Best Mutual Funds for Salaried Individuals 2025

Channeling a certain portion of your salary towards mutual funds each month smartly can not only grow wealth but also become financially secure. However, choosing the right mix of funds - equity, debt and hybrid - can be a tricky affair. Let us explore some of the best mutual funds for salaried individuals with respect to their risk appetite, financial goals and investment horizon.

Top Mutual Funds for Salaried Individuals

When picking the right mutual fund for salaried individuals, it is important to look at several aspects such as risk, diversity, and tax benefits. Here are some of the best mutual funds for salaried individuals based on their 3-years annualised returns.

(Data as of February 13, 2025)

Overview of the Best Mutual Funds for Salaried Individuals

Motilal Oswal Midcap Fund

• 1Y Returns – 28.78%
• Carries very high risk
• Minimum SIP Amount – ₹500
• Assets Under Management (AUM) – ₹24,488 crore
• 75.6% funds allocated to equity, 24.4% held as cash
• Expense Ratio – 0.65%

UTI Large & Midcap Fund

• 3Y Annualised Returns – 28.43%
• Carries very high risk
• Minimum SIP – ₹100
• AUM – ₹4,406 crore.
• 97.1% funds allocated to equity, 2.6% held as cash, 0.3% allocated to debt
• Expense Ratio – 0.97%
• Inception Date – August 1, 2005

JM Aggressive Hybrid Fund

• 3Y Annualised Returns – 20.36%
• Carries very high risk
• Minimum SIP Amount – ₹100
• AUM – ₹762.93 crore
• 74.6% of the funds allocated to equity,19.4% to debt, and 6.1% held as cash
• Expense Ratio – 0.68%
• Inception Date – April 1, 1995

HDFC Balanced Advantage Fund

• 3Y Annualised Returns – 21.14%
• Carries very high risk
• Minimum SIP Amount – ₹100
• AUM – ₹95,521 crore
• 53.7% of the funds allocated to equity,30.1% to debt and 14.8% held as cash
• Expense Ratio – 0.78%
• Inception Date – September 11, 2000

SBI Long Term Equity Fund

• 3Y Annualised Returns – 22.95%
• Carries very high risk
• Minimum SIP Amount – ₹500
• AUM – ₹27,791 crore
• 90.3% of the funds allocated to equity, 0.1% to debt, and 9.6% held as cash
• Expense Ratio – 0.95%
• Inception Date – May 7, 2007

HDFC ELSS Tax Saver Fund

• 3Y Annualised Returns – 21.54%
• Carries very high risk
• Minimum SIP Amount – ₹500
• AUM – ₹4,414 crore
• 98.9% of the funds allocated to equity and 1.1% held as cash
• Expense Ratio – 0.69%
• Inception Date – 31 March, 1996

ICICI Prudential Retirement Fund – Pure Equity Plan

• 3Y Annualised Returns – 10.10%
• Carries very high risk
• Minimum SIP Amount – ₹100
• AUM – ₹1,060.05 crore
• 97.5% of the funds allocated to equity and 2.5% held as cash
• Expense Ratio – 0.81%
• Inception Date – February 27, 2019

HDFC Retirement Savings Fund

• 3Y Annualised Returns – 18.80%
• Carries very high risk
• Minimum SIP Amount – ₹100
• AUM – ₹5,897 crore
• 87.8% of the funds allocated to equity and 11.3% held as cash
• Expense Ratio – 0.80%
• Inception Date – February 26, 2016

Things to Remember When Investing in Mutual Funds for Salaried Individuals

There are several key aspects that a salaried person should know about before investing in the best mutual funds for salaried individuals.

Financial Goals

If you’re earning a fixed salary each month, it is important to create a financial plan and have a financial goal in place. Understand the same to pick the right mutual fund scheme.

Risk Profile

Risk plays a crucial role when making investment decisions. Young individuals who have just started their career, can take on more risk compared to someone more experienced. Picking a mutual fund that fits within your risk profile can help you stay invested for a longer period of time and ride the waves of short term volatilities.

Diversification

Diversifying can help investors build a sound and well-rounded portfolio. Along with diversifying in various companies and sectors, investors should also diversify across asset classes to stabilise growth and mitigate risk.

Involvement in the Market

Certain funds require regular monitoring and adjustments to your portfolio. Additionally, your experience in the markets plays an important role as well. Hence, you will need to consider the time you can allocate towards your portfolio when investing.

Investing through SIP

A systematic investment plan (SIP) is a handy tool that allows you to invest a small portion of their salary each month. This eliminates the need for a higher capital and helps investors stay invested for a longer duration.

Tax Implications

Consider the tax implications before investing in a mutual fund. Depending on the type of the mutual fund and investment duration, the tax treatment and capital gains tax can vary. Additionally, certain funds like the equity-linked savings schemes (ELSS) offer tax benefits to investors.

Why Should Salaried Individuals Invest in Mutual Funds

There are several key advantages of investing in mutual funds for salaried individuals.

• Investing through SIP develops a habit of saving and helps salaried individuals stay consistent
• Mutual funds such as ELSS can help salaried individuals avail tax benefits under section 80C of the Income Tax Act
• Mutual funds are managed by professional fund managers which can be helpful for salaried individuals who do not have a lot of experience in the markets.
• Investing in the right mutual fund can help you plan for retirement or meet your day-to-day expenses.

Conclusion

Investing in mutual funds for salaried individuals is easy and accessible. With numerous options and various types of mutual funds, an investor can build a portfolio that aligns with their risk profile and financial goals.

Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.