Best Mutual Funds to Invest in December 2025

1. Which mutual funds are performing best in December 2025?

The leading performers include Parag Parikh Flexi Cap Fund, HDFC Mid Cap Fund, Nippon India Small Cap Fund, and ICICI Pru Multi-Asset Fund based on strong 3-year CAGR and stable AUM.

2. Are Flexi Cap Funds good for long-term investing?

Yes, Flexi Cap Funds are suitable for long-term growth because they invest across large, mid, and small-cap stocks, offering flexibility in changing markets.

3. Why are Mid-cap Funds showing strong returns?

Mid-cap companies have been growing rapidly, and this has helped Mid-cap Funds like HDFC Mid Cap Fund and Kotak Midcap Fund deliver a high 3-year CAGR.

4. Which funds are suitable for low-risk investors in 2025?

Liquid funds such as SBI Liquid Fund, HDFC Liquid Fund, and arbitrage options like Kotak Arbitrage Fund offer low-risk and stable short-term returns.

5. What factors should be considered before investing in mutual funds?

Important factors include the fund’s 3-year CAGR, AUM size, expense ratio, category performance, and alignment with personal financial goals.