Best Equity Mutual Funds in India for Sep 2025: Bandhan Small Cap, ITI Small Cap and More Based on 3Y CAGR

Investing in equity mutual funds is a popular way for retail investors to participate in the financial market without having to directly pick and manage individual stocks. These funds pool money from multiple investors to invest primarily in shares of publicly listed companies, offering the potential for high returns over the long term.

These funds are managed by professional fund managers, designed to provide capital appreciation and help investors build wealth while diversifying risk across different sectors and companies. In this article, we’ll take a closer look at the best Equity mutual funds in India for Sep 2025 based on 3Y CAGR.

Best Equity Mutual Funds in India for Sep 2025

Note: The Equity Mutual Funds mentioned above have been selected and sorted based on 3Y CAGR with a minimum AUM of ₹ 1,000 Crore as of Aug 28, 2025

Overview of the Best Equity Mutual Funds in India

1. Bandhan Small Cap Fund

This is an open-ended equity scheme predominantly investing in small cap stocks. The scheme aims to create wealth over the long term by investments in equity and equity- related instruments of small cap companies.

• Expense Ratio: 0.40
• NAV: ₹45.72

2. Motilal Oswal Midcap Fund

An open-ended equity fund, which aims to achieve long term capital appreciation by investing in quality mid-cap companies having long-term competitive advantages and potential for growth.

• Expense Ratio: 0.70
• NAV: ₹118.25

3. Invesco India Midcap Fund

Invesco India Midcap Fund aims to derive capital appreciation over long-term by investments mainly in equity and equity-related instruments of midcap companies.

• Expense Ratio: 0.55
• NAV: ₹181.07

Also Read: Best Mutual Funds for Lump Sum Investments in India for September 2025

Conclusion

Equity mutual funds can be a powerful investment tool for those seeking long-term financial growth. While they do carry market-related risks, their ability to generate higher returns compared to traditional savings instruments makes them a preferred choice for wealth creation. By selecting the right fund based on your risk appetite and investment goals, and staying invested with a disciplined approach, you can leverage the full potential of equity mutual funds to achieve your financial goals.

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 in the securities market are subject to market risks, read all the related documents carefully before investing.