Best Mutual Funds 2025: Here’s Top Picks For Next 10 Years

The stock market can be a daunting place, especially when thinking about long-term investments. But with the right strategy, it can be a powerful tool for growing your wealth. If you’re looking to invest in the next 10 years, choosing the best mutual funds is crucial.

In this article, we’ll explore four of the best mutual funds that could potentially make you rich over the next decade. We’ll take a close look at their investment objectives, track records, and fees, so you can make an informed decision about which ones are right for you.

Before Starts About Best Mutual Funds, Let’s Understand What is Mutual Funds?

Also Read: ICICI Prudential Mutual Fund Review: A Comprehensive Guide For Investors

What is Mutual Fund?

A mutual fund is a pooled collection of assets that invests in various stocks, bonds, and other investment instruments. Investors acquire a share of the fund, entitling them to proportionate returns. Some investors opt for mutual funds in their portfolios, foregoing individual stock research.

Mutual funds can be actively or passively managed. Fund managers, in active management, strive to outperform the market by strategically buying and selling securities for optimal returns. Alternatively, index funds replicate specific market indices, like the S&P 500.

While mutual funds offer benefits, they also pose risks. Actively managed funds may yield higher returns but carry elevated risk and slightly higher costs due to the fund manager’s expertise.

Also Read: Top 10 Best Mutual Fund Investment Apps in India

How to find the best mutual funds?

The methodology behind selecting the best mutual funds with promising potential is rooted in my past experience managing investment portfolios, where I utilized a combination of mutual funds.

These selected funds, which I have previously held, have demonstrated resilience across various market cycles and consistently delivered success. Each fund possesses distinctive features that set it apart from conventional options.

List Of Best Mutual Fund

Choosing the right mutual funds is crucial for successful investing. I’ve compiled a list of top-performing funds across various categories to help you make informed decisions based on your financial goals and risk appetite.

Large Cap Equity Funds:

1. Nippon India Large Cap Fund: 34.57% (1-Year), 25.34% (3-Year)
2. Edelweiss Large Cap Fund: 28.39% (1-Year), 18.69% (3-Year)
3. HDFC Top 100 Fund: 28.04% (1-Year), 21.24% (3-Year)

Large and Mid Cap Equity Funds:

1. Nippon India Large Cap Fund: 34.57% (1-Year), 25.34% (3-Year)
2. Edelweiss Large Cap Fund: 28.39% (1-Year), 18.69% (3-Year)
3. HDFC Top 100 Fund: 28.04% (1-Year), 21.24% (3-Year)

Multi Cap Equity Funds:

1. Nippon India Multi Cap Fund: 39.4% (1-Year), 31.37% (3-Year)
2. Quant Active Fund: 23.54% (1-Year), 24.39% (3-Year)
3. Baroda BNP Paribas Multi Cap Fund: 22.07% (1-Year), 28.12% (3-Year)

Mid Cap Equity Funds:

1. HDFC Mid-Cap Opportunities Fund: 44.13% (1-Year), 29.95% (3-Year)
2. Mahindra Manulife Mid Cap Fund: 37.26% (1-Year), 25.5% (3-Year)
3. Nippon India Growth Fund: 36.16% (1-Year), 26.39% (3-Year)

Small Cap Equity Funds:

1. HDFC Small Cap Fund: 51.5% (1-Year), 34.82% (3-Year)
2. Nippon India Small Cap Fund: 7.28% (1-Year), 36.5% (3-Year)
3. Quant Small Cap Fund: 45.69% (1-Year), 37.6% (3-Year)

ELSS Equity Funds:

1. SBI Long Term Equity Fund: 37.18% (1-Year), 23.64% (3-Year)
2. JM Tax Gain Fund: 32.19% (1-Year), 20.51% (3-Year)
3. Motilal Oswal Long Term Equity Fund: 31.87% (1-Year), 20.7% (3-Year)

Debt – Liquid Funds:

1. Aditya Birla Sun Life Liquid Fund: 7.08% (1-Year), 5.39% (3-Year)
2. PGIM India Liquid Fund: 7.02% (1-Year), 5.35% (3-Year)
3. Union Liquid Fund: 7.02% (1-Year), 5.36% (3-Year)

Debt Dynamic Bonds:

1. DSP Strategic Bond Fund: 9.96% (1-Year), 5.75% (3-Year)
2. SBI Dynamic Bond Fund: 9.3% (1-Year), 6.31% (3-Year)
3. Baroda BNP Paribas Dynamic Bond Fund: 9.01% (1-Year), 6.1% (3-Year)

Debt – Gilt Funds:

1. ICICI Prudential Gilt Fund: 9.47% (1-Year), 6.57% (3-Year)
2. Tata Gilt Securities Fund: 9.47% (1-Year), 5.84% (3-Year)
3. SBI Magnum Gilt Fund: 9.28% (1-Year), 6.4% (3-Year)

Hybrid Aggressive Funds:

1. JM Equity Hybrid Fund: 30.91% (1-Year), 19.7% (3-Year)
2. Edelweiss Aggressive Hybrid Fund: 26.93% (1-Year), 19.91% (3-Year)
3. DSP Equity & Bond Fund: 26.01% (1-Year), 14.98% (3-Year)

Hybrid Balanced Funds:

1. HDFC Retirement Savings Fund – Hybrid Equity Plan: 29.61% (1-Year), 19.41% (3-Year)
2. DSP Equity & Bond Fund: 26.01% (1-Year), 14.98% (3-Year)
3. UTI Hybrid Equity Fund: 25.35% (1-Year), 18.64% (3-Year)

Hybrid Conservative Funds:

1. HDFC Hybrid Debt Fund: 14.8% (1-Year), 11.25% (3-Year)
2. Kotak Debt Hybrid Fund: 14.26% (1-Year), 11.19% (3-Year)
3. SBI Conservative Hybrid Fund: 13.89% (1-Year), 11.06% (3-Year)

Equity Savings Hybrid Mutual Funds:

1. Sundaram Equity Savings Fund: 18.24% (1-Year), 12.15% (3-Year)
2. SBI Equity Savings Fund: 17.45% (1-Year), 11% (3-Year)
3. HSBC Equity Savings Fund: 16.36% (1-Year), 11.57% (3-Year)

Remember, the best mutual fund for you depends on your financial goals and risk tolerance. It’s always wise to consult with a financial advisor before making any investment decisions.

Which mutual fund is best for next 5 years?

• Equity Funds: If you have a high risk tolerance and long-term investment horizon (>5 years), consider small-cap or mid-cap equity funds, as they have the potential for high growth but also come with higher risk. Some top performers in this category include HDFC Small Cap Fund, Nippon India Small Cap Fund, and Axis Mid-Cap Fund.
• Balanced Funds: If you prefer a moderate approach, consider balanced or hybrid funds that invest in both equity and debt, offering a blend of potential returns and stability. Top picks include DSP Equity & Bond Fund, JM Equity Hybrid Fund, and Motilal Oswal Hybrid 55 Fund.
• Debt Funds: If you prioritize stability and capital preservation, consider debt funds like liquid funds or short-term bond funds. These offer lower returns but lower risk as well. Aditya Birla Sun Life Liquid Fund and ICICI Prudential Gilt Fund are good options.

Which SIP is best for next 10 years?

• Multi-Cap Funds: These offer diversified exposure across market capitalizations, making them suitable for long-term goals. Top performers include Parag Parikh Flexi-Cap Fund, HDFC Equity Opportunities Fund, and Axis Long Term Equity Fund.
• Large & Mid-Cap Funds: These offer a balance between stability and growth potential, focusing on established companies alongside promising mid-caps. Nippon India Large Cap Fund, Edelweiss Large Cap Fund, and HDFC Top 100 Fund are top picks.