Trend in Mutual Fund Investment in India 2025:The year 2024 has been better for the mutual fund market. Despite the fall in the stock market at the end of the year, returns of most categories of equity mutual funds remained high. While the largecap fund category has given around 20 per cent returns this year, the midcap and smallcap categories have given 27 per cent and 26.50 per cent returns. Whereas flexi cap fund category has given around 20 percent return, ELSS has given 20 percent return and multi cap category has given 23.78 percent return. The returns of sectoral and thematic funds have also been high. Now the question is, what will be the trend of investment in mutual funds in the year 2025, which mutual fund scheme can perform the best.
Rules of Investing: Money will double in less than 5 years, triple in less than 8 years, this formula will explain where to invest.
Mutual fund performance in the year 2024 (categories and returns)
Largecap funds: 15.81%
Large and Mid Cap Fund: 23.84%
Flexi Cap Fund: 19.66%
Multi Cap Fund: 23.78%
Midcap Fund: 26.93%
Small Cap Fund: 26.55%
Value Oriented: 20.81%
ELSS: 20%
Sectoral-Banking: 9.73%
Sectoral-Infra: 27.14%
Sectoral-Pharma: 38%
Sectoral-Technology: 26.70%
Thematic: 20.54%
Thematic-consumption: 21%
Thematic-Dividend Yield: 19.75%
Thematic-Energy: 13.84%
Thematic-ESG : 16.40%
Thematic-MNC : 13.50%
Thematic-PSU: 23.54%
Equity International: 19.73%
Return King: These 4 mutual funds became kings in 15 years, all made Rs 10000 SIP to Rs 1 crore, 15 to 17 times return on lump sum
AUM: How much growth in which category in 2024?
Sectoral/Thematic Funds
Total AUM: Rs 4,51,487 crore
Growth in 2024: 81%
Multi Cap Fund
Total AUM: Rs 173998 crore
Growth in 2024: 61%
Dividend Yield Fund
Total AUM: Rs 31659 crore
Growth in 2024: 50%
Large & Mid Cap Fund
Total AUM: Rs 262320 crore
Growth in 2024: 44%
value fund
Total AUM: Rs 186643 crore
Growth in 2024: 42%
Small Cap Fund
Total AUM: Rs 318282 crore
Growth in 2024: 40%
Mid Cap Fund
Total AUM: Rs 381718 crore
Growth in 2024: 39%
Flexi Cap Fund
Total AUM: Rs 427859 crore
Growth in 2024: 33.78%
Large Cap Fund
Total AUM: Rs 358341 crore
Growth in 2024: 24%
ELSS
Total AUM: Rs 241125 crore
Growth in 2024: 23%
Focused Fund
Total AUM: Rs 145866 crore
Growth in 2024: 19%
(Source: Amfi)
High Return: HDFC Mutual Fund scheme made one time investment of Rs 1 lakh Rs 1.50 crore, received full Rs 2.5 crore from SIP of Rs 3000
2025: What will be the trend of mutual funds?
AK Nigam, Director of BPN Fincap, has selected some special trends for 2025.
1. Emphasis on multi asset and diversified funds
2. Thematic and Sectoral Funds
3. Rise of flexi cap funds
4. Introduction of high risk product
5. Increase in the number of retail participants
6. Focus on ESG investing
According to AK Nigam, the mood of investors is now changing rapidly and they are ready to take risks. Seeing their changed mindset, mutual fund companies are also coming into the market with new fund offers based on new themes. There was an influx of NFOs on innovative themes in 2024 and the same trend is going to continue in 2025 also. Such new products will also be available in 2025 for investors who are aggressive and ready to take risks. He says that investment is going to continue strongly in Systematic Investment Plan (SIP). Now investors are not afraid of market fluctuations, hence the trend of pausing or closing SIPR has reduced a lot.
Return in LIC MF: Amazing scheme of LIC Mutual Fund, money increased 4 times in 5 years, 35% annual return is available in SIP
2025: In which mutual fund schemes to invest money
AK Nigam says that Large and Midcap Fund, Flexi Cap Fund and Multicap Fund can be the first choice for investment in the year 2025. The focus of investors will be on achieving high risk through diversified portfolio. Apart from this, thematic and sectoral funds are also better options. Investors who take more risk should also give some portion in the portfolio to midcap fund and smallcap fund schemes, which have the possibility of getting high returns.
(Note: We have given information here based on discussions with experts. This is not investment advice from our side. There are risks in the market, so consult a financial advisor before investing.)
