For the month of September 2025, the equity markets saw a late sell-off for two reasons. This was the first full month of 50% tariffs, so the impact on exports was starting to show. Secondly, the US imposed a steep $1,00,000 fee on H1-B visas, which not only threatened to derail the IT companies, but also impact the great American dream for Indians.
At the same time the steady spike in the bond yields continued as it remained in an elevated range of 6.5% to 6.6%. Markets have veered to the view that RBI may avoid a rate cut in October to defend the rupee value. The yield spike was also due to persistent selling in Indian bonds. Here are the best funds in September 2025 in equity, debt, and Hybrids.
Top performing Direct Plans (Growth Option) on 5-year returns (as on 30th Sep-25):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
| Nippon India Large Cap Fund (G) | -0.145% | 20.920% | 26.153% |
| ICICI Pru Large Cap Fund (G) | -1.663% | 19.470% | 22.590% |
| HDFC Large Cap Fund (G) | -5.779% | 17.689% | 22.335% |
| Category Average | -4.650% | 15.556% | 18.876% |
| Data Source: Morningstar | |||
Top performing Direct Plans (Growth Option) on 5-year returns (as on 30th Sep-25):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
| Nippon India Multi Cap (G) | -2.361% | 23.070% | 31.183% |
| Mahindra Manulife Multi Cap (G) | -5.367% | 20.704% | 26.895% |
| ICICI Pru Paribas Multi-Cap (G) | -5.386% | 20.901% | 25.388% |
| Category Average | -4.635% | 19.169% | 24.355% |
| Data Source: Morningstar | |||
Top performing Direct Plans (Growth Option) on 5-year returns (as on 30th Sep-25):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
| HDFC Flexi Cap Fund (G) | 3.365% | 24.208% | 29.955% |
| JM Flexi Cap Fund (G) | -10.205% | 24.267% | 27.266% |
| Quant Flexi Cap Fund (G) | -12.672% | 17.873% | 27.057% |
| Category Average | -4.978% | 17.020% | 20.628% |
| Data Source: Morningstar | |||
Top performing Direct Plans (Growth Option) on 5-year returns (as on 30th Sep-25):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
| Motilal Oswal Mid-Cap Fund (G) | -7.330% | 25.375% | 33.029% |
| Edelweiss Mid-Cap Fund (G) | -1.562% | 25.362% | 30.208% |
| Nippon India Mid-Cap Fund (G) | -2.859% | 25.180% | 29.657% |
| Category Average | -5.055% | 20.957% | 25.470% |
| Data Source: Morningstar | |||
Top performing Direct Plans (Growth Option) on 5-year returns (as on 30th Sep-25):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
| Quant Small Cap Fund (G) | -10.516% | 24.754% | 34.955% |
| Nippon Small Cap Fund (G) | -8.284% | 23.308% | 32.608% |
| Bandhan Small Cap Fund (G) | -3.909% | 30.780% | 31.889% |
| Category Average | -7.145% | 20.087% | 28.210% |
| Data Source: Morningstar | |||
Top performing Direct Plans (Growth Option) on 5-year returns (as on 30th Sep-25):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
| HDFC BAF (G) | 0.742% | 20.078% | 25.006% |
| Baroda BNP Paribas BAF (G) | 1.544% | 15.243% | 15.539% |
| Edelweiss BAF (G) | -0.876% | 13.634% | 15.354% |
| Category Average | -0.564% | 12.620% | 13.077% |
| Data Source: Morningstar | |||
Top performing Direct Plans (Growth Option) on 5-year returns (as on 30th Sep-25):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
| Quant Multi-Asset Fund (G) | 4.478% | 21.724% | 27.631% |
| ICICI Pru Multi-Asset Fund (G) | 6.889% | 21.345% | 25.664% |
| Nippon Multi-Asset Fund (G) | 9.509% | 22.387% | 19.965% |
| Category Average | 6.005% | 18.131% | 18.971% |
| Data Source: Morningstar | |||
Top performing Direct Plans (Growth Option) on 5-year returns (as on 30th Sep-25):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
| Invesco India Arbitrage Fund (G) | 7.309% | 7.836% | 6.525% |
| Kotak Arbitrage Fund (G) | 7.334% | 7.796% | 6.487% |
| Edelweiss Arbitrage Fund (G) | 7.319% | 7.741% | 6.449% |
| Category Average | 6.722% | 7.109% | 5.764% |
| Data Source: Morningstar | |||
Top performing Direct Plans (Growth Option) on 5-year returns (as on 30th Sep-25):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
| ICICI Prudential Gilt Fund (G) | 7.608% | 8.314% | 7.022% |
| SBI Magnum Gilt Fund (G) | 4.878% | 8.009% | 6.623% |
| Edelweiss G-Sec Fund (G) | 4.510% | 7.710% | 6.587% |
| Category Average | 4.354% | 7.239% | 5.626% |
| Data Source: Morningstar | |||
Top performing Direct Plans (Growth Option) on 5-year returns (as on 30th Sep-25):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
| Nippon Corporate Bond (G) | 8.419% | 8.344% | 7.090% |
| Axis Corporate Debt Fund (G) | 8.751% | 8.317% | 6.932% |
| Franklin India Corporate Bond (G) | 9.942% | 8.329% | 6.849% |
| Category Average | 7.994% | 7.749% | 6.233% |
| Data Source: Morningstar | |||
Having seen returns for various categories of funds for September 2025, some key takeaways.
WHAT WE READ FROM THE SEPTEMBER 2025 MUTUAL FUND RANKINGS
Here are some key trends we deciphered from the MF rankings for September 2025.
The last point has positive implications from a financial planning and advisory perspective.
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