The Future of Best Nippon India Equity Mutual Funds in 2025 - A step by step guide
Mutual funds investment remains a favourite investment among Indian investors who want to accumulate wealth over time and realise their financial objectives. Nippon India Mutual Fund (formerly Reliance Mutual Fund), is among the leading fund houses in the country that remain at the top due to its good equity offerings, extensive product portfolio, good track record, and innovativeness. In this ultimate article, you would find all the information needed to know which are the best Nippon India equity mutual funds to consider in 2025.
What is Special to Nippon India Equity Funds?
Nippon India mutual fund also has a portfolio of curated equity programs that suit different risk profiles of the investors, and investment horizon. They have an equity fund that concentrates on practical research, fund management, and following a disciplined investment process.
Key Features or Highlights
- Offers large, mid, small and hybrid capital diversified equity schemes.
- Good portfolio group and expertise of more than 20 years.
- Open investment procedure and frequent disclosures.
- Record of appealing long term wealth creation.
Pros and Cons
Pros
- Strong track record where there are funds that have continuously outperformed the benchmarks.
- Broad selection of risk appetites.
- Both SIP and lump sum investment option.
Cons
- There are some sector and small cap bets which are volatile in the short run.
- Some of the funds have been experiencing short-term poor performance in shifting market cycles.
Expert opinion: According to 2025 forecasts, the active equity funds of Nippon India have performed well in risk adjusted returns, particularly in mid and large cap, as per the Value Research and Morningstar ratings.
People also ask:
Question: Can Nippon India Mutual Fund be considered as safe equity investment in 2025?
A: The equity funds of Nippon India are governed by SEBI, run by well-known experts and publish their portfolios periodically, however, any equity investment has a short-term risk like any other investment.
What are the best Nippon India Large Cap Funds to invest in by 2025?
Two of the best options in the large cap equity mutual fund category of 2025 are Nippon India Large Cap Fund and Nippon India Index Fund Nifty 50 Plan. Large cap fund is investment in businesses with a good track record and good financials and hence is appropriate in terms of risk to conservative and moderate risk investors.
Nippon India Large Cap Fund
The flagship offering is mainly invested in bluechip stocks of the Nifty 100 universe. It is controlling approximately [?]13,000 crore in assets as of April 2025 with a 10-year CAGR of nearly 12.6 percent, which is better than its benchmark.
Key Features or Highlights
- Maximum 60 stock diversified portfolio.
- In large cap allocates minimum 80 percent.
- Ran by a skilled fund manager Ashwani Kumar.
Pros and Cons
Pros
- Fairly consistent during declines in the market.
- Stable alpha in 3, 5 and 10 years.
Cons
- Low upside in high growth bull runs.
- Less exposure to small cap ideas of the new economy.
Comparison of Returns and Expense Ratio (2025)
| Fund Name | AUM ([?] Crore) | 5Y CAGR (%) | Expense Ratio (%) |
|---|---|---|---|
| Nippon India Large Cap Fund (IDCW) | 13,000 | 12.1 | 1.75. |
| Nippon India Index Fund Nifty 50 Plan | 2,350 | 11.7 | 0.39. |
Did you know?
Well managed large cap funds, such as Nippon India Large Cap Fund, have bridged the performance variance with passive index funds between 2023 and 2025 because performance in the market has increased in volatility.
Can Nippon India Mid Cap and Small Cap Funds be good 2025?
Mid cap and small cap segments are often considered by investors who would invest more risk and have greater growth potential. Here Nippon India Growth Fund (mid cap) and Nippon India Small Cap Fund are the leaders.
Nippon India Mid Cap Growth Fund.
The fund is dedicated to the mid-cap companies that are robust and rapidly developing in India. It has been rated as one of the best companies in its category, with a 5-year CAGR (2020-25) of 15.4 percent.
Key Features or Highlights
- Invests between 65 and 80 percent of quality mid-cap businesses.
- Areas such as pharmaceuticals, engineering, finance, chemicals highlighted.
Pros and Cons
Pros
- Large payoff during booms in the economy.
- Diversification that is superior to single sector midcap offerings.
Cons
- Greater volatility at the time of economic downturns.
- Can be underperforming in case mid-cap cycle is weak.
Nippon India Small Cap Fund
It is a fund that is known to identify the future market leaders early. It leads in the small-cap category by AUM ([?]45,800 crore as of March 2025) and has an excellent 10-year performance track record.
Key Features or Highlights
- 150-200 stocks in small capital portfolio.
- Established success in early recognition of performers.
Pros and Cons
Pros
- Long-term excellent growth of opportunity.
- Diversified to take away the risk of single stocks.
Cons
- Higher volatility and risk
- May experience drastic declines in bear markets.
People also ask:
Q: Is it advisable that a new investor should begin with small cap funds of Nippon India?
A: Small cap funds can only be used by people with high risk appetite and long term investment horizon preferably 57 years.
Expert insight:
According to experts, SIP investment and incremental allocation in small cap and mid cap funds is advisable because of the high market valuations at present in 2025.
What of Nippon India Hybrid Equity Funds?
The hybrid fund is an investment that blends debt and equity to stabilize the growth with a certain degree of stability. Their 2025 flagship Balanced/Hybrid fund is Nippon India Equity Hybrid Fund..
Nippon India Equity Hybrid Fund
It is a dynamic asset allocation fund comprising of 65-80 percent of equities with the remaining amount in the form of debt and money market securities, which is appropriate in moderate risk profiles.
Key Features or Highlights
- Alters the equity and debt ratio according to market forecast.
- Less volatile as compared to pure equity funds.
- [?]10,500 crore, 5-year CAGR of 11.4 percent (2020-25)
Pros and Cons
Pros
- Minimizes the effects of market corrections.
- Rebalancing on a regular basis will lead to disciplined asset allocation.
Cons
- It is not as profitable as pure equity funds during long bull markets.
- The allocation of debt might not perform well in the falling interest rate.
Did you know? A hybrid mutual fund will be best suited to first-time mutual fund investors or investors who are seeking regular income and a decent growth.
What is the performance of Nippon India Thematic and Sectoral Equity funds?
Nippon India has funds such as Nippon India Pharma Fund, Nippon India Banking, Nippon India Consumption Fund, and others that investors could use to play particular themes in 2025.
Key Features or Highlights
- Makes investments in areas of specialization or investment theme.
- Increased risk-return profile than the diversified funds.
Pros and Cons
Pros
- A possibility of performing in the bull runs in the sector.
- Helps also maximize diversification through distinctive themes.
Cons
- Higher risk because of concentration in the sector.
- May poor performance on theme losing momentum.
Snapshot [3-Year CAGR as of April 2025] Returns.
| Fund Name | 3Y CAGR (%) |
|---|---|
| Nippon India Pharma Fund | 19.8 |
| Nippon India Consumption Fund | 17.5. |
| Nippon India Banking Fund | 14.6 |
People also ask:
Q: Should thematic funds be used by long term investors?
A: Thematic funds can be value adding, however, they are better to be used as satellites and not as core holdings.
Expert insight:
The pharma and consumption industries remain a strong sphere in 2025 in terms of positive policy backup and transforming consumer behaviour in India.
What is the Best way to select an investment in Nippan India Equity Fund?
Most of the time when you determine the equity mutual fund the choice depends on your financial objective, risk tolerance, investment duration, and fund performance. The following is the way in which you can shortlist the appropriate Nippon India fund to your portfolio:
- State investment goals (wealth building, children education, etc)
- Evaluate your comfort with the good times and bad times in the market.
- Compare fund track record(returns, volatility, expense)
- Favour SIPs cost averaging in rupee.
- Seek the advice of a financial advisor in case of doubts regarding the market cycles.
Popular Nippon India Equity Funds 2025 Quick Comparison Table.
| Fund Name | Fund Category | AUM ([?] Cr) | 5Y CAGR (%) | Risk Level |
|---|---|---|---|---|
| Nippon India Large Cap | Large Cap | 13,000 | 12.1 | Moderate |
| Nippon India Growth Fund | Mid Cap | 8,900 | 15.4 | High. |
| Nippon India Small Cap | Small Cap | 45,800 | 18.6 | Very High. |
| Nippon India Equity Hybrid | Hybrid Aggressive | 10,500 | 11.4 | Moderate |
| Nippon India Pharma Fund | Sectoral | 2,600 | 19.8 (3Y) | High. |
What Will Nippon India Equity Mutual Funds Tax Implications be (2025)?
- Mutual funds that are based on equity will receive 15 percent of short term capital gains tax (when the life is below 12 months)
- In terms of long-term capital gains: above 12 months Holding above 12 months will be taxed at 10 percent, with no indexation.
- SIP investments computes each instalment as an independent purchase.
- The correct tax planning can make the post-tax returns better to those investors who opt to remain long-term.
Did you know? Certain investors like the equity arbitrage funds or balanced advantage funds are tax efficient and have a moderate equity exposure.
TLDR / Quick Recap
- Nippon India has a range of equity mutual funds that are performing well, which are large cap, mid cap, small cap, hybrid and sectoral.
- The best investments to make in 2025 are Nippon India Large Cap fund, Small Cap fund, Growth fund, and Equity hybrid fund.
- Critical are diversification, track record as well as alignment to the risk profile.
- Sector and thematic funds will increase returns at the expense of increased risk.
- It recommends the use of SIP route to average risk with equity mutual funds.
People Also Ask
Question: What is the best Nippon India equity mutual fund to invest in 2025 among new investors?
A: Nippon India Large Cap or Hybrid Equity Fund has a lower volatility and a track record and is therefore a good place to start.
Q: Are the Nippon equity funds better in SIP or lump sum?
A: SIP allows the averaging of the market swings and hence is more favorable to most retail investors.
Q: What is the best way to monitor the performance of Nippon India equity funds?
A: track using fund fact sheets, AMFI India portal and rating agencies such as value research and Morningstar.
Q: May I change Nippon India funds without any charge?
A: Switches are permitted on most funds though exit loads (typically 1 percent over 1 year) and tax considerations should be considered.
Q: Are Nippon India equity mutual funds the good option to promote long-term wealth creation?
A: They are professionally controlled, regulated and they are fit to long-term investors who are comfortable taking risks in their equity.
Q: What is the maximum amount of money that one can invest in Nippon India equity funds through SIP?
A: Most schemes have a minimum SIP of [?]100; but the maximum amount is not specified.
Sources
- SEBI, AMFI
- Nippon India Mutual Fund,
- Value Research and Morning star India.
