13 Wealth Builder Mutual Funds for 2025 with 5-Star Ratings

Investing in mutual funds has steadily become one of the most trusted ways for individuals to build long-term wealth in India. By offering diversification, professional fund management, and easy access to equity markets, mutual funds allow investors to participate in wealth creation without the need to directly pick stocks. Over the years, several schemes have not only delivered superior returns but also built a strong reputation for consistency.

For 2025, Value Research has identified a set of 5-star rated mutual funds that fall under the wealth builder category. These funds are designed to generate long-term growth by investing across sectors, market capitalizations, and strategies that balance risk with returns. Let us explore what makes them special and look at the top 13 mutual funds that investors may consider in the coming year.

What Makes a Mutual Fund a Wealth Builder

Wealth builder funds, as highlighted by Value Research, are those that demonstrate consistent performance, robust portfolio strategies, and the potential to generate above-average returns across market cycles. Typically, these funds belong to diversified categories such as flexi-cap, large and mid-cap, and value or contra funds. Unlike thematic or sectoral funds that focus on specific industries, wealth builder funds adopt a broader approach, making them more reliable for long-term goals.

Categories of Wealth Builder Funds

Value Research generally highlights funds across three categories when it comes to long-term wealth creation:

• Large-cap and large and mid-cap funds, which provide stability through exposure to blue-chip companies while also capturing growth from mid-sized businesses.
• Flexi-cap funds, which offer complete flexibility to move across large, mid, and small caps depending on opportunities in the market.
• Value and contra funds, which follow disciplined approaches to identify undervalued or contrarian bets that can deliver superior returns when market sentiment shifts.

Each of these categories serves a different investor need, but all have the common goal of compounding wealth steadily over time.

The Top 13 Wealth Builder Mutual Funds for 2025

Based on Value Research ratings as of August 2025, here are the 13 funds that investors can look at.

HDFC Focused Fund

This fund invests in a concentrated portfolio of high-quality companies and aims to deliver long-term capital appreciation. With 28 percent annualised returns over five years, it has proven its ability to deliver superior growth. However, being focused, it carries higher portfolio concentration risk.

HDFC Flexi Cap Fund

As one of the most popular funds in India, HDFC Flexi Cap offers investors exposure across all market caps. It has delivered around 27 percent annualised returns over the last five years, making it a strong contender for investors seeking balance between growth and stability.

Parag Parikh Flexi Cap Fund

Known for its value-driven and globally diversified approach, this fund invests in both Indian and international equities. Its five-year annualised return stands at nearly 23 percent, and its global diversification makes it attractive for investors who want to hedge against domestic market risks.

Invesco India Flexi Cap Fund

Though relatively new compared to some peers, this fund has delivered over 24 percent annualised returns in the last three years. It focuses on bottom-up stock picking and has the potential to grow into a long-term performer.

Invesco India Focused Fund

With a strategy of investing in a limited set of high-conviction ideas, this scheme has shown impressive short-term performance. While it carries concentration risk, it may suit aggressive investors looking for higher growth potential.

ICICI Prudential India Equity Fund of Funds

This unique scheme invests in a mix of other equity funds, offering diversification across styles and managers. With over 25 percent five-year returns, it provides an easy entry point for beginners seeking simplified equity exposure.

HDFC Retirement Savings Fund Equity Plan

Designed specifically for retirement planning, this fund comes with a long-term wealth-building focus. With nearly 25 percent five-year annualised returns, it is a solid option for investors with long horizons, though it comes with a lock-in until retirement age.

Motilal Oswal Large and Midcap Fund

One of the top-performing funds in the large and mid-cap category, it has delivered almost 29 percent annualised returns in five years. By combining large-cap stability and mid-cap growth, it offers a balanced yet high-growth opportunity.

ICICI Prudential Large and Mid Cap Fund

This fund has a strong 26 percent five-year return track record and is well-regarded for its disciplined approach to portfolio management. Investors looking for long-term growth with reasonable risk exposure can consider it.

Bandhan Large and Mid Cap Fund

With returns of more than 26 percent over the last five years, this fund has consistently maintained its performance across market phases. It is suitable for investors seeking consistent wealth creation without taking extreme risks.

UTI Large and Mid Cap Fund

With five-year returns of nearly 25 percent, UTI’s fund provides a strong balance between large-cap stability and mid-cap potential. It is well-suited for investors looking for steady compounding over time.

ICICI Prudential Value Fund

This fund follows a value-investing approach by identifying fundamentally strong but undervalued companies. With five-year annualised returns of around 26 percent, it has proven that value investing can deliver strong long-term results when executed with discipline.

SBI Contra Fund

A classic contrarian strategy, SBI Contra invests in out-of-favor stocks and sectors with long-term turnaround potential. It has delivered an impressive 29 percent five-year return, though investors must be ready to remain patient as contrarian bets often take time to perform.

Who Should Invest in These Funds

These wealth builder funds are primarily suited for long-term investors who want to grow their wealth steadily over the next decade or more. They are ideal for goals such as retirement, children’s education, or buying a home. Investors with a moderate to high risk appetite can benefit most, as equity markets will always carry short-term volatility. Conservative investors should consider starting with large-cap or balanced allocation before moving into flexi-cap or contra strategies.

Risks to Keep in Mind

While these funds have impressive track records, investors must remember that mutual fund performance is linked to market cycles. Flexi-cap and mid-cap oriented funds can experience sharp corrections during market downturns. Focused and contra funds carry higher risks due to concentrated or contrarian strategies. Global diversification adds another layer of currency and geopolitical risk. Hence, diversification across multiple funds and categories remains essential.

Conclusion

The 13 wealth builder mutual funds with 5-star ratings from Value Research represent some of the best opportunities for investors in 2025. With their consistent performance, strong fund management, and ability to adapt across market cycles, these funds stand out as reliable vehicles for long-term wealth creation. However, investors should align fund selection with their risk appetite, financial goals, and investment horizon. By staying disciplined and investing regularly, these funds can play a vital role in building a robust financial future.