The best equity mutual funds in India to invest in December 2025: Motilal Oswal Midcap Fund, Bandhan Small Cap and More.
Equity mutual funds are a very popular method of accumulating long term wealth. These funds offer a professionally managed diversified portfolio in which your money is invested in the stocks of various companies. This minimizes the risk and maximizes growth potential.
Equity mutual funds are an intelligent and convenient choice in case you wish to invest in the stock market without choosing individual stocks. This is an update of the best-performing mutual funds in December 2025, which have shown good performance in the last few years.
⭐ Best Equity Mutual Funds December 2025 (Based on 3-Year CAGR)
The following are the mutual funds that have demonstrated great CAGR over the past 3 years:
These funds have provided spectacular returns in the past three years particularly in the mid-cap and small-cap segment.
⭐ Top Funds Performance Overview.
1. Bandhan Small Cap Fund
NAV: ₹47.05
Alpha: 18.79
Tracking Error: 2.19
It is among the most stable and high alpha generating funds in the small-cap category.
2. Invesco India Midcap Fund
NAV: ₹187.85
Alpha: 13.91
Tracking Error: 4.53
This fund has been able to provide a stable performance in the middle-cap space despite the volatility in the market.
3. WOC Mid Cap Fund
NAV: ₹21.56
Alpha: 123.29
Tracking Error: 2.60
This fund is very popular with aggressive investors because it has a high alpha.
Best Equity Funds to buy in December 2025 (By Expense Ratio)
The ratio of expenses is a major factor in the long-term returns. The cheaper funds are able to provide superior net returns in the long run.
The low ratio of expenses enables investors to enjoy a higher compounding.
Conclusion
The equity mutual funds are appropriate to the long-term wealth creation investors.
These funds can achieve superior returns compared to the conventional savings products due to diversification, exposure to the market, and professional management of funds.
In the selection of the appropriate fund, remember:
Your risk profile
Investment time horizon
Financial goals
Fund's past performance
Long-term disciplined investing is usually more productive.
Disclaimer
This paper is posted on Fundexl with the aim of education. The mutual funds here are exemplary and not an investment suggestion. Do your own research or refer to your financial advisor and then invest.
Investments in mutual funds are prone to market risks- read all documents carefully
