The table below shows the Best Mutual Fund In India For the Long Term based on AUM, NAV, and minimum SIP.
| Name | AUM (Cr) | Minimum SIP (Rs) | NAV (Rs) |
| HDFC Balanced Advantage Fund | 86471.32 | 100.0 | 524.65 |
| SBI Liquid Fund | 70911.57 | 12000.0 | 3837.06 |
| SBI Equity Hybrid Fund | 68409.82 | 5000.0 | 294.38 |
| Parag Parikh Flexi Cap Fund | 66383.82 | 3000.0 | 80.76 |
| HDFC Mid-Cap Opportunities Fund | 63413.49 | 100.0 | 196.16 |
| HDFC Liquid Fund | 56818.19 | 100.0 | 4817.49 |
| ICICI Pru Balanced Advantage Fund | 56750.35 | 0.0 | 74.44 |
| ICICI Pru Bluechip Fund | 54904.23 | 500.0 | 111.29 |
| HDFC Flexi Cap Fund | 54692.16 | 100.0 | 1916.6 |
| Nippon India Small Cap Fund | 50422.78 | 100.0 | 186.69 |
Content:
- What Are Long Term Mutual Funds?
- Best Mutual Fund In India For Long Term
- Top Mutual Fund In India For Long Term
- Best Performing Mutual Funds In India For Long Term Investment
- Performance Metrics Of Best Mutual Fund In India For Long Term
- How Do You Invest In Mutual Fund In India For Long Term?
- Benefits Of Investing In Best Mutual Fund In India For Long Term
- Challenges Of Investing In Mutual Fund In India For Long Term
- Introduction to Best Mutual Fund In India For Long Term
- Best Performing Mutual Funds In India For Long Term Investment – FAQs
What Are Long Term Mutual Funds?
Long-term mutual funds are investment vehicles designed for holding periods of typically five years or more. They invest in a diversified portfolio of stocks, bonds, or other securities, aiming for substantial growth over time. These funds benefit from compounding returns and are suitable for achieving long-term financial goals.
Best Mutual Fund In India For Long Term
The table below shows the Best Mutual Fund In India For the Long Term based on the Highest 5Y CAGR.
| Name | CAGR 5Y (Cr) |
| Quant Small Cap Fund | 43.91 |
| Nippon India Small Cap Fund | 34.61 |
| HSBC Small Cap Fund | 29.92 |
| Nippon India Growth Fund | 29.13 |
| SBI Contra Fund | 28.93 |
| Franklin India Smaller Cos Fund | 28.06 |
| HDFC Mid-Cap Opportunities Fund | 28.06 |
| HDFC Small Cap Fund | 26.67 |
| ICICI Pru India Opp Fund | 26.13 |
| Parag Parikh Flexi Cap Fund | 25.45 |
Top Mutual Fund In India For Long Term
The table below shows the Top Mutual Fund In India For Long Term based on exit load i.e. the fee that the AMC charges investors when exiting or redeeming their fund units.
| Name | Exit Load % | AMC |
| ICICI Pru Overnight Fund | 0.0 | ICICI Prudential Asset Management Company Limited |
| SBI Long Term Equity Fund | 0.0 | SBI Funds Management Limited |
| SBI Liquid Fund | 0.01 | SBI Funds Management Limited |
| HDFC Liquid Fund | 0.01 | HDFC Asset Management Company Limited |
| ICICI Pru Liquid Fund | 0.01 | ICICI Prudential Asset Management Company Limited |
| HDFC Balanced Advantage Fund | 1.0 | HDFC Asset Management Company Limited |
| ICICI Pru India Opp Fund | 1.0 | ICICI Prudential Asset Management Company Limited |
| HDFC Multi Cap Fund | 1.0 | HDFC Asset Management Company Limited |
| HSBC Value Fund | 1.0 | HSBC Global Asset Management (India) Private Limited |
| HSBC Small Cap Fund | 1.0 | HSBC Global Asset Management (India) Private Limited |
Best Performing Mutual Funds In India For Long Term Investment
The table below shows the best-performing Mutual Funds In India For Long Term Investment based on Absolute 1 Year Return and AMC.
| Name | AMC | Absolute Returns – 1Y % |
| Quant Small Cap Fund | Quant Money Managers Limited | 68.06 |
| HSBC Value Fund | HSBC Global Asset Management (India) Private Limited | 62.77 |
| Franklin India Smaller Cos Fund | Franklin Templeton Asset Management (India) Private Limited | 62.35 |
| Nippon India Growth Fund | Nippon Life India Asset Management Limited | 62.33 |
| SBI Long Term Equity Fund | SBI Funds Management Limited | 61.04 |
| Nippon India Small Cap Fund | Nippon Life India Asset Management Limited | 59.64 |
| HSBC Small Cap Fund | HSBC Global Asset Management (India) Private Limited | 57.01 |
| HDFC Mid-Cap Opportunities Fund | HDFC Asset Management Company Limited | 56.13 |
| Nippon India Multi Cap Fund | Nippon Life India Asset Management Limited | 54.97 |
| HDFC Multi Cap Fund | HDFC Asset Management Company Limited | 52.02 |
Performance Metrics Of Best Mutual Fund In India For Long Term
Performance metrics of the best mutual fund in India for long-term investments are crucial indicators that can help investors gauge the potential success and reliability of their investments, ensuring they align with their financial goals.
1. Historical Returns: Consistent and strong returns over an extended period, reflecting the fund’s ability to perform well through various market cycles.
2. Expense Ratio: The fund’s cost of management, which should be competitive to maximize investor returns.
3. Fund Manager’s Experience: The expertise and track record of the fund manager in making sound investment decisions.
4. Risk-Adjusted Returns: Metrics such as the Sharpe ratio, indicate how well the fund compensates investors for the risk taken.
5. Asset Allocation: The diversification and strategic allocation of assets within the fund, ensuring a balanced risk-reward profile.
How Do You Invest In Mutual Fund In India For Long Term?
To invest in mutual funds in India for the long term, open an account with a trusted broker or mutual fund house. Complete your KYC, choose a fund that aligns with your goals, and start a SIP (Systematic Investment Plan) for regular contributions. Monitor your investment periodically and adjust as needed to stay aligned with your financial objectives.
Benefits Of Investing In Best Mutual Fund In India For Long Term
The benefits of investing in the best mutual fund in India for the long term include many advantages that can significantly enhance your financial growth and security, fostering a stable and prosperous investment journey.
1. Diversification: Mutual funds pool money from many investors to buy a diversified portfolio of stocks, bonds, and other securities, reducing the risk associated with individual investments.
2. Professional Management: Mutual funds are managed by professional fund managers who have the expertise and resources to make informed investment decisions on behalf of investors.
3. Cost Efficiency: Mutual funds often benefit from economies of scale, resulting in lower transaction costs and management fees compared to investing directly in individual securities.
4. Liquidity: Mutual fund investments can be easily bought and sold, providing investors with liquidity and flexibility to access their money when needed.
5. Tax Efficiency: Long-term investments in mutual funds can be tax-efficient, as they often benefit from lower long-term capital gains tax rates compared to short-term investments.
Challenges Of Investing In Mutual Fund In India For Long Term
The challenges of investing in mutual funds in India in the long term involve navigating market volatility, understanding fund performance, and dealing with regulatory changes, which can impact returns and investor confidence over time.
1. Market Volatility: The market’s fluctuating nature can lead to significant variations in the value of mutual fund investments.
2. Fund Performance: Predicting which funds will perform well in the long term is challenging due to numerous influencing factors.
3. Regulatory Changes: Shifts in government policies and regulations can affect the mutual fund landscape and investor returns.
4. Inflation Impact: Over the long term, inflation can erode the real value of returns on mutual fund investments.
5. Management Fees: Ongoing fees for managing mutual funds can accumulate, reducing overall returns for investors.
Introduction to Best Mutual Fund In India For Long Term
Best Mutual Fund In India For Long Term – AUM, NAV
HDFC Balanced Advantage Fund
The HDFC Balanced Advantage Fund is a mutual fund scheme offered by HDFC Mutual Fund, characterized by dynamic asset allocation. This fund has a track record of 11 years and 1 month, launched on January 1st, 2013.
The fund has an exit load of 1.0% and an expense ratio of 0.73%. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 19.87%. With Assets Under Management (AUM) amounting to ₹86,471.32 crore, the fund is classified as very high-risk.
The distribution of shares includes 1.21% in other entities, 1.72% in REITs & InvIT, and 2.49% in cash & equivalents, alongside 11.04% in corporate debt and 14.99% in government securities, with the majority, comprising 68.56%, held in equity.
SBI Liquid Fund
The SBI Liquid Fund Direct is a liquid mutual fund scheme offered by SBI Mutual Fund. This fund has a track record of 11 years and 1 month, launched on January 1st, 2013.
The fund has an exit load of 0.01% and an expense ratio of 0.19%. With a moderate risk level, it has achieved a Compound Annual Growth Rate (CAGR) of 5.24% over the past 5 years. The fund manages assets totaling ₹70,911.57 crore.
The share distribution includes 0.36% in other entities, 1.05% in government securities, and 1.79% in cash and equivalents, alongside 23.37% in treasury bills, 36.49% in certificates of deposit, and 36.95% in commercial paper.
SBI Equity Hybrid Fund
The SBI Equity Hybrid Fund is an Aggressive Hybrid mutual fund scheme offered by SBI Mutual Fund. This fund has a tenure of 11 years and 1 month, originating on January 1st, 2013.
The fund has an exit load of 1.0% and an expense ratio of 0.74%. It is important to note that this fund carries a very high risk level. However, it has shown strong performance over the past 5 years, with a Compound Annual Growth Rate (CAGR) of 15.14%. Additionally, the fund manages significant assets, with its Assets Under Management (AUM) totaling ₹68,409.82 crore.
The distribution of shares includes 0.43% in other entities, 1.63% in REITs & InvIT, and 2.50% in cash & equivalents, alongside 9.06% in government securities and 9.34% in corporate debt, with the majority, comprising 77.03%, held in equity.
Best Mutual Fund In India For Long Term – 5Y CAGR
Quant Small Cap Fund
Quant Small Cap Fund Direct Plan-Growth is a Small Cap mutual fund scheme offered by Quant Mutual Fund. This fund has been in existence for 11 years and 5 months, having been launched on January 1, 2013.
The Quant Small Cap Fund has an exit load of 1.0% and an expense ratio of 0.64%. It is important to note that this fund carries a very high risk level. However, it has shown impressive performance over the past 5 years, with a Compound Annual Growth Rate (CAGR) of 43.91%. Additionally, the fund manages a substantial amount of assets, with its Assets Under Management (AUM) totaling ₹20,164.09 crore.
The distribution of assets includes 3.70% in Futures & Options, 2.67% in Cash & Equivalents, and 1.19% in Treasury Bills, with the majority, comprising 92.43%, held in Equity.
Nippon India Small Cap Fund
Nippon India Small Cap Fund Direct-Growth is a Small Cap mutual fund scheme from Nippon India Mutual Fund. This fund has been in existence for 11 years and 5 months, having been launched on January 1, 2013.
The Nippon India Small Cap Fund has an exit load of 1.0% and an expense ratio of 0.68%. This fund carries a very high risk level. Over the past 5 years, it has achieved a strong performance with a Compound Annual Growth Rate (CAGR) of 34.61%. Additionally, the fund manages a substantial amount of assets, with its Assets Under Management (AUM) totaling ₹50,422.78 crore.
The asset distribution includes 4.36% in Cash & Equivalents, with the majority, comprising 95.64%, held in Equity.
HSBC Small Cap Fund
HSBC Small Cap Fund Direct-Growth is a Small Cap mutual fund scheme from HSBC Mutual Fund. This fund has been in existence for 10 years and 1 month, having been launched on April 22, 2014.
The HSBC Small Cap Fund has an exit load of 1.0% and an expense ratio of 0.68%. It is important to note that this fund carries a very high risk level. However, it has shown strong performance over the past 5 years, with a Compound Annual Growth Rate (CAGR) of 29.92%. Additionally, the fund manages a significant amount of assets, with its Assets Under Management (AUM) totaling ₹14,787.25 crore.
The asset distribution includes 2.31% in Cash & Equivalents, with the majority, comprising 97.69%, held in Equity.
Top Mutual Fund In India For Long Term – Exit Load
SBI Long Term Equity Fund
SBI Long Term Equity Fund Direct Plan-Growth is an ELSS mutual fund scheme from SBI Mutual Fund. It was launched on January 1, 2013, and has been in existence for 11 years and 5 months.
The SBI Long-Term Equity Fund has no exit load and an expense ratio of 0.94%. It is important to note that this fund carries a very high risk level. However, it has shown strong performance over the past 5 years, with a Compound Annual Growth Rate (CAGR) of 24.83%. Additionally, the fund manages significant assets, with its Assets Under Management (AUM) totaling ₹23,411.67 crore.
The asset distribution includes 1.97% in Rights, 9.05% in Cash & Equivalents, with the majority, comprising 88.98%, held in Equity.
ICICI Pru India Opp Fund
ICICI Prudential India Opportunities Fund Direct-Growth is a thematic mutual fund scheme from ICICI Prudential Mutual Fund. This fund has been in existence for 5 years and 5 months, having been launched on December 26, 2018.
The ICICI Pru India Opportunities Fund has an exit load of 1.0% and an expense ratio of 0.59%. It is important to note that this fund carries a very high risk level. However, it has shown strong performance over the past 5 years, with a Compound Annual Growth Rate (CAGR) of 26.13%. Additionally, the fund manages significant assets, with its Assets Under Management (AUM) totaling ₹19,792.23 crore.
The asset distribution includes 1.56% in Treasury Bills, 8.93% in Cash & Equivalents, with the majority, comprising 89.57%, held in Equity.
HDFC Multi Cap Fund
HDFC Multi Cap Fund Direct-Growth is a Multi Cap mutual fund scheme from HDFC Mutual Fund. This fund has been in existence for 2 years and 6 months, having been launched on November 23, 2021.
The HDFC Multi Cap Fund has an exit load of 1.0% and an expense ratio of 0.55%. It is important to note that this fund carries a very high risk level. However, it has not shown any growth over the past 5 years, with a Compound Annual Growth Rate (CAGR) of 0.0%. Additionally, the fund manages a significant amount of assets, with its Assets Under Management (AUM) totaling ₹13,815.44 crores.
The asset distribution includes 0.56% in REITs & InvIT, 2.34% in Cash & Equivalents, with the majority, comprising 97.10%, held in Equity.
Best Performing Mutual Funds In India For Long Term Investment – FAQs
Best MF for Long Term #1: HDFC Balanced Advantage Fund
Best MF for Long Term #2: SBI Liquid Fund
Best MF for Long Term #3: SBI Equity Hybrid Fund
Best MF for Long Term #4: Parag Parikh Flexi Cap Fund
Best MF for Long Term #5: HDFC Mid-Cap Opportunities Fund
These funds are listed based on the Highest AUM.
Considering the 3-year compound annual growth rate (CAGR), mutual funds could perform well over the next 10 years. The top three mutual funds are Quant Small Cap Fund, Nippon India Small Cap Fund, and HSBC Small Cap Fund.
Long-duration mutual funds invest in bonds with longer maturities, typically over ten years, leading to higher interest rate sensitivity and potential for higher returns but greater risk. Short-duration mutual funds focus on bonds with shorter maturities, usually under three years, offering lower interest rate risk and more stable, but generally lower, returns.
To invest in the best mutual fund in India for the long term, research fund performance, consider expense ratios, and evaluate fund managers’ expertise. Utilize a reputable stock brokerage for guidance and efficient transactions, ensuring you select funds that align with your financial goals and risk tolerance.
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Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.
