High-risk, high-return mutual funds have seen renewed traction among retail investors toward the end of 2025. Rising domestic liquidity and strong mid-cap earnings have fueled interest in small-cap, thematic, and sector-rotation strategies. Fund houses report consistent inflows as investors shift from debt to equity for superior long-term gains. Analysts caution that while risk-adjusted alpha remains attractive, volatility will persist amid geopolitical uncertainty. Market strategists expect diversification across risk profiles to remain a defining feature of fund allocations in the coming quarters.