Mutual funds offer a facility to investors called Systematic Investment Plan to invest in a disciplined manner. It is formed by pooling investments from various individuals and experienced investors to purchase equity and securities. The asset management companies have fund managers to manage the money from the investors and direct it to gain profit in the long run.
Mutual funds surveillance comes under the Securities and Exchange Board of India (SEBI). Hence, it is perceived to be the safest investment plan. The best long term mutual funds provide a platform to diversify the financial portfolio at a relatively lower investment amount. These funds bear fruit in the long run. Besides its hassle-free maintenance approach, it also helps to accumulate wealth for the future while inculcating the habit of savings in full-time earners. Its lucrative features attract investors.
Best mutual funds for long term
Apart from the extensively defined features of the mutual funds, the past performance of the mutual funds helps to attract potential investors. The best mutual funds for long term SIP hold different categories of schemes, such as large-cap, small-cap, mid-cap, and equity-linked saving schemes. The list of the best mutual funds for long term investment under the following categories of the scheme are as follows:
Large-Cap Investment Schemes
Firms with market capitalization worth over Rs.20,000 crore are known as the large-cap companies. Some of the best long term mutual fund accounts under the large-cap investment scheme. The top-performing large-cap schemes are mentioned below.
- Axis Bluechip Fund
- ICICI Prudential Bluechip Fund
- Nippon India Large Cap Fund
- Canara Robeco Bluechip Equity
- HDFC Top 100 Fund
- Mirae Asset Large Cap Fund
- SBI Bluechip Fund
Investors should not be swayed by the downturn in the market because the asset management companies (AMC) often invest in diversified portfolios which include the mid-cap companies. The mid-cap companies hold a market capitalization ranging between Rs.500 crore to Rs.10,000 crore. Investors willing to risk their money and gain a higher return in a short duration should consider investing in these schemes. The following list comprises the best mutual funds for the long term under the mid-cap investment scheme.
- HDFC Mid-cap Opportunities Fund
- DSP Midcap Fund
- L & T Midcap Fund
- Axis Midcap Fund
- SBI Focused Equity Fund
- Invesco India Mid Cap Fund
Multicap Investment Scheme
The funds available under this scheme are considered to be the best mutual funds to invest in the long term for the low-risk appetite investors. Skim through the following list of the multi-cap scheme to get hold of diversified financial assets.
- SBI Magnum Multicap Fund
- Kotak Standard Multicap Fund
- Aditya Birla Sun Life Equity Fund
- Motilal Oswal Multicap 35 Fund
- ICICI Prudential Multicap Fund
- Tata Retirement Savings Fund
- DSP Equity Fund
- JW Multi-Cap Fund
- Canara Robeco Equity Diversified
Equity-Linked Savings Schemes (ELSS)
The market has been focusing on ELSS lately, attracting investors from all disciplines. Besides the low investment amount involved to keep up with this investment plan, it offers investors to build wealth by saving on tax. Some of the best performing fund under this category are listed below:
- Aditya Birla SL Tax Plan
- Aditya Birla SL Tax Relief
- Axis long term Equity Fund
- DSP Tax Saver Fund
- Invesco India Tax Plan
- Motilal Oswal Long Term Equity Fund
- Reliance Tax Saver (ELSS) Fund
- Tata India Tax Savings Fund
- Mirae Asset Tax Saver Fund
Choosing the Best Mutual Fund
Opting for the best mutual funds to invest in for long term is no easy task for the new investors. The investors must do proper research before starting investment. Keeping in mind the following points would help to opt for the top mutual funds to invest for long term.
It is essential to save with an objective to estimate the wealth that has to be accumulated for that purpose. Depending on the goal, investors can opt for short-term or long-term investment schemes. For example, saving to purchase cars falls under the short-term goal. For such short-term saving plans, investors can invest in the money market and debt funds. Before choosing any investment fund, it is crucial to assess your objective and ensure that its objective aligns well with the risk associated with it.
Performance of the fund
The online platform offers a great source to track the past performance of the funds. It is imperative to study the past performance of any fund before getting on board with it. A periodic analysis helps to make comparisons and settle down with the one fetching good return consistently.
Experience of the fund managers
Apart from the fund performance and the asset value of the companies, the investor should find out about the fund manager who would navigate the money in diverse portfolios. A good fund manager will work prudently to obtain maximum benefit for the ACM and the investors. Managing the funds appropriately will help to achieve greater returns for all. Hence, greater expertise is required to make investments in various categories.
Apart from experienced fund managers and past performance, the investors should look out for the experienced fund house. After all, the fund house would be responsible for managing the investors’ money. The past record of the fund house impacts the investor’s decision whether they should opt for that company or not.
Investing your hard-earned money in mutual funds comes with a certain share of risk. Investing in the right fund houses is paramount as they would be the ones managing your money and decisions on your behalf. Therefore, it is advisable to opt for the best mutual fund or the best sip for long term investment. Investors should compare all the important features of different mutual funds to reach a decision. Research well to find the best mutual fund for long term SIP investment. It will help to accumulate wealth in the long run.