Mutual Fund Compare India - A Guide to 2025
Mutual funds will be one of the best investments among myriads of Indian families and professionals in 2025. Hundreds of schemes, various types of funds available, and even new regulations have made the comparison of the mutual funds in India an important way in which investors can hope to achieve higher returns, tax-efficacy, and financial objectives. This step by step selection aids you to compare mutual funds in India, learn about their characteristics, compare their performance, and make sound judgments according to your individual needs.
What are Mutual Funds?
Mutual funds are expertly managed investment products that combine the assets of several investors to purchase a properly diversified portfolio of securities in the form of stocks, bonds or any other securities. There are thousands of schemes in different categories of schemes present in the Indian market today including equity, debt, hybrid, sectoral, ELSS, and global. All the funds have their own risk, return, cost, and strategy parameters.
Why Mutual Funds should be compared?
The large range of options presents a tremendous challenge in the selection of the appropriate mutual fund. Mutual fund comparisons can make you sieve out the noise of mutual funds, invest based on risk and avoid poor or costly funds.
Mutual funds comparison has some major characteristics.
- Makes it easy to make a decision by both beginners and more advanced investors.
- Helps suit your objectives (short term, long term, retirement, tax planning)
- Makes risk, returns returns, expenses, ratings, and so on more clear.
- Critical in 2025 because SEBI regulations, taxation, cost ratios, and products keep on varying.
Did you know?
AMFI reports disclose that more than 4 crore Indians are investing in SIPs at the current time, which is 17 percent higher than in 2024. There has never been a greater need to make smart comparison.
The Comparison of mutual funds in India
In order to compare Indian mutual funds with certain confidence, it is possible to draw attention to the following aspects:
- Category and type of fund
- Previous performance (1, 3, 5-year annualized returns)
- Expenses and cost structure.
- Fund manager track record and experience.
- Volatility, beta, Sharpe ratio: risk level.
- Assets under management (AUM)
- Portfolio information and industry allocation.
- Exit load and lock-in period
- Tax consequences (with 2025 following the recent changes).
- Fund house reputation
Pros:
- Employees are able to shortlist high performers.
- Allows one to use the same money to different causes (child education, retirement, house buying)
- Eschews redundancy and overrewarding.
Cons:
- May appear intimidating to new investors.
- The history of performance does not necessarily mean the same thing to be done in the future.
- Alterations in regulations are very frequent which can affect fund ranking.
Key insight
It is not sufficient to compare returns just past in 2025. Shareholders should examine rates of expenses and consistency of the managers. It is better to have a low cost regular player rather than a star once in a lifetime. – Amit Agarwal, CFP, Mumbai
People also ask
What type of mutual fund would be safer to beginners in India?
Mostly, big cap or balanced hybrid funds are less risky than pure small cap and sectoral funds, thus suitable to beginner investors.
Comparison of Equity mutual funds in India
The shares of companies are primarily invested in the equity mutual funds. They are still the best in the long-term wealth generation in 2025 but need to be examined.
In the case of equity funds, pay attention to:
- Fund category (large cap, mid cap, small cap, flexi cap, ELSS)
- CAGR (Compound Annual Growth Rate) 3, 5 and 10 years.
- Sharpe ratio, risk-adjusted returns, Standard deviation, beta.
- Best holdings and industry concentration.
- Regularity of returns between market cycles.
- Fund size and liquidity
The comparison of mutual funds on equity funds points out
- Big cap funds: Predictable, less risky.
- Mid-cap funds and small cap funds: High risk, high growth.
- ELSS: Tax saving under 80C, and will be locked in over 3 years.
| Fund Name | Category | 3 years CAGR | Expense Ratio | Sharpe Ratio | AUM (in Cr) |
|---|---|---|---|---|---|
| Axis Bluechip | Large Cap | 13.2% | 0.53% | 0.87 | 36,800 |
| HDFC Midcap Opp | Mid Cap | 20.7% | 0.77% | 1.04 | 47,200 |
| SBI Small Cap | Small Cap | 22.5% | 0.90% | 1.10 | 21,400 |
| Quant Tax Plan | ELSS | 24.1% | 0.78% | 1.18 | 6,120 |
Pros:
- High returns are possible as compared to other instruments.
- Tax benefits in ELSS
Cons:
- Volatility risk particularly among small and mid-cap funds.
- Market cycles are associated with returns.
Did you know?
Flexi-cap funds According to the past ten years, flexi-cap funds have become popular because they can shift between large and mid caps. It is agile in turbulent markets. – Surabhi K, Investment advisor.
People also ask
Should one invest in direct or in regular mutual funds?
Direct funds are also less expensive as they are bought directly with the fund house and they pay better in the long run than the normal funds obtained via distributors.
The comparison of Debt and Hybrid Funds in 2025
Debt mutual funds are conservative in terms of returns and risk and mostly invest in government and corporate bonds. Hybrid funds combine both equity and debt in order to give a balance.
Comparison factors of debt and hybrid funds.
- Yield-to-maturity (YTM) and average maturity.
- Quality of portfolio credit (AAA, AA, A ratings)
- Sensitivity to Duration and interest rate.
- Past returns (1, 3, 5 years)
- Expense ratio, exit loads
- Type of hybrid fund (aggressive, conservative, balanced advantage)
| Fund Name | Category | YTM | 1-Year Return | Expense Ratio | AUM (Cr) |
|---|---|---|---|---|---|
| ICICI Pru Liquid | Debt (Liquid) | 6.1% | 6.5% | 0.22% | 41,500 |
| SBI Magnum Short (Short term) | 7.2% | 8.3% | 0.35% | 18,800. | |
| HDFC Hybrid Equity | Aggressive Hybrid | 8.9% | 11.7% | 1.09 | 33, 200. |
| Edelweiss Balanced Adv | Balanced Adv | 7.4% | 10.6% | 0.82% | 13,900 |
Pros:
- Less risk of the pure equity funds.
- Consistent revenue among the traditional investors.
- Appropriate when dealing with short-term and medium-term objectives.
Cons:
- Returns could be influenced by interest rate and credit risk.
- Low potential compared to equity funds.
- The more equity allocation, the more risk may be taken by a hybrid fund than expected.
Expert insights
Dynamic bond funds are being made interesting by the movements of interest rates of RBI in 2024 and 2025 which change the duration of the bonds according to the prospect of the rates. The initial point is that the company is not a recent start-up venture, but one that has already been established as a successful business.<|human|>- Rajesh Jhunjhunwala, Investment Analyst. The first one is that the company is not a new start-up company, but an already proven successful business.
People also ask
Am I assured of losing money in debt mutual funds?
Debt funds are less risky but not without risk since interest rates may fluctuate or the lower rated bonds default. Check the credit profile of the portfolio always.
Comparing Fund Performance and Ratings.
Although returns are the crucial factor, performance benchmarking and ratings are used to make better decisions. Top rating agencies such as the CRISIL, Morningstar and Value Research rate mutual funds according to returns, risk measures and consistency.
Factors to compare
- Rolling returns (not to point to point returns)
- Adjusted returns, risk-adjusted, Sharpe, Sortino, Alpha.
- Same category peer comparison.
- Trading during slumps and booms.
- History and track record of ratings.
Pros:
- Rolling returns focus on actual performance through the removal of market timing biases.
- High quality funds are filtered very fast in star rating.
Cons:
- The approaches of various agencies might be marginally different.
- Good ratings do not last forever, they need to be reviewed on a regular basis.
Highlights
Any 4 or 5-star rating of funds by various agencies will be better managed and more consistent.
Never blindly follow your rating; never pursue high returns.
Did you know?
Other funds that had high past ratings have failed following departure of managers or change of strategy. Stability of management should be checked just as ratings should be checked.
People also ask
How frequently is my mutual fund portfolio to be reviewed?
In most cases, it is enough to reconsider your mutual fund holdings at least once a year or in case of significant changes in the market, unless you have changed your objectives or financial position.
What Are the Primary Costs and Taxation Changes to Mutual Funds in India 2025?
Both mutual funds costs and tax regulations in 2025 are changed as compared to the past years. These affect your actual returns.
Key aspects of comparison.
- Expense ratio: This shows the yearly expenditure of the fund. Lower is better for net gains.
- Exit load This is a fee charged on leaving scheme before 1 year on equity schemes.
- Others: There are additional charges on some international or fund-of-funds.
Taxation updates 2025:
- Equity fund: Long term capital gains (LTCG) in excess of Rs. 1 lakh subject to taxation of 10 percent. Short term income is taxed at 15 percent.
- Debt fund: All returns subject to tax according to slab of investor after April 2023 rule change (no LTCG benefit when purchased after April 2023).
- ELSS: Tax exemption of up to 80C up to Rs. 1.5 lakh, however, with 3 year lock-in only.
Pros:
- Appropriate tax planning contributes to actual post-tax returns.
- Diversity in expense ratios may result in significant returns gap in 10+ years.
Cons:
- Rules on taxes are dynamic and might need review on an annual basis.
- There are various foreign currency and taxation risks of international funds.
People also ask
Are the returns in the mutual funds subject to tax in India?
Yes, there is a capital gains tax on returns of mutual funds depending on the kind of scheme and holding period.
Why 2025: How to Use Online Mutual Fund Comparison Tools?
In India, an increasing number of websites like Value Research, Morningstar, Moneycontrol, Groww and ETMoney provide detailed options to compare, analyze and track funds of mutual funds.
Mutual fund comparison site characteristics.
- Sort and filter by type, risk, returns, expense, ratings.
- Comparison of up to 3-5 funds side-by-side.
- Fund manager updates, reviews and news.
- SIP and investment goal planners.
Pros:
- Saves time and eliminates human errors.
- Periodic changes in ratings, returns, and cost ratios.
- Advanced filters to be customized by the investor.
Cons:
- The beginners might be overwhelmed by the tools.
- Between official AMFI/NSE sources always check the latest information.
Did you know?
In 2024, the majority of platforms introduced new ESG (Environmental, Social and Governance) ratings to enable investors to choose socially responsible funds.
People also ask
Is it possible to invest in mutual funds without comparing using a comparison tool?
Yes, direct investment through AMC websites is possible, but it is much more convenient than using comparison tools to choose a suitable scheme among the enormous number of them.
TLDR Quick Recap
- Before investing in mutual funds, always have a comparison regarding the risk the investment carries, the returns, investment type, investment expense, and track record of the investment manager.
- Confidence in use of performance ratings, star ratings and peer group analysis.
- The rules on taxes and cost structure have a big influence on the gain you actually get.
- In 2025, the similarity of funds can be facilitated by reliable online platforms.
- Rebalance and review your mutual fund portfolio on a regular basis depending on your goals.
People Also Ask
Q1: Which is the India 2025 best performing mutual fund?
A1: Categorical variation in performance. Equity Quant Tax Plan and HDFC Midcap Opportunities are the best funds in terms of returns according to current data, but never forget to review the latest reviews and match new requirements with these funds.
Q2: Which SIP mutual fund will give the best wealth creation choice?
A2: Find steadfast long-term returns, reduced cost ratio, sound practice of the ethical fund house, and an appropriate portfolio to your risk level. The SIP calculators are useful in planning investments.
Q3: What happens to be the safest mutual fund to invest in 2025?
A3: The ultrasound duration debt funds, liquid funds and certain hybrid balanced funds are safe, but with low returns. No investment is risk-free.
Q4: What is the number of mutual funds that I should hold in my portfolio?
A4: Most investors usually have 3-6 selected funds consisting of combinations (equity, debt, hybrid) so that they do not overlap and enhance their diversification.
Q5: Is it possible to invest NRIs on Indian mutual funds?
A5: Yes, the majority of AMCs permit NRIs to invest with some countries prohibited such as the US and Canada because of the rules. Compliance with the KYC and FATCA is obligatory.
Q6: Do index funds outperform actively managed mutual funds in India?
A6: Index funds may be cheaper and offer better market performance, active funds may perform better but not necessarily post costs. Ask the difference between the two and then make a decision.
Sources
- Information and knowledge obtained at AMFI India,
- Value Research
- Morningstar
- SEBI
