Are you looking for the next big chance to grow your money through mutual funds? While most people invest in top-performing large-cap or popular index funds, some hidden gems are quietly doing really well in 2025. These lesser-known mutual funds have strong potential, especially if you are open to trying options beyond the usual ones.
If you want to diversify and grow your portfolio in a smart way, this guide will show you Top 5 Hidden Mutual Funds that are becoming popular in 2025.
Let’s check out these lesser-known mutual funds that smart investors are now starting to notice.
Why Look at Hidden Mutual Funds?
Before checking out the 5 hidden mutual fund list, here’s why it is a smart idea to explore lesser-known mutual funds:
- Higher Growth Potential – These funds often invest in new or fast growing companies that big funds might miss. Since they spot opportunities early, you have a chance to earn better returns if the companies grow.
- Less Market Saturation – Popular funds are already filled with a lot of investors. But hidden mutual funds are not yet crowded. This means you can enter early and enjoy the growth before everyone else notices them.
- Diversification – Most people invest in the same well-known funds. Adding lesser-known mutual funds to your portfolio gives you more variety. This helps spread your risk and can make your overall investment plan stronger.
- Fund Manager Strategy – Many hidden funds are run by skilled managers who are not afraid to try new ideas. They may use fresh, bold strategies to find better returns in the future, instead of just following the usual market trends.
Top 5 Hidden Mutual Funds Gaining Popularity in 2025
1. Quant Small Cap Fund
This fund mainly invests in very small companies with high growth potential and it has an expense ratio of around 0.68%, which is the annual fee charged by the fund. Investment has grown by about 18% as per 2025 YTD return.
Why Is It Gaining Popularity?
Quant Small Cap Fund is doing well by investing in fast-growing small companies that many people don’t know about. It uses a smart strategy to move between different sectors based on market trends.
Key Features:
- Invests heavily in industrial and financial sectors
- Managed by an experienced team
- Best for aggressive investors looking to grow their money fast over the long term.
2. Parag Parikh Flexi Cap Fund
This fund mainly invests in companies of all sizes – small, medium, and large based on opportunities and it has an expense ratio of around 0.74%, which is the annual fee charged by the fund for managing your investments. Investment has grown by about 16% as per 2025 YTD return.
Why Is It Gaining Popularity?
Parag Parikh Flexi Cap Fund mixes Indian and International stocks to reduce risk and improve returns. Even though it is not new, many investors still ignore it.
Key Features:
- Holds top U.S. stocks like Alphabet and Meta
- Also invests in Indian giants like HDFC and ITC
- Good option for moderate-risk taking investors who want global diversification.
3. Nippon Indian Small Cap Fund
This fund mainly invests in very small companies with high growth potential and it has an expense ratio of around 0.84%, which is the annual fee charged by the fund. Investment has grown by about 20% as per 2025 YTD return, which is Year-To-Date return.
Why Is It Gaining Popularity?
This fund is getting noticed in 2025 because small companies are doing very well. It chooses companies with strong foundations and the ability to grow big over time.
Key Features:
- Picks stocks after detailed research
- Has performed well over the long term
- Great for investors who want high growth and can handle ups and downs of the market.
4. Canara Robeco Emerging Equities Fund
This fund invests in a mix of large and mid-sized companies, giving a balance of stability and growth with an expense ratio of around 0.62%, which is the annual fee charged by the fund. Investment has grown by about 15% as per 2025 YTD return.
Why Is It Gaining Popularity?
This fund is not attention seeking but gives steady and reliable returns. It invests in companies that are growing and have a strong future.
Key Features:
- It follows a careful and safe investment strategy
- Focuses on future industries like technology and clean energy
- Best for long-term investors who prefer moderate risk during market ups and downs.
5. SBI Contra Fund
This fund comes under the category of Contra Fund, where the fund invests in stocks that are currently out of favour but could perform well in the future, with an expense ratio of around 0.76%, which is the annual fee charged by the fund. Investment has grown by about 17% as per 2025 YTD return.
Why Is It Gaining Popularity?
This fund chooses stocks that others are ignoring but which might bounce back later and give higher returns. In 2025, these smart picks are starting to do well as market changes.
Key Features:
- It buys low-priced stocks from struggling sectors that may recover
- Handled by experienced managers who know when to invest
- Good for experienced investors who understand market movements and tolerate market ups and downs.
Tips for Investing in Hidden Mutual Funds
Choosing the right mutual fund isn’t about checking past returns. Here are some of the simple tips to help you pick better funds:
- Check the fund manager’s experience, because a skilled manager can make a big difference in how the mutual fund performs.
- Know the fund’s strategy by understanding if the fund focuses on growth, value investing, or follows a contra approach. This helps you know what to expect.
- Look at past performance and see how the mutual fund did during different market ups and downs. This shows how it handles risk and changing conditions.
- Check the expense ratio, because lower expense ratio usually means you get to keep more of your earnings.
- Know your risk level, because if you don’t like short-term ups and downs, stay away from high-risk mutual funds. Pick on that matches your comfort level.
Conclusion
In 2025, the world of mutual funds is changing fast. While popular funds are still good options, hidden mutual funds can offer extra growth if you choose wisely. More smart investors are starting to notice these lesser-known options.
Whether you are a beginner or have years of experience, adding one or two hidden mutual funds to your portfolio could give it a nice boost.
Remember: mutual fund investments always come with some market risk. Make sure to do proper research or talk to a financial advisor before you invest your money.
FAQs
Are hidden mutual funds safe to invest in?
Hidden mutual funds can grow faster, but they are also riskier than well-known funds. Before investing, check their strategy, past performance, and who is managing the fund.
How can I find under-the-radar mutual funds?
You can find under-the-radar mutual funds by using mutual fund screener websites, watching financial news, or following experts on YouTube, blogs, or forums.
Is it better to invest in small-cap hidden funds in 2025?
Small-cap hidden funds may give high returns, but they also go up and down a lot. They are good for long-term investors who are okay with taking more risks.
What is a good time to invest in these rising mutual funds?
A good time to invest is when these rising mutual funds are starting to grow but still not very popular. In 2025, many of them are just getting notices, so it can be a good opportunity.
Can I invest in these funds through SIPs?
Yes, you can invest in these mutual funds through a SIP. SIPs help reduce risk level by investing small amounts regularly and help grow your money over time.