Every month, mutual funds move differently. Some categories outperform, while others stay steady. What makes them stand out are the strategies behind them, whether it’s a small-cap fund spotting emerging companies, a hybrid fund balancing equity and debt, or a flexi-cap fund spreading across segments.
In this article, we’ve listed the top-performing mutual funds for October 2025, divided by category.
Please note: this isn’t a recommendation. Fund selection should depend on your goals, time horizon, and risk appetite, and not just past returns.
Top Small Cap Mutual Funds
Fund Name | 3Y Returns | 5Y Returns | Fund Size (in Cr) |
Nippon India Small Cap Fund | 32.9% | 23.08% | ₹66,136 |
SBI Small Cap Fund | 14.99% | 25.45% | ₹35,585 |
Axis Small Cap Fund | 19.66% | 27.32% | ₹25,975 |
Kotak Small Cap Fund | 17.08% | 28.18% | ₹17,480 |
What Moved Them
Small-cap funds performed well as India’s market rally moved beyond large-caps, supported by strong growth in manufacturing, defence, and infrastructure. SIP inflows hit a record ₹29,361 crore in September 2025, up from ₹28,265 crore in August, showing steady investor confidence. Small-cap funds received ₹4,363 crore in inflows in September, slightly lower than ₹4,993 crore in August, but enough to keep the rally going.
Top Large & Mid Cap Mutual Funds
Fund Name | 3Y Returns | 5Y Returns | Fund Size (Cr) |
Mirae Asset Large & Midcap Fund | 19.15% | 21.94% | ₹40,822 |
Kotak Large & Midcap Fund | 21.61% | 23.44% | ₹28,381 |
Canara Robeco Large and Mid Cap Fund | 18.56% | 21.74% | ₹25,484 |
Axis Large & Mid Cap Fund | 20.24% | 23.18% | ₹14,906 |
What Moved Them
Large- and mid-cap funds gained from broad earnings recovery and a balanced mix of stability and growth. Large caps like Reliance Industries, HDFC Bank, and ICICI Bank provided support during volatility, while mid-caps in engineering, auto ancillaries, and infrastructure added extra returns. AMFI data shows these funds attracted ₹3,805 crore in inflows in September 2025, up from ₹3,325.66 crore in August, reflecting strong investor confidence in diversified equity strategies.
Top Hybrid/ Balanced Advantage Mutual Funds
Fund Name | 3Y Returns | 5Y Returns | Fund Size (Cr) |
HDFC Balanced Advantage Fund | 20.57% | 24.94% | ₹1,03,041 |
ICICI Prudential Equity & Debt Fund | 21.3% | 27% | ₹45,168 |
Nippon India Multi Asset Allocation Fund | 23.12% | 19.67% | ₹7,759 |
What Moved Them
Hybrid funds, combining equity and debt, continued to see strong inflows, attracting ₹9,397 crore in September 2025, though lower than ₹15,293 crore in August. This moderation indicates that while investors still value stable, diversified options, some of the earlier enthusiasm for equity may be easing. The equity portion benefited from market gains, while the debt component provided a cushion during volatility.
Top Flexi Cap Mutual Funds
Fund Name | 3Y Returns | 5Y Returns | Fund Size (Cr) |
Parag Parikh Flexi Cap Fund | 22.88% | 22.69% | ₹1,19,723 |
HDFC Flexi Cap Fund | 25.11% | 29.69% | ₹85,560 |
Kotak Flexicap Fund | 19.45% | 19.96% | ₹54,083 |
What Moved Them
Flexi-cap funds led among equity categories in terms of inflows in September 2025, with ₹7,029 crore added, the highest in that month.
Their advantage lies in flexibility, because these funds can dynamically shift between large, mid, and small caps, adjusting to market conditions. In a month where investor sentiment stayed bullish, that flexibility allowed managers to ride growth where available while avoiding overexposure to any one segment.
Top Sectoral/Thematic Mutual Funds
Fund Name | 3Y Returns | 5Y Returns | Fund Size (Cr) |
Tata Digital India Fund | 17.07% | 19.15% | ₹11,203 |
SBI Healthcare Opportunities Fund | 27.25% | 20.02% | ₹3,933 |
Invesco Global Consumer Trends FoF | 33.95% | – | ₹648 |
What Moved Them
Strong sectoral trends and long-term growth themes drove performance, with technology adoption, healthcare innovation, and shifting global consumer trends leading the way. However, sectoral and thematic funds saw a sharp drop in inflows to ₹1,221 crore in September, down from ₹3,893 crore in August. This suggests investors grew cautious about concentration risk, with some momentum in high-performing sectors fading or a preference for safer, diversified strategies amid mixed market signals.
Final Thoughts
While these funds have shown strong past performance, mutual fund selection should consider risk, goals, and diversification, and not just returns. Sectoral and small-cap funds can be volatile, so regular review is key. This is for informational purposes only; consult a trusted financial advisor like Ashvvy Investments to find the funds best suited to you.
