Mutual funds are on the rise again. Check out these 5 bets in 2025

After a quiet patch, mutual funds are picking up speed again. With the stock market showing positive signs, more people are now turning to mutual funds to grow their money. India Today spoke to Swapnil Aggarwal, Director at VSRK Capital, to find out which five fund categories are worth considering in the current market.

Let’s have a quick look.

NIPPON INDIA SMALL CAP FUND

This fund puts money into small but fast-growing companies, says Swapnil Aggarwal. Often these emerging small-cap companies have strong growth potential.

If you’re someone who is an aggressive investor and can handle a bit of risk and stay invested for a few years, this fund could work well for you, he added.

As of May 2, 2025, the fund has delivered an annualised 3-year return of 22.21% and a 1-year return of 0.84%.

HDFC MIDCAP OPPORTUNITIES FUND

This one focusses on mid-sized companies that are established but still growing. It offers a middle ground, i.e., investing in these mutual funds is neither too risky, nor too dull. These funds are suitable if you are planning to stay invested for the long term and want steady growth, stated Aggarwal.

The fund’s 3-year annualised return stands at 25.23%, with a 1-year return of just 9.39%, as of May 2, 2025.

NIPPON INDIA GROWTH FUND

This fund invests in a mix of strong large-cap companies and promising mid-caps. It helps spread your money across different types of stocks, which can lower your overall risk.

Swapnil Aggarwal said that these funds are ideal for diversification as they offer both stability and growth.

On May 2, 2025, the fund reported a 3-year annualised return of 24.38% and a 1-year return of 10.94%.

ICICI PRUDENTIAL EQUITY & DEBT FUND

This hybrid fund combines the growth potential of shares with the stability of debt instruments, stated VSRK Capital’s Director.

He said these funds are better suited for conservative investors since they don’t move much with the market and offer a steadier, less risky journey.

The 3-year annualised performance of the fund is 19.62%, with a 1-year return of 11.02% as of May 2, 2025.

AXIS BLUECHIP FUND

This fund sticks to well-known, top-performing large-cap companies and is a good pick for beginners or anyone who wants to play it safe while still growing their money slowly over time, Swapnil Aggarwal mentioned.

Till May 2, 2025, the fund posted a 12.05% annualised return over three years and 7.95% over one year.