Infrastructure and PSU-focused mutual funds continue to deliver strong long-term returns for SIP portfolios.
Small-cap and mid-cap categories offer high-growth potential despite short-term volatility.
Top performers like Quant Small Cap, ICICI Infrastructure, and HDFC Infrastructure show consistent 3-year and 5-year wealth creation.
Mutual fund SIP investing continues to show strong momentum across infrastructure, PSU equity, and small-cap categories. The latest performance numbers reveal clear long-term winners that have delivered steady growth over three and five years. Each fund reflects its own strengths, risk profile, and long-term return potential.
ICICI Prudential Infrastructure Fund Direct – Growth remains one of the strongest performing funds within the infrastructure category. The NAV stands at Rs. 215.13, and the AUM is Rs. 8,231.52 crore. Short-term returns show a mild correction with a one-month return of –1.47 percent. Over three months, the fund has delivered 4.25 percent, while the one-year return is 6.23 percent.
Its strength shows up even more in the longer-term performance-three years at 26.32% and five years at 34.13%. This is a translation of the steady progress India's infrastructure story is making. These numbers give this fund a strong positioning for SIP-based long-term compounding.
Quant Small Cap Fund Direct – Growth continues to emerge as a key attraction among those searching for high growth. The NAV has touched Rs 280.15, and AUM is at an enormous Rs 30,504.40 crore. One-month return is –1.72 percent, showing short-term volatility typical of small-cap stocks. Over three months, the return is 3.71 percent.
The one-year return does stand at a loss of –3.18 percent, but the longer periods reflect strong growth. Three-year return is 23.12 percent, while the five-year return stands at an impressive 33.28 percent. These numbers show the fund can create much wealth over long periods despite fluctuations in the short term.
HDFC Infrastructure Fund Direct – Growth has kept rewarding investors with consistent returns over the long term. Presently, the NAV is Rs. 53.35, and the AUM is Rs. 2,586.00 crore. The one-month return is –0.80 percent, and the three-month return is 3.79 percent. The one-year returns are 3.67 percent.
The three-year return of 26.77% and a five-year return of 32.31% testify to the sustained growth of the infrastructure sector. This fund has demonstrated the ability to perform consistently across market cycles.
SBI PSU Fund Direct – Growth is a beneficiary of strong performance across banking, energy, and manufacturing. The NAV of this fund stands at Rs. 37.09, with an AUM of Rs. 5,714.14 crore. The one-month return has been 1.00 percent. Over three months, the return shows solid growth at 11.02 percent.
The one-year return stands at 6.12 percent. Over the longer term, the fund has returned 28.96 percent in three years and 32.03 percent over five years. These numbers highlight its stability and long-term growth potential within the PSU theme.
ICICI Prudential BHARAT 22 FOF Fund Direct – Growth remains a consistent mover in the PSU-focused multi-sector category. The NAV is Rs. 34.05, and AUM stands at Rs. 2,453.54 crore. The fund is up 0.71 percent over one month and a robust 10.90 percent return in three months.
The one-year return stands at 3.04 percent. Three-year return is 26.50 percent, and for five years, it has been 31.54 percent. This diversified PSU allocation makes the fund one of the reliable long-term SIP options.
Motilal Oswal Midcap Fund Direct – Growth continues to maintain stable long-term performance despite short-term volatility. The NAV is Rs. 118.86, and the AUM stands at Rs. 37,500.90 crore, showing strong investor participation. The one-month return is –0.88 percent, while the three-month return is 1.14 percent.
Over one year, the return is –2.28 percent. The mid-cap resilience starts to become apparent over longer timeframes, with a three-year return of 27.21 percent and a five-year return of 31.27 percent. That performance reflects the strength of quality mid-cap companies during market cycles.
This lineup showcases strong SIP opportunities across infrastructure, PSU equity, and small-cap categories. Each fund listed shows a unique performance pattern across short-term and long-term periods.
The five-year and three-year performances remain strong in most of these funds, underpinning the continued growth story of India's economy. A well-constructed SIP portfolio can draw strength from these individual funds to achieve stability, diversification, and long-term wealth creation.
1. Which mutual funds are performing best for SIPs in December 2025?
Infrastructure, PSU equity, and small-cap funds such as ICICI Prudential Infrastructure Fund, SBI PSU Fund, and Quant Small Cap Fund are among the top performers.
2. Are small-cap funds suitable for long-term SIP investing?
Small-cap funds show short-term volatility but deliver strong long-term returns, making them suitable for SIPs focused on long-horizon wealth creation.
3. Why are PSU equity funds performing well in 2025?
PSU funds are benefiting from strong government spending, improved balance sheets, and higher profitability across banking, energy, and manufacturing sectors.
4. Do infrastructure funds offer stable returns for SIPs?
Infrastructure funds have shown steady 3-year and 5-year performance due to rising capital expenditure and ongoing growth in core sectors.
5. Can mid-cap funds be part of a diversified SIP portfolio?
Mid-cap funds add growth potential and diversification, complementing infrastructure, PSU, and small-cap themes in a balanced SIP strategy.