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While headline indices delivered only moderate gains, fund selection and category allocation played a decisive role
Mutual Funds In 2025
2025 Mutual Fund Scorecard: Calendar year 2025 was defined by uneven equity performance, sharp style rotation and renewed investor interest in hard assets and global diversification. While headline indices delivered only moderate gains, fund selection and category allocation played a decisive role, resulting in wide dispersion across mutual fund categories.
Diversified equity strategies that combined flexibility with valuation discipline clearly outperformed, while funds with heavy exposure to overheated segments struggled.
Below is a comprehensive scorecard of mutual fund performance in 2025, as of December 19.
Category-wise leaders
Based on category averages, silver funds emerged as the top-performing category, followed by gold funds, international funds, auto and transportation funds, and banking sector funds.
- Silver funds: 128%
- Gold funds: 71%
- International diversified funds: 28%
- Auto & transportation funds: 16%
- Banking sector funds: 14.5%
Equity Funds
Large-cap funds
Large-cap strategies delivered the most stable returns among market-cap segments, supported by valuation comfort and earnings visibility.
- Top performer: ICICI Prudential Large Cap Fund (10.1%)
- Followed by: Mirae Asset, SBI, Aditya Birla SL and Nippon India (7.9%–8.9%)
Large & midcap funds
One of the strongest diversified categories in 2025, benefitting from selective midcap exposure without excessive risk.
- Top performer: ICICI Prudential Large & Midcap Fund (12.13%)
- Others: SBI, Mirae Asset, Franklin India, Helios (6.6%–8.4%)
Midcap funds
Despite strong absolute returns, volatility remained high, leading to sharp performance divergence.
- Top performer: ICICI Prudential Midcap Fund (8.23%)
- Bottom performer: –11.78%
Smallcap funds
Clear underperformers as valuation excesses corrected sharply.
- Top performer: Quantum Small Cap Fund (1.81%) — the only positive return
- Others delivered losses between –1.56% and –1.88%
Flexicap & focused funds
Among the best risk-adjusted performers due to tactical asset allocation.
- Flexicap leader: HDFC Flexi Cap Fund (10.11%)
- Focused leader: ICICI Prudential Focused Equity Fund (14.6%)
Multi-cap funds
Mandatory exposure across market caps offered better downside protection.
- Top performer: Mirae Asset Multicap Fund (6.6%)
Value & Contra funds
A quiet comeback driven by rotation into cyclicals and undervalued sectors.
- Top performer: ICICI Prudential Value Fund (12.8%)
ELSS (Tax Saver Funds)
Moderate yet steady returns led by value- and flexi-oriented strategies.
- Top performers: HDFC ELSS and Aditya Birla SL ELSS (8.97%)
Sectoral Funds
- Banking & financial services: Quant (20%), DSP (19.2%)
- Auto & transportation: HDFC Transportation & Logistics (19%), UTI (17.5%)
- Commodities & energy: ICICI Prudential Commodities (12.9%)
Global & International Funds
International diversification proved effective amid domestic volatility.
- Top overall fund: DSP World Gold Mining Overseas Equity FoF (161%)
- ICICI Pru Strategic Metal & Energy FoF: 65.13%
- HSBC Brazil Fund: 50.91%
- Edelweiss Europe Dynamic Equity Offshore: 48%
Gold & Silver Funds
Precious metals dominated returns in 2025.
- Top silver fund: SBI Silver ETF FoF (130.65%)
- Top gold fund: Quantum Gold FoF (71.85%)
Hybrid Funds
Asset allocation strategies shone during equity volatility.
Multi-asset funds
- Top performer: Invesco India Multi Asset Allocation Fund (21.16%)
Balanced advantage funds
- Top performer: ICICI Prudential Balanced Advantage Fund (11.45%)
Other hybrid categories delivered category-average returns ranging from 5.1% to 7.11%.
Debt Funds
Rate cuts boosted bond valuations.
- Corporate bond funds: 7.4% average
- Top credit risk fund: DSP Credit Risk Fund (20.77%)
- Gilt funds, duration funds, liquid and money market funds delivered 5.5%–7.5%
The sharp divergence in mutual fund performance in 2025 reinforced the importance of asset allocation across equity styles, precious metals, debt and global markets to build resilient portfolios.
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December 29, 2025, 07:56 IST
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