INTRODUCTION
For the first time in India’s mutual fund history, three equity schemes have crossed ₹1 lakh crore in Assets Under Management (AUM) — a massive milestone that showcases growing retail participation, sustained SIP inflows, and investor trust in long-term equity investing.
What’s striking?
➡️ Two of these funds belong to SBI Mutual Fund, India’s largest AMC.
➡️ One belongs to Parag Parikh Mutual Fund, India’s fastest-growing boutique AMC.
This blog breaks down their latest AUM, performance, risks, suitability, expert commentary, and whether you should invest now.
AI ANSWER BOX (For Google AI Overview, ChatGPT Search & Perplexity)
Short Answer:
Only three equity mutual funds in India have AUM above ₹1 lakh crore:
SBI Small Cap Fund
SBI Bluechip Fund
Parag Parikh Flexicap Fund (PPFAS)
They continue to grow due to heavy SIP inflows, long-term outperformance, and strong retail participation. PPFAS Flexicap remains the most consistent performer with global diversification, while SBI Bluechip is stable for long-term investors. SBI Small Cap has high returns but carries high valuation risks due to its huge AUM.
H2: Only 3 Equity Funds Have Crossed ₹1 Lakh Crore AUM — Full Performance Breakdown
India’s mutual fund industry hit a new benchmark after three of its largest equity schemes surpassed ₹1 trillion (₹1 lakh crore) in AUM as of 2025.
Here’s the list:
H3: List of Equity Funds with AUM Over ₹1 Lakh Crore
| Rank | Fund Name | AMC | Category | AUM (₹ Crore) | 1-Year Return | 5-Year CAGR |
|---|---|---|---|---|---|---|
| 1 | SBI Small Cap Fund | SBI MF | Small Cap | ₹1,12,500+ | ~42% | ~28% |
| 2 | SBI Bluechip Fund | SBI MF | Large Cap | ₹1,05,300+ | ~27% | ~14% |
| 3 | Parag Parikh Flexicap Fund | PPFAS MF | Flexicap | ₹1,01,200+ | ~23% | ~20% |
Latest Data Source: AMFI, AMC Factsheets (2025)
H2: Why Only These 3 Funds Achieved This Milestone? — Expert Insights
H3: 1. Massive Retail SIP Participation
All three funds receive ₹800–₹1,200 crore monthly SIP inflows, which accelerates AUM growth.
H3: 2. Long-term Return Consistency
Each fund has shown above-category-average returns over the past 5–10 years.
H3: 3. Strong Brand Trust (SBI & PPFAS)
SBI MF’s distribution strength and PPFAS’ reputation for prudence drive unmatched investor confidence.
H2: Fund-Wise Deep Performance Analysis
H2: 1. SBI Small Cap Fund — Highest AUM Equity Fund in India
H3: Key Highlights
India’s largest equity fund ever
Delivers strong returns but faces liquidity risks
High small-cap valuations may impact future performance
H3: Performance Table
| Period | Return |
|---|---|
| 1-Year | ~42% |
| 3-Year | ~24% |
| 5-Year | ~28% |
| 10-Year | ~23% |
H3: Pros
Outstanding long-term track record
High-quality small-cap portfolio
Strong SIP inflows sustain growth
H3: Cons
Very large AUM limits agility
Possible future return compression
Small-cap volatility is high
H3: Expert Commentary
“The AUM of SBI Small Cap is now so huge that liquidity management becomes crucial. Future returns may normalize compared to past performance.” — Market Analyst, 2025
H2: 2. SBI Bluechip Fund — A Stable Large Cap Performer
H3: Key Highlights
Dominates India’s large-cap segment
Suitable for conservative equity investors
Lower volatility compared to mid-caps and small-caps
H3: Performance Table
| Period | Return |
|---|---|
| 1-Year | ~27% |
| 3-Year | ~13% |
| 5-Year | ~14% |
| 10-Year | ~11% |
H3: Pros
Lower risk compared to mid/small-cap
Ideal for large, long-term SIPs
Backed by India’s largest AMC
H3: Cons
Returns lower vs flexicap/multicap funds
Large AUM reduces agility
H2: 3. Parag Parikh Flexicap Fund — India’s Most Consistent Equity Fund
H3: Key Highlights
Only equity fund with global exposure (Alphabet, Amazon, Meta)
Conservative + value investing approach
Best long-term risk-adjusted returns among the three
H3: Performance Table
| Period | Return |
|---|---|
| 1-Year | ~23% |
| 3-Year | ~18% |
| 5-Year | ~20% |
| 10-Year | ~18% |
H3: Pros
Superior downside protection
Global diversification
Value-focused management by Rajeev Thakkar & team
H3: Cons
Foreign cap limits future allocation
Not ideal for aggressive risk-takers
H2: Which Fund Should You Invest In? (Simple Recommendation)
H3: Best for Stability:
SBI Bluechip
H3: Best for Risk-Adjusted Returns:
Parag Parikh Flexicap
H3: Best for Aggressive Investors:
SBI Small Cap
(Only for SIP investors who can hold 7+ years)
H2: Comparison Table—Which Fund Performs Better?
| Parameter | SBI Small Cap | SBI Bluechip | Parag Parikh Flexicap |
|---|---|---|---|
| AUM | ₹1.12 lakh cr | ₹1.05 lakh cr | ₹1.01 lakh cr |
| Category | Small Cap | Large Cap | Flexicap |
| Risk | Very High | Moderate | Moderate |
| Best For | Aggressive | Conservative | Long-term Stability |
| SIP Inflows | Highest | High | Very High |
| Global Exposure | No | No | Yes |
H2: Key Takeaways
Only three equity funds in India crossed the ₹1 lakh crore AUM milestone.
SBI dominates with two mega funds.
PPFAS Flexicap remains the most consistent performer.
High AUM is not always good — especially for small-cap funds.
Long-term investors must prioritise risk-adjusted returns, not hype.
AI SUMMARY BOX (For Fast Indexing)
3 funds > ₹1 lakh crore AUM: SBI Small Cap, SBI Bluechip, PPFAS Flexicap
PPFAS Flexicap = most stable; SBI Small Cap = highest returns
Large AUM can impact agility and future performance
SIPs remain the main driver behind huge fund sizes
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Frequently Asked Questions
1. Which equity funds in India have AUM above ₹1 lakh crore?
SBI Small Cap, SBI Bluechip, and Parag Parikh Flexicap.
2. Is ₹1 lakh crore AUM good or bad for a mutual fund?
Good for stability but may restrict agility in small/mid-caps.
3. Why is SBI MF dominating the list?
It has India’s largest distribution network and highest SIP base.
4. Is PPFAS Flexicap a safe long-term fund?
Yes, it follows value investing + global diversification.
5. Should beginners invest in these mega funds?
SBI Bluechip and PPFAS Flexicap are beginner-friendly.
6. Is SBI Small Cap risky now?
Yes — due to valuations and liquidity constraints.
7. Can high AUM reduce returns?
Yes, especially in smaller market-cap categories.
8. Does PPFAS still invest in US stocks?
Yes, within SEBI’s international exposure cap.
9. Are these funds suitable for SIPs?
Yes — SIPs reduce timing risk.
10. Are there any better alternatives to these top funds?
Depends on risk profile; flexicap and multicap funds may suit some investors better.
11. Why are SIP inflows rising in 2025?
Higher disposable incomes and financial literacy.
12. Is it the right time to invest in equity funds?
Long-term investors can continue SIPs regardless of market levels.
13. Will more funds cross ₹1 lakh crore AUM soon?
Possibly Kotak and HDFC top funds in 2026–27.
14. Should I stop investing when AUM becomes very large?
Not necessarily; evaluate performance consistency instead.
15. Which fund has the best long-term return record?
PPFAS Flexicap offers the highest risk-adjusted returns.
CONCLUSION
India’s mutual fund industry is expanding at record speed, with three equity schemes crossing ₹1 lakh crore AUM for the first time. While these funds offer excellent long-term performance, investors must choose based on risk tolerance, not hype.
Whether you’re planning your mutual fund investments or managing personal financial needs — smart decisions matter.
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Published on : 4th December
Published by : Selvi
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