Are you exploring ideas for mutual fund investments for 2025 and wondering which funds can offer solid returns? The new generative AI platform, Perplexity AI, has created a list of top-performing mutual funds that could become a smart bet for long-term investors. These recommendations are based on historical returns, fund categories, expense ratios, and performance consistency. In this article, we take the best mutual funds with a detailed look to invest in bewildering AI in 2025, and understand what baffling AI is, why these funds are worth considering and should be perceived by investors.
I wrote about it before Best mutual funds to invest in 2025 according to chatgpt You might want to explore too.
What is confusing AI?
Perplexity AI is a search and answering question platform powered by innovative generative AI, and is popular for its ability to provide intelligent, data-backed answers. Unlike traditional search engines, it uses natural language processing and large-scale language models to provide concise and insightful answers. Recently, embarrassment has begun offering investment suggestions, including mutual fund space recommendations, by analyzing historical data, market trends and performance indicators.
The investment insights generated in AI should always be mutually validated with individual research or financial advisors, but provide a solid starting point for retail investors.
Top 10 mutual funds investing in 2025 follow the bewildered AI
Perplexity AI recommends the mutual fund, as well as the five-year CAGR, managed assets (AUM), and expense ratios:
| Rank | Fund name | category | 5-year CAGR (%) | aum (£cr) | Expense ratio (%) |
|---|---|---|---|---|---|
| 1 | Quant Small Cap Fund | Small Cap Fund | 49.6 | 24,892 | 0.68 |
| 2 | Quant Infrastructure Fund | Sector Funds – Infrastructure | 43.1 | 3,158 | 0.73 |
| 3 | Band Dance Mall Cap Fund | Small Cap Fund | 38.1 | 9,516 | 0.5 |
| 4 | ICICI Prudential Commodities Fund | Theme Fund | 40.00 | 2,614 | 1.22 |
| 5 | Nippon India Small Cap Fund | Small Cap Fund | 40.00 | 55,490 | 0.73 |
| 6 | ICICI Prudential Infrastructure Fund | Sector Funds – Infrastructure | 39.9 | 7,213 | 1.17 |
| 7 | Quant Flexi Cap Fund | Flexi Cap Fund | 36.0 | 6,712 | 0.61 |
| 8 | Quant ELSS Tax Saver Fund | Equity-Linked Savings Scheme (ELSS) | 36.8 | 10,404 | 0.50 |
| 9 | Quant Mid Cap Fund | Midcap fund | 35.9 | 8,355 | 0.62 |
| 10 | Indian Bank Lowercase Fund | Small Cap Fund | 36.9 | 1,574 | 0.49 |
Mutual funds by category
Below are the recommended mutual fund classifications based on that category.
1) Small cap fund:
- Quant Small Cap Fund
- Band Dance Mall Cap Fund
- Nippon India Small Cap Fund
- Indian Bank Lowercase Fund
2) Sectoral/Theme Fund:
- QuantInfrastructure Fund
- ICICI Prudential Infrastructure Fund
- ICICI Prudential Commodity Fund (Product)
Of the above sector/theme mutual funds, the ICICI PRU Infra Fund and Quant Infra Fund are part of the Google Gemini AI Mutual Fund Recommendations for 2025 Too much.
3) Flexi Cap Fund:
4) Midcap fund:
5) ELSS (equity-linked savings scheme):
- Quant ELSS Tax Saver Fund
This classification helps investors to better understand each fund’s investment strategy and risk exposure and make choices based on their financial goals and risk tolerance.
Why should you consider these funds?
- Excellent Returns: All of these mutual funds offer 5-year CAGR returns ranging from ~29% to 41% or more. Such performance demonstrates the ability to ride market trends and identify growth opportunities, particularly in the small and midcap categories.
- Various categories: The list includes small caps, mid caps, flexi caps, infrastructure, commodity, and ELSS categories, driving diversification across sectors and investment styles. If you observe, Mutual fund recommendations from Meta AI in 2025 It also includes debt mutual funds that provide more portfolio diversification.
- Experienced fundhouse: Most of these funds are managed by reputable AMCs such as Quant Muturfund, ICICI Prudential, Nippon India and Bandhan MF.
- Reasonable cost ratio: Some funds on the list have an expense ratio of less than 0.7%, which helps to strengthen investors’ returns in the long term.
- New theme: Funds like ICICI Prudential Commodities and Quant Infrastructure Fund focus on niche-growing sectors that can benefit from government policies and economic recovery.
Risks of Investing in these Funds
While past returns are impressive, investors need to be aware of potential risks.
- Market Volatility: Small and medium-sized cap funds tend to be more volatile than larger caps and hybrid funds. Market revisions can have a significant impact on these portfolios. You can see some Best mutual funds with low beta and high alpha.
- Department risk: Funding for sectors/themes such as infrastructure and products is inherently circular. They could be below performance during a recession or a disadvantaged policy environment.
- Excess concentration of one AMC mutual fund: Of the top 10 mutual funds recommended by Perplexity AI, five funds belong to Quant Muturfund. QUANT has outperformed in recent years, but if fundhouse strategies and team performance fail, focusing too much on a single AMC will increase risk.
- Short-term fixes: These funds have been performing for over five years, but short-term performance is not always consistent. As an example, to better understand this, look at Quant Mutual Funds’ performance in the short term compared to peers.
- Liquidity risk: Those focusing on smaller AUM funds or sectors may face liquidity issues during periods of market stress.
Should I invest in Perplexity AI’s recommended mutual funds?
The list of top mutual funds Perplexity AI for investing in 2025 includes a strong combination of high growth and theme opportunities driven by data and past performance metrics. Investors who are looking for aggressive growth and willing to embrace short-term volatility can consider assigning a portion of their portfolio to these funds.
However, we should not blindly follow the recommendations generated by AI. Always consider your risk appetite, investment horizon and financial goals before investing.
If you are a high-risk investor looking to create long-term wealth, some of these funds will definitely find a place in your 2025 investment strategy.
Have you invested in any of these top-performing mutual funds? Share your experiences and thoughts in the comments section below!
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