Business News: Mutual funds have surged in popularity among Indian investors seeking higher returns compared to traditional safe havens like fixed deposits (FDs) and post office schemes. While these conventional options offer stability, their modest returns often fall short of inflation. Mutual funds, though riskier, provide the potential for significant profits, making them an attractive addition to diversified portfolios. As of July 16, 2025, we explore the top four mutual funds that have delivered the highest returns over the past year, based on their one-year performance.
Top Mutual Funds
Top Performers of 2024-25Nippon India Small Cap Fund: This small-cap equity fund has topped the charts with a one-year return of approximately 48.5%. By focusing on high-growth small-cap companies, it capitalizes on undervalued businesses with strong fundamentals, though it carries higher volatility.
Discover the Top 4 Performers
Quant Small Cap Fund: Delivering a stellar 46.2% return, this fund leverages a dynamic, research-driven strategy to identify high-potential small-cap stocks, appealing to aggressive investors with a long-term horizon.
ICICI Prudential Thematic Advantage Fund: This thematic fund, with a one-year return of around 44.8%, invests in sectoral schemes, offering exposure to high-growth market trends like infrastructure and technology.
SBI Small Cap Fund: Known for its consistent performance, this fund posted a 42.3% return, focusing on quality small-cap stocks with scalable business models, balancing growth with risk management.
Top 4 Mutual Funds in India
Unlike FDs, which offer fixed returns of 6-7%, these top mutual funds have significantly outperformed, driven by India’s robust equity markets in 2024-25. However, their volatility requires investors to assess risk tolerance and investment goals. Professional management and diversification across sectors help mitigate risks, making these funds suitable for those with a medium-to-long-term outlook.
Mutual Funds Offering Superior Returns
Investors should evaluate funds based on past performance, expense ratios, and alignment with financial goals. While these top four funds have excelled, past returns don’t guarantee future results. Consulting a financial advisor and using tools like SIP calculators can help tailor investments to individual needs, ensuring a balance between risk and reward.
