Top 13 Wealth Builder Mutual Funds to Invest in 2025 – 5 Star Rated by Value Research

For investors in India, mutual funds have long been one of the most reliable and efficient ways to build wealth. They combine the power of professional fund management, diversification, and disciplined investing, making them suitable for both beginners and seasoned investors. In 2025, as the equity markets continue to expand and opportunities rise across multiple sectors, choosing the right funds becomes even more important. Among the thousands of schemes available, 5-star rated funds from Value Research often stand out for their strong track record, consistency, and risk-adjusted performance.

In this article, we will look at 13 wealth builder mutual funds that carry a 5-star rating from Value Research and explore how they can fit into your investment journey in 2025.

What Makes a Mutual Fund a Wealth Builder?

Mutual funds earn the title of “wealth builder” when they deliver consistent returns across different market cycles, help investors achieve long-term financial goals, and manage risk efficiently. Value Research, one of India’s leading mutual fund research platforms, assigns ratings based on risk-adjusted performance. Funds that achieve 5-star status are considered top performers in their category.

Typically, wealth builder funds fall into categories like flexi-cap funds, large and mid-cap funds, and value or contra funds. Each has a unique style of investing but shares the same goal – long-term capital appreciation for investors.

Flexi Cap Mutual Funds – Versatility for Growth

Flexi-cap funds have become popular because of their ability to invest across large, mid, and small-cap stocks. This flexibility allows fund managers to shift allocations based on market conditions. Among the top performers:

• HDFC Focused Fund and HDFC Flexi Cap Fund have delivered more than 27 percent annualised returns over five years, offering strong compounding opportunities.
• Parag Parikh Flexi Cap Fund stands out for its global diversification, giving investors exposure to both Indian and international equities.
• Invesco India Flexi Cap Fund and Invesco India Focused Fund provide bottom-up stock-picking and concentrated strategies, appealing to investors seeking high-conviction bets.
• ICICI Prudential India Equity FOF simplifies diversification by investing in a basket of equity funds, while HDFC Retirement Savings Fund Equity Plan focuses on long-term growth for retirement goals.

These funds suit investors who want a diversified approach without worrying about constantly shifting market trends.

Large & Mid Cap Funds – Balancing Stability and Growth

Large and mid-cap funds aim to capture the best of both worlds. Large-caps provide stability and lower volatility, while mid-caps bring growth potential and higher returns. In 2025, several schemes in this category have earned 5-star ratings:

• Motilal Oswal Large and Midcap Fund has impressed with nearly 29 percent annualised five-year returns, one of the highest in its segment.
• ICICI Prudential Large & Mid Cap Fund combines stability with growth, delivering over 26 percent annualised returns across five years.
• Bandhan Large & Mid Cap Fund and UTI Large & Mid Cap Fund have shown steady performance, making them reliable options for investors with moderate risk appetite.

These funds are ideal for investors seeking a balance between safety and strong compounding.

Value and Contra Funds – Long-Term Opportunities

For investors who prefer a more contrarian or value-based approach, value and contra funds can be an attractive choice. They invest in fundamentally strong but undervalued stocks that can deliver substantial gains when market sentiment turns favorable.

• ICICI Prudential Value Fund focuses on identifying stocks trading below their intrinsic value and has posted annualised returns above 26 percent over five years.
• SBI Contra Fund has been a star performer, delivering nearly 30 percent annualised returns over five years by betting on out-of-favor sectors.

These strategies require patience but can reward investors handsomely in the long run.

Performance Highlights of the 13 Funds

Looking at the track record of these funds, a few highlights stand out:

• SBI Contra Fund tops the list with nearly 30 percent five-year annualised returns.
• Motilal Oswal Large and Midcap Fund and HDFC Focused Fund have also crossed the 28 percent mark, showcasing their wealth-building potential.
• Even retirement-focused options like HDFC Retirement Savings Fund Equity Plan have generated close to 25 percent annualised returns, proving that long-term strategies pay off.

While past performance is not a guarantee of future results, these numbers show the consistency and strength of 5-star rated funds in India’s evolving market.

Who Should Invest in These Funds?

These 13 wealth builder mutual funds cater to different investor profiles:

• Beginner investors may prefer funds like ICICI Prudential India Equity FOF for simplified diversification.
• Aggressive investors with a high-risk appetite can consider SBI Contra Fund or Invesco India Focused Fund.
• Long-term planners saving for retirement may find HDFC Retirement Savings Fund Equity Plan suitable.
• Balanced investors who want both safety and growth can opt for large & mid-cap funds like ICICI Prudential Large & Mid Cap Fund.

The key is to match your financial goals, time horizon, and risk tolerance with the fund’s investment style.

Risks to Keep in Mind

Even the best-rated funds are not risk-free. Flexi-cap and mid-cap exposure often leads to volatility. Value and contra strategies may take longer to deliver results and can test investors’ patience. Concentrated portfolios like focused funds carry higher risks compared to diversified schemes. Market downturns can also impact short-term performance.

Investors should avoid judging these funds only by short-term returns and should focus on consistency, fund manager expertise, and suitability for their own financial objectives.

Conclusion

The 13 wealth builder mutual funds highlighted in this list are among the best-performing schemes in India for 2025, each carrying a 5-star rating from Value Research. Whether you prefer the flexibility of flexi-cap funds, the stability-growth balance of large & mid-cap strategies, or the contrarian edge of value and contra funds, these schemes offer solid choices for building long-term wealth.

As with any investment, it’s essential to evaluate your goals and risk profile before committing capital. These funds provide a strong starting point, but discipline, patience, and regular review remain key to achieving financial success in 2025 and beyond.