The Indian stock market has been experiencing a correction phase since early 2025, prompting investors to revisit their portfolio strategy. In such times, selecting mutual funds that can withstand market volatility and bounce back with strength becomes crucial. Interestingly, Grok AI, an AI model developed by xAI (Elon Musk’s AI startup), has weighed in with its picks of mutual funds that may be well-suited for this correction phase. Let’s explore Best Mutual Funds to invest in 2025 as per Grok AI in detail and understand why these mutual funds could be among the best to invest in 2025.
What is Grok AI?
Grok AI is an advanced artificial intelligence model developed by xAI, known for its witty, data-driven insights. Designed to understand patterns, analyze trends, and make logical predictions, Grok AI taps into large-scale financial data to assist users with investment ideas. While Grok isn’t a certified financial advisor, its ability to synthesize performance data and market indicators makes its suggestions worth evaluating—especially during uncertain times.
What was our question to Grok AI?
We simply asked “List down Best Mutual Funds to invest in 2025 in India during this stock market correction” and it started responding …..with the recommended mutual funds list.
10 Best Mutual Funds to invest in 2025 – as per Grok AI
Here is the list of Grok AI’s top mutual fund picks categorized by fund type:
Large-Cap Funds:
#1 – ICICI Prudential Bluechip Fund
#2 – Canara Robeco Bluechip Equity Fund
Flexi-Cap Fund:
#3 – Parag Parikh Flexi Cap Fund
Multi-Cap Fund:
#4 – Nippon India Multi Cap Fund
Mid-Cap Fund:
#5 – Motilal Oswal Midcap Fund
Small-Cap Fund:
#6 – Quant Small Cap Fund
Value/Contra Funds:
#7 – SBI Contra Fund
#8 – DSP Value Fund
Hybrid Fund:
#9 – HDFC Equity Savings Fund
Index Fund:
#10 – UTI Nifty 50 Index Fund
Deep Dive into Top 10 Mutual Funds recommended by Grok AI
Let’s now dive into the individual details of each mutual fund.
#1 – ICICI Prudential Bluechip Fund
Category: Large-Cap
Investment Objective: To generate long term capital appreciation and income distribution to investors from a portfolio that is predominantly invested in equity and equity related securities of large cap companies.
Annualised Returns
- 3-Year Returns:2%
- 5-Year Returns:2%
- 10-Year Returns:3%
Expense Ratio: 0.93% (Direct Plan)
Why Invest: A solid choice for conservative investors. Bluechip stocks tend to be less volatile during corrections.
Risks: Lower upside potential compared to mid or small caps.
We have recommended this fund as part of 5 Blue-Chip Mutual Funds to invest in 2025 earlier.
#2 – Canara Robeco Bluechip Equity Fund
Category: Large-Cap
Investment Objective: The Investment objective of the fund is to provide capital appreciation by predominantly investing in companies having a large market capitalization.
Annualised Returns
- 3-Year Returns:2%
- 5-Year Returns:2%
- 10-Year Returns:2%
Expense Ratio: 0.51% (Direct Plan)
Why Invest: Consistent performer with lower downside risk, suited for conservative investors.
Risks: Limited exposure to high-growth opportunities in mid or small caps.
#3 – Parag Parikh Flexi Cap Fund
Category: Flexi-Cap
Investment Objective: The investment objective of the Parag Parikh Flexi Cap Fund is to generate long-term capital growth through an actively managed portfolio of equity and equity-related securities. The fund invests in Indian equities, foreign equities, and related instruments, with a focus on both domestic and international markets.
Annualised Returns
- 3-Year Returns:8%
- 5-Year Returns:9%
- 10-Year Returns:5%
Expense Ratio: 0.63% (Direct Plan)
Why Invest: It has historically weathered downturns better than peers—only a 4.3% NAV drop vs. 14.9% in its category (as of March 2025).
Risks: Currency risk due to international exposure and potential regulatory shifts in global tech.
Earlier we have figured this fund as part of 20 Equity Mutual Funds with Low Beta and High Alpha.
#4 – Nippon India Multi Cap Fund
Category: Multi-Cap
Investment Objective: Invests across large, mid, and small caps to capture a broad range of opportunities.
Annualised Returns
- 3-Year Returns:8%
- 5-Year Returns:3%
- 10-Year Returns:5%
Expense Ratio: 0.8% (Direct Plan)
Why Invest: Offers a balance of stability and growth across market cycles.
Risks: Exposure to small caps can increase volatility in the short term.
#5 – Motilal Oswal Midcap Fund
Category: Mid-Cap
Investment Objective: Focuses on high-conviction mid-cap stocks with scalable business models.
Annualised Returns
- 3-Year Returns:6%
- 5-Year Returns:1%
- 10-Year Returns:1%
Expense Ratio: 0.68% (Direct Plan)
Why Invest: Strong potential for upside post-correction.
Risks: Higher short-term volatility and liquidity risks in small/mid-cap segments.
I am personally investing in this mutual fund. This is also part of 5 Best Mutual Funds to invest in 2025 as per ChatGPT.
#6 – Quant Small Cap Fund
Category: Small-Cap
Investment Objective: Aggressively invests in high-growth small-cap stocks.
Why Invest: Exceptional long-term performance. A top pick for investors willing to embrace high risk for high returns.
Annualised Returns
- 3-Year Returns:5%
- 5-Year Returns:9%
- 10-Year Returns:8%
Expense Ratio: 0.68% (Direct Plan)
Risks: High volatility and susceptibility to market swings. Quant mutual funds have been underperforming in the last 1 year post fund manager front running scam.
This mutual is part 12 Best Mutual Funds to invest in 2025 as per Google Gemini AI published earlier.
#7 – SBI Contra Fund
Category: Contra/Value
Investment Objective: Invests in undervalued sectors and stocks with recovery potential.
Annualised Returns
- 3-Year Returns:5%
- 5-Year Returns:9%
- 10-Year Returns:2%
Expense Ratio: 0.76% (Direct Plan)
Why Invest: Ideal during corrections when undervalued assets tend to recover stronger.
Risks: Contrarian bets can take time to play out and may underperform in short-term bull phases.
#8 – DSP Value Fund
Category: Value
Investment Objective: Targets fundamentally sound companies trading below intrinsic value.
Annualised Returns
- 3-Year Returns:7%
- 5-Year Returns: NA
- 10-Year Returns: NA
Expense Ratio: 0.93% (Direct Plan)
Why Invest: Strong value investing play during a correction. March 2025 data shows it outperformed its peers.
Risks: Value picks may take longer to deliver returns.
#9 – HDFC Equity Savings Fund
Category: Hybrid (Equity Savings)
Investment Objective: Combines equity, debt, and arbitrage to offer stability with moderate growth.
Annualised Returns
- 3-Year Returns:5%
- 5-Year Returns:4%
- 10-Year Returns:2%
Expense Ratio: 0.88% (Direct Plan)
Why Invest: Provides a hedge against equity volatility, suitable for risk-averse investors.
Risks: Returns may lag in a strong market rally due to conservative allocation.
#10 – UTI Nifty 50 Index Fund
Category: Index (Large-Cap)
Investment Objective: Replicates the Nifty 50 index performance.
Annualised Returns
- 3-Year Returns:9%
- 5-Year Returns:4%
- 10-Year Returns:9%
Expense Ratio: 0.17% (Direct Plan)
Why Invest: Low-cost, passive investing with exposure to India’s top 50 companies.
Risks: No active management, so returns fully depend on index performance.
You can also review the List of 5 Best Mutual Funds for Lumpsum Investments in 2025.
Recommendations by Risk Profile
Conservative: ICICI Prudential Bluechip, HDFC Equity Savings, UTI Nifty 50 Index, Canara Robeco Bluechip.
Moderate: Parag Parikh Flexi Cap, Nippon India Multi Cap, DSP Value, SBI Contra.
Aggressive: Motilal Oswal Midcap, Quant Small Cap.
Grok AI response recorded Video
Why to Invest in These Mutual Funds Now?
- Resilience in Volatility: These funds have shown the ability to withstand downturns.
- Category Balance: The mix of flexi-cap, large-cap, hybrid, and small-cap funds caters to all investor profiles.
- Potential for Recovery: Post-correction phases often reward fundamentally strong portfolios.
Risks Involved in These Mutual Funds
- Market Risk: Equities are inherently volatile.
- Category Risk: Small and mid-cap funds are more volatile than large-cap.
- Interest Rate Risk: Hybrid funds may be affected by debt market movements.
- Global Exposure Risk: For funds like Parag Parikh, international exposure brings currency and regulatory risks.
Final Thoughts: The mutual funds recommended by Grok AI cover a wide range of strategies—from safe large-cap bets to high-growth small-cap opportunities. However like I always say, irrespective whether the recommendation is coming from an AI or from an investment advisor, investment in mutual funds should be done based on investors risk appetite, time horizon, and goals..
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thanks for info.