In the last 6-7 months, Nifty 50 has corrected over 13%, while mid-cap and small-cap mutual funds have fallen by 15% to 25% and these have started recovering in the last few days. Still this is the best time to invest lump sum and start an SIP, as we do not know the whether markets would continue to go up or again see some decline before making new high in the coming years. I asked Google Gemini AI about the Best Mutual Funds to Invest in India, and it has listed 12 mutual fund schemes. In this article, we will list the 12 Best Mutual Funds to Invest in 2025 as per Google Gemini AI, along with performance metrics and our views on these funds.
What was our exact Question to Google Gemini AI?
Here is our question to the AI:
“As per you which are the “Best Mutual Funds to invest in India in 2025” for long term. I just need list”
It started indicating that “It’s important to understand that “best” mutual funds can vary based on individual risk tolerance,…” and finally lists the 12 mutual fund recommendations to invest in 2025.
12 Best Mutual Funds to Invest in 2025 (as per Google Gemini AI)
Here is the list:
Flexi Cap Funds
- Parag Parikh Flexi Cap Fund
- HDFC Flexi Cap Fund
- Quant Flexi Cap Fund
Large & Mid-Cap Funds
- Motilal Oswal Large and Midcap Fund
- SBI Large & Midcap Fund
Small Cap Funds
- Quant Small Cap Fund
- Nippon India Small Cap Fund
- Bandhan Small Cap Fund
ELSS Funds
- Quant ELSS Tax Saver Fund
- Motilal Oswal ELSS Tax Saver Fund
Infrastructure/Thematic Funds
11. Quant Infrastructure Fund
12. ICICI Prudential Infrastructure Fund
Last year, we wrote a similar article on the Best Mutual Funds for 2024 as per Gemini, which suggested 9 mutual fund schemes. This time, Google Gemini AI has recommended 12 funds, covering multiple categories.
Did Google Gemini missed any mutual fund category?
Google Gemini AI has not recommended any large-cap or balanced advantage funds which are critical for any mutual fund investor. Investors may consider including funds from these categories for diversification.
Check out our article on the Best Bluechip Mutual Funds to invest in 2025 for more insights.
Top Mutual Funds as per Google Gemini AI to Invest in 2025 – Performance and Key Metrics
Let us explore the details of these mutual funds along with our analysis.
#1 – Parag Parikh Flexi Cap Fund
Investment Objective: The fund seeks to generate long-term capital appreciation by investing in a diversified portfolio across market capitalizations, including domestic and foreign stocks.
Performance Details:
- 1-Year Return: 11.6%
- 3-Year Annualized Return:16.9%
- 5-Year Annualized Return: 31.8%
- 10-Year Annualized Return: 17.7% (1 Lakh would have turned to 5.1 Lakhs)
Our View:
- This fund invests heavily in US stocks like Alphabet, Amazon, and Microsoft, providing global diversification.
- This flexicap-cap fund invests 79% in equity, 10% in debt instruments and balance in TREPS (Tri-Party Repo) as of now.
- The equity allocation consists of 50% in large-cap, 2.4% in mid-cap, 3.1% in small-cap, and the rest in other equity instruments.
- Fund Beta: 0.69 (indicating lower volatility compared to the benchmark)
- Fund Alpha: 4.38 (indicating better risk-adjusted returns)
- Expense Ratio: 0.63% (direct plan)
- Since inception (2013), the direct plan has delivered 19.7% annualized returns.
- This fund has outperformed in medium to long term compared to its peers.
- I am personally investing in this flexicap fund, and my recommendation remains the same for readers too. This fund is among the 30 mutual funds that tripled investors wealth in 5 years.
#2 – HDFC Flexi Cap Fund
Investment Objective: The fund seeks to generate long-term capital appreciation by investing in a diversified portfolio across market capitalizations, including domestic and foreign stocks.
Performance Details:
- 1-Year Return: 12.4%
- 3-Year Annualized Return:20.9%
- 5-Year Annualized Return: 33.8%
- 10-Year Annualized Return: 15.1% (1 Lakh would have turned to 5.11 Lakhs)
Our View:
- This fund invests heavily in US stocks like Alphabet, Amazon, and Microsoft, providing global diversification.
- This flexicap-cap fund invests 88% in equity, 1% in debt instruments and balance in TREPS (Tri-Party Repo) as of now.
- The equity allocation consists of 60% in large-cap, 4% in mid-cap, 4% in small-cap, and the rest in other equity instruments.
- Fund Beta: 0.81 (indicating lower volatility compared to the benchmark).
- Fund Alpha: 8.1 (indicating better risk-adjusted returns)
- Expense Ratio: 0.81% (direct plan)
- Since inception (2013), the direct plan has delivered 16.7% annualized returns.
- This fund has outperformed in medium to long term compared to its peers.
- This is one of the top performing flexicap mutual funds in medium to long term.
- We have listed this earlier as part of 20 Equity Mutual Funds with Low Beta and High Alpha
#3 – Quant Flexi Cap Fund
Investment Objective: The fund aims to provide long-term capital appreciation by investing in companies across market capitalizations based on a dynamic strategy.
Performance Details:
- 1-Year Return: -4%
- 3-Year Annualized Return: 17.2%
- 5-Year Annualized Return: 39%
- 10-Year Annualized Return: 19.1%
Our View:
- This flexicap-cap fund invests 94% in equity, 2% in debt instruments and balance in TREPS (Tri-Party Repo) as of now.
- The equity allocation consists of 44% in large-cap, 17% in mid-cap, 7% in small-cap, and the rest in other equity instruments.
- Fund Beta: 1.07 (indicating higher volatility compared to the benchmark)
- Fund Alpha: 1.8 (indicating better risk-adjusted returns)
- Expense Ratio: 0.61% (direct plan)
- Since inception (2013), the direct plan has delivered 19.1% annualized returns.
- This fund has outperformed in medium to long term compared to its peers.
- Majority of Quant mutual funds have been underperforming post Quant MF Fund Manager front running scam. Investors should consider this before investing in such schemes.
#4 – Motilal Oswal Large and Midcap Fund
Investment Objective: The investment objective is to provide medium to long-term capital appreciation by investing primarily in Large and Midcap stocks.
Performance Details:
- 1-Year Return: 8.2%
- 3-Year Annualized Return: 22.2%
- 5-Year Annualized Return: 32.5%
Our View:
- This large-midcap fund invests 98% in equity and balance in TREPS (Tri-Party Repo) as of now.
- The equity allocation consists of 9% in large-cap, 12% in mid-cap, 39% in small-cap, and the rest in other equity instruments.
- Fund Beta: 1.02 (indicating higher volatility compared to the benchmark)
- Fund Alpha: 5.58 (indicating better risk-adjusted returns)
- Expense Ratio: 0.55% (direct plan)
- Since inception (2013), the direct plan has delivered 22.6% annualized returns.
- This fund has outperformed in the medium term compared to its peers.
- This is one of the good large and midcap mutual fund that’s outperforming benchmark and its peers.
#5 – SBI Large & Midcap Fund
Investment Objective: The scheme seeks to provide the investor with the opportunity of long-term capital appreciation by investing in diversified portfolio comprising predominantly large cap and mid cap companies.
Performance Details:
- 1-Year Return: 9.3%
- 3-Year Annualized Return: 16.4%
- 5-Year Annualized Return: 30.3%
- 10-Year Annualized Return: 14.5%
Our View:
- This large & midcap fund invests 94% in equity and balance in TREPS (Tri-Party Repo) as of now.
- The equity allocation consists of 39% in large-cap, 23% in mid-cap, 10% in small-cap, and the rest in other equity instruments.
- Fund Beta: 0.8 (indicating lower volatility compared to the benchmark)
- Fund Alpha: 1.14 (indicating better risk-adjusted returns)
- Expense Ratio: 0.84% (direct plan)
- Since inception (2013), the direct plan has delivered 17.07% annualized returns.
- This fund has outperformed in the medium to long term compared to its peers.
- One of the good large & midcap mutual fund to invest.
#6 – Quant Small Cap Fund
Investment Objective: The primary investment objective of the scheme is to seek to generate capital appreciation & provide long-term growth opportunities by investing in a portfolio of Small Cap companies.
Performance Details:
- 1-Year Return: -2.4%
- 3-Year Annualized Return: 21.1%
- 5-Year Annualized Return: 52.2%
- 10-Year Annualized Return: 19.5%
Our View:
- This smallcap fund invests 94% in equity and balance in TREPS (Tri-Party Repo) as of now.
- The equity allocation consists of 15% in large-cap, 19% in mid-cap, 34% in small-cap, and the rest in other equity instruments.
- Fund Beta: 0.96 (indicating lower volatility compared to the benchmark)
- Fund Alpha: 2.79 (indicating better risk-adjusted returns)
- Expense Ratio: 0.68% (direct plan)
- Since inception (2013), the direct plan has delivered 17.7% annualized returns.
- This fund has outperformed in the medium to long term compared to its peers. However it has underperformed in the last 1 year. This under performance is post fund manager front running scam. Investors should consider this aspect.
#7 – Nippon India Small Cap Fund
Investment Objective: To generate long term capital appreciation by investing predominantly in equity and equity related instruments of small cap companies and the secondary objective is to generate consistent returns by investing in debt and money market securities.
Performance Details:
- 1-Year Return: 1.6%
- 3-Year Annualized Return: 20.0%
- 5-Year Annualized Return: 42.1%
- 10-Year Annualized Return: 20.8%
Our View:
- This smallcap fund invests 94% in equity and balance in TREPS (Tri-Party Repo) as of now.
- The equity allocation consists of 7% in large-cap, 11% in mid-cap, 45% in small-cap, and the rest in other equity instruments.
- Fund Beta: 0.84 (indicating lower volatility compared to the benchmark)
- Fund Alpha: 3.74 (indicating better risk-adjusted returns)
- Expense Ratio: 0.74% (direct plan)
- Since inception (2013), the direct plan has delivered 21.2% annualized returns.
- This fund has outperformed in the medium to long term compared to its peers. However it has underperformed in the last 1 year though posted positive returns. Investors should consider this aspect. I am personally investing in this scheme and we have recommended this as part of Best Mutual Funds to invest in lumpsum in 2025
#8 – Bandhan Small Cap Fund
Investment Objective: To generate long term capital appreciation by investing predominantly in equities and equity linked securities of small cap segment.
Performance Details:
- 1-Year Return: 13.1%
- 3-Year Annualized Return: 24.6%
- 5-Year Annualized Return: 38.2%
Our View:
- This smallcap fund invests 92% in equity and balance in TREPS (Tri-Party Repo) as of now.
- The equity allocation consists of 6% in large-cap, 9% in mid-cap, 44% in small-cap, and the rest in other equity instruments.
- Fund Beta: 0.88 (indicating lower volatility compared to the benchmark)
- Fund Alpha: 6.38 (indicating better risk-adjusted returns)
- Expense Ratio: 0.46% (direct plan)
- Since inception, the direct plan has delivered 33.4% annualized returns.
- This fund has outperformed in the short term, medium term and long term compared to its peers. This fund is part of 10 Mutual Fund Schemes with 1-Year Returns Between 12% to 21%.
- One of the good smallcap mutual fund to invest.
#9 – Quant ELSS Tax Saver Fund
Investment Objective: The Quant ELSS Tax Saver Fund aims to generate capital appreciation by investing primarily in a diversified portfolio of equity shares with growth potential, complemented by possible dividend and other income, while also providing tax benefits under Section 80C.
Performance Details:
- 1-Year Return: -8.1%
- 3-Year Annualized Return: 14.3%
- 5-Year Annualized Return: 39.8%
- 10-Year Annualized Return: 20.3%
Our View:
- This ELSS fund invests 92% in equity and balance in TREPS (Tri-Party Repo) as of now.
- The equity allocation consists of 56% in large-cap, 14% in mid-cap, 3% in small-cap, and the rest in other equity instruments.
- Fund Beta: 1.11 (indicating higher volatility compared to the benchmark)
- Fund Alpha: -0.76 (indicating poor risk-adjusted returns)
- Expense Ratio: 0.5% (direct plan)
- Since inception, the direct plan has delivered 20.2% annualized returns.
- This fund has outperformed in the medium term and long term compared to its peers. However in the last 1 year it has underperformed. Again it is after Quant MF front manager scam. Investors should consider this aspect before investing in such funds.
#10 – Motilal Oswal ELSS Tax Saver Fund
Investment Objective: The Motilal Oswal ELSS Tax Saver Fund aims to generate long-term capital appreciation through a diversified portfolio of primarily equity and equity-related instruments, while also providing tax benefits under Section 80C of the Income Tax Act.
Performance Details:
- 1-Year Return: 5.0%
- 3-Year Annualized Return: 20.6%
- 5-Year Annualized Return: 29.7%
- 10-Year Annualized Return: 16.4%
Our View:
- This ELSS fund invests 98% in equity and balance in TREPS (Tri-Party Repo) as of now.
- The equity allocation consists of 8% in large-cap, 12% in mid-cap, 36% in small-cap, and the rest in other equity instruments.
- Fund Beta: 1.05 (indicating high volatility compared to the benchmark)
- Fund Alpha: 6.85 (indicating better risk-adjusted returns)
- Expense Ratio: 0.72% (direct plan)
- Since inception, the direct plan has delivered 17.1% annualized returns.
- This fund has outperformed in the short term, medium term and long term compared to its peers.
- One of the good ELSS mutual funds to invest.
#11 – Quant Infrastructure Fund
Investment Objective: The primary investment objective of the scheme is to seek to generate capital appreciation & provide long-term growth opportunities by investing in a portfolio of Infrastructure focused companies.
Performance Details:
- 1-Year Return: -10.1%
- 3-Year Annualized Return: 19.0%
- 5-Year Annualized Return: 45.6%
- 10-Year Annualized Return: 18.1%
Our View:
- This infrastructure fund invests 98% in equity and balance in debt instruments / TREPS (Tri-Party Repo) as of now.
- The equity allocation consists of 39% in large-cap, 18% in mid-cap, 22% in small-cap, and the rest in other equity instruments.
- Fund Beta: 1.06 (indicating high volatility compared to the benchmark)
- Fund Alpha: -1.73 (indicating poor risk-adjusted returns)
- Expense Ratio: 0.73% (direct plan)
- Since inception, the direct plan has delivered 17.6% annualized returns.
- This fund has outperformed in the medium term and long term compared to its peers, however underperformed in the last 1 year. Investors need to consider this.
#12 – ICICI Prudential Infrastructure Fund
Investment Objective: To generate capital appreciation and income distribution to unit holders by investing predominantly in equity/equity related securities of the companies belonging to the infrastructure theme.
Performance Details:
- 1-Year Return: 3.1%
- 3-Year Annualized Return: 26.9%
- 5-Year Annualized Return: 41.5%
- 10-Year Annualized Return: 15.8%
Our View:
- This infrastructure fund invests 93% in equity and balance in debt instruments / TREPS (Tri-Party Repo) as of now.
- The equity allocation consists of 48% in large-cap, 7% in mid-cap, 16% in small-cap, and the rest in other equity instruments.
- Fund Beta: 0.97 (indicating high volatility compared to the benchmark)
- Fund Alpha: 14.6 (indicating better risk-adjusted returns)
- Expense Ratio: 1.16% (direct plan)
- Since inception, the direct plan has delivered 16.8% annualized returns.
- This fund has outperformed in the medium term and long term compared to its peers.
- This mutual fund is part of Best Mutual Funds to invest in 2025 as per ChatGPT article published earlier.
Video Proof of Google Gemini AI’s Mutual Fund Recommendations
Some may question the legitimacy of these recommendations. To address such concerns, here is a recorded video displaying the question posed and the response received from Google Gemini AI.
Key Takeaways for Investors
Whether recommendations come from Google Gemini AI or independent research, selecting the right mutual funds should always align with individual financial goals and risk appetite.
To make informed decisions:
- Assess your investment goals, time horizon, and risk tolerance.
- Review historical fund performance, risk-adjusted returns, and fund management quality.
- Diversify investments across multiple fund categories to mitigate risk.
- Conduct thorough research or consult a financial expert before finalizing investment choices.
By following these steps, investors can build a well-balanced portfolio that aligns with their financial aspirations.
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