For the month of August 2025, the equity markets saw a late sell-off after the 50% sanctions became applicable on 27-August. At the same time there was also a steady spike in the bond yields from a low of 6.3% to 6.6%, despite strong expectations of a rate cut in October. The yield spike can be attributed to the persistent weakening of the rupee to an all-time low of ₹88.20/$. Here are the best performing funds in August 2025 in equity, debt, and Hybrids.
Top performing Direct Plans (Growth Option) on 5-year returns (as on 31st Aug-25):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
| Nippon India Large Cap Fund (G) | 1.453% | 20.727% | 23.671% |
| ICICI Pru Large Cap Fund (G) | -0.017% | 18.779% | 21.233% |
| HDFC Large Cap Fund (G) | -4.343% | 16.600% | 20.324% |
| Category Average | -3.056% | 14.936% | 17.783% |
| Data Source: Morningstar | |||
Top performing Direct Plans (Growth Option) on 5-year returns (as on 31st Aug-25):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
| Nippon India Multi Cap (G) | 0.660% | 24.400% | 28.973% |
| Mahindra Manulife Multi Cap (G) | -4.473% | 20.876% | 25.778% |
| Baroda BNP Paribas Multi-Cap (G) | -2.655% | 20.203% | 23.969% |
| Category Average | -2.788% | 19.170% | 23.318% |
| Data Source: Morningstar | |||
Top performing Direct Plans (Growth Option) on 5-year returns (as on 31st Aug-25):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
| HDFC Flexi Cap Fund (G) | 5.421% | 23.251% | 27.242% |
| Quant Flexi Cap Fund (G) | -14.215% | 17.791% | 27.041% |
| BOI Flexi Cap Fund (G) | -7.382% | 22.181% | 26.017% |
| Category Average | -3.213% | 16.630% | 19.728% |
| Data Source: Morningstar | |||
Top performing Direct Plans (Growth Option) on 5-year returns (as on 31st Aug-25):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
| Motilal Oswal Mid-Cap Fund (G) | 1.103% | 29.460% | 33.655% |
| Edelweiss Mid-Cap Fund (G) | 1.072% | 25.405% | 29.784% |
| Invesco India Mid-Cap Fund (G) | 9.844% | 28.532% | 28.626% |
| Category Average | -2.705% | 20.940% | 25.073% |
| Data Source: Morningstar | |||
Top performing Direct Plans (Growth Option) on 5-year returns (as on 31st Aug-25):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
| Quant Small Cap Fund (G) | -10.044% | 25.363% | 35.764% |
| Nippon Small Cap Fund (G) | -7.226% | 23.964% | 32.150% |
| Bandhan Small Cap Fund (G) | -2.189% | 30.274% | 31.564% |
| Category Average | -5.098% | 20.556% | 27.957% |
| Data Source: Morningstar | |||
Top performing Direct Plans (Growth Option) on 5-year returns (as on 31st Aug-25):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
| HDFC BAF (G) | -0.026% | 19.255% | 22.439% |
| Baroda BNP Paribas BAF (G) | 2.416% | 14.941% | 14.947% |
| Edelweiss BAF (G) | -0.438% | 12.814% | 14.613% |
| Category Average | 0.153% | 12.266% | 12.539% |
| Data Source: Morningstar | |||
Top performing Direct Plans (Growth Option) on 5-year returns (as on 31st Aug-25):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
| Quant Multi-Asset Fund (G) | 6.389% | 21.358% | 27.032% |
| ICICI Pru Multi-Asset Fund (G) | 8.035% | 19.710% | 23.171% |
| Nippon Multi-Asset Fund (G) | 8.605% | 19.339% | 18.376% |
| Category Average | 5.306% | 16.857% | 17.796% |
| Data Source: Morningstar | |||
Top performing Direct Plans (Growth Option) on 5-year returns (as on 31st Aug-25):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
| Invesco India Arbitrage Fund (G) | 7.556% | 7.886% | 6.531% |
| Kotak Arbitrage Fund (G) | 7.531% | 7.829% | 6.500% |
| Tata Arbitrage Fund (G) | 7.653% | 7.787% | 6.459% |
| Category Average | 6.920% | 7.127% | 5.768% |
| Data Source: Morningstar | |||
Top performing Direct Plans (Growth Option) on 5-year returns (as on 31st Aug-25):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
| ICICI Prudential Gilt Fund (G) | 7.411% | 8.199% | 7.073% |
| Edelweiss G-Sec Fund (G) | 4.733% | 7.214% | 6.691% |
| SBI Magnum Gilt Fund (G) | 4.993% | 7.753% | 6.588% |
| Category Average | 4.401% | 6.729% | 5.586% |
| Data Source: Morningstar | |||
Top performing Direct Plans (Growth Option) on 5-year returns (as on 31st Aug-25):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
| Nippon Corporate Bond (G) | 8.800% | 8.146% | 7.146% |
| Axis Corporate Debt Fund (G) | 9.058% | 8.118% | 6.973% |
| Franklin India Corporate Bond (G) | 10.014% | 8.068% | 6.918% |
| Category Average | 8.292% | 7.514% | 6.255% |
| Data Source: Morningstar | |||
Having seen returns for various categories of funds for August 2025, some key takeaways.
WHAT WE READ FROM THE AUGUST 2025 MUTUAL FUND RANKINGS
Here are some key trends we deciphered from the MF rankings for August 2025.
The last point has positive implications from a financial planning perspective.
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