Long Term Mutual Funds

The below table shows a list of the Long Term Mutual Funds based on AUM, NAV, and minimum SIP.

Introduction to Top Mutual Funds For Long Term

ICICI Prudential Bluechip Fund  

ICICI Prudential Bluechip Fund is a Large Cap mutual fund scheme from ICICI Prudential Mutual Fund. This fund has been operational for 11 years and 8 months, having been launched on January 1, 2013.

ICICI Prudential Bluechip Fund falls under the Large Cap Fund category with an AUM of ₹62,717.11 crores, a 5-year CAGR of 22.92%, an exit load of 1%, and an expense ratio of 0.87%. The SEBI risk category is Very High. Its asset allocation includes 89.06% in Equity, 9.32% in Cash & Equivalents, 1.21% in Rights, and 0.41% in Treasury Bills.

SBI Bluechip Fund  

SBI Bluechip Fund is a Large Cap mutual fund scheme from SBI Mutual Fund. This fund has been operational for 11 years and 8 months, having been launched on January 1, 2013.

SBI Bluechip Fund falls under the Large Cap Fund category with an AUM of ₹51,243.71 crores, a 5-year CAGR of 20.52%, an exit load of 1%, and an expense ratio of 0.80%. The SEBI risk category is Very High. Its asset allocation includes 95.25% in Equity, 3.88% in Cash & Equivalents, and 0.87% in Treasury Bills.

Mirae Asset Large Cap Fund  

Mirae Asset Large Cap Fund is a Large Cap mutual fund scheme from Mirae Asset Mutual Fund. This fund has been operational for 11 years and 8 months, having been launched on January 1, 2013.

Mirae Asset Large Cap Fund falls under the Large Cap Fund category with an AUM of ₹41,352.17 crores, a 5-year CAGR of 19.37%, an exit load of 1%, and an expense ratio of 0.53%. The SEBI risk category is Very High. Its asset allocation includes 99.54% in Equity and 0.46% in Cash & Equivalents.

HDFC Top 100 Fund  

HDFC Top 100 Fund is a Large Cap mutual fund scheme from HDFC Mutual Fund. This fund has been operational for 11 years and 8 months, having been launched on January 1, 2013.

HDFC Top 100 Fund falls under the Large Cap Fund category with an AUM of ₹37,080.92 crores, a 5-year CAGR of 21.19%, an exit load of 1%, and an expense ratio of 1%. The SEBI risk category is Very High. Its asset allocation includes 96.96% in Equity and 3.04% in Cash & Equivalents.

Axis Bluechip Fund  

Axis Bluechip Fund is a Large Cap mutual fund scheme from Axis Mutual Fund. This fund has been operational for 11 years and 8 months, having been launched on January 1, 2013.

Axis Bluechip Fund falls under the Large Cap Fund category with an AUM of ₹35,013.27 crores, a 5-year CAGR of 17.31%, an exit load of 1%, and an expense ratio of 0.67%. The SEBI risk category is Very High. Its asset allocation includes 94.84% in Equity, 4.40% in Cash & Equivalents, 0.75% in Mutual Funds, and 0.01% in Rights.

Nippon India Large Cap Fund  

Nippon India Large Cap Fund is a Large Cap mutual fund scheme from Nippon India Mutual Fund. This fund has been operational for 11 years and 8 months, having been launched on January 1, 2013.

Nippon India Large Cap Fund falls under the Large Cap Fund category with an AUM of ₹31,800.96 crores, a 5-year CAGR of 24.27%, an exit load of 1%, and an expense ratio of 0.68%. The SEBI risk category is Very High. Its asset allocation includes 98.81% in Equity and 1.19% in Cash & Equivalents.

Aditya Birla Sun Life Frontline Equity Fund  

Aditya Birla Sun Life Frontline Equity Fund is a Large Cap mutual fund scheme from Aditya Birla Sun Life Mutual Fund. This fund has been operational for 11 years and 8 months, having been launched on January 1, 2013.

Aditya Birla Sun Life Frontline Equity Fund falls under the Large Cap Fund category with an AUM of ₹30,308.91 crores, a 5-year CAGR of 20.93%, an exit load of 1%, and an expense ratio of 0.97%. The SEBI risk category is Very High. Its asset allocation includes 96.74% in Equity, 2.21% in Cash & Equivalents, 0.39% in Rights, and 0.66% in Government Securities and Treasury Bills.

UTI Flexi Cap Fund  

UTI Flexi Cap Fund is a Flexi Cap mutual fund scheme from UTI Mutual Fund. This fund has been operational for 11 years and 8 months, having been launched on January 1, 2013.

UTI Flexi Cap Fund falls under the Flexi Cap Fund category with an AUM of ₹26,396.25 crores, a 5-year CAGR of 20.28%, an exit load of 1%, and an expense ratio of 0.98%. The SEBI risk category is Very High. Its asset allocation includes 95.79% in Equity, 3.71% in Cash & Equivalents, and 0.50% in Treasury Bills.

Kotak Multicap Fund  

Kotak Multicap Fund is a Multi Cap mutual fund scheme from Kotak Mahindra Mutual Fund. This fund has been operational for 1 year and 11 months, having been launched on September 29, 2021.

Kotak Multicap Fund falls under the Multi Cap Fund category with an AUM of ₹14,473.75 crores, an exit load of 1%, and an expense ratio of 0.38%. The SEBI risk category is Very High. Its asset allocation includes 96.75% in Equity, 2.77% in Cash & Equivalents, and 0.47% in Mutual Funds.

SBI Magnum Income Fund  

SBI Magnum Income Fund is a Medium to Long Duration mutual fund scheme from SBI Mutual Fund. This fund has been operational for 11 years and 8 months, having been launched on January 1, 2013.

SBI Magnum Income Fund falls under the Medium to Long Duration Fund category with an AUM of ₹1,781.39 crores, a 5-year CAGR of 7.68%, an exit load of 1%, and an expense ratio of 0.78%. The SEBI risk category is Moderately High. Its asset allocation includes 56.33% in Government Securities, 33.67% in Corporate Debt, 9.75% in Cash & Equivalents, and 0.26% in Treasury Bills.

What Are Long Term Mutual Funds?

Long Term Mutual Funds are investment vehicles designed for investors with a time horizon of 5 years or more. These funds typically invest in a diversified portfolio of stocks, bonds, or a mix of both, aiming to generate higher returns over an extended period while managing risk through diversification.

Long term funds can include various categories such as large-cap, mid-cap, multi-cap, or balanced funds. The key characteristic is their focus on long-term growth rather than short-term gains. This approach allows fund managers to invest in potentially high-growth assets that may take time to realize their full value.

These funds are suitable for investors who can withstand short-term market fluctuations in pursuit of potentially higher long-term returns. They often align with long-term financial goals such as retirement planning or wealth accumulation over an extended period.

Features of the Best Mutual Fund For The Long Term

The main features of the best mutual funds for the long term include diversification, professional management, potential for higher returns, and focus on long-term growth. These funds are designed to help investors achieve their long-term financial goals through strategic investment approaches.

• Diversification: Long-term funds typically invest across various sectors and asset classes, helping to spread risk and potentially enhance returns over time.

• Professional management: Experienced fund managers conduct in-depth research and make informed investment decisions, aiming to optimize returns over the long term.

• Growth focus: These funds often prioritize capital appreciation over regular income, aligning with long-term wealth creation objectives.

• Compounding benefits: Long investment horizons allow for the potential of compounded returns, which can significantly boost overall performance over time.

Top Long Term Mutual Funds Based on Expense Ratio

The table below shows the Top Long Term Mutual Funds based on Expense Ratio Based on the lowest to highest expense ratio.

Best Long Term Mutual Funds Based on 3Y CAGR

The table below shows Best Long Term Mutual Funds based on 3Y CAGR based on the Highest 3Y CAGR.

List Of Long Term Mutual Funds Based on Exit Load

The table below shows a List of Long Term Mutual Funds Based on Exit Load based, i.e., the fee that the AMC charges investors when they exit or redeem their fund units.

Long Term Mutual Funds Returns

The table below shows Long Term Mutual Funds Returns based on 1-year returns.

Historical Performance of Long Term Mutual Funds

The table below shows Historical Performance of Long Term Mutual Funds based on 5Y return

Factors to Consider When Investing in Long Term Mutual Funds

The main factors to consider when investing in Long Term Mutual Funds include fund performance, investment strategy, expense ratio, fund manager expertise, and your risk tolerance. These factors can significantly impact the fund’s long-term performance and suitability for your portfolio.

• Fund performance: Analyze the fund’s historical returns over various time periods, comparing them with benchmark indices and category averages. Look for consistent long-term performance.

• Investment strategy: Understand the fund’s approach to stock selection and asset allocation. Ensure it aligns with your long-term investment goals and risk appetite.

• Expense ratio: Compare expense ratios across different funds. Lower expenses can contribute to better overall returns over the long term.

• Fund manager expertise: Evaluate the fund manager’s experience and track record in managing long-term investments. Their expertise can be crucial for navigating market cycles.

• Risk measures: Assess risk metrics such as standard deviation and Sharpe ratio to understand the fund’s volatility and risk-adjusted returns over longer periods.

How to Invest in Top Long Term Mutual Funds?

To invest in top Long Term Mutual Funds, start by researching and comparing different funds based on their performance, investment strategy, and expense ratios. Once you’ve selected a fund that aligns with your long-term financial goals and risk tolerance, you can invest through Alice Blue.

Alice Blue is a user-friendly online investment platform that provides tools and resources to help you make informed investment decisions. You can choose to invest a lump sum amount or opt for a Systematic Investment Plan (SIP), which allows you to invest a fixed amount regularly.

For most long-term investors, a SIP is recommended as it helps in rupee cost averaging and reduces the impact of market volatility on your investment over time. Remember to review and rebalance your investment periodically to ensure it remains aligned with your long-term financial goals.

Impact of Market Trends on Top Long Term Mutual Funds

Market trends can significantly influence Long Term Mutual Funds, but their impact is often smoothed out over extended investment periods. These funds are designed to weather short-term market fluctuations and capitalize on long-term economic growth and market trends.

During bull markets, long-term funds may experience strong growth, while bear markets might lead to temporary declines. However, the long investment horizon allows these funds to potentially recover from downturns and benefit from overall market growth over time. Fund managers may adjust portfolio allocations based on long-term market outlook and economic trends.

How Long Term Mutual Funds Perform in Volatile Markets?

Long Term Mutual Funds generally demonstrate resilience during volatile markets due to their extended investment horizon. While they may experience short-term fluctuations, these funds are designed to focus on long-term growth rather than reacting to short-term market volatility.

During market downturns, long-term funds may face temporary declines. However, their diversified portfolios and focus on quality investments can help mitigate losses. Over time, these funds have the potential to recover and even benefit from market corrections by acquiring quality assets at lower prices.

Advantages of Investing in Long Term Mutual Funds

The main advantages of investing in Long Term Mutual Funds include potential for higher returns, power of compounding, professional management, and diversification benefits. These funds offer a strategic approach to long-term wealth creation and financial goal achievement.

• Higher return potential: Long-term investment horizons allow funds to ride out market volatility and potentially generate higher returns over time.

• Compounding benefits: Extended investment periods enable the power of compounding, where returns generate additional returns, potentially leading to significant wealth accumulation.

• Professional management: Experienced fund managers make informed investment decisions based on long-term market outlook and extensive research.

• Diversification: Long-term funds typically offer broad diversification across sectors and sometimes asset classes, helping to spread risk and enhance potential returns.

Risks of Investing in Long Term Mutual Funds

The main risks of investing in Long Term Mutual Funds include market risk, economic risk, fund manager risk, and the potential for underperformance. While these funds aim for long-term growth, they are not immune to various factors that can impact returns.

• Market risk: Long-term funds are subject to market fluctuations, which can lead to periods of negative returns, especially in bear markets.

• Economic risk: Changes in economic conditions over long periods can affect fund performance, particularly if invested heavily in specific sectors or regions.

• Fund manager risk: The fund’s performance heavily relies on the fund manager’s decisions. Poor judgment or strategy can lead to underperformance over time.

• Opportunity cost: Locking funds for long periods may mean missing out on other investment opportunities that arise in the interim.

Contribution of Long Term Mutual Funds to Portfolio Diversification

Long Term Mutual Funds contribute significantly to portfolio diversification by offering exposure to a wide range of assets over an extended period. These funds typically invest across various sectors, market capitalizations, and sometimes even asset classes, providing a diversified investment approach within a single fund.

By including Long Term Mutual Funds in a portfolio, investors can potentially balance out short-term volatility from other investments. The long-term focus of these funds can complement shorter-term investments, creating a well-rounded portfolio that aims to capitalize on both short-term opportunities and long-term growth trends.

Who Should Invest in Long Term Mutual Funds?

Long Term Mutual Funds are suitable for investors with a time horizon of 5 years or more who are seeking potential capital appreciation and are willing to withstand short-term market fluctuations. They are ideal for individuals saving for long-term goals such as retirement, children’s higher education, or building substantial wealth over time.

These funds can be appropriate for investors in their wealth accumulation phase, typically those in their 20s to 50s, who have time on their side to ride out market cycles. They are also suitable for those who prefer a ‘set and forget’ approach to investing, relying on professional fund management for long-term growth.

Impact of Fund Manager Expertise on Long Term Mutual Funds Performance

The expertise of the fund manager plays a crucial role in the performance of Long Term Mutual Funds. A skilled manager can add significant value through strategic asset allocation, timely rebalancing, and selecting investments with strong long-term growth potential.

Experienced fund managers analyze long-term economic trends, company fundamentals, and market cycles to make informed investment decisions. Their ability to identify promising long-term investments and navigate various market conditions can greatly influence the fund’s ability to generate consistent returns over extended periods.

How Much Money Should I Invest In Long Term Mutual Funds?

The amount you should invest in Long Term Mutual Funds depends on your overall financial goals, risk tolerance, and investment portfolio. As a general rule, it’s advisable to allocate a significant portion of your long-term savings to these funds, typically 50-70% of your equity allocation for long-term goals.

Consider your age, income, expenses, and other investments when deciding the amount. It’s often recommended to start with regular investments through SIPs and gradually increase your allocation as you become more comfortable with the fund’s performance and your financial situation improves.

List Of Long Term Mutual Funds FAQs

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.