commodities were high in number. There are also many multi-asset allocation funds. Investors wanted to put their money in an instrument that would allow them higher returns as well as stable income due to high commodity prices and uncertain gains from equities.
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