Mutual funds are one of the most reliable and popular investment options to accumulate wealth. There are plenty of mutual funds available in India to choose from, and picking the right one can be difficult.
To make your financial journey easier, we’ve made a list of the 10 best long term mutual funds in India.
Over the last 5 years, these funds have consistently outperformed in their category, with excellent absolute returns.
10 Best Long Term Mutual Funds
Here are the best mutual funds to invest in long term (data added as on 25th April ’24):
1. Canara Robeco Bluechip Equity Fund Direct
It is a large-cap mutual fund offered by Canara Robeco Mutual Fund. The goal of the Canara Robeco Bluechip Equity Fund is to generate long-term capital growth by holding blue-chip stocks in a well-diversified portfolio.
NAV: ₹62.39
Fund Size (AUM): ₹12577.60 Cr
Expense Ratio: 0.50%
2. Quant Flexi Cap Fund Direct
This fund stands out due to its asset allocation flexibility, which allows it to capitalise on opportunities across market caps.
Innovative approach and excellent stock selection of Quant Flexi Cap Fund have contributed to its impressive track record throughout the years.
NAV: ₹107.5934
Fund Size (AUM): ₹4,616.85 Cr
Expense Ratio: 0.68%
3. PGIM India Midcap Opportunities Fund Direct
PGIM India Midcap Opportunities Fund is a great choice for investors looking to gain exposure to mid-cap stocks. The fund has consistently identified attractive mid-cap companies, resulting in superior long-term returns.
NAV: ₹62.87
Fund Size (AUM): ₹9,923.95 Cr
Expense Ratio: 0.45%
4. Nippon India Small Cap Fund Direct
Nippon India Smallcap Fund is designed for higher-risk investors aiming to make a profit on the potential of small-cap stocks. The scheme’s main goal is to generate long-term capital appreciation by primarily investing in top small-cap companies.
NAV: ₹168.9917
Fund Size (AUM): ₹45,749.10 Cr
Expense Ratio: 0.79%
5. 360 One Focused Equity Fund Direct
Previously known as IIFL Focused Equity Fund, is an open-ended equity fund that invests in up to 30 multicap stocks.
360 One Focused Equity Fund is well-known for its concentrated and focused approach and seeks long-term capital appreciation by investing in just a few high-conviction companies.
NAV: ₹48.2140
Fund Size (AUM): ₹6,794.35 Cr
Expense Ratio: 0.63%
6. Quant Infrastructure Fund Direct
It is a sectoral fund created for investors who want to take advantage of the infrastructure sector’s growing opportunities.
The main objective of Quant Infrastructure Fund is to gain capital appreciation by investing in a portfolio of infrastructure-focused companies. Remember, this fund comes with a very high risk because the investment is only made in one sector.
NAV: ₹43.7021
Fund Size (AUM): ₹2,498.18 Cr
Expense Ratio: 0.73%
7. DSP World Mining Fund Direct
This fund’s primary investments are in prominent international mining and metals companies.
DSP World Mining Fund largely invests in BlackRock Global Funds – World Mining Fund units. In addition, a substantial portion of its assets would be invested in units of other similar foreign mutual fund schemes.
NAV: ₹17.1849
Fund Size (AUM): ₹152.70 Cr
Expense Ratio: 1.50%
8. HDFC Balanced Advantage Fund Direct
This fund adopts a dynamic asset allocation technique that enables it to adjust to changing market conditions.
The goal of HDFC Balanced Advantage Fund is to generate long-term capital appreciation while effectively reducing downside risk.
NAV: ₹498.3650
Fund Size (AUM): ₹79,875.10 Cr
Expense Ratio: 0.72%
9. Edelweiss Arbitrage Fund Direct
The Scheme aims to make income by investing mainly in arbitrage opportunities and debt investments. If you are a risk-averse investor and looking for consistent stable returns, Edelweiss Arbitrage Fund is a great choice.
NAV: ₹19.0200
Fund Size (AUM): ₹9,167.21 Cr
Expense Ratio: 0.35%
10. ICICI Prudential All Seasons Bond Fund Direct
It is a Dynamic Bond mutual fund scheme ideal for investors looking for a fixed-income option.
ICICI Prudential All Seasons Bond Fund invests in a diverse portfolio of debt and money market instruments to generate consistent long-term returns.
NAV: ₹35.6510
Fund Size (AUM): ₹11,914.30 Cr
Expense Ratio: 0.56%
Why Invest in Long-Term Mutual Funds?
Investing in the best mutual funds for long term has numerous advantages, including:
- Wealth Appreciation: It has the potential to provide large wealth appreciation over time. Long-term investments also allow you to take advantage of compounding, tax efficiency, and market volatility management.
- Compounding Returns: By staying invested for a longer period, you can reap the benefits of the power of compounding and generate enormous wealth.
- Long-Term Goals: Mutual funds are the best option if you have specific goals like a child’s education or retirement planning. It will help you to fulfill your goals within a decided timeframe.
How to Invest in Best Long-Term Mutual Funds?
Here are the steps you need to follow to invest in the best long-term mutual funds:
Determine Your Financial Objectives
Identify your financial objectives as well as the time frame to achieve them and accordingly choose the right funds.
Due Diligence and Research
Examine the fund’s past performance, fund manager experience, expense ratios, and the fund’s investing approach. Past performance can not predict future results, but consistency might be a useful sign.
Diversification
To spread risk, divide your portfolio among several mutual funds. Don’t invest all of your money in one asset class or investment category.
Regular Monitoring
Examine your portfolio regularly and make changes in response to changing market conditions or changes in your financial objectives.
Conclusion
If you are looking to build wealth and secure your financial future, you can invest in the mentioned top 10 mutual funds.
These funds have different backgrounds and invest in a diverse range of asset classes. Based on your preferences and risk profile, make an informed decision.
📌 You can also read:
- How Many Mutual Funds Should You Invest In?
- How to Select Mutual Funds for SIP?
- 10 Best SIPs for 3 Years Investment
- 10 Best SIPs for 1 Year
Happy Investing 💰
Note: This blog is not to be construed as investment advice. Please do your own due diligence when investing in mutual funds. The mutual funds mentioned above are examples, not recommendations.
