If you’re looking to invest in equity mutual funds and want your money in schemes that not only performed well but also command the highest investor trust through massive assets under management (AUM), this story is for you. Parag Parikh Flexi Cap Fund, among the 5 largest equity mutual funds in the country, rated 5 stars by Value Research, has ranked first in terms of asset size in 2025. These funds have given better returns to investors as well as stable performance in the long term.
Top 5 funds by AUM carrying 5-star ratings
These top 5 funds — Parag Parikh Flexi Cap Fund, HDFC Mid Cap Fund, HDFC Flexi Cap Fund, ICICI Prudential Large Cap Fund and Nippon India Small Cap Fund — have been selected from more than 1,000 active equity mutual funds across the country. All funds have received a 5-star rating from Value Research. For review purpose, the returns of their direct plans have been taken into account here. These funds have been ranked at the top on the basis of asset size, risk management, long-term returns and credibility of the fund house.
Now let us understand the features of these five top-rated equity mutual funds in detail — their asset under management, investment strategy, who manages them and what kind of returns they have given in 1 year, 3 years, 5 years or long term. Based on these figures, it will be easy for investors to decide which fund is most suitable as per their profile and goals.
1. Parag Parikh Flexi Cap Fund
Launch Date: 24-May-2013
Return Since Launch: 19.88%
Benchmark: NIFTY 500 TRI
Riskometer: Very High
Assets Under Management (AUM): Rs 1,10,392 Cr (As on 30-Jun-2025)
Expense Ratio: 0.63% (As on 31-Jul-2025)
Fund manager(s) – Mansi Kariya, Rajeev Thakkar, Raunak Onkar, Rukun Tarachandani, Raj Mehta
The Parag Parikh Flexi Cap Fund – Direct Plan has a diversified portfolio with a focus on quality stocks across sectors. As of the latest data, its top holdings include HDFC Bank (8.06%), Bajaj Holdings (6.93%), Power Grid Corporation (6.09%), Coal India (5.75%), and ICICI Bank (4.78%).
Parag Parikh Flexi Cap Fund returns across various timeframes
1-Year Return: 7.02%
3-Year Return: 21.69% (annualised)
5-Year Return: 24.48% (annualised)
10-Year Return: 18.15% (annualised)
2. HDFC Mid Cap Fund
Launch Date: 01-Jan-2013
Return Since Launch: 21.21%
Benchmark: NIFTY Midcap 150 TRI
Riskometer: Very High
Assets Under Management (AUM): ₹84,061 Cr (As on 30-Jun-2025)
Expense Ratio: 0.74% (As on 31-Jul-2025)
Fund manager(s) – Chirag Setalvad
The HDFC Mid Cap Fund – Direct Plan maintains a focused and strategic mid‑cap equity portfolio, highlighting a blend of financial services and industrial players with strong growth prospects. Its top five holdings are Max Financial (5.02%), Coforge (3.44%), The Federal Bank (3.24%), AU Small Finance Bank (2.97%), and Hindustan Petroleum (2.89%).
HDFC Mid Cap Fund returns across timeframes
1-Year Return: 3.48%
3-Year Return: 27.42% (annualised)
5-Year Return: 31.75% (annualised)
10-Year Return: 18.03% (annualised)
3. HDFC Flexi Cap Fund
Launch Date: 01-Jan-2013
Return Since Launch: 17.01%
Benchmark: NIFTY 500 TRI
Riskometer: Very High
Assets Under Management (AUM): ₹79,585 Cr (As on 30-Jun-2025)
Expense Ratio: 0.72% (As on 31-Jul-2025)
Fund manager – Roshni Jain
The HDFC Flexi Cap Fund – Direct Plan has a strong focus on the financial sector, with its top holdings dominated by leading private banks and an insurance company. The fund’s top five investments include ICICI Bank (9.27%), HDFC Bank (9.05%), Axis Bank (7.84%), SBI Life Insurance (4.62%), and Kotak Mahindra Bank (4.49%).
HDFC Flexi Cap Fund returns across timeframes
1-Year Return: 6.88%
3-Year Return: 23.69% (annualised)
5-Year Return: 29.31% (annualised)
10-Year Return: 15.75% (annualised)
4. ICICI Prudential Large Cap Fund
Launch Date: 01-Jan-2013
Return Since Launch: 15.93%
Benchmark: NIFTY 100 TRI
Riskometer: Very High
Assets Under Management (AUM): ₹72,336 Cr (As on 30-Jun-2025)
Expense Ratio: 0.85% (As on 31-Jul-2025)
Fund manager(s) – Anish Tawakley, Vaibhav Dusad, Sharmila D’silva
The ICICI Prudential Large Cap Fund – Direct Plan maintains a high-conviction portfolio with a strong tilt towards market leaders in banking, energy, infrastructure, and telecom. Its top holdings include HDFC Bank (9.69%), ICICI Bank (8.75%), Reliance Industries (6.30%), Larsen & Toubro (6.09%), and Bharti Airtel (4.71%).
ICICI Prudential Large Cap Fund returns across timeframes
1-Year Return: 2.42%
3-Year Return: 19.18% (annualised)
5-Year Return: 22.72% (annualised)
10-Year Return: 14.50% (annualised)
5. Nippon India Small Cap Fund
Launch Date: 01-Jan-2013
Return Since Launch: 25.33%
Benchmark: NIFTY Smallcap 250 TRI
Riskometer: Very High
Assets Under Management (AUM): ₹66,602 Cr (As on 30-Jun-2025)
Expense Ratio: 0.64% (As on 31-Jul-2025)
Fund manager – Samir Rachh
The Nippon India Small Cap Fund – Direct Plan pursues a portfolio strategy geared toward high-potential small-cap opportunities, characterized by a focused but diversified approach. Its top five holdings are MCX (2.49%), HDFC Bank (2.00%), Kirloskar Brothers (1.58%), Karur Vysya Bank (1.28%), and Elantas Beck India (1.24%).
Nippon India Small Cap Fund returns across timeframes
1-Year Return: -4.14%
3-Year Return: 26.15% (annualised)
5-Year Return: 36.61% (annualised)
10-Year Return: 21.39% (annualised)
(Data: Value Research, AMFI)
Don’t go by AUM or returns alone — make informed mutual fund choices
However, it is not wise to invest in any mutual fund only by looking at the fund’s large AUM, past returns or its famous name. Investors should also look at important aspects like the fund’s investment strategy, risk profile, expense ratio, portfolio diversification and your financial goals. Also, it is always a safe and prudent move to consult a SEBI-registered mutual fund advisor before making an investment decision.
Disclaimer: The above content is for informational purposes only. Mutual Fund investments are subject to market risks. Please consult your financial advisor before investing.