Best Equity Mutual Funds in India for December 2025: ITI Small Cap, Bandhan Small Cap and More
Investing in equity mutual funds is one of the most popular ways for individuals to participate in the stock market without needing to pick and manage individual stocks. These funds pool money from multiple investors and allocate it to shares of various companies, offering diversification, professional management, and the potential for long-term capital growth.
Equity mutual funds can suit both new and experienced investors looking to build wealth over time, especially when aligned with their risk tolerance, investment horizon, and financial goals. In this read, we’ll take a closer look at some of the best equity mutual funds in India for December 2025.
Best Equity Mutual Funds for December 2025: 5Y CAGR Basis
| Name | AUM (₹ Crore) | CAGR 3Y (%) |
| Bandhan Small Cap Fund | 17,380.29 | 31.54 |
| Invesco India Midcap Fund | 9,319.87 | 29.08 |
| WOC Mid Cap Fund | 4,075.13 | 27.78 |
| ITI Small Cap Fund | 2,835.18 | 27.30 |
| Motilal Oswal Midcap Fund | 37,500.86 | 27.21 |
Note: The above-mentioned schemes have been selected based on 3Y CAGR as of Dec 1, 2025
Overview of Top Equity Mutual Funds
1. Bandhan Small Cap Fund
- NAV: ₹47.05
- Alpha: 18.79
- Tracking Error: 2.19
2. Invesco India Midcap Fund
- NAV: ₹187.85
- Alpha: 13.91
- Tracking Error: 4.53
3. WOC Mid Cap Fund
- NAV: ₹21.56
- Alpha: 123.29
- Tracking Error: 2.60
Best Equity Mutual Funds for December 2025: Expense Ratio Basis
| Name | AUM (₹ Cr) | CAGR 3Y (%) | Expense Ratio |
| Franklin India Large & Mid Cap Fund | 3,687.53 | 17.86 | 1.28 |
| Nippon India Vision Large & Mid Cap Fund | 6,690.47 | 21.53 | 1.22 |
| UTI Value Fund | 10,057.81 | 18.78 | 1.18 |
| HSBC Flexi Cap Fund | 5,267.09 | 20.26 | 1.17 |
| HSBC ELSS Tax Saver Fund | 4,214.73 | 20.22 | 1.15 |
Also Read: Best Gold ETFs in India for December 2025: SBI Gold ETF, HDFC Gold ETF, and More
Conclusion
Equity mutual funds can be a powerful tool for long-term wealth creation, provided investors choose funds that match their financial objectives and remain patient through market ups and downs. By benefiting from diversification and expert fund management, investors can potentially achieve higher returns compared to traditional savings avenues.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Dec 1, 2025, 2:32 PM IST
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