Investing a fraction of your salary in mutual funds every month can assist you in creating wealth and financial security. Yet, deciding on the optimal combination of equity, debt, and hybrid funds suitable for your risk tolerance, goals, and investment horizon is challenging. Further down, we examine the top mutual funds for salaried individuals in 2025, based on their 3-year annualized returns, and provide guidance on creating a well-balanced portfolio.
Top Mutual Funds for Salaried Individuals
| Fund Name | Type | 3-Yr Annualized Return |
|---|---|---|
| Motilal Oswal Midcap Fund | Equity (Mid-Cap) | 28.78% |
| UTI Large & Midcap Fund | Equity (Large & Mid) | 28.43% |
| JM Aggressive Hybrid Fund | Hybrid | 20.36% |
| HDFC Balanced Advantage Fund | Hybrid Advantage | 19.47% |
| SBI Long Term Equity Fund | ELSS (Tax Saver) | 22.95% |
| HDFC ELSS Tax Saver Fund | ELSS (Tax Saver) | 21.14% |
| ICICI Prudential Retirement Fund – Pure Equity Plan | Retirement Fund | 19.10% |
| HDFC Retirement Savings Fund | Retirement Fund | 18.80% |
Fund Snapshots
- Motilal Oswal Midcap Fund (Equity):
- 3-Year CAGR: 28.78%
- Risk: Very High | Min. SIP: ₹500 | AUM: ₹24,488 Cr | Equity 75.6% | Expense Ratio: 0.65%
- UTI Large & Midcap Fund (Equity):
- 3-Year CAGR: 28.43%
- Risk: Very High | Min. SIP: ₹100 | AUM: ₹4,406 Cr | Equity 97.1% | Expense Ratio: 0.97%
- JM Aggressive Hybrid Fund (Hybrid):
- 3-Year CAGR: 20.36%
- Risk: Very High | Min. SIP: ₹100 | AUM: ₹763 Cr | Equity 74.6%, Debt 19.4% | Expense Ratio: 0.68%
- HDFC Balanced Advantage Fund (Hybrid Advantage):
- 3-Year CAGR: 19.47%
- Risk: Very High | Min. SIP: ₹100 | AUM: ₹95,521 Cr | Equity 53.7%, Debt 30.1% | Expense Ratio: 0.78%
- SBI Long Term Equity Fund (ELSS):
- 3-Year CAGR: 22.95%
- Risk: Very High | Min. SIP: ₹500 | AUM: ₹27,791 Cr | Equity 90.3% | Expense Ratio: 0.95%
- HDFC ELSS Tax Saver Fund (ELSS):
- 3-Year CAGR: 21.14%
- Risk: Very High | Min. SIP: ₹500 | AUM: ₹4,414 Cr | Equity 98.9% | Expense Ratio: 0.69%
- ICICI Prudential Retirement Fund – Pure Equity Plan (Retirement):
- 3-Year CAGR: 19.10%
- Risk: Very High | Min. SIP: ₹100 | AUM: ₹1,060 Cr | Equity 97.5% | Expense Ratio: 0.81%
- HDFC Retirement Savings Fund (Retirement):
- 3-Year CAGR: 18.80%
- Risk: Very High | Min. SIP: ₹100 | AUM: ₹5,897 Cr | Equity 87.8% | Expense Ratio: 0.80%
Conclusion
For salaried individuals, a disciplined SIP approach across equity, hybrid, ELSS, and retirement funds can deliver diversified growth, tax benefits, and long-term security.
- Equity Funds (Motilal Oswal Midcap, UTI Large & Midcap) suit those with high risk tolerance and a 7+ year horizon.
- Hybrid Funds (JM Aggressive, HDFC Balanced Advantage) offer a blend of growth and stability.
- ELSS Funds (SBI Long Term Equity, HDFC ELSS Tax Saver) combine market returns with tax savings under Section 80C.
- Retirement Funds (ICICI Pure Equity Plan, HDFC Retirement Savings) provide a structured roadmap to retirement planning.
Make your decisions in tune with your investment horizon, risk profile, and financial goals—and hold on for market cycles to ride the power of compounding.
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