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Best Mutual Funds To Invest In For Long Term - Top 10 Mutual Funds In India

Written By Business Desk | Mumbai | Published:

If you want to build wealth over the long-term, investing in mutual funds (MFs) is an excellent option. You may choose from different types of funds based on your personal needs.
When you invest in MFs, you are able to invest even a small amount of money. Moreover, your investments are managed by experienced professionals. Another benefit of investing in MFs is that you are able to achieve portfolio diversification thereby mitigating your risk.
Several investors are choosing to invest in MFs as the Assets Under Management (AUM) continue to increase gradually. However, choosing the best mutual funds to invest in for long-term may seem complicated. 
It is recommended that you choose a top-down investment methodology. This means that you must determine the most appropriate asset allocation as per your risk profile. In the next step, you may select funds that suit your risk-return profile.


Here is a list of ten Best Mutual Funds to Invest in India for long-term:


1.    L&T Emerging Business Fund – Direct – Growth

•    Launched in May 2014, this is a small cap equity fund
•    Since its launch, this scheme has delivered 30.98% returns and is a high-risk investment option
•    This fund has been consistently outperforming the benchmark S&P BSE small cap index
•    AUM is of INR 3,587 crore

2.    Reliance Small Cap Fund

•    This fund has delivered 22.74% returns since it was launched in September 2010
•    In over seven years, this high-risk scheme has outperformed the benchmark index
•    AUM of almost INR 6,371 crore

    
3.    HDFC Small Cap Fund

•    The HDFC small-cap fund was launched in April 2008
•    It is a high-risk scheme that has given 16.60% returns since its launch
•    The scheme has consistently outperformed its benchmark index Nifty Free Float Small Cap 100 over the last decade
•    AUM is INR 2,152 crore

4.    Mirae Asset Emerging Bluechip Fund

•    This mid-cap equity-oriented scheme is moderately risky and has delivered 23.40% returns since its launch in July 2010
•    AUM of nearly INR 5,364 crore
•    This fund has also consistently outperformed its benchmark index

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5.    Aditya Birla Sun Life Small Cap Fund

•    It is a high-risk fund launched in May 2007 that has delivered 14.24% returns since its initial launch
•    With over ten years since its launch, the fund has regularly outperformed its benchmark index making it simple for you to analyze its performance
•    AUM is INR 1,866 crore

6.    L&T Midcap Fund

•    This mid-cap equity-oriented fund has given 21.75% returns since its launch in August 2004
•    It is a high-risk mutual fund that has consistently outperformed the Nifty Free Float Midcap 100 index since its launch, which makes it one of the best long-term mutual funds in India
•    AUM is nearly INR 1,323 crore

7.    SBI Small Cap Fund

•    The fund high-risk equity-oriented has been consistently outperforming the S&P BSE Small-Cap benchmark
•    It  has delivered 23.25% returns since it was launched in September 2009
•    AUM is  around INR 943 crore

8.    Sundaram Small Cap Fund

•    It is a small cap equity fund launched in February 2005
•    This high-risk fund has delivered 19.68% returns since its launch
•    The fund has outperformed the benchmark index consistently
•    AUM is nearly INR 1,481 crore

9.    Canara Robeco Emerging Equities

•    It was launched in March 2005 and is a mid-cap equity mutual fund scheme
•    The fund is a high-risk plan that has delivered 18.85% returns since launch
•    This scheme has consistently outperformed the Nifty Free Float Midcap 100 over the last 12 years
•    AUM is nearly INR 3,208 crore

10.    Aditya Birla Sun Life Pure Value Fund

•    This mid-cap equity mutual fund was launched in March 2008
•    It is a high-risk scheme that has delivered 20.61% returns since its launch
•    The fund has shown consistent outperformance in comparison to the benchmark index
•    AUM is nearly INR 1,456 crore

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Here are the steps to building an efficient portfolio comprising the best mutual funds for long-term growth:  


1.    Shortlist schemes that match your risk-return profile
2.    Analyze their performance over a longer period to ensure consistent returns
3.    Determine the amount to be invested in each scheme
4.    Regularly monitor the performance of the mutual fund schemes
5.    Make modifications as required


Benefits of staying invested for the long-term

There is no minimum lock-in period for most mutual fund schemes, which gives you the versatility to choose your investment horizon. However, to maximize your returns staying invested for the long-term is advisable.

Here are the long-term benefits of mutual fund investments:

•    Ride over market fluctuations, which is especially important if you invest in equity-oriented schemes
•    Fund managers are able to make appropriate modifications to the fund portfolio to maximize your returns
•    You are able to build wealth over a period of time through the power of compounding


Here are three tips to remember before you make an investment decision:

1.    Do not invest in funds that deliver the highest returns; you need to check your investment horizon
2.    Avoid herd mentality and choose funds that suit your personal financial situation
3.    Regularly monitor and review the performance of your portfolio and make necessary modifications
If you want to invest in the best long-term mutual funds, starting a Systematic Investment Plan (SIP) is an excellent option. SIPs allow you to invest smaller amounts at a pre-determined date at regular intervals. This helps in building investment discipline without resulting in any financial difficulties. Moreover, you are able to take advantage of rupee cost averaging to reduce the effective investment cost.

 

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