Power Up Your Portfolio: The Best Momentum Mutual Funds in India (2025) Revealed

Best Momentum Mutual Funds are taking center stage in 2025, helping investors ride the market’s strongest trends instead of chasing them late. These funds focus on stocks that are already climbing, aiming to keep the momentum going and turn short-term gains into lasting growth.

The best momentum mutual funds use smart data models to pick consistent performers and keep portfolios fresh as trends shift. In this post, we’ll break down how these funds work, which ones are shining in 2025, and how to know if this fast-paced yet disciplined strategy matches your style as an investor.

What Are Momentum Mutual Funds, Simply Explained:

In simple terms, momentum mutual funds invest in stocks that have been on a hot streak. Instead of searching for undervalued bargains, they bet on the current winners, believing that what’s going up will keep going up—at least for a while.

These funds often track specific indices, like the Nifty200 Momentum 30 or various Midcap Momentum indices, or use smart algorithms to spot rising stars. Think of them as trend-spotters. The catch? They can be superstars in a bull market but might take a steeper dive when the market mood sours. It’s a higher-octane approach, but one that has certainly turned heads with its returns in recent years.

👉 To get the most out of your investments, learn how the expense ratio in mutual funds can impact and protect your returns before choosing any fund.

What to Look for When Picking the Best Momentum Mutual Fund?

• The Core Strategy: Is it passively tracking a known index, or is a fund manager actively picking stocks? This changes the game.
• Costs & Efficiency: For index funds, a low expense ratio and minimal tracking error are key. High fees can silently eat into your profits.
• A Proven Track Record: Don’t just look at the peaks. Check how the fund performed over 1, 3, and 5 years, and crucially, how it handled market downturns.
• Your Volatility Comfort Zone: Be honest with yourself. Can you sleep soundly when your investment swings wildly? If not, this might be too aggressive for you.
• Fund Size Matters: A fund with a healthy AUM (Assets Under Management) ensures it’s established and liquid, making your entry and exit smoother.

Getting these factors right is the first step to narrowing down the best momentum mutual funds for your own portfolio.

Best Momentum Mutual Funds in India (2025):

1. UTI Nifty200 Momentum 30 Index Fund

• Why It’s Best: Tracks a rule-based index of top-performing large & midcap stocks. Low cost, high liquidity.
• Type: Passive (Index-based)
• AUM: ₹8,131 Cr | Expense Ratio: 0.45%
• 1Y Return: -17.16% | 3Y CAGR: 16.23%
• Risks to Consider: Sharp drawdowns during market reversals; recent 1Y underperformance highlights volatility.

2. Edelweiss Nifty Midcap150 Momentum 50 Index Fund

• Why It’s Best: Focuses on trending midcaps with strong price action. Ideal for tactical allocation.
• Type: Passive (Midcap Momentum Index)
• AUM: ₹1,184 Cr | Expense Ratio: 0.42%
• Risks to Consider: Midcaps are more volatile; momentum fades quickly in sideways markets.

3. Bandhan Nifty200 Momentum 30 Index Fund

• Why It’s Best: Same index as UTI, but newer and leaner. Good for cost-conscious investors.
• Type: Passive (Large & Midcap)
• AUM: ₹130 Cr | Expense Ratio: 0.42%
• Risks to Consider: Smaller AUM may impact liquidity; performance closely tied to index cycles.

4. Quant Momentum Fund

• Why It’s Best: Uses proprietary quant models to chase alpha. Strong historical outperformance.
• Type: Active
• AUM: ₹1,628 Cr | Expense Ratio: 0.95%
• 1Y Return: -12.95% | Alpha: 0.73
• Risks to Consider: Active bets may misfire; higher expense ratio and exit load reduce net returns.

5. Axis Momentum Fund

• Why It’s Best: Tactical exposure to trending stocks with moderate cost. Good recent momentum.
• Type: Active
• AUM: ₹1,308 Cr | Expense Ratio: 0.54%
• 6M Return: 13%
• Risks to Consider: Strategy may lag in volatile or mean-reverting phases; limited long-term data.

Pros & Cons: What to Expect?

The big pro is the potential for explosive growth during market rallies. By riding strong trends, the best momentum mutual funds can seriously outperform the broader market in a bull run.

The cons, however, are just as important. The drops can be sharper and faster when the market corrects. In sideways or bearish markets, the strategy can feel like it’s stuck in neutral. There’s also no guarantee—trends reverse. What worked brilliantly last year can fizzle out next year. Putting all your eggs in the momentum basket is a risky game.

Is Momentum Strategy Right for You?

Are you comfortable with your portfolio taking a rollercoaster ride? Do you have an investment horizon of at least 3-5 years to ride out the dips? If you answered “yes,” then adding a best momentum mutual funds could be a powerful move.

But if the thought of sudden drops keeps you up at night, that’s okay! A smarter approach might be to use momentum as a “satellite” holding, balanced out with more stable “core” investments like value or diversified equity funds.

Conclusion About Best Momentum Mutual Funds:

The best momentum mutual funds in India for 2025, like the UTI and Motilal Oswal large-cap options or the midcap picks from Edelweiss and Tata, present a really exciting opportunity.

At the end of the day, remember this: momentum is a fantastic tool, but it shouldn’t be your entire toolbox. Use it to add some spice to your portfolio, not as the main course. When balanced with more stable investments, these funds can help you capture growth and power up your returns, without betting your entire future on one single wave.

FAQs About Best Momentum Mutual Funds: