Best Equity Mutual Funds in India for January 2025 – Based on 5-Yr CAGR

As we approach January 2025, the equity mutual fund landscape in India is becoming increasingly attractive, with many funds delivering strong returns.

As of November 30, 2024, the number of schemes across various categories continued to grow, with significant funds mobilised across both open-ended and close-ended schemes.

As per the latest AMFI data, equity-oriented schemes, which include categories like Multi-Cap Funds, Large Cap Funds, Mid Cap Funds, and others, contributed significantly to the AUM, with net inflows for the month of November 2024 totalling ₹60,363.70 crore. The total Assets Under Management (AUM) for equity-oriented mutual fund schemes stood at ₹30,35,915.64 crore in November.

Given this growth, January 2025 offers a favourable period for evaluating investment opportunities in equity mutual funds.

Based on the 5-year CAGR, we’ve identified the best-performing equity mutual funds for you.

Top Equity Mutual Funds in India For 2025 – 5yr CAGR Basis

Note: The top equity mutual funds listed here are as of December 24, 2024. The funds are sorted based on the 5-year CAGR.

Overview of the Top Equity Mutual Funds in India

• Quant Small Cap Fund

The Quant Small Cap Fund aims to generate capital appreciation by investing in a well-diversified portfolio of small-cap companies that have the potential for high growth. The fund requires a minimum SIP amount of ₹1,000 and a minimum one-time investment of ₹5,000, with an exit load of 1% if redeemed or switched out within 1 year from the date of allotment.

As of the end of November 2024, the Quant Small Cap Fund had its top two sector allocations in Services (17.08%) and Healthcare (16.86%), with top stock holdings including Reliance Industries (Energy), JIO Financial (Financial), and Aditya Birla Fashion and Retail (Services).

Key metrics: 

• NAV: ₹278.59 as of December 23, 2024.
• CAGR 3Y: 27.34%.

• Bank of India Small Cap Fund

The Bank of India Small Cap Fund seeks to generate long-term capital appreciation by predominantly investing in equity and equity related securities of small cap companies. The fund requires a minimum SIP amount of ₹1,000 and a minimum one-time investment of ₹5,000.

As of the end of November 2024, the Bank of India Small Cap Fund had its top two sector allocations in Capital Goods (17.20%) and Healthcare (13.89%), with top stock holdings including PCBL (Chemicals), Ami Organics (Healthcare), and Vijaya Diagnostic Centre (Healthcare).

Key metrics: 

• NAV: ₹54.54 as of December 23, 2024.
• CAGR 3Y: 24.98%.

• Nippon India Small Cap Fund

The Nippon India Small Cap Fund seeks to generate long-term capital appreciation by predominantly investing in equity and equity related instruments of small cap companies. The fund requires a minimum SIP amount of ₹100 and a minimum one-time investment of ₹5,000.

As of the end of November 2024, the Nippon India Small Cap Fund had its top two sector allocations in Capital Goods (19.94%) and Financial (11.11%), with top stock holdings including HDFC Bank (Financial), Tube Investments of India (Automobile), and MCX (Services).

Key metrics: 

• NAV: ₹194.23 as of December 23, 2024.
• CAGR 3Y: 28.41%.

• Quant Infrastructure Fund

The Quant Infrastructure Fund aims to invest predominantly in equity and equity-related instruments of companies in the infrastructure sector. The fund requires a minimum SIP amount of ₹1,000 and a minimum one-time investment of ₹5,000.

As of the end of November 2024, the Quant Infrastructure Fund had its top two sector allocations in Energy (28.16%) and Construction (24.81%), with top stock holdings including Reliance Industries (Energy), ITC (Consumer Staples), and Larsen & Toubro (Construction).

Key metrics: 

• NAV: ₹42.71 as of December 23, 2024.
• CAGR 3Y: 25.18%.

• Canara Robeco Small Cap Fund 

The Canara Robeco Small Cap Fund seeks to generate capital appreciation by investing predominantly in small cap stocks. The fund requires a minimum SIP amount of ₹1,000 and a minimum one-time investment of ₹5,000.

As of the end of November 2024, the Canara Robeco Small Cap Fund had significant sector allocations in Services and Capital Goods, with top stock holdings including MCX (Services), Kaynes Technology India (Capital Goods), and Kei Industries (Capital Goods).

Key metrics: 

• NAV: ₹44.01 as of December 23, 2024.
• CAGR 3Y: 22.64%.

Conclusion

Equity mutual funds can offer attractive returns, but it is essential to align your investment choices with your financial goals and risk tolerance. While the funds listed here have demonstrated impressive 5-year CAGR performance, it’s important to note that past performance is not always indicative of future returns. Mutual fund investments should be based on a clear understanding of your investment objectives. Consulting a financial advisor can provide valuable insights and help ensure that your investments are tailored to your specific needs.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.