India’s top performing mutual fund schemes in January 2025

3 Feb 2025 , 09:35 AM

FPIs SOLD OVER $9 BILLION IN INDIAN EQUITIES IN JANUARY 2025

Year 2025 began on a sour note for the equity markets in terms of FPI flows. For the month of January 2025, FPIs were net sellers to the tune of $9,043 Million in equities. There was a marginal respite from the IPO markets in the month. After the heavy selling in November and modest selling in December, the month of January 2025 has once again been deeply negative in terms of FPI equity flows. In January 2025, the frontline indices diverged from smaller indices with the smaller indices taking the brunt of the correction. For January 2025, Nifty 50 fell (-1.10%), Nifty Next-50 fell (-6.95)%, Nifty Mid-Cap fell (-6.90%), and Nifty Small Cap lost (-10.44)%. This is in clear contrast to the previous month, when the small and mid-cap indices had held up, even as the Nifty had come under pressure. Hopefully, the budget should give comfort to the markets and bring FPI flows back.

BENCHMARK BOND YIELDS TAPER IN JANUARY 2025

January 2025 saw 10-year benchmark bond yields taper. For instance, the yields opened the month of January at 6.79%, went up to 6.85%, but settled at 6.69% towards the end of the month. The markets got some consolation from the government hinting that it would persist with fiscal prudence. That has been in the budget. Also, the borrowings under ₹15 Trillion is also keeping bond yields under check. RBI may not be in a hurry to cut rates, but the Fed has halted rate cuts for now, and that is good enough for Indian markets to cheer.

Here is a quick dekko at how various mutual fund categories performed in January 2025.

1. Equity Large-Cap Funds

Top performing Direct Plans (Growth Option) on 5-year returns (as on 31st Jan-25):

Name of Fund	1-Year Return	3-Year Return	5-Year Return
Nippon India Large Cap Fund (G)	13.939%	19.267%	19.804%
ICICI Pru Bluechip Fund (G)	12.666%	16.515%	19.159%
Canara Robeco Bluechip Fund (G)	15.335%	13.899%	18.062%
Category Average	11.006%	12.924%	15.864%
Data Source: Morningstar

2. Equity Multi-Cap Funds

Top performing Direct Plans (Growth Option) on 5-year returns (as on 31st Jan-25):

Name of Fund	1-Year Return	3-Year Return	5-Year Return
Quant Active Fund (G)	1.034%	15.122%	28.319%
Mahindra Manulife Multi (G)	8.362%	17.526%	24.145%
Nippon India Multi Cap (G)	16.081%	23.196%	23.290%
Category Average	12.842%	18.036%	21.515%
Data Source: Morningstar

3. Equity Flexi-Cap Funds

Top performing Direct Plans (Growth Option) on 5-year returns (as on 31st Jan-25):

Name of Fund	1-Year Return	3-Year Return	5-Year Return
Quant Flexi Cap Fund (G)	3.105%	18.501%	31.259%
PPFAS Flexi Cap Fund (G)	21.480%	18.536%	25.188%
JM Flexi Cap Fund (G)	19.599%	24.328%	23.623%
Category Average	12.145%	14.529%	17.920%
Data Source: Morningstar

4. Equity Mid-Cap Funds

Top performing Direct Plans (Growth Option) on 5-year returns (as on 31st Jan-25):

Name of Fund	1-Year Return	3-Year Return	5-Year Return
Quant Mid-Cap Fund (G)	7.305%	23.057%	31.938%
Motilal Oswal Mid-Cap Fund (G)	31.168%	29.693%	29.125%
Edelweiss Mid-Cap Fund (G)	23.591%	24.274%	28.205%
Category Average	15.758%	19.377%	23.524%
Data Source: Morningstar

5. Equity Small-Cap Funds

Top performing Direct Plans (Growth Option) on 5-year returns (as on 31st Jan-25):

Name of Fund	1-Year Return	3-Year Return	5-Year Return
Quant Small Cap Fund (G)	3.151%	22.391%	41.943%
BOI Small Cap Fund (G)	14.005%	19.903%	32.678%
Nippon Small Cap Fund (G)	11.242%	23.467%	32.021%
Category Average	11.203%	18.844%	27.443%
Data Source: Morningstar

6. Balanced Funds (Aggressive Allocation)

Top performing Direct Plans (Growth Option) on 5-year returns (as on 31st Jan-25):

Name of Fund	1-Year Return	3-Year Return	5-Year Return
JM  Aggressive Hybrid Fund (G)	12.979%	21.118%	24.244%
Quant Absolute Fund (G)	3.820%	14.297%	23.950%
BOI Mid Small Cap Equity & Debt Fund (G)	12.021%	16.026%	23.850%
Category Average	11.992%	13.047%	15.922%
Data Source: Morningstar

7. Dynamic Asset Allocation Funds (BAF)

Top performing Direct Plans (Growth Option) on 5-year returns (as on 31st Jan-25):

Name of Fund	1-Year Return	3-Year Return	5-Year Return
HDFC BAF (G)	10.780%	20.286%	20.402%
Baroda BNP Paribas BAF (G)	11.452%	13.408%	16.426%
Edelweiss BAF (G)	10.505%	11.746%	15.430%
Category Average	9.042%	11.357%	13.395%
Data Source: Morningstar

8. Multi-Asset Allocation Funds (MAAF)

Top performing Direct Plans (Growth Option) on 5-year returns (as on 31st Jan-25):

Name of Fund	1-Year Return	3-Year Return	5-Year Return
Quant Multi-Asset Fund (G)	15.880%	19.851%	28.251%
ICICI Pru Multi-Asset Fund (G)	16.937%	18.890%	21.671%
UTI Multi-Asset Fund (G)	16.957%	18.230%	15.918%
Category Average	12.520%	13.921%	16.295%
Data Source: Morningstar

9. Arbitrage Funds (Cash-Futures)

Top performing Direct Plans (Growth Option) on 5-year returns (as on 31st Jan-25):

Name of Fund	1-Year Return	3-Year Return	5-Year Return
Invesco Arbitrage (G)	8.140%	7.475%	6.295%
Tata Equity Arbitrage Fund (G)	8.152%	7.141%	6.293%
Edelweiss India Arbitrage (G)	8.215%	7.236%	6.264%
Category Average	7.513%	6.542%	5.504%
Data Source: Morningstar

10. Government Securities Funds (Gilt Funds)

Top performing Direct Plans (Growth Option) on 5-year returns (as on 31st Jan-25):

Name of Fund	1-Year Return	3-Year Return	5-Year Return
Edelweiss Gilt Investment Fund (G)	9.689%	7.138%	7.976%
ICICI Prudential Gilt Fund (G)	8.768%	7.830%	7.896%
DSP Gilt Fund (G)	9.815%	7.407%	7.768%
Category Average	8.746%	6.599%	6.689%
Data Source: Morningstar

11. Corporate Bond Funds

Top performing Direct Plans (Growth Option) on 5-year returns (as on 31st Jan-25):

Name of Fund	1-Year Return	3-Year Return	5-Year Return
Axis Corporate Debt Fund (G)	8.734%	6.984%	7.401%
ABSL Corporate Bond (G)	8.771%	6.969%	7.288%
HDFC Corporate Bond (G)	8.850%	6.803%	7.178%
Category Average	8.216%	6.301%	6.514%
Data Source: Morningstar

12. Credit Risk Funds

Top performing Direct Plans (Growth Option) on 5-year returns (as on 31st Jan-25):

Name of Fund	1-Year Return	3-Year Return	5-Year Return
BOI Credit Risk Fund (G)	6.340%	37.634%	10.730%
ABSL Credit Risk Fund (G)	13.125%	9.753%	9.226%
Baroda BNP Credit Risk Fund (G)	9.094%	7.650%	8.995%
Category Average	8.383%	9.402%	7.086%
Data Source: Morningstar

Having seen returns for various categories of funds for January 2025, some key takeaways.

WHAT WE READ FROM THE JANUARY 2025 MUTUAL FUND RANKINGS

Here are some key trends we deciphered from the rankings MFs in December 2024.

1. Shorter term funds of in the mid-cap and small cap category took a hit in Jan-25. However, long term returns remained buoyant.
2. Returns on debt funds were largely buoyant in January 2025; across the board, due to bond yields tapering in the second half of the month.
3. Lastly, the winners across categories (debt, equity, and hybrid) have been consistent with over 98% repetitions. Past returns are surely a good barometer of future.