Top Front Runners of Emerging Equity Funds

In 2025, investors are turning to emerging equity funds as they look to tap into the growth potential of developing economies. These funds invest in companies from emerging markets, strategically choosing the ones poised for rapid industrial and economic growth.

In this blog, we have shortlisted five top emerging equity funds that have delivered steady performance so far this year and hold the potential for long-term growth.

5 Best Emerging Equity Funds to Watch Out for in 2025

Have a look at the top equity funds in the emerging mutual fund category that offer a balanced risk and return potential.

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1. Kotak Emerging Equity Fund

The Kotak Emerging Equity Fund stands out with an impressive 30%+ return in the last five years. It appeals to investors with a moderately low expense ratio of 0.42%. You can get started with an SIP or a lump sum investment, both starting from just INR 100. This emerging fund has a balanced asset allocation across various sectors, including consumer cyclical, industrials, technology, basic materials, financial services, and healthcare.

• AUM: INR 53,463.94 crore
• NAV: INR 156.039
• Expense ratio: 0.42%
• 1-Year return: 6.58%
• 3-Year return: 27.58%
• 5-Year return: 30.38%

2. Canara Robeco Emerging Equities Fund

The Canara Robeco Emerging Equities Fund takes a balanced approach as it invests in both mid and large-cap stocks. The minimum amounts you can invest in SIPs and lump sum are INR 1,000 and INR 5,000, respectively. While it allocates 36.96% to large-cap stocks, it invests 43.06% and 15.51% in the mid and small-cap stocks, respectively. Key sectoral allocations include services, financials, capital goods, and automobiles.

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• AUM: INR 25092.46 crore
• NAV: INR 258.72
• Expense ratio: 1.6%
• 1-Year return: 6.47%
• 3-Year return: 21.62%
• 5-Year return: 24.07%

3. Edelweiss Mid Cap Fund

The Edelweiss Mid Cap Fund is known for actively identifying mid-sized companies with high growth potential and strong market positioning. It has a moderately low expense ratio of 0.40% and allows investors to get started with just INR 100 in both SIPs and lump-sum investments. The sectoral weightage of the Edelweiss Mid Cap Fund looks well-balanced across financial services, consumer cyclical, industrials, basic materials, technology, healthcare, and consumer defense.

• AUM: INR 10027.89 crore
• NAV: INR 102.125
• Expense ratio: 1.7%
• 1-Year return: 11.17%
• 3-Year return: 33.21%
• 5-Year return: 33.21%

4. Invesco Large and Mid Cap Fund

This fund combines the stability of large-cap companies with the growth potential of mid-caps. The minimum amounts required to create an SIP and make a lump sum investment are INR 500 and INR 1,000, respectively. Some of the key sectors to which it allocates its assets are services, financial, healthcare, and capital goods.

• AUM: INR 7273.57 crore
• NAV: INR 100.82
• Expense ratio: 1.79%
• 1-Year return: 14.67%
• 3-Year return: 30.43%
• 5-Year return: 26.24%

5. Bandhan Value Fund

The Bandhan Value Fund strategically identifies stocks trading below their intrinsic value but with promising fundamentals. It delivered an impressive 31.14% return to investors in the last five years. With minimum investments of INR 100 and INR 1,000 required for an SIP and lump sum investment, respectively, it is a popular pick in the emerging fund category.  The Bandhan Value Fund diversifies its assets across sectors like financial services, consumer cyclical, energy, basic materials, and technology.

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• AUM: INR 9961.02 crore
• NAV: INR 147.995
• Expense ratio: 1.75%
• 1-Year return: 1.12%
• 3-Year return: 23.09%
• 5-Year return: 31.14%

Conclusion

The top emerging equity funds open up a strategic path for investors to tap the high-growth potential of India. If you’re planning to diversify your portfolio with one of these funds, select one of the high-performing mutual funds that we shortlisted for you. With a disciplined SIP, you can average your investment costs and build steady wealth over time.