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What are the best long-term mutual funds to invest in?

Mutual funds have gained a lot of popularity over the last few years. Financial experts aggressively advise people to invest in these funds. Mutual funds have a certain amount of risk associated with them, but they also offer pretty substantial returns. Due to this risk factor, it is highly advisable for investors to stay invested in mutual funds for longer periods of time.

Mutual funds investments that are of five or more years are known as long-term investments. The duration of the investment is important, but it is perhaps more important to invest in a good mutual fund.

There are different ways to choose an equity mutual fund, such as:

  1. By Market Capitalization
    1. Large Cap Funds that Invests in Top 100 stocks of the Sensex
    2. Mid Cap Funds that Invests in the Next 150 stocks of the Sensex
    3. Small-Cap Funds that Invests in the Next 150 stocks of the Sensex
    4. Large & Midcap Funds that Invests in Top 250 stocks of the Sensex
  2. By Diversification
    1. International Funds, that Invests in the world’s best stocks
    2. Multi-Cap Funds that Invests in companies across market capitalisation 
    3. Focused Funds that Invests in the best stocks in a particular industry or segment
    4. Value-Oriented Funds that Invests in stocks that are currently under-valued but have a high potential of growth 
  3. By Sector & Themes
    1. Thematic-Dividend Yield Funds that Invests in stocks that pay a high and regular dividend
    2. Sectoral Funds: Sector-specific funds like banking, technology, Infrastructure, Pharma, PSU, MNC, Energy, ESG, etc. 
  4. By Solutions
    1. Retirement Scheme
    2. Tax Saving Scheme or Equity Linked Saving Scheme (ELSS) where the money invested is tax-free up to Rs 1.5 lakhs a year U/s 80C

Most equity mutual funds if invested according to your financial goals can be for the long-term. To choose a few from them, let’s stick to diversified funds such as:

  1. ICICI Prudential Bluechip Fund

The ICICI Prudential Bluechip Fund is one of the most sought after types of mutual funds in India, i.e, large-cap blue-chip funds. It has performed very well over the years and has seen upward growth, which has led to the investors earning high yields. The fund is managed by experienced managers who ensure the fund’s growing success and in turn, guarantee your investment to be successful as well.   

  1. Mirae Asset Emerging Bluechip Fund

If you are really interested in going for the blue-chip mutual funds, another excellent option is the   Mirae Asset Emerging Bluechip Fund. it is a great option when you are looking to stay invested for the long term. The fun gives options for large-cap as well as mid-cap fund investments. This find has also had an impressive growth record and continues to grow, helping the investors to earn high dividends.

  1. AXIS Focus 25 Fund

The AXIS Focus 25 Fund is another good blue-chip mutual fund that invests in equities of around 25 companies, which are all large-cap companies. The fund is managed by able fund managers who do a lot of research to ensure the fund keeps growing and the investors receive the correct and highest possible yields.

  1. L&T Midcap Fund

A mid-cap fund is one of the most popular types of mutual funds in India presently. Mid-cap funds, as the name suggests, invest in mid-cap companies listed between the 101st to the 250th largest companies listed in India. These companies are growing and hold the potential to become the largest companies in the country in the near future. One good example of this is the L&T Midcap Fund. The L&T Midcap Fund is an excellent option because the fund has performed consistently over the last few years and this is a pointer towards its future prospects as well.

  1. Tata Retirement Savings Fund

If you want to invest in a mutual fund with the sole purpose of securing your retirement years, the Tata Retirement Savings Fund will be a great option for you. It is a specially designed hybrid fund that helps aggressive investors. You get long term capital gains from this investment and so it proved to be a very good option when compared to the traditional pension saving schemes. The fund has consistently performed well over the years and is managed by the top industry experts, ensuring your investment will be safe and profitable.

In a nutshell
 When you invest in the different types of mutual funds, you get many benefits. From high returns to creating substantial funds for your future, there indeed is a lot to expect from the mutual funds investment. However, you need to be aware of the risks too. Do your research, speak to a financial expert, understand how the mutual funds work and then start your investments. Never be in a rush as even a small mistake in your investment can prove to be costly later on. Thankfully, there are many safe and reliable methods in which this investment can be done and so you should not hold back from investing in the best long-term mutual funds. 


Published by Nidhi Mehra

I am blogger with 5 years of experience in writing articles and topics related to finance and funds

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