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5 Best Mutual Funds to invest in 2025 (as per Chat GPT)


The Nifty 50 has corrected over 15%, while mid-cap and small-cap mutual funds have fallen by 20% to 25%+. This is the best time to invest lump sum and start an SIP, as we do not know the bottom of the stock market. I asked ChatGPT about the best mutual funds to invest in 2025, and it listed five mutual fund schemes. Many readers previously indicated that ChatGPT would not provide such recommendations; hence, I recorded a video of the response as proof and have included it at the end of the article. In this article, we will list the 5 Best Mutual Funds to Invest in 2025 according to ChatGPT AI, along with performance metrics and our views on these funds.

What was our exact Question to ChatGPT AI?

Here is our question to the AI.

“As an AI, based on current stock market correction in India, List down Best Mutual Funds to invest in India in 2025 either in lumsum now or through SIP for next few years”.

It gives general text indicating “investing in lumpsum during a market downturn can be strategic move……” and finally list down the 5 mutual fund recommendations to invest now in 2025.

5 Best Mutual Funds to invest in 2025 (as per Chat GPT)5 Best Mutual Funds to invest in 2025 (as per Chat GPT)

5 Best Mutual Funds to invest in 2025 (as per Chat GPT)

Here is the list.

#1 – Motilal Oswal Midcap Fund

#2 – Invesco India Midcap Fund

#3 – HDFC Balanced Advantage Fund

#4 – ICICI Prudential Infrastructure Fund

#5 – Quant Multi Asset Fund

Last year, we wrote similar article on Best Mutual Funds for 2024 recommended by ChatGPT which recommended 12 mutual fund schemes. However this time it trimmed to 5 funds. All these 5 mutual funds are unique compared to 2024 recommendations.

Does ChatGPT’s List Lack Any Mutual Fund Category?

ChatGPT does not recommend any mutual funds from the large-cap or flexi-cap categories. Investors can consider adding some of the mutual funds from these categories too.

Check out our article on Best Mutual Funds for Lump Sum Investments in 2025 for more information.

Top Mutual Funds as per Chat GPT to invest in 2025 – Performance and Key Metrics

Let us dive into more information about these mutual funds and our views on them.

#1 – Motilal Oswal Midcap Fund

Investment Objective:

The Motilal Oswal Midcap Fund aims to achieve long-term capital appreciation by investing primarily in mid-cap companies with strong business models and management, while also allowing for investments in large-cap and small-cap stocks.

Performance Details

Absolute Returns of the fund

  • 1-Year Return: 19.3%
  • 2-Year Return: 81.7%
  • 3-Year Return: 114.2%
  • 5-Year Return: 278%
  • 10-Year Return: 402.6% (1 lakh would have turned into ₹ 5.02 Lakhs)

Annualised Returns of the fund

  • 1-Year Return: 19.3%
  • 2-Year Annualised Return: 34.7%
  • 3-Year Annualised Return: 28.8%
  • 5-Year Annualised Return: 30.4%
  • 10-Year Annualised Return: 17.5%

Our view on this mutual fund scheme

  • This mid-cap fund invests 72% in equity and 28% in TREPS (Tri-Party Repo) as of now.
  • The equity allocation consists of 0% in large-cap, 18% in mid-cap, 16% in small-cap, and the rest in other equity instruments.
  • Fund Beta: 0.85 (indicating lower volatility compared to the benchmark)
  • Fund Alpha: 7.83 (indicating better risk-adjusted returns)
  • Expense Ratio: 0.65% (direct plan)
  • Minimum Investment: ₹100 (lump sum) and ₹100 (SIP for 6 months)
  • Exit Load: 1% if more than 10% of investment is redeemed within 365 days
  • Since inception (2013), the direct plan has delivered 23.3% annualized returns.

I am personally investing in this mid-cap fund, and my recommendation remains the same for readers. This fund is among the 30 mutual funds that tripled investors wealth in 5 years.

#2 – Invesco India Midcap Fund

Investment Objective:

The scheme seeks to generate capital appreciation by investing predemonantly  in midcap companies.

Performance Details

Absolute Returns of the fund

  • 1-Year Return: 18.7%
  • 2-Year Return: 71.0%
  • 3-Year Return: 81.1%
  • 5-Year Return: 218.1%
  • 10-Year Return: 371.6% (1 lakh would have turned into ₹4.71 Lakhs)

Annualised Returns of the fund

  • 1-Year Return: 18.7%
  • 2-Year Annualised Return: 30.7%
  • 3-Year Annualised Return: 21.8%
  • 5-Year Annualised Return: 26.0%
  • 10-Year Annualised Return: 16.7%

Our view on this mutual fund scheme

  • This mid-cap fund invests 100% in equity.
  • The equity allocation consists of 6.5% in large-cap, 29.3% in mid-cap, 22.5% in small-cap, and the rest in other equity instruments.
  • Fund Beta: 0.88 (indicating lower volatility compared to the benchmark)
  • Fund Alpha: 1.45 (indicating better risk-adjusted returns)
  • Expense Ratio: 0.59% (direct plan)
  • Minimum Investment: ₹1,000 (lump sum) and ₹500 (SIP for 6 months)
  • Exit Load: 1% if more than 10% of investment is redeemed within 365 days
  • Since inception (2013), the direct plan has delivered 23.3% annualized returns. This is one of the consistent performing midcap mutual fund recommended by us to invest in 2025.

#3 – HDFC Balanced Advantage Fund

Investment Objective:

The Scheme seeks to provide long term capital appreciation / income from a dynamic mix of equity and debt investments

Performance Details

Absolute Returns of the fund

  • 1-Year Return: 7.4%
  • 2-Year Return: 48.6%
  • 3-Year Return: 72.8%
  • 5-Year Return: 199.9%
  • 10-Year Return: 276% (1 lakh would have turned into ₹ 3.76 Lakhs)

Annualised Returns of the fund

  • 1-Year Return: 7.4%
  • 2-Year Annualised Return: 21.8%
  • 3-Year Annualised Return: 19.9%
  • 5-Year Annualised Return: 23.9%
  • 10-Year Annualised Return: 14.1%

Our view on this mutual fund scheme

  • This dynamic asset allocation fund (hybrid fund) invests 65% in equity, 31% in debt, and the balance in other instruments.
  • The equity component consists of 44% in large-cap, 5% in mid-cap, 4% in small-cap, and the balance in other equity instruments.
  • Fund Beta: 1.22 (indicating high volatility compared to the benchmark). A beta greater than 1 suggests that the fund experiences wider swings than the benchmark, while a beta below 1 indicates lower swings.
  • Fund Alpha: 7.35 (indicating better risk-adjusted returns). Alpha measures the extra returns the fund provides compared to the benchmark, and a higher alpha is preferable for investors seeking superior performance.
  • Expense Ratio: 0.78% (direct plan).
  • Minimum Investment: ₹100 (lump sum) and ₹100 (SIP for 6 months).
  • Exit Load: 1% if more than 15% of the investment is redeemed within 365 days.
  • Since inception (2013), the direct plan has delivered 14.8% annualized returns.
  • This is one of the consistent performing dynamic asset allocation funds over the medium to long term.
  • We have recommended this fund as part of How to create ₹ 100 Crore with 50,000 SIP in mutual funds article earlier.

#4 – 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

Absolute Returns of the fund

  • 1-Year Return: 7.6%
  • 2-Year Return: 67.9%
  • 3-Year Return: 111.2%
  • 5-Year Return: 346.9%
  • 10-Year Return: 315.4% (1 lakh would have turned into ₹ 4.15 Lakhs)

Annualised Returns of the fund

  • 1-Year Return: 7.6%
  • 2-Year Annualised Return: 29.5%
  • 3-Year Annualised Return: 28.2%
  • 5-Year Annualised Return: 34.9%
  • 10-Year Annualised Return: 15.3%

Our view on this mutual fund scheme

  • This infrastructure fund invests 94% in equity, especially in infrastructure and related stocks, and the balance in other instruments.
  • The equity component consists of 49% in large-cap, 7% in mid-cap, 16% in small-cap, and the balance in other equity instruments.
  • Fund Beta: 0.92 (indicating high volatility compared to the benchmark). A beta greater than 1 suggests that the fund experiences wider swings than the benchmark, while a beta below 1 indicates lower swings.
  • Fund Alpha: 14.3 (indicating better risk-adjusted returns). Alpha measures the extra returns the fund provides compared to the benchmark, and a higher alpha is preferable for investors seeking superior performance.
  • Expense Ratio: 0.78% (direct plan).
  • Minimum Investment: ₹5,000 (lump sum) and ₹100 (SIP for 6 months).
  • Exit Load: 1% if redeemed within 15 days.
  • Since inception (2013), the direct plan has delivered 16.5% annualized returns.
  • This is one of the consistent performing infrastructure funds over the medium to long term. I am personally investing in this fund too.

#5 – Quant Multi Asset Fund

Investment Objective:

The scheme aims to generate income and capital appreciation by investing in instruments across the three asset classes viz. Equity, Debt and Commodity.

Performance Details

Absolute Returns of the fund

  • 1-Year Return: 10.6%
  • 2-Year Return: 54.6%
  • 3-Year Return: 72.8%
  • 5-Year Return: 291.0%
  • 10-Year Return: 378.0% (1 lakh would have turned into ₹ 4.78 Lakhs)

Annualised Returns of the fund

  • 1-Year Return: 10.6%
  • 2-Year Annualised Return: 24.3%
  • 3-Year Annualised Return: 20.0%
  • 5-Year Annualised Return: 31.3%
  • 10-Year Annualised Return: 16.9%

Our view on this mutual fund scheme

  • This multi-asset fund invests 56% in equity, 11% in debt instruments, and the balance in other instruments, including TREPS, InvITs, and other MF units.
  • The equity component consists of 27% in large-cap, 1% in mid-cap, and the balance in other equity instruments.
  • Fund Beta: 0.45 (indicating low volatility compared to the benchmark). A beta greater than 1 suggests that the fund experiences wider swings than the benchmark, while a beta below 1 indicates lower swings.
  • Fund Alpha: 10.9 (indicating better risk-adjusted returns). Alpha measures the extra returns the fund provides compared to the benchmark, and a higher alpha is preferable for investors seeking superior performance.
  • Expense Ratio: 0.61% (direct plan).
  • Minimum Investment: ₹5,000 (lump sum) and ₹1,000 (SIP for 6 months).
  • Exit Load: 1% if redeemed within 15 days.
  • Since inception (2013), the direct plan has delivered 15.1% annualized returns.
  • Quant AMC mutual funds have been underperforming post fund manager front-running scam happened last year. Investors should consider this aspect before investing in this fund.

ChatGPT Recommended Mutual Funds for 2025 Video

Now some critics would come and say this list is fake and ChatGPT does not provide latest mutual fund recommendations for 2025. Here is the video recorded showing the question and its response.

Should you invest in ChatGPT recommended equity funds?

It is immaterial whether recommendations come from Chat GPT or my articles. Investors should first consider their investment goals, tenure and risk tolerance (high risk, moderate risk or low risk) as the first step.

As a second step, you can filter mutual funds based on medium to long term performance by analysing how well these funds have performed in various market cycles and finally expert opinions can add value to your decision. Remember always invest in diversified mutual fund portfolio across various mutual fund categories to reduce risk.

Suresh KPSuresh KP
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