Category: Mutual Funds

Best Nifty50 Index Funds in India

Investing in the stock market can be a rewarding and long-term wealth-building strategy. But for a beginner, it is difficult to identify which stock to invest in and to regularly monitor the portfolio. For such an investor, investment in a single fund known as the “Nifty50 Index Fund” can be a better choice.

In today’s blog post, we will make you understand the concept of Nifty50 Index Funds, along with the list of the best Nifty50 index funds in India 2025.

Meaning of Nifty50 Index Fund

A Nifty50 Index Fund is a type of mutual fund that mainly buys stocks of the 50 biggest companies on the Indian Stock Exchange based on market capitalisation. They are passively managed funds, and their portfolios are made up of the same companies as the Nifty50 Index. They do not wish to do better than the index; they simply want to replicate its performance.

Best Nifty50 Index Fund

Scheme Name	AUM (Crore)	Expense Ratio (%)	6 Months	1 Year	3 Years
UTI Nifty50 Index Fund Reg Gr	24335.81	0.17	14.14	2.32	14.22
HDFC Nifty50 Index Fund Gr	20929.71	0.20	14.12	2.28	14.19
Navi Nifty50 Index Fund Reg Gr	3436.14	0.06	14.19	2.39	14.27
Nippon India Index Fund Nifty50 Plan Growth Plan Growth Option	2606.59	0.07	14.18	2.40	14.23
Bandhan Nifty50 Index Fund Reg Gr	1952.97	0.10	14.18	2.39	14.25
Tata Nifty50 Index Fund Reg	1296.46	0.20	14.12	2.21	14.11
ABSL Nifty50 Index Gr Reg	1121.21	0.20	14.12	2.30	14.17
Kotak Nifty50 Index Fund Reg Gr	919.74	0.07	14.18	2.19	14.08
DSP Nifty50 Index Reg Gr	824.56	0.18	14.15	2.33	14.22
Motilal Oswal Nifty50 Index Reg Gr	738.34	0.51	14.15	2.34	14.26
Franklin India Index Fund NSE Nifty50 Index Fund Gr	737.22	0.25	14.06	2.32	14.13
Axis Nifty50 Index Fund Reg Gr	735.01	0.10	14.15	2.38	14.27
HSBC Nifty50 INDEX FUND Reg Gr	344.48	0.18	14.15	2.28	14.18
Edelweiss Nifty50 Index Reg Gr	186.71	0.05	14.18	2.37	14.12
Baroda BNP Paribas Nifty50 Index Reg Gr	61.3	0.55	14.03	2.18	–
ANGEL ONE Nifty50 INDEX FUND REG GR	36.03	0.2	–	–	–
Mirae Asset Nifty50 Index Fund Reg Gr	31.92	0.14	14.09	–	–
Kotak Nifty50 Equal Weight Index Fund Reg Gr	19.90	0.22	16.65	–	–
Bajaj Finserv Nifty50 Index Fund Reg Gr	8.21	0.9	–	–	–

(As of 08th October 2025)

While most Nifty50 index funds deliver very similar returns, the real difference lies in their expense ratios and fund sizes—so it’s wise to pick one that balances low costs with strong credibility.

How does the Nifty50 Index Fund Work?

The Nifty50 Index Fund works on the principle of replication. As it is a passively managed fund, the fund manager does not actively choose the stock; instead, it decides to invest the fund accumulated from the investor into the exact stocks of the Nifty50 Index in the same weightage.

Benefits of Investing in the Nifty50 Index Fund

The key benefit of investing in the Nifty50 Index Fund is as follows:

Diversification: An investor can easily diversify their portfolio by investing in only one fund.
Economical: As index funds are passively managed funds, their expense ratio is comparatively much lower than any other actively managed fund.
Low Risk: The portfolio of the Nifty50 Index Fund consists of the top 50 companies listed on the stock exchange; therefore, they are less volatile as the investments are made in fundamentally strong companies.
Rebalancing: As the Nifty50 index is balanced periodically, this saves the time and effort of monitoring the portfolio.

Risk of Investing in the Nifty50 Index Fund

The major risks involved while investing in Nifty50 Index Funds are as follows:

Market Risk: As the capital of investors is invested in the top 50 companies, the underperformance of the stock market can significantly impact the overall return of Nifty50 Index Funds.
Tracking Error: The Nifty50 Index Fund’s returns may not be the same as the Nifty50 Index’s returns because of tracking error. This can happen because of the fund manager’s cash reserves, the expense ratio, and delays in reinvesting dividends.
Limited Return: These funds post returns similar to the Nifty50 Index, as they are passively managed and do not claim to outperform the index. Therefore, it is suitable only for conservative investors.

Factors to Consider Before Investing in the Nifty50 Index Fund

The key factors which one must consider before investing in the Nifty50 Index Fund:

Investment Horizon: The typical investment horizon for the Nifty50 Index Fund is more than five years. Hence, one should consider its investment horizon as a key parameter before investing in the Nifty50 Index Fund.
Expense Ratio: The expense ratio is a key factor which can impact the returns of the Nifty50 Index Fund. Hence, one should opt for the fund which has the lowest expense ratio.
Risk Appetite: As the Nifty50 Index fund invests in the shares of the top 50 companies. And they are volatile, hence they can show volatility in your portfolio. Therefore, if you can handle the fluctuation in your portfolio, then only consider investing in it.

Who Should Invest in the Nifty50 Index Fund

Investment in the Nifty50 Index Fund is suitable for the following investors:

Minimum Cost: Investment in the Nifty50 Index Fund is suitable for investors who want to pay a minimum cost for their investment. As the Nifty50 Index Fund is passively managed, and has a minimum cost.
Risk Averse: The Nifty50 Index Fund is a good choice for an investor who wants to make more money by investing in stocks but also wants a safer option.
Long-term investor: Investors who generally have an investment horizon of more than five years can invest in the Nifty50 Index Fund.

Difference Between Nifty50 and Nifty50 TRI

The key differences between Nifty50 and Nifty50 TRI are as follows:

Particular	Nifty50	Nifty50 TRI
Meaning	It only includes the prices of the top 50 companies listed on Nifty.	Along with the prices, it also includes dividends distributed by those 50 companies.
Accuracy	As compared to the Nifty50 TRI Index, it is less accurate, as it does not include dividends.	It has high accuracy as it includes dividends.
Benchmark	It is rarely used as a benchmark by funds.	Nifty50 TRI is commonly used as a benchmark by almost all funds.
Dividends	It ignores the dividends distributed by companies.	It includes all the dividends distributed by the companies.

Conclusion

On a concluding note, A Nifty50 Index Fund is one of the easiest ways to start investing to allocate your money across India’s top 50 companies. A lot of investors like it because it’s low-cost, well-diversified, and not as volatile as funds that are actively managed. This means you should still pay attention to elements like the expense ratio and tracking error before you invest. Therefore, we suggest that you consult your investment advisor before making any investment decision in the Nifty50 Index Fund.

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Frequently Asked Questions (FAQs)

What is a Nifty50 Index Fund?
A Nifty50 Index Fund is a type of mutual fund that follows the Nifty50. It puts money into the 50 biggest companies on the index (by market cap).
What makes Nifty50 different from Nifty50 TRI?
Nifty50 only shows changes in stock prices, but Nifty50 TRI (Total Return Index) also takes into account dividends paid by those companies.
What does the acronym TRI mean?
TRI stands for the Total Return Index (TRI). It includes both price changes and dividends.
What is Tracking Error in a fund?
The difference between an index fund’s return and the benchmark index is called the tracking error. It usually happens because of costs, cash flow, and other things.
Do Nifty50 Index Funds actively manage their investments or not?
These are passive funds. The fund manager doesn’t choose stocks; they just follow the index in the same way.

December 7, 2025

Best Index Funds in India 2025

If you want to start investing wisely in 2025, index funds can be an excellent option for you, especially if you are searching for the best index funds in India that offer stable and low-cost diversification. The demand for the top index funds in India is constantly growing today because these funds offer exposure to the entire market at a low cost and have the potential to deliver stable returns in the long term. Recently, SEBI has further tightened transparency related to tracking error and tracking difference, making it easier for investors to choose the right fund. In this blog, we will explore which top index funds in India are best in 2025 and how to choose them wisely.

What Are Index Funds and How Do They Work?

An index fund is a type of mutual fund that replicates the performance of a market index, such as the Nifty 50 or Sensex. This means the fund invests in the same companies included in that index and in the same proportions. Its goal is not to outperform the market, but to track its performance.

How Index Funds Work?

Investing in this fund means your money is invested in all the companies included in that index. The fund manager doesn’t select individual stocks; they simply update the portfolio when the index changes. This is why these funds have lower costs and their returns closely track the index.

10 Best Index Funds in India 2025

Below is a curated list of the best index funds in India that have shown strong consistency and long-term potential :

S.No	Fund Name	Current NAV	AMU(Cr.)	3Y Return Annualised (%)	Expense Ratio (%)
1	Motilal Oswal Nifty Midcap 150 Index Fund	₹38.10	₹2631	22.50%	0.26%
2	Nippon India Nifty Smallcap 250 Index Fund	₹33.13	₹2563	21.68%	0.35%
3	Nippon India Nifty Midcap 150 Index Fund	₹25.78	₹2030	23.47%	0.30%
4	DSP NIFTY Next 50 Index Fund	₹26.98	₹1135	17.96%	0.28%
5	Motilal Oswal Nifty Smallcap 250 Index Fund	₹38.17	₹1042	22.08%	0.33%
6	Kotak Nifty Next 50 Index Fund	₹20.37	₹809	17.74%	0.10%
7	Nippon India Nifty Next 50 Junior BeES FoF	₹26.26	₹631	17.78%	0.12%
8	ICICI Prudential Nifty Smallcap 250 Index Fund	₹17.34	₹571	21.92%	0.30%
9	Aditya Birla Sun Life Nifty Midcap 150 Index Fund	₹25.20	₹405	22.55%	0.44%
10	Aditya Birla Sun Life Nifty Smallcap 50 Index Fund	₹21.03	₹248	26.03%	0.46%

(as on 31st October, 2025)

1. Motilal Oswal Nifty Midcap 150 Index Fund

The Motilal Oswal Nifty Midcap 150 Index Fund is a good option for those looking to invest in mid-cap companies. This fund tracks the Nifty Midcap 150 Index, which comprises 150 strong and emerging companies in India. The fund’s portfolio is quite diversified and includes well-known companies such as BSE Ltd., Hero MotoCorp, Dixon Technologies, Suzlon Energy, PB Fintech, HDFC AMC, Coforge, Cummins India, Persistent Systems, and Fortis Healthcare. Motilal Oswal AMC was established on November 14, 2008, and today manages total assets of approximately ₹92.51 lakh crore. This fund is suitable for investors seeking stable and balanced returns over the long term without taking on excessive risk.

Fund Performance

Parameters	Value
Alpha	0.07%
Beta	1.00
Sharpe Ratio	1.03
P/E	32.22

(as on 31st October, 2025)

2. Nippon India Nifty Smallcap 250 Index Fund

The Nippon India Nifty Smallcap 250 Index Fund is a good option for investors looking to invest in small-cap companies. This fund tracks the Nifty Smallcap 250 Index, which comprises 250 emerging Indian companies that have the potential for rapid growth in the future. Its portfolio includes companies like Multi Commodity Exchange, Laurus Labs, CDSL, Delhivery, Radico Khaitan, and Kaynes Technology, all of which hold strong positions in their respective sectors. This fund is managed by Himanshu Mange and is operated by Nippon India Mutual Fund. This AMC has been operating since February 24, 1995, and manages assets worth approximately ₹573.67 lakh crore. This fund is suitable for investors who are seeking growth in small-cap stocks and are willing to take on a moderate level of risk.

Fund Performance

Parameters	Value
Alpha	-0.13%
Beta	1.02
Sharpe Ratio	0.83
P/E	34.23

(as on 30th September, 2025)

3. Nippon India Nifty Midcap 150 Index Fund

The Nippon India Nifty Midcap 150 Index Fund is designed for investors who want to participate in the growth of the mid-cap segment. This fund tracks the Nifty Midcap 150 Index and invests in 150 emerging Indian companies that have the potential to become large-cap companies in the future. Its portfolio includes companies such as BSE Ltd., Hero MotoCorp, Dixon Technologies, Suzlon Energy, PB Fintech, HDFC AMC, Coforge, Cummins India, Persistent Systems, and Fortis Healthcare. The fund is managed by Himanshu Mange and is offered by Nippon India Mutual Fund. This AMC has been active since February 24, 1995, and currently manages assets worth approximately ₹573.67 lakh crore. The fund is known for its low costs and stable returns.

Fund Performance

Parameters	Value
Alpha	-0.14%
Beta	0.99
Sharpe Ratio	1.01
P/E	32.17

(as on 30th September, 2025)

4. DSP Nifty Next 50 Index Fund

The DSP Nifty Next 50 Index Fund is an excellent fund for those who want to invest in the next line of companies after the large-cap companies. This fund tracks the Nifty Next 50 Index, which includes several strong and growing companies. Its portfolio includes companies like Hindustan Aeronautics, TVS Motor, Vedanta, Divi’s Labs, Britannia, Tata Power, Avenue Supermarts, and Indian Hotels, all of which are performing well in their respective sectors.

This fund is managed by Anil Ghelani and is operated by DSP Mutual Fund. The company has been operating since May 13, 1996, and manages assets worth approximately ₹192.79 lakh crore. This fund is a good option for those who are willing to take a moderate risk for stable returns.

Fund Performance

Parameters	Value
Alpha	0.88%
Beta	1.32
Sharpe Ratio	0.69
P/E	21.60

(as on 30th September, 2025)

5. Motilal Oswal Nifty Smallcap 250 Index Fund

The Motilal Oswal Nifty Smallcap 250 Index Fund is a straightforward and intelligent way to invest in small-cap companies. This fund tracks the Nifty Smallcap 250 Index, which includes companies with strong growth potential. Its portfolio includes companies like Multi Commodity Exchange, Laurus Labs, CDSL, Delhivery, and Radico Khaitan, which have consistently performed well in their respective sectors. The fund is managed by Swapnil P. Mayekar and is operated by Motilal Oswal AMC, which has been in operation since November 14, 2008. The company manages assets worth approximately ₹92.51 lakh crore. This fund is an excellent option for investors who want to benefit from the long-term growth potential of small-cap stocks.

Fund Performance

Parameters	Value
Alpha	0.21%
Beta	1.03
Sharpe Ratio	0.84
P/E	34.23

(as on 31st October, 2025)

6. Kotak Nifty Next 50 Index Fund

The Kotak Nifty Next 50 Index Fund is an excellent option for those who want to invest in companies that are next in line after the large-cap companies. This fund tracks the Nifty Next 50 Index, which comprises companies that have the potential to become part of the Nifty 50 in the future. The fund includes companies like Hindustan Aeronautics, TVS Motor, Vedanta, Divi’s Laboratories, Britannia, Tata Power, BPCL, and Indian Hotels, all of which have been consistently performing well. This fund is managed by Devender Singhal and is operated by Kotak Mutual Fund. The company has been operating since August 5, 1994, and manages assets worth approximately ₹492.72 lakh crore. This fund is a good option for investors who are looking for stable returns and are willing to take on a moderate level of risk.

Fund Performance

Parameters	Value
Alpha	0.88%
Beta	1.32
Sharpe Ratio	0.69
P/E	21.60

(as on 31st October, 2025)

7. Nippon India Nifty Next 50 Junior BeES FoF

Nippon India Nifty Next 50 Junior BeES FoF is an easy way for investors to gain exposure to the Nifty Next 50 Index without directly trading in the ETF. It is a Fund of Funds that invests almost entirely in the Nippon India ETF Nifty Next 50 Junior BeES. This provides investors with exposure to the next tier of growth companies within the large-cap segment. The majority of its assets are held in the ETF, with a small portion in TREPS (Tri-Party Repo) to maintain liquidity. The fund is managed by Himanshu Mange and operated by Nippon India Mutual Fund. This fund house has been operating since February 24, 1995, and manages assets worth ₹573.67 lakh crore. Its low expense ratio and simple structure make it an easy way to invest in the Next 50 index.

Fund Performance

Parameters	Value
Alpha	1.18%
Beta	1.30
Sharpe Ratio	0.70
P/E	21.79

(as on 30th September, 2025)

8. ICICI Prudential Nifty Smallcap 250 Index Fund

The ICICI Prudential Nifty Smallcap 250 Index Fund is designed for investors looking for long-term investment opportunities in small-cap stocks. This fund tracks the Nifty Smallcap 250 Index and invests in companies that are leaders in their respective sectors. Its portfolio includes companies such as Multi Commodity Exchange, Laurus Labs, CDSL, Delhivery, Radico Khaitan, and Kaynes Technology, which are steadily building a strong market position. The fund is managed by Nishit Patel and operated by ICICI Prudential AMC, which has been in operation since June 22, 1993. The company manages assets worth approximately ₹908.28 lakh crore. This fund is considered a stable and low-cost option in the small-cap segment.

Fund Performance

Parameters	Value
Alpha	-0.01%
Beta	1.02
Sharpe Ratio	0.83
P/E	34.23

(as on 30th September, 2025)

9. Aditya Birla Sun Life Nifty Midcap 150 Index Fund

The Aditya Birla Sun Life Nifty Midcap 150 Index Fund is a good investment option in mid-cap companies, suitable for investors seeking long-term growth. This fund tracks the Nifty Midcap 150 Index and invests in 150 strong and emerging companies in India. Its portfolio includes companies such as BSE Ltd., Hero MotoCorp, Dixon Technologies, Suzlon Energy, PB Fintech, HDFC AMC, Coforge, Cummins India, Persistent Systems, and Fortis Healthcare. The fund is managed by Priya Sridhar, while it is administered by Aditya Birla Sun Life AMC, which has been active since September 5, 1994, and manages assets worth ₹385 lakh crore

Fund Performance

Parameters	Value
Alpha	-0.04%
Beta	1.00
Sharpe Ratio	1.02
P/E	32.22

(as on 30th September, 2025)

10. Aditya Birla Sun Life Nifty Smallcap 50 Index Fund

The Aditya Birla Sun Life Nifty Smallcap 50 Index Fund is a good option for investors who want to invest in small but fast-growing companies. This fund tracks the Nifty Smallcap 50 Index and invests in 50 emerging Indian companies that have the potential for strong future growth. Its portfolio includes companies such as Multi Commodity Exchange, Laurus Labs, CDSL, Delhivery, Radico Khaitan, Kaynes Technology, Karur Vysya Bank, Crompton Greaves, Cholamandalam Financial Holdings, and CAMS. All of these companies are growing rapidly in their respective sectors and exhibit strong fundamentals. This fund is managed by Priya Sridhar and is operated by Aditya Birla Sun Life AMC, which was established on September 5, 1994. The company has assets under management of approximately ₹385 lakh crore. This fund is considered suitable for investors who are comfortable with the risks associated with growth investing in the small-cap segment.

Fund Performance

Parameters	Value
Alpha	3.17%
Beta	1.04
Sharpe Ratio	0.97
P/E	33.85

(as on 30th September, 2025)

How to Select the Best Index Fund in India

Choosing the best index fund becomes easier when you focus on a few proven factors :

Choosing the Index : First, decide which index you want to invest in Nifty 50, Nifty Next 50, or Nifty 500. If you are investing for the first time, the Nifty 50 is considered the best starting point as it covers large and stable companies.
Expense Ratio : The advantage of an index fund lies in its low cost. Always choose a fund with an expense ratio of 0.20% or less, so that it doesn’t significantly impact your returns in the long run.
Tracking Difference : Check how closely the fund’s return matches its index. If the difference is too large, the fund is not accurately tracking the index. Try to choose a fund that has consistently maintained a low tracking difference.
Fund Size (AUM) : Funds with a large AUM (Assets Under Management) are generally more reliable because they tend to have lower costs and better tracking. It’s wise to avoid very small funds.
Replication Method : Check whether the fund uses full replication or sampling. Funds that use full replication accurately track the entire index and usually deliver more precise results.

Common Mistakes to Avoid While Investing in Index Funds

Relying solely on past returns : Many investors select funds based solely on their past performance. However, with index funds, it’s crucial to consider the tracking difference and expenses (TER), as future returns depend on these factors.
Holding multiple funds tracking the same index : Sometimes, people buy different funds that track the same index. Doing so doesn’t provide any additional benefit; instead, it complicates the portfolio.
Ignoring tracking difference and AUM : If a fund has a small AUM or a high tracking difference, it can impact returns. Always check these two factors.
Frequently switching funds : The benefits of index funds are realized only when you maintain your investment for the long term. Frequently switching funds increases costs and reduces returns.

Conclusion

If you want to invest in the stock market without taking on too much risk, the best index funds in India offer a simple and dependable way to get started.. They allow you to invest in the entire market at once, and at a low cost. Just choose the right fund, be patient, and give your investment time to grow. In the long run, this small step can become a source of strong and reliable returns for you.
In the long run, selecting the best index funds and staying invested can build strong and reliable wealth.

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Frequently Asked Questions (FAQs)

What is an Index Fund?
An index fund is a type of fund that replicates a market index, such as the Nifty or Sensex.
Are Index Funds good for beginners?
Yes, absolutely. They are simple, low-cost, and easy to understand.
How much should I invest?
Start small; you can even begin with ₹100 or ₹500.
Which is better: Active or Index Fund?
If you prefer simplicity and lower costs, an index fund is better.
Can I start a SIP in an Index Fund?
Yes, invest a small amount every month, and it will gradually grow into a larger fund.

November 27, 2025

Difference Between Large Cap vs Mid Cap Mutual Fund

When it comes to investing in mutual funds, you will find multiple options at once. Each of these options offers you a different risk and return ratio. At the same time, the asset allocation for these funds differs as well. While some focus on equity or debt, there are a few funds that invest in both assets to offer a better balance.

But there are two types of funds that are usually considered more if you are looking for stable returns. These are the mid-cap and large-cap funds. Though both these invest in the equity, there are certain differences between them that you must know.

So, if you are new to investing and looking to know the details, then read this guide. Explore the mid-cap vs large-cap details and understand which of these is a better choice of investment for you.

What Is a Large-Cap Fund?

A large-cap fund is a type of equity mutual fund. It is the one that invests primarily in companies with a large market capitalization. These are the top 100 companies that are listed on the stock exchange. The main reason for the selection of these companies is their history and strong performance.

These companies have a proven record of performance, which makes them a better choice. But at the same time, these are the ones that have reached the top, hence at times you will find less potential for growth.

Key Features of Large Cap Funds

Stable Returns: The fund mainly focuses on the financially sound companies. This ensures that the investors get a steady long-term growth potential.
Lower Volatility: Most of the companies in the large-cap segment are not affected by market fluctuations. This makes them a safer choice when compared to mid and small-cap funds.
High Liquidity: Shares of large-cap companies are actively traded. This ensures that the trader can enter or exit the market easily at any time with no hassle.
Consistent Dividends: Many large-cap companies offer regular dividends. This is an additional income to the profits that the investors make.
Suitable for Long-Term Investors: These funds are better for those who invest for a long time. These funds offer stability and have comparatively low risk. Hence, if you invest with the aim of wealth creation, these are better.
SEBI Guideline: The large-cap funds must invest at least 80% of their assets in the top 100 companies by market capitalization.

What Is a Mid-Cap Fund?

A mid-cap fund is another type of equity mutual fund. This is the fund that invests in medium-sized companies. Now, if you see, these are the next best set of companies. As per market capitalization, they rank between 101 and 250 on the stock exchange.

These companies are still growing. They might be with the plans of expansion or with some innovative ideas. Hence, the potential is more. But at the same time, the risk is high as well. Any change in the market conditions can impact these companies greatly. This can lead to losses.

Key Features of Mid-Cap Funds

High Growth Potential: This is the fund that mainly invests in companies that are in their growing stage. This is why the fund can deliver higher returns over time.
Moderate to High Risk: Mid-cap stocks can fluctuate more. This can be due to market sentiment and business performance. This increases the overall risk associated with the investment.
Diversified Portfolio: Investing in these funds helps the investors benefit from exposure. This is mainly across emerging industries and sectors, which can be great.
Ideal for Long-Term Goals: These funds work best for investors with a longer investment horizon. The risk is high and so it is not good for conservative investors.
SEBI Mandate: Mid-cap funds are required to invest at least 65% of their assets in companies ranked from 101 to 250 by market capitalization.

Pros and Cons of Large Cap Funds

When investing in the large-cap funds, you focus on long-term growth and low risk. But there are other pros and cons to know. These are as follows:

Pros of Large Cap Funds

Companies with a proven record and performance are included.
Good for offering steady and reliable returns.
Considered to be the funds with low risk involved.
They are very liquid, which makes entry and exit simpler.
Better for conservative and long-term investors.

Cons of Large Cap Funds

Moderate returns as compared to other funds.
Growth potential is limited and low.
Performance may slow down during market rallies led by smaller stocks.

Pros and Cons of Mid-Cap Funds

Just like any other fund, investing in mid-cap funds also comes with certain risks and challenges. Knowing them can help you make the right investment call and ensure that you make good profits. So, here are the top ones to know.

Pros of Mid-Cap Funds

High growth potential based on future plans.
Allows for earning a higher rate of returns in a bullish market.
Provides for better diversification.
Chance to invest in innovative schemes and ideas.
Good option for investors seeking capital appreciation over time.

Cons for Mid Cap Funds

Quite volatile and risky in nature.
Recovery in case of a downturn is long.
Liquidity can be lower as mid-cap stocks are less frequently traded.

Large Cap vs Mid Cap Funds: Key Differences

Now that you know what the large-cap and mid-cap funds are, the next step is to find the difference. Knowing the difference will ensure that your investment calls are based on proper understanding and analysis.

So, here is the large-cap vs mid-cap difference that you should know.

Basis	Large Cap Funds	Mid Cap Funds
Market Capitalization	Invest in the top 100 companies with large market capitalization	Invest in companies ranked 101 to 250 by market capitalization
Risk Level	Lower risk due to stable and established businesses	Moderate to high risk as companies are still in the growth phase
Return Potential	Offer steady but moderate returns	Can deliver higher returns during favorable market conditions
Volatility	Less volatile and more stable during any downturns	More volatile and sensitive to market movements
Liquidity	High liquidity, as large-cap stocks are actively traded	Moderate liquidity since mid-cap stocks are less traded
Investment Horizon	Ideal for long-term investors seeking stability	Suitable for long term investors with a higher risk appetite
Suitable For	Conservative investors looking for steady growth	Aggressive investors aiming for higher capital appreciation

Which Is Better – Large Cap or Mid Cap Fund?

When it comes to selecting between the large-cap and mid-cap funds, there are various factors that you need to consider. Of these, the key ones include:

Profit potential
Patience of the investor
Risk taking capacity

So, if the investor prefers stability and low risk, then the large-cap is a better choice. The growth would be slow, but there will be stability. But if you prefer faster growth with moderate high risk, then you can go for the mid-cap funds as well. There will be fluctuations, and so it will require better monitoring as well.

In short:

Choose large-cap funds for safety and stability.
Choose mid-cap funds for growth and higher return potential.

Conclusion

Both large-cap and mid-cap funds are a great choice for investment. Where one offers you stability, the other gives you speedy growth. But when it comes to selecting anyone, it will be based on the choice of the investor themselves.

But if you are new to investing and are looking to develop a balanced portfolio, then ensure to include both. You must be wondering why? Well, combining both will offer you moderate risk and moderate returns. Where one will help you with wealth creation, the other will guide you to faster results.

But yes, as said before, it is important that you start right and with expert guidance. This is where you can opt for Pocketful. Open your account today. Get expert support as you need. Ensure you make the right investments through your journey.

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Frequently Asked Questions (FAQs)

What is a large-cap fund in simple terms?
A large-cap fund invests mainly in the top 100 companies with high market capitalization. It offers low risk and stable returns.
Which is safer, large cap or a mid-cap fund?
When you compare the two, the risk associated with large-caps is less. Hence, these are safer during all market conditions.
Can I invest in both large-cap and mid-cap funds?
Yes, combining both can balance risk and reward. You can benefit from the stability of large-cap funds and the growth of mid-cap funds at the same time.
Who should invest in mid-cap funds?
Mid-cap is good for growth-seeking investors. They are ready to take moderate risks. Also, they are the ones looking for high returns.
How long should I stay invested in large-cap funds?
If you are looking for a good return, then you must stay invested for 3-5 years minimum in large-cap funds.

November 15, 2025

Top 10 High-Return Mutual Funds in India

We all want our money to grow faster, don’t we? That is exactly why high-return mutual funds get so much attraction. They kind of give long-term growth that can move the needle for your financial goals, whether it is building wealth, saving for a house, or planning an early retirement.

Mutual funds, especially equity-based ones, have become one of the most popular ways for Indians to invest and grow their money over time. But here is the truth: not every fund performs equally well. Some manage to consistently outperform the market, while others fall short. In this blog, we will look at some of the best high-return mutual funds in India for 2025, understand what makes them move, and talk about how to pick the right ones for your goals.

What are High Return Mutual Funds?

High-return mutual funds are funds that have performed better than the market or have given higher-than-average returns over the years. But before getting an adrenaline rush from those big numbers, it is worth taking a closer look at what is really driving them. Most high-return mutual funds invest mainly in equities; in simple terms, they put your money into stocks of different companies. Stocks have the potential to grow much faster than traditional options like fixed deposits or bonds, especially if you stay invested for the long term. That is what makes them attractive for wealth creation.

But those higher returns do not come for free. Equity markets can be unpredictable, and prices move up and down all the time. So, while these funds can help your money grow faster, you also have to be comfortable with a bit of short-term volatility.

Let us have a glimpse at the types of mutual funds that often offer higher returns:

Large Cap Funds – Invest in big, well-known companies. They are relatively stable and great for long-term investors who want stable growth.
Mid Cap Funds – Invest money into mid-sized companies with strong growth potential. They create a good balance between risk and reward.
Small Cap Funds – Focus on smaller, emerging businesses. These can give you impressive returns, but only if you are comfortable with short-term ups and downs.
Sectoral or Thematic Funds – These target specific industries like technology, manufacturing, or infrastructure. When a sector does well, these funds can rise, but they can also fall quickly if trends change.
Flexi Cap or Multi Cap Funds – These invest across large, mid, and small-cap stocks, giving fund managers the freedom to chase opportunities during different market dynamics.

List of the Top 10 High-Return Mutual Funds in India

S. No	Funds	5 Yr Returns (%)	Expense Ratio (%)	Launch	Net Assets (Cr)
1	ICICI Prudential Infrastructure Fund	36.19	1.14	2005-08-31	8,231
2	HDFC Infrastructure Fund – Regular Plan	34.02	1.13	2008-03-10	2,585
3	Aditya Birla Sun Life PSU Equity Fund – Regular Plan	33.82	0.56	2019-12-30	5,532
4	Quant Small Cap Fund	35.29	0.71	1996-11-24	30,504
5	Franklin Build India Fund – Regular Plan	31.76	0.98	2009-09-04	2,947
6	SBI PSU Fund	33	0.85	2010-07-07	5,714
7	DSP India T.I.G.E.R. Fund – Regular Plan	32	0.66	2004-06-11	5,506
8	Motilal Oswal Midcap Fund – Regular Plan	33	0.7	2014-02-24	37,500
9	ICICI Prudential India Opportunities Fund	33	0.66	2014-02-24	32,669
10	Nippon India Power & Infra Fund	32	1	2004-05-08	7,325

Factors to Evaluate Before Investing

Every time you invest, it is important to pause and take a closer look because you will be putting in your hard-earned money. Below are a few simple points to keep in mind;

1. Risk and Return Go Hand in Hand

The promise of high returns is undoubtedly tempting, but remember, there is no free lunch in investing. Funds that can give big returns also tend to fluctuate more. Small-cap or sector funds, for example, can perform well in a bull market but may drop sharply when markets fall.

2. Look for Consistency

Anyone can have a lucky streak. Instead of getting carried away by one or two strong years, check how the fund has performed over 3, 5, or even 10 years. A good fund stays strong across different market conditions

3. The Fund Manager Matters

Think of the fund manager as the loco-pilot of your financial train. Their experience, strategy, and discipline play a big role in how well you are driven to your destination. Look for managers with a stable track record and a long-term approach.

4. Watch the Expense Ratio

Every mutual fund charges a small fee to manage your money, which is called the expense ratio. A slightly higher fee might not seem like a concern now, but over the years, it can quietly eat into your returns.

5. Time Is Your Best Friend

Equity mutual funds need time to show their growth. If you can stay invested for at least 5-7 years, you will give your money a chance to grow and recover from short-term market swings.

How to Choose the Right Fund

1. Decide Your Goal First

Ask yourself why you are investing in the first place. Are you saving for long-term wealth, retirement, or a down payment on a house? Once you know that, it becomes easier to pick a fund type that aligns with your purpose.

2. Know How Much Risk You Can Handle

Be honest here. If market swings make you anxious, large-cap or flexi-cap funds are safer bets. But if you do not mind some short-term ups and downs, mid- and small-cap funds can work well for you.

3. Look at the Fund’s Track Record

Don’t fall for last year’s best performers. Check how the fund has done over 3, 5, and 10 years. A good fund gives steady results across different market phases.

4. SIPs Are a Great Place to Start

If you are unsure about timing the market, go with a Systematic Investment Plan (SIP). It is one of the easiest ways to invest regularly, reduce volatility, and slowly build wealth over time.

Common Mistakes to Avoid

1. Chasing Past Performance

Just because a fund did great last year does not mean it will repeat that performance. Markets change, and so do trends. Your focus should be on consistency

2. Ignoring Risk

Do not choose a fund just because it gives big returns. If you are not comfortable with volatility, you might panic during market dips and sell at the wrong time

3. Switching Too Often

Jumping from one fund to another hurts your returns and stops compounding from doing its magic. Stick with your plan unless there is a reason to switch.

4. Not Reviewing Your Investments

You do not need to track your funds daily, but reviewing them once or twice a year helps. Make sure they are still aligned with your goals and performing close to their benchmarks, since your goals can also change with time.

5. Lack of Diversification

Putting all your money in one type of fund, say, all small-caps or all thematic funds, can backfire. Mix it up with a blend of large, mid, and small-cap funds to balance growth and stability.

Conclusion

High-return mutual funds can be a good option for building long-term wealth, but they are not magic. The truth is, the higher the possible returns, the more patience and discipline they demand. It is alluring to run after the top-performing fund of the moment, but the concept is to find one that fits your goals, risk level, and time frame. Start small, stay consistent, and let compounding play the game while you sit back and relax. SIPs are a great way to get started since they give you the benefit of rupee cost averaging. And most importantly, give your investments time; that is where the real growth happens.

Remember, investing is not about getting lucky. It is about being calm and steady. If you stay the course, the markets will surely reward you with returns.

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Frequently Asked Questions (FAQs)

Which mutual fund gives the highest return in India?
There is no single “best” fund for everyone. Small-cap and mid-cap funds often deliver higher returns, but as we know, high returns come with high risk. The right choice depends on your goals and time horizon,
Are high-return mutual funds risky?
A little, yes, most of them invest in stocks, so market ups and downs will affect them.
How long should I stay invested in a mutual fund?
It is suggested to invest for at least 5 to 7 years. That gives your money enough time to grow and recover from market dips while enjoying the benefit of compounding
Can I invest in high-return funds through SIPs?
Yes, SIPs are one of the smartest ways to invest. They help you stay disciplined and reduce the stress of timing the market.
How many mutual funds should I have?
You do not need a dozen of them. A mix of good funds across categories like large-cap, mid-cap, and flexi-cap is usually enough.

November 14, 2025

Best Defence Sector Mutual Funds in India

India’s defense budget increased rapidly in 2025 and this is why defense sector mutual funds have become a big topic of discussion among investors today. If you want to know which is the best defense mutual fund or what is the complete defense mutual fund list, then this guide is for you. Here we will understand how mutual funds investing in the defense sector can bring long-term strength to your portfolio and why mutual funds in the defense sector are being considered as an emerging opportunity nowadays.

What are Defence Sector Mutual Funds?

Defence Sector Mutual Funds are mutual funds that invest primarily in defence and related industries. These include companies involved in aerospace, weapon manufacturing, engineering, electronics and defence equipment. In simple terms, these are mutual funds investing in the defence sector that directly bet on companies whose business is related to defence.

These funds fall under the category of sectoral/thematic funds, which is recognized by SEBI (Securities and Exchange Board of India). This means that their investment is focused on a single sector, while diversified equity funds invest in many different industries. The main objective of these funds is to take advantage of the long-term opportunities provided by India’s growing defence needs and the Atmanirbhar Bharat initiative. It is important to note that since these are mutual funds in the defence sector, they also carry higher risk, and investors should always consider these funds from a long-term perspective.

Defence Sector Mutual Funds List 2025

Fund Name	Current Nav	AUM	6M Returns	1 year Return
Motilal Oswal Nifty India Defence Index Fund	₹ 10.25	₹3,703.3 Cr	27.23%	19.49%
HDFC Defence Fund	₹ 24.38	₹7,024.99 Cr	26.18%	11.67%
Aditya Birla Sun Life Nifty India Defence Index Fund	₹ 11.41	₹721.82 Cr	27.01%	18.97%
Groww Nifty India Defence ETF FoF Direct Growth	₹ 11.70	₹78.84 Cr	26.38%	16.95

(Data as on 15-10-2025)

1. Motilal Oswal Nifty India Defence Index Fund

This fund invests in leading companies in India’s defence sector. Its minimum SIP starts from ₹500 and the fund manager is Swapnil P Mayekar. The top holdings of this fund include Bharat Electronics Ltd. (20.6%), Hindustan Aeronautics Ltd. (20.46%), Solar Industries India Ltd. (11.54%), Bharat Forge Ltd. (11.50%), and Mazagon Dock Shipbuilders Ltd. (7.46%). Due to the strong growth of the defence industry and government support, this fund can be a good option for long-term investors.

2. HDFC Defence Fund

HDFC Defence Fund is managed by Priya Ranjan and it invests directly in defence and related capital goods companies. The fund’s key holdings includeBharat Electronics Ltd. (18.88%), Hindustan Aeronautics Ltd. (15.21%), Solar Industries India Ltd. (11.67%), Bharat Forge Ltd. (9.58%), and BEML Ltd. (8.83%). Apart from this, companies like Bharat Forge and Premier Explosives are also part of the portfolio. This fund is an ideal choice to capture direct growth of the defense sector.

3. Aditya Birla Sun Life Nifty India Defence Index Fund

This fund also focuses on defense sector companies and is managed by Priya Sridhar. The minimum SIP starts from ₹500. Bharat Electronics Ltd. (21.24%), Hindustan Aeronautics Ltd. (21.10%), Solar Industries India Ltd. (14.83%), Mazagon Dock Shipbuilders Ltd. (8.72%), and Cochin Shipyard Ltd. (6.01%). This fund covers key stocks in the defense industry and is a better option for investors looking for index-based options.

4. Groww Nifty India Defence ETF FoF Direct Growth

This fund is managed by Akash Chauhan and its SIP starts from just ₹500. This fund invests 100% in Groww Nifty India Defence ETF, i.e. it directly tracks the performance of the defense sector index. Investors who do not want to invest directly in ETFs can take advantage of the growth of the defense sector through this fund of funds (FoF). This is a new and simple option, especially for beginner investors.

Why Defence Sector Mutual Funds are Gaining Popularity

India’s Defence Investments at an all-time high : The Union Budget 2025–26 has allocated ₹6.81 lakh crore for the Defence sector, an increase of about 9.5% from last year and accounting for about 13.5% of the total budget. This huge investment has made defence sector mutual funds an attractive option.
Make in India + Export Expansion : India recorded an 18% growth in defence production in 2024–25, reaching ₹1.50 lakh crore. Also, defence exports reached ₹23,622 crore, a 12% year-on-year growth with the private sector contributing ₹15,233 crore. This provides a strong foundation for the “Make in India” and “mutual funds investing in defence sector” themes.
Geopolitical tensions and global demand : International conditions and security challenges have accelerated the pace of warfare technology and defence production. For example, manufacturers such as Solar Group are increasing production of 155 mm ammunition amid the Russia–Ukraine conflict.
Good performance of defense companies in the stock market : Hindustan Aeronautics Limited (HAL), Bharat Electronics Ltd (BEL), Bharat Forge and other defense companies have performed well in recent years, which is a positive sign for investors looking for the best defense mutual fund.

Advantages of Investing in Defence Sector Mutual Funds

The government’s Make in India initiative, growing defence exports, and cutting-edge technology innovations have made it attractive for investors in the long run. At such a time, investing in defence sector mutual funds can prove to be a wise move. These funds not only provide an opportunity to invest in companies that contribute to national security, but also strengthen investors’ portfolios.

Strong growth potential : India’s defence budget is constantly increasing and with it, new deals and projects are increasing in the industry. For example, companies like Hindustan Aeronautics, Bharat Electronics and Solar Industries are expanding rapidly. By investing in these funds, you can directly benefit from the growth of this sector.
Stable investment for the long term : The defence sector is not a short-term investment theme. This sector will grow in the long run, as there is continued government and private investment. Such funds provide investors with an opportunity for stable and long-term returns.
Diversification in portfolio : Through these funds, you can invest in both government (PSU) and private defense companies. This diversifies your investment and balances the risk.
Benefit from government policies and incentives : Increasing FDI limit by the government, promoting local manufacturing and giving policy incentives for the defense sector is continuously strengthening this sector. Investing in such an environment can prove to be beneficial in the long run.
Long term wealth creation : If investors stay patient for a long time, then these funds can give good capital appreciation and returns. Continuously increasing government and private investments strengthen the companies of this sector, giving long-term benefits to the investors.

Risks & Challenges Investors Should Know

Defence sector mutual funds are attractive, but it is important to understand the risks involved. If you want to invest in these funds, pay attention to the following five key aspects:

Risk of centralised investing : Defence funds often invest in just a few large companies, such as Hindustan Aeronautics and Bharat Electronics. If there is any instability in these companies, the entire fund can be affected. Therefore, it is important to understand that your money is concentrated on the entire sector, not individual industries.
Dependence on government policies : The defence industry is dependent on government policies and budgets. If the defence budget is reduced or new deals are delayed, the earnings of companies can be affected and your fund’s returns can also be low.
High valuation of stocks : Defence sector stocks have risen rapidly in the last few years. This means that their valuations (P/E or P/B) are high. In such a situation, future returns may be limited and prices may fall during market correction.
Global and geopolitical risks : The defense sector is affected by international events. Wars, agreements or international tensions can directly affect the orders and supply chain of companies. At such times, investors are likely to incur losses.
Investor advice : If you are a retail investor, invest only 5–10% of your portfolio in defense funds. Invest for the long term and be patient. This will balance the risk and increase the chances of getting better returns.

Read Also: Types of Mutual Funds in India

Conclusion

Defense sector mutual funds are a good option for those who want to earn good returns by investing for a long time. These funds invest primarily in large defense companies of India and strengthen the portfolio. Keep in mind, being a sector-focused investment, there are some risks and global events can have an impact.

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Frequently Asked Questions (FAQs)

What are defence mutual funds?
These are funds that invest in India’s defence and related sector institutions.
Who should invest in defence mutual funds?
These funds are ideal for investors with a long-term investment horizon and a moderate risk appetite.
What is the minimum SIP to start with?
Most funds have a minimum SIP starting at ₹500.
Are these funds risky?
Yes, as these are focused on a single sector, they come with higher risk.
Can these funds give high returns?
These can give good returns in the long term, especially when the sector players are performing well.

November 13, 2025

Best Silver Mutual Funds to invest in India

Silver has always had a special place in our lives, from family gifts to festive silver coins, but lately, it has been making headlines for a different reason. It is no longer just a glittery metal to own; it is gradually becoming a smart way to invest. With the rise of electric vehicles, solar panels, and new-age technologies, silver’s demand is increasing across the world.

The good news is that you do not need to buy physical silver to be part of this trend. Silver mutual funds let you invest in silver’s price movement, right from your phone or laptop.

In this blog, we will walk you through what silver mutual funds are, why they are becoming so popular, and the best ones to consider in India for 2025, along with a few simple points to look for before you invest.

What are Silver Mutual Funds?

Silver Mutual Funds are an easy way to invest in silver without buying or storing the metal for real. Instead of dealing with physical silver, these funds put your money into Silver Exchange Traded Funds (ETFs), which track the daily market price of silver in India.

So, when silver prices go up, the value of your investment rises too, and when they fall, your fund’s value may dip slightly. The big advantage is convenience, no worries about purity, safety, or storage. You get to benefit from silver’s price movements in a completely digital manner.

List of Best Silver Mutual Funds:

S. No	Funds	Minimum Investment	Expense Ratio (%)	Exit Load	6 Mth Ret (%)	1 Yr Ret (%)
1	Aditya Birla Sun Life Silver ETF FoF – Regular Plan	100	0.3	0.5	54.83	61.78
2	Axis Silver FoF – Regular Plan	5,000	0.16	0.25	51.1	59.7
3	HDFC Silver ETF FoF – Regular Plan	100	0.23	1	51.8	60.1
4	ICICI Prudential Silver ETF FoF	100	0.12	1	51.8	59.8
5	Kotak Silver ETF FoF – Regular Plan	100	0.14	0.5	52.2	60.6
6	Nippon India Silver ETF FoF – Regular Plan	100	0.27	1	52.53	60.5
7	SBI Silver ETF FoF – Regular Plan	5,000	0.3	1	53.2	61.5
8	Tata Silver ETF FoF – Regular Plan	5,000	0.2	0.5	49.5	58
9	UTI Silver ETF FoF – Regular Plan	100	0.15	1	51.8	59.6
10	Zerodha Silver ETF FOF Direct Growth	100	0.17	0	38.6	–

Read Also: Best Silver ETFs in India

Important Points to Consider before Investing

Before you decide to invest your money in silver mutual funds, you should quickly check these points mentioned below;

1. Prices Can Be Volatile

Silver prices move up and down quite a bit, they depend on global demand, industrial use, and even investor mood. There is no need to panic over short-term swings.

2. Returns Might Differ Slightly from Silver Prices

Since these funds invest in Silver ETFs, there can be a small difference between the actual price of silver and your fund’s return and this is called a tracking error.

3. Check the Expense Ratio

Every fund charges a small fee to manage your money. A lower expense ratio generally means more of your returns stay with you.

4. Think Long-Term

Silver is not about instant gains. Give your investment at least 3-5 years to even out the ups and downs.

5. Use It for Diversification

Silver works best as a small part of your portfolio, maybe 5 -10% to balance your exposure to equity and debt investments.

Read Also: How to Invest in Silver in India?

Conclusion

Silver mutual funds make it easy to add a bit of sparkle to your portfolio. As industries like electric vehicles, solar power, and electronics continue to grow, silver’s demand is only getting stronger day by day. However, silver prices can fluctuate depending on the global trends and supply. Think of it as a small but smart value addition. If you are looking for a simple, paperless way to benefit from silver’s long-term story, silver mutual funds are definitely worth a look in 2025.

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Frequently Asked Questions (FAQs)

Are silver mutual funds safe to invest in?
They are safe, but remember silver prices can fluctuate. It is best to stay invested for a few years and manage those price swings.
What is better, a Silver ETF or a Silver Mutual Fund?
If you have a Demat account and are comfortable with trading, a Silver ETF is a good option. On the other hand if you prefer investing through regular mutual fund platforms, a Silver Mutual Fund is easier.
How much do I need to start investing?
Not much, You can start with as little as ₹500 through a SIP.
Can silver replace gold in my portfolio?
Both asset classes have different roles. It is better to own a bit of both for a balance.
How long should I stay invested?
Try for at least 3 to 5 years. Silver can be unpredictable in the short term, but over time, it generally gives better stability and growth.

November 12, 2025

How to Compare Mutual Funds in India?

The number of people investing in mutual funds in India is growing rapidly. By June 2025, the country’s total Assets Under Management (AUM) had reached approximately ₹74.41 lakh crore, reflecting the increasing confidence of investors. However, many people still choose funds based solely on returns. The truly smart approach is to compare each fund based on its performance, risk, and expenses. In this blog, we will learn how to properly compare mutual funds to make your investments better and safer.

Step 1–Define Your Investment Objective and Time Horizon

Choosing a mutual fund starts here. Often, we jump straight to “Which fund is performing well?”, but the real question is what are your investment goals and what is your investment horizon?

The right fund for you depends on these two factors:

Short-term goals (1 to 3 years) : If you are preparing for a major expense in the next few years such as a wedding, a trip, or building an emergency fund then Debt or Liquid Funds are generally better. These funds are not significantly affected by market fluctuations and provide stable returns.
Medium-term goals (3 to 5 years) : For investors who want to invest for 3-5 years, Hybrid or Balanced Advantage Funds are considered good options. They contain both equity and debt, which helps control risk while providing decent returns.
Long-term goals (5 years or more) : If your objective is long-term such as retirement planning, children’s education, or wealth creation then Equity Funds, Index Funds, or Flexi Cap Funds are good choices.

Step 2 – Compare Funds Within the Same Category

Whenever you compare mutual funds, the first thing to check is the category to which the fund belongs. Every fund has its own investment strategy: some invest in the stock market, some in bonds, and some in a mix of both. If you compare them all together, the results can be misleading.

Understanding SEBI’s Fund Categories

SEBI has categorized mutual funds into several main categories for the convenience of investors:

Equity Funds: These invest in the shares of companies and aim for long-term growth.
Debt Funds: These invest in government bonds, corporate debentures, and fixed-income securities.
Hybrid Funds: These invest in both equity and debt to try and provide balanced returns.
Solution-Oriented or Index Funds: These track a specific goal (such as retirement or child education) or an index (such as the Nifty 50).
Other Schemes: This category includes funds that don’t fit into the main equity, debt, or hybrid categories, often offering unique investment opportunities. Examples: Index Funds/ETFs, Fund of Funds (FoFs).
Commodity Funds:These funds invest in commodities like gold, silver, or other natural resources, often through ETFs. They provide a hedge against inflation and diversification beyond traditional asset classes. Examples: Gold ETF, Silver ETF, Multi-Commodity Fund.
International or Overseas Funds: These invest in foreign markets, giving Indian investors access to global companies and economies. They can be a good diversification tool but carry currency and geopolitical risks. Examples: Global Equity Fund, US-focused Fund, Emerging Market Fund.

There are also several types within Equity Funds

Equity funds are further categorized based on their size and strategy

Large Cap Funds: These invest in large companies like Reliance, HDFC Bank, Infosys, etc.
Mid Cap Funds: These invest in medium-sized companies, where the potential for growth is higher.
Small Cap Funds: These invest in small companies that can offer high returns, but also carry higher risk.
Sectoral/Thematic Funds: These focus on a single sector such as FMCG, Pharma, or IT.

The Right Way to Compare :

When you compare a fund, always compare it with funds from the same category.

For example, Axis Bluechip Fund can be compared with ICICI Prudential Bluechip Fund because both fall under the Large Cap category. But comparing Axis Bluechip Fund with HDFC Small Cap Fund would be an incorrect comparison because both have different investment strategies and risk levels.

Why is this step important ?

Each category has a different objective and risk profile.The objective of Equity Funds is to grow capital over the long term, while the goal of Debt Funds is to provide stable and secure returns. Comparing the two makes no sense. Therefore, always follow the rule of “compare within the same category.” This will allow you to accurately understand the fund’s true performance, stability, and value.

Read Also: Types of Mutual Funds in India

Step 3 – Check Historical Returns

When comparing mutual funds, most investors initially look at returns, but making a decision based on last year’s performance isn’t the right approach. True wisdom lies in understanding a fund’s ability to perform consistently, not just its performance at a single point in time.

Focus on 3, 5, and 10-Year Returns : The true picture of any fund emerges when you look at its average returns (CAGR) over different periods such as 3 years, 5 years, and 10 years. This shows you how the fund has performed over the long term and whether it has maintained stability through market fluctuations.
Consider Rolling Returns : Point-to-point returns can sometimes be misleading, as they only show results based on a fixed date. Instead, look at rolling returns—these indicate how a fund has performed on average over various time periods. This metric is more reliable because it includes both good and bad market cycles.
Don’t Fall for the Short-Term Performance Trap : Sometimes a fund may deliver very good returns in one or two years, but its long-term performance is weak. Investing in such funds can be risky.

Step 4 – Evaluate Risk Metrics

When choosing a mutual fund, it’s just as important to consider its risk level along with its returns. A fund’s performance only truly matters if it’s consistent and balanced. Below are some important parameters that indicate the fund’s actual performance:

Standard Deviation : This indicates how volatile the fund’s returns are. A lower standard deviation means the fund is more stable.
Sharpe Ratio : This measures how much return the fund has generated relative to the risk taken. The higher the ratio, the better.
Beta : This shows how much the fund’s returns fluctuate with market movements. If the Beta is greater than 1, the fund is more volatile than the market, and if it’s less than 1, it’s less volatile.
Alpha : This indicates how much better or worse the fund has performed compared to its benchmark. Funds with a positive Alpha are considered better.

Step 5 – Expense Ratio and Exit Load

Expense Ratio : This is the small annual fee that the fund charges for managing your money. In equity funds, it’s typically around 0.5 to 2%, and lower in debt funds. The lower the expense ratio, the higher your net return will be.
Direct vs. Regular Plan : In a Direct Plan, you invest directly, so there is no commission and the expenses are lower. In a Regular Plan, investing through an agent adds a commission, which slightly reduces your return.
Exit Load : If you withdraw money from the fund before the stipulated time, you have to pay a fee of approximately 0.5%-1%. This is to discourage short-term withdrawals from the fund.

Step 6 – Check Portfolio Holdings and Diversification

Before investing in any fund, it’s crucial to see which companies and sectors it’s investing in. If a fund is heavily reliant on just one sector, the risk increases.

A good fund always diversifies its investments across different sectors such as banking, IT, FMCG, and pharmaceuticals. This is called diversification. In this way, the fund remains stable even if one sector declines, and the returns are more reliable.

Step 7 – Fund Manager’s Experience and Strategy

The performance of every fund depends on who is managing it. Therefore, it’s crucial to examine the fund manager’s experience and track record. A good manager makes the right decisions at the right time and knows how to manage the portfolio in changing market conditions. If a manager has consistently delivered good results over a long period, they are considered trustworthy.

9. Step 8 – AUM (Assets Under Management)

AUM, or Assets Under Management, indicates the total amount of money invested in a fund. A large AUM generally suggests strong investor confidence and easier liquidity within the fund.

However, a very large AUM isn’t always advantageous. Especially in mid-cap and small-cap funds, a large AUM can make it difficult for the fund manager to invest effectively in smaller companies.

Step 9 – Benchmark and Peer Comparison

To understand a fund’s performance, it’s essential to compare it to its benchmark and other funds in the same category (peers). If a fund consistently delivers better returns than its benchmark, such as the Nifty 50 or Sensex, it indicates a strong strategy.

Peer comparison is equally important. By comparing your fund to other funds in the same category, you can understand how well your fund is truly performing.

Step 10 – Qualitative Factors & AMC Reputation

When choosing a mutual fund, you should consider not only the returns but also the reputation of the Asset Management Company (AMC) that manages the fund. A trustworthy AMC always acts in the best interests of investors and maintains consistency in its investment strategy. Companies with strong governance, transparent reporting, and a clear investment philosophy are the ones that consistently deliver good performance over the long term.

Read Also: Top Gold Mutual Funds in India

Conclusion

Choosing a mutual fund isn’t a race to see who’s offering the highest returns. The real question is which fund best suits your goals and risk tolerance. When you carefully understand and compare funds looking at their costs, performance, and stability the decision becomes much clearer. A proper comparison is key to making safe and smart investment choices.

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4	What is an Open-Ended Mutual Fund & How to Invest in it?
5	Mutual Fund vs ETF. Are They Same Or Different?
6	Mutual Funds vs Direct Investing: Differences, Pros, Cons, and Suitability
7	Debt Mutual Funds: Meaning, Types and Features
8	How to Check Mutual Fund Status with Folio Number?
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10	What is Solution Oriented Mutual Funds?
11	Mutual Fund Fees & Charges in India 2024
12	What is TREPS & Why Mutual Funds Invest in it?
13	History of Mutual Funds in India
14	Top 10 Fund Managers in India
15	Top 10 Mutual Fund Distributors in India

Frequently Asked Questions (FAQs)

What is the best way to compare mutual funds?
Compare funds within the same category and look at returns along with risk and expenses.
Should I focus only on returns?
No, along with returns, also understand the fund’s stability and risk.
What is a good expense ratio?
An expense ratio of less than 1.5% is considered better for equity funds.
How to know if a fund is performing well?
A fund is performing well if it consistently delivers better returns than its benchmark & you can check long term returns.
What is the meaning of benchmark in mutual funds?
A benchmark is the index against which a fund’s performance is measured, such as the Nifty 50 or Sensex.

November 5, 2025

Top Gold Mutual Funds in India

Putting money in gold is a timeless tradition in India, but buying the jewellery or coins can have some concerns like safety, purity, and high making charges that can reduce your profits. What if you could get all the benefits of owning gold in a smarter, simpler, and digital way.

This is where we see the Gold Mutual Funds in the picture, by investing in gold mutual funds, you can invest in gold digitally. These funds are the modern way to invest in gold, where the investors can own pure 24-karat gold on their phone or computer, without ever needing a locker. These mutual funds can be perfect for beginners and smart investors who want the safety of gold without the old-school hassles.

In this blog we will understand what a gold mutual fund is. Also, this blog will explain to you how gold funds work, why starting a gold SIP is a great idea, and list some of the best gold mutual fund options available in India today.

Understanding Gold Mutual Funds

How Gold Mutual Funds Work

A gold mutual fund takes money from investors and then collectively invests in gold, here a fund manager manages the investment and gold on behalf of the investors. By investing in gold like this you can actually buy real gold without the hassle to store the gold.

In India gold mutual funds work as a ‘Fund of Funds’ (FoF) meaning:

You invest your money in a gold mutual fund.
The fund manager collects money from all investors like you.
They use this money to buy units of a Gold ETF (Exchange Traded Fund).
This Gold ETF holds real, 99.5% pure physical gold in very secure vaults.

By investing using this method you get pure gold and the value of your investments move up or down depending upon the price of gold in the market.

Read Also: Best Gold ETFs in India

Top 10 Gold Mutual Funds in India

Fund Name (Direct Plan – Growth)	AUM (Rs.Cr)	Expense Ratio (%)	1-Year Return (%)	3-Year Return (% p.a.)	5-Year Return (% p.a.)	Minimum SIP Amount (Rs.)
Nippon India Gold Savings Fund	4131	0.13	53.5	33.2	17.7	100
HDFC Gold Fund	6,329	0.18	54.3	33.3	18.01	100
SBI Gold Fund	7,033	0.10	53.7	33.3	18.03	500
Axis Gold Fund	1,557	0.17	53.0	33.04	17.94	100
Kotak Gold Fund	4153	0.16	53.75	33.18	17.9	100
ICICI Prudential Regular Gold Savings Fund	3,305	0.09	53.07	33.03	17.85	100
Aditya Birla Sun Life Gold Fund	909	0.20	53.55	33.50	18.08	100
DSP Gold Fund	194	0.66	52.47	N/A	N/A	100
Invesco India Gold Fund	244	0.10	51.85	32.84	17.75	500
Quantum Gold Fund	300	0.04	53.96	33.50	17.90	500

Data as of October 24th 2025

1. Nippon India Gold Savings Fund

This is the biggest gold fund in India and is also one of the oldest funds in India. Nippon gold fund gives customer returns that are closely matched to the performance of its underlying ETF, the Nippon India ETF Gold BeES.

2. HDFC Gold Fund

This is considered to be one of the most trusted fund houses of India, this fund invests in units of the HDFC Gold ETF. If you are looking for a reliable fund for your gold investments, this is the most popular choice.

3. SBI Gold Fund

This is the largest AUM in the gold funds category, which is backed by India’s most trusted bank, State Bank of India. This gold fund provides returns that correspond to the SBI Gold ETF.

4. Axis Gold Fund

Here, the fund invests in the Axis Gold ETF that copies the performance of physical gold. It allows investors to start investing in small SIP amounts.

5. Kotak Gold Fund

In this gold fund the returns are generated by investing in units of Kotak Gold ETF. This also acts as a diversified fund that combines gold and silver together to give broader precious metal exposure to the investors.

6. ICICI Prudential Regular Gold Savings Fund

This fund has the lowest expense ratio in this category and the fund generated its returns by investing in ICICI Prudential Gold ETF, making it cost-effective for the new investors.

7. Aditya Birla Sun Life Gold Fund

Here the returns are tracked based on the performance of Aditya Birla Sun Life Gold ETF, which offers another solid option from a well-known fund house.

8. DSP Gold Fund

Here the investment is done by investing in units of DSP Gold ETF and the returns are generated by this. For investors it is a simple way to invest in gold and diversify your portfolio.

9. Invesco India Gold Fund

In this gold fund the performance of Invesco India Gold ETF is tracked to get returns, it has a straightforward option for investors seeking to track gold prices.

10. Quantum Gold Fund

This fund invests in units of the Quantum Gold ETF and also has one of the lowest expense ratio compared to others which helps in cutting down the cost of investing and making increased profits.

Now that we have gone through some of the Top Gold Funds in India you might be thinking how can you invest in these gold mutual funds but platforms like Pocketful make this extremely simple for the investors as they can search for different gold mutual funds, complete their KYC digitally and start investing in different gold SIPs or even invest a lump sum amount. Pocketful gives a user-friendly interface to its users making investing in gold much easier.

Read Also: Best Gold Stocks in India

Benefits of Investing in Gold Mutual Funds

1. Simple & Secure Investment

By investing in these gold mutual funds investors don’t need to take on the headache of storing the gold safely. Here the fund house takes care of storing the gold in highly secured vaults; investments are stored in a digital format safely, making them safe from theft.

2. Diversified Portfolio

Gold mutual fund investments can help the investors in diversifying their portfolio. During the stress period, when the stock market might perform poorly, these gold investments can help in stabilizing one’s portfolio. This helps in protecting your overall portfolio during uncertain times.

3. Protection from Inflation and Market Volatility

It saves the investors from the inflation, as during inflation the price of commodities goes up and the value of money goes down. Gold has acted as an asset that has been guarded during inflation times. It is witnessed that when the currency depreciates during inflation, the price of gold rises helping the investor protect their wealth.

4. High Liquidity and Convenience

If you require cash instantly, selling the physical gold can be a challenge in terms of buyers, current price of the gold and even the making charges as you may not get the fair price. But buying these gold mutual funds can sell your units on any business day and get the money directly in your bank account within a few days. The process is transparent and hassle-free.

Factors to Consider Before Investing

Fund Performance History: Investors shall look for how funds have performed over the last 1, 3, and 5 years, as it helps in showing you how consistently it has tracked the price of gold. Though the previous performance doesn’t predict the future, it helps the investors in tracking the record of the fund.
Expense Ratio: Think of it as a service charge that is levied annually by the fund manager to manage your investments. A small difference in the expense ratio can affect the investor’s profit, so one should always look for the expense ratio and prefer a lower ratio.
Asset Under Management (AUM): This is a collective total amount that all the investors have put into the specified fund, here a large AUM shows the trust of investors. A good AUM also means that the fund has liquidity meaning you can easily buy or sell the units.
Tracking Error: This helps in telling the investors if the fund is working properly or not as this is used to track the performance of gold price in the actual market. Investors shall look for lower tracking error as this means that the return on your investment is very close to the actual gold returns.
Fund Manager’s Experience: While most gold funds are passively managed (they just follow the underlying ETF), it’s good to invest with a fund house that has a long history and trusted reputation in the industry. This adds a layer of reliability to your investment.

Conclusion

Investing in gold has changed for the better. You no longer need a large sum of money or a bank locker to own this precious metal. Gold mutual funds offer a simple, affordable, and smart way to add the stability of gold to your investment portfolio.

One should think of them as a long-term investment that protects your wealth, fights with rising inflation and brings diversification to your portfolio. You should be clear about the future goals that you want to meet and make the decision accordingly.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	A Guide To Investing In Gold In India
2	How to Invest in Gold ETF
3	What is Gold ETF? Meaning & How to Invest Guide
4	Top 10 Reasons to Invest in Gold
5	Best Silver Stocks in India
6	Digital Gold vs Gold ETF: Which is Better?
7	Mutual Fund vs ETF. Are They Same Or Different?
8	Sovereign Gold Bonds vs. Gold ETF: Which is a Better Investment?
9	Gold BeES vs Gold ETF: Meaning, How It Works, Taxation
10	Best ETFs in India to Invest

Frequently Asked Questions (FAQs)

What is the main difference between a Gold Fund and a Gold ETF?
To buy or invest in a gold ETF you need to have a Demat account but to invest in Gold Funds (which are funds of funds) you can directly do it from your bank account and there is no requirement for a Demat account.
Do Investors need a Demat account to start a Gold SIP?
No, to invest in Gold SIP you don’t require a demat account you can start a Gold SIP with just your bank account after completing your KYC.
How are Gold Mutual Funds taxed?
Gold mutual funds are taxed like non-equity or debt funds, if the units are sold within 3 years then the profit is added to your income and taxed according to your tax slab.
What is the minimum amount I can invest?
Most gold mutual funds allow you to start a SIP with as little as Rs.100 or Rs.500 per month, making gold investing accessible for everyone.
Shall I invest a lump sum amount or start a SIP in a Gold Fund?
SIP (Systematic Investment plan) helps in investing a fixed amount regularly whereas a lump sum is a one-time investment that you can consider if you have a large amount of money ready, so look according to the funds availability and your future goals.

October 24, 2025

Best Money Market Mutual Funds in India

In 2025, when interest rates are changing rapidly and the need to access cash could arise at any time, many people are wondering where to park their short-term savings. Bank FDs no longer offer the same returns as they once did and often come with lock-in terms. It’s time to look at the best money market mutual funds; they’re safe, readily withdrawable, and have the potential to deliver better returns than a bank savings account or FD. In this article, let’s explore the best money market funds in India in 2025, how to choose them, and how they can be a smart addition to your investment strategy.

What Are Money Market Mutual Funds?

Money Market Mutual Funds are a type of debt mutual fund that primarily invest in high-quality short-term (one year or less) debt securities. The objective of these funds is to preserve capital and provide stable, predictable returns, while also providing investors with high liquidity, meaning easy access to funds.

Where do Money Market Funds Invest?

Money Market Funds include only short-term (up to 1 year maturity) and low-risk instruments in their portfolios.

These primarily include:

Treasury Bills (T-Bills): Short-term bonds issued by the government, which are considered the safest.
Commercial Papers (CPs): Debt instruments issued by corporate entities for short-term borrowing.
Certificates of Deposit (CDs): Short-term certificates of deposit issued by banks.
Tri-Party Repos (TREPS) and Cash Equivalents: These help maintain the fund’s liquidity.

Best Money Market Mutual Funds in 2025

S.No	Fund Name	AUM (Rs Cr)	3 Years Return (%)	5 Years Return (%)	Current NAV
1	Tata Money Market Fund	₹38,807.85	7.85%	6.30%	₹4911.57
2	HDFC Money Market Fund	₹37,139.08	7.51%	6.06%	₹5380.91
3	ICICI Prudential Money Market Fund	₹34,019	7.57%	6.07%	₹387.19
4	Kotak Money Market Fund	₹32,820.86	7.52%	6.10%	₹4581.39
5	Aditya Birla Sun Life Money Manager Fund Direct-Growth	₹26,757	7.57%	6.29%	₹382.62
6	Nippon India Money Market Fund	₹23,246	7.59%	6.16%	₹4235.20
7	UTI Money Market Fund	₹18,862	7.60%	6.16%	₹3146
8	Axis Money Market Fund	₹18,086	7.55%	6.11%	₹1460.25
9	Bandhan Money Market Fund	₹12,247	7.05%	5.47%	₹41.11
10	HSBC Money Market Fund	₹4,358	7.24%	5.60%	₹26.89

(Data as of 16 Oct 2025)

1. Tata Money Market Fund

Tata Money Market Fund, managed by Tata Asset Management, was launched on March 15, 1994. Its objective is to provide investors with stable returns and high liquidity with low risk. Under the management of Amit Somani, the fund size has reached ₹38,808 crore. Its portfolio is safe and diversified, with key holdings such as HDFC Bank Ltd, Bank of Baroda, SIDBI, Union Bank of India, The Federal Bank Ltd This makes it a strong choice among the best money market mutual funds of 2025.

Fund details :

Min SIP	Min Investment	Fund Manager
₹500	₹5,000	Amit Somani

2. HDFC Money Market Fund

HDFC Money Market Fund is a good option for those looking to keep their money safe for a short period of time. This fund was launched on December 10, 1999, and is managed by HDFC Asset Management Company. HDFC AMC is considered one of the most trusted companies in India, so it’s easy to trust this fund.

It has a corpus size of approximately ₹37,139 crore, and its investments are mostly in short-term bonds of banks and government institutions. Its portfolio includes strong institutions like CDs of SIDBI, Bank of Baroda, NABARD, Union Bank, and Canara Bank. All this makes it a reliable and balanced money market fund.

Fund details :

Min SIP	Min Investment	Fund Manager
₹100	₹100	Praveen Jain

3. ICICI Prudential Money Market Fund

ICICI Prudential Money Market Fund is one of those funds that doesn’t let money get stuck anywhere. Meaning, if you want your money to remain safe but get slightly better returns than a bank account, this fund fulfils that need well. It is managed by ICICI Prudential Asset Management, which has been a trusted asset in the market since the 90s. The fund was launched in 1993 and today its size is around ₹34,019 crore. The portfolio is well balanced; with the remaining holdings in strong institutions like Reserve Bank of India; National Bank For Agriculture & Rural Development (NABARD); HDFC Bank Ltd; Punjab National Bank; Indian Bank. This is why this fund provides steady returns without taking on too much risk.

Fund details :

Min SIP	Min Investment	Fund Manager
₹100	₹500	Manish Banthia

4. Kotak Money Market Fund

Kotak Money Market Fund is one of those funds that combines both stable returns and reliability. It is managed by Kotak Mahindra Asset Management Company and was launched on August 5, 1994. Its objective is clear: to keep your money safe while also providing slightly better returns than banks. The fund’s corpus is approximately ₹32,820 crore, reflecting investor confidence. Its portfolio is well-balanced and diversified. It includes Tri-Party Repo, ICICI Securities, 364‑Day Treasury Bill, 5.15% GOI, and Punjab National Bank.

Short-term bonds from reputable institutions like Canara Bank, HDFC Bank, and Axis Bank are also part of the portfolio.

Fund details :

Min SIP	Min Investment	Fund Manager
₹100	₹100	Deepak Agrawal

5. Aditya Birla Sun Life Money Manager Fund

Aditya Birla Sun Life Money Manager Fund is considered one of those funds that balances both safety and stable returns. It is managed by Aditya Birla Sun Life Asset Management Company and was launched on September 5, 1994. This fund is ideal for investors who want to park money for a short period but expect better returns than a bank account. The fund has a corpus of approximately ₹26,757 crore and a strong portfolio. It includes trusted institutions like Canara Bank, Bank of Baroda, IDBI Bank, Kotak Mahindra Bank And 5.15% Government Stock 2025, (09-Nov-2025) and 182 Days Treasury Bill (1.83%) provide further stability.

Fund details :

Min SIP	Min Investment	Fund Manager
₹1,000	₹1,000	Kaustubh Gupta

6. Nippon India Money Market Fund

The Nippon India Money Market Fund is an old and trusted fund. It’s managed by Nippon India Asset Management and has been in operation since 1995. Its sole purpose is to provide risk-free, short-term, secure investment that earns decent interest and allows for quick withdrawal if needed. It now has a corpus of over ₹23,000 crore, and most of its investments are in short-term bonds of banks and government institutions, such as Canara Bank, Kotak Bank, NABARD, Axis, IndusInd, and HDFC Bank all with a share of approximately 1.5% to 2.5%. A portion is also held in Tri-Party Repo to maintain liquidity. Overall, this fund is suitable for those who are risk-averse but want their money to perform better than a bank account.

Fund details :

Min SIP	Min Investment	Fund Manager
₹100	₹500	Vikash Agarwal

7. UTI Money Market Fund

The UTI Money Market Fund’s strengths are its simplicity, ease of understanding, and reliability. It’s managed by the UTI Asset Management Company and has been in the market since 2002. Its purpose is simple: if someone has spare money for a few months, they should invest it in a place where they can withdraw it immediately if needed, while still earning slightly higher returns than a bank account. Its size is around ₹18,800 crore. Most of the funds are invested in short-term bonds of government and banking institutions. It holds stakes in major institutions like NABARD, Indian Bank, Axis Bank, and HDFC Bank, along with a small portion in 364-Day Treasury Bills. This makes it stable and reliable. Simply put, this fund is ideal for those who are risk-averse but want their money to “work” a little.

Fund details :

Min SIP	Min Investment	Fund Manager
₹500	₹500	Amit Sharma

8. Axis Money Market Fund

Axis Money Market Fund is one of those funds that offers reliable, stable returns. It is managed by Axis Asset Management Company and was launched on January 13, 2009. Its objective is simple to provide a safe investment option for the short term, where the money is neither at risk nor idle. It has a corpus size of around ₹18,086 crore and a well-balanced portfolio. Most of the investments are in short-term instruments of banking and government institutions. Major holdings include HDFC Bank Ltd., Canara Bank, Small Industries Development Bank of India Ltd., HDFC Bank Ltd., and Kotak Mahindra Bank Ltd.

Fund details :

Min SIP	Min Investment	Fund Manager
₹1,000	₹5,000	Devang Shah

9. Axis Money Market Fund

Bandhan Money Market Fund is a fund that focuses on safety, stability, and reliability. It is managed by Bandhan Asset Management Company and was launched on November 20, 1999. It is specifically designed for investors who want to keep their money safe for a few months but expect slightly better returns than bank returns. The fund has a corpus of approximately ₹12,247 crore and a balanced and prudently constructed portfolio. It comprises high-quality papers from both the government and banking sectors. Key holdings include safe-haven securities like 182 Days Treasury Bill, SIDBI, Axis Bank, Canara Bank, NABARD, and HDFC Bank.

Fund details :

Min SIP	Min Investment	Fund Manager
₹100	₹100	Brijesh Shah

10. Axis Money Market Fund

The HSBC Money Market Fund is a fund that maintains the right balance of safety and stability. It is managed by HSBC Asset Management Company and was launched on December 12, 2001. Its focus is on short-term investments making it a good option for those who want to keep their money safe for a few months and expect better returns than a savings account. The fund’s size is approximately ₹4,358 crore and its portfolio is well-diversified. It includes both government and corporate short-term instruments. Key holdings include safe institutions like NABARD , Indian Bank , Mindspace Business Parks REIT, Bank of Baroda, Bharti Telecom, and Bajaj Auto Credit . Treasury bills (approximately 6.7%) provide additional stability and liquidity to the fund.

Fund details :

Min SIP	Min Investment	Fund Manager
₹1,000	₹5,000	Mahesh Chhabria

Risks & Challenges in Money Market Mutual Funds

Interest Rate Fluctuation : Money market funds are considered safe, but fluctuations in market interest rates can slightly impact their returns. Especially when rates rise suddenly, the fund’s net asset value (NAV) may fall slightly.
Credit Risk : Most funds invest in AAA-rated or government securities, but if a corporate bond or commercial paper defaults, there is a potential for loss. Therefore, it is important to understand the fund’s holdings.
Liquidity Risk : These funds are generally very liquid, but sometimes, when there is a sudden liquidity shortage in the market, the funds may face difficulty selling their holdings. During such times, returns may be slightly affected.
Short-Term Horizon Limitation : Money market funds are not intended to generate long-term returns. These are only suitable for short-term investments, such as 3–12 months. Long-term investors expecting high growth may be disappointed.
Taxation Impact : After 2023, the indexation benefit on debt funds has been eliminated. This means that any earnings from money market funds will be taxable according to your income slab. This means that investors in higher tax brackets may see slightly lower net returns.

Read Also: Top 10 Fund Managers in India

Conclusion

If you’re looking to keep your money safe for a short period of time and want it to perform better than sitting in a bank account, Money Market Mutual Funds are a wise choice. These funds don’t take on high risk or tie up money; they simply deliver simple, liquid, and reliable returns. By choosing the right fund, you can grow your cash without stress, with complete transparency and flexibility.

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1	Mutual Fund vs PMS: Which is Better?
2	10+ Best Investment Plan for Monthly Income in India
3	Hybrid Mutual Funds – Definition, Types and Taxation
4	What is an Open-Ended Mutual Fund & How to Invest in it?
5	Mutual Fund vs ETF. Are They Same Or Different?
6	Mutual Funds vs Direct Investing: Differences, Pros, Cons, and Suitability
7	Debt Mutual Funds: Meaning, Types and Features
8	How to Check Mutual Fund Status with Folio Number?
9	Mutual Funds vs Direct Investing: Differences, Pros, Cons, and Suitability
10	What is Solution Oriented Mutual Funds?
11	Mutual Fund Fees & Charges in India 2024
12	What is TREPS & Why Mutual Funds Invest in it?
13	History of Mutual Funds in India
14	What is Asset Under Management (AUM) in Mutual Funds

Frequently Asked Questions (FAQs)

What is a Money Market Mutual Fund?
This is a debt fund that invests in safe government and corporate bonds with short-term maturity periods of up to 1 year.
Are Money Market Funds safe to invest in?
Yes, they are quite safe because they invest mostly in AAA-rated and government securities.
What is the average return of money market funds in 2025?
The average return of these funds has been around 6.5% to 7%.
Can I withdraw my money anytime?
Yes, you can withdraw it anytime after investing; the money is usually received the next day.
Who should invest in money market funds?
People who need to keep their money safe and easily accessible for a short period of time.

October 22, 2025

Best Pharma Mutual Funds in India

Pharma mutual funds and healthcare mutual funds are emerging as a great option for investors in 2025. Increasing healthcare needs, government schemes and increasing expenditure on research are strengthening this sector. In such a situation, the pharma sector mutual fund is useful for those who want stable and safe returns over a long period of time. In this blog, we will know which are the best pharma mutual funds India 2025, and how they can make your portfolio balanced and profitable.

What Are Pharma Sector Mutual Funds?

Pharma sector mutual funds are mutual funds that invest primarily in companies in the pharmaceutical, healthcare services, diagnostics, medical devices and biotechnology sectors. As per SEBI regulations, any sector fund is required to invest at least 80% in the same sector.

Investment focus : Pharma mutual funds in India focus specifically on healthcare innovation, diagnostics, medical equipment and drug manufacturing. This way, investors can directly connect to the growth story of that sector.
Difference from diversified funds : While diversified mutual funds spread investments across many different sectors (such as IT, banking, consumer goods), pharma sector mutual funds focus only on the healthcare and pharma industry. This is why the potential returns may be higher, but the risk is also higher.

Best Pharma Sector Mutual Funds 2025

Fund Name	Current Nav	AUM	3 years return	5 year Return
Nippon India Pharma Fund	₹512.99	₹8113.59Cr	22.21%	16.99%
SBI Healthcare Opportunities Fund	₹433.98	₹3933.26Cr	25.77%	18.86%
Tata India Pharma & Healthcare Fund	₹30.75	₹1295.83Cr	22.87%	17.27%
UTI Healthcare Fund	₹292.65	₹1096.95Cr	25.10%	17.28%
ICICI Prudential Pharma Healthcare & Diagnostics Fund	₹40.42	₹6226.82Cr	28.40%	20.07%
DSP Healthcare Fund	₹39.12	₹3106.92Cr	23.00%	16.96%
LIC MF Healthcare Fund	₹29.88	₹85.19Cr	20.52%	13.77%
Mirae Asset Healthcare Fund	₹39.02	₹2761.64Cr	21.63%	17.17%
Aditya Birla Sun Life Pharma & Healthcare	₹31.21	₹829.63Cr	22.14%	15.27%
ITI Pharma and Healthcare Fund	₹16.40	₹226.5Cr	20.47%	–

(Data as on 14-10-2025)

1. Nippon India Pharma Fund

Nippon India Pharma Fund has a minimum SIP of ₹100 and is managed by Sailesh Raj Bhan. The fund invests in leading companies like Sun Pharma, Divi’s Labs, Lupin, Cipla, Dr. Reddy’s and Apollo Hospitals. The portfolio also includes companies like Medplus, Vijaya Diagnostic, GSK Pharma and Gland Pharma.

2. SBI Healthcare Opportunities Fund

SBI Healthcare Opportunities Fund has a minimum SIP of ₹500 and is managed by fund manager Tanmaya Desai. It invests in Sun Pharma, Divi’s Labs, Max Healthcare, Cipla, Lonza Group and Lupin and is suitable for long-term investors in the healthcare sector.

3. Tata India Pharma & Healthcare Fund

The minimum SIP of Tata India Pharma Fund is ₹100 and it is managed by Rajat Srivastava. The portfolio includes Sun Pharma, Cipla, Apollo Hospitals, Lupin, Repo Instruments, Healthcare Global, Torrent Pharma, Aster DM, Fortis and Alkem Laboratories.

4. UTI Healthcare Fund

The minimum investment in UTI Healthcare Fund is ₹500. Led by Fund Manager Kamal Gada, it invests in companies like Sun Pharma, Cipla, Ajanta Pharma, Lupin, Procter & Gamble Health and Dr. Reddy’s.

5. ICICI Prudential Pharma Healthcare & Diagnostics Fund

The minimum investment of ICICI Prudential Pharma Fund is ₹100. It is managed by Fund Manager Dharmesh Kakkad and the portfolio includes Sun Pharma, Dr. Reddy’s, Divi’s Labs, Cipla, Aurobindo Pharma, Lupin, Mankind Pharma, Alkem, Biocon and Tri-Party Repo.

6. DSP Healthcare Fund

DSP Healthcare Fund has a minimum investment of ₹100 and is managed by Chirag Dagli. The portfolio includes Cipla, Sun Pharma, Ipca Labs, Cohance Lifesciences, Laurus Labs and Gland Pharma.

7. LIC MF Healthcare Fund

LIC MF Healthcare Fund has a minimum SIP of ₹200. Led by Fund Manager Karan Doshi, it invests in Sun Pharma, Apollo Hospitals, Torrent Pharma, Cipla, Tri-Party Repo and Divi’s Labs.

8. Aditya Birla Sun Life Pharma & Healthcare Fund

Aditya Birla Sun Life Fund has a minimum SIP of ₹100. Fund Manager Dhaval Shah manages it and the portfolio includes Sun Pharma, Apollo Hospitals, Cipla, Fortis Healthcare, Abbott India and Torrent Pharma.

9. Mirae Asset Healthcare Fund

Mirae Asset Healthcare Fund has a minimum SIP of ₹99. Fund Manager Vrijesh Kasera manages it and the portfolio includes Sun Pharma, Divi’s Labs, Glenmark Pharma, Aurobindo Pharma, Cipla, Apollo Hospitals, Lupin, Dr. Reddy’s, Krishna Institute and Cohance Lifesciences.

10. ITI Pharma and Healthcare Fund

ITI Pharma Fund has a minimum SIP of ₹500 and is managed by Rohan Korde. The portfolio includes Sun Pharma, Divi’s Labs, Max Healthcare, Apollo Hospitals, Cohance Lifesciences and Torrent Pharma.

Why Consider Pharma Mutual Funds in 2025?

1. Continuous increase in demand

The demand for healthcare and medicines has increased rapidly after the COVID-19 pandemic. This has made “Pharma Mutual Funds” an attractive option for investors as they offer stability along with good returns.

2. Export boom and India’s global role

India’s pharma exports reached $27.9 billion in FY 2023-24, which is about 9.3% higher than the previous year. This growth was almost double the global average.

India is now called the “Pharmacy of the World” as it supplies more than half of the world’s generic medicines. India alone meets 40% of the US and 25% of the UK’s generic drug needs.

3. Government initiatives

The PLI (Production-Linked Incentive) scheme of the Government of India has given new impetus to the pharma sector. Investment and production capacity in projects related to drugs and medical devices have increased rapidly. These initiatives have made pharma mutual funds even more attractive for investors.

4.Strong domestic demand base

Increasing diseases, lifestyle challenges and ageing population in India are continuously increasing the demand for healthcare services. Also, the coverage of health insurance is also expanding rapidly, giving an additional boost to the pharma sector.

5. India on the global supply chain

India’s drug manufacturing capacity and quality standards (such as US-FDA and WHO-GMP) have continuously improved. Due to this, it has become a reliable part of the global supply chain and India’s role in the pharma industry has become stronger.

Key Things to Check Before Investing in Pharma Sector Mutual Funds

Performance record of the fund : Before investing in a pharma sector mutual fund, make sure to look at the CAGR (Compound Annual Growth Rate) of the last 3 years and 5 years. Funds that consistently perform well are considered reliable.
Expense ratio : Sector funds often have a slightly higher expense ratio. Funds with a lower expense ratio can give better returns for investors in the long run.
Expertise of the fund manager : Since pharma is a niche sector, it is very important to have an experienced fund manager. Their research and selection capabilities directly impact the returns.
Volatility : Pharma funds are defensive in nature but during a bull run, they can give lower returns than sectors like IT or banking. Investors should be prepared for this volatility.
Investment period : These funds are better suited for those with an investment horizon of 5 years or more. It is not right to expect them to last for a short period of time.
Who should avoid : Pharma funds are not suitable for investors who are looking for short-term gains or have very low risk.

Risks & Limitations of Pharma Mutual Funds

Sector Dependency : Pharma mutual funds invest primarily in pharma and healthcare companies. This means that if there is a downturn in the sector, the fund’s performance can be directly affected. For example, the success or failure of a new drug, competition and changes in demand in the market can directly impact the NAV.
Regulatory Risk : The healthcare sector is heavily regulated. FDA approvals, new drug policies, changes in drug prices or new government regulations can impact the fund’s performance. Sudden changes in regulations can lead to fluctuations in the fund’s returns.
Volatility : The pharma sector is sometimes very volatile. Events such as the success of new drugs, expiry of patents, mergers or global health crises such as COVID-19 can impact the sector, leading to rapid changes in the fund’s NAV.
Liquidity Risk : Some healthcare funds may have low liquidity. This means that if the investor wants to withdraw money immediately, it may take time. So invest only the amount that you can keep for a long period.
Portfolio Diversification : Investment in these funds is limited to only one sector, so the risk can be high. Therefore, experts recommend that the portfolio should also be invested in other sectors and asset classes so that the overall risk is reduced and the investment remains safe.

Read Also: Top 10 Fund Managers in India

Conclusion

If you want to invest in the health sector, Pharma mutual funds are a practical option. These funds can give good returns in the long term and also provide an opportunity to be a part of the growing demand of the health sector. Yes, sometimes returns can be affected due to fluctuations in the sector or new regulations. So do not rush, do some research and invest only after balancing your money. If you invest money wisely, these funds can become a safe and profitable source for you.

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Frequently Asked Questions (FAQs)

What are Pharma Mutual Funds?
Pharma mutual funds are funds that invest primarily in companies in the pharma and healthcare sector.
Who should invest in Pharma Mutual Funds?
Investors who want to participate in the long-term growth and growing opportunity of the healthcare sector can invest.
Are Pharma Mutual Funds risky?
Yes, there is some risk due to sector volatility and regulatory changes.
What is the minimum SIP amount?
The minimum SIP of most pharma mutual funds starts from Rs 100, but in some funds it can be Rs 500 or more.
How long should I invest in Pharma Mutual Funds?
It is better to have a long horizon of at least 3-5 years in these funds so that the returns are better and stable.

October 15, 2025

Category: Mutual Funds

Meaning of Nifty50 Index Fund

Best Nifty50 Index Fund

How does the Nifty50 Index Fund Work?

Benefits of Investing in the Nifty50 Index Fund

Risk of Investing in the Nifty50 Index Fund

Factors to Consider Before Investing in the Nifty50 Index Fund

Who Should Invest in the Nifty50 Index Fund

Difference Between Nifty50 and Nifty50 TRI

Conclusion

Frequently Asked Questions (FAQs)

What is a Nifty50 Index Fund?

What makes Nifty50 different from Nifty50 TRI?

What does the acronym TRI mean?

What is Tracking Error in a fund?

Do Nifty50 Index Funds actively manage their investments or not?

What Are Index Funds and How Do They Work?

How Index Funds Work?

10 Best Index Funds in India 2025

1. Motilal Oswal Nifty Midcap 150 Index Fund

Fund Performance

2. Nippon India Nifty Smallcap 250 Index Fund

Fund Performance

3. Nippon India Nifty Midcap 150 Index Fund

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4. DSP Nifty Next 50 Index Fund

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5. Motilal Oswal Nifty Smallcap 250 Index Fund

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6. Kotak Nifty Next 50 Index Fund

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7. Nippon India Nifty Next 50 Junior BeES FoF

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8. ICICI Prudential Nifty Smallcap 250 Index Fund

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9. Aditya Birla Sun Life Nifty Midcap 150 Index Fund

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10. Aditya Birla Sun Life Nifty Smallcap 50 Index Fund

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What is an Index Fund?

Are Index Funds good for beginners?

How much should I invest?

Which is better: Active or Index Fund?

Can I start a SIP in an Index Fund?

What Is a Large-Cap Fund?

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What Is a Mid-Cap Fund?

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Pros and Cons of Mid-Cap Funds

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Large Cap vs Mid Cap Funds: Key Differences

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Conclusion

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What is a large-cap fund in simple terms?

Which is safer, large cap or a mid-cap fund?

Can I invest in both large-cap and mid-cap funds?

Who should invest in mid-cap funds?

How long should I stay invested in large-cap funds?

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List of the Top 10 High-Return Mutual Funds in India

Factors to Evaluate Before Investing

1. Risk and Return Go Hand in Hand

2. Look for Consistency

3. The Fund Manager Matters

4. Watch the Expense Ratio

5. Time Is Your Best Friend

How to Choose the Right Fund

1. Decide Your Goal First

2. Know How Much Risk You Can Handle

3. Look at the Fund’s Track Record

4. SIPs Are a Great Place to Start