Mutual Funds were a rather remote concept until a few years back. Retail investors were skeptical about trusting their money in the hands of what many called an ‘investment broker’.
Over the years, the perception about mutual funds have changed and investors who are looking to gain a substantial amount of profit from the market invest in mutual funds as their first preference.
Long-term mutual funds can conceive high amounts of returns if invested in the right fund and in the right proportion.
In fact, there are various advantages if you invest in a long-term fund. They are as follows;
We will now look at some of the most beneficial long-term funds that can be invested in this year.
This is a large-cap equity fund which was launched on January 1, 2013.
The main objective of this fund is to encourage investors for long-term capital growth. It provides investors with a diversified portfolio to channelize their investments in large-cap equity stocks
All equity mutual funds carry an element of risk because they primarily invest in stock. This fund, however, is the least risky kind of equity mutual fund as it invests only in large-cap companies.
Year | Returns |
Year 3 | 12.03% |
Year 5 | 18.10% |
This has been rated as the second-best mutual fund in the small and midcap category. It was initiated on 1st Jan 2013. The fund mainly aims to accumulate growth in capital by investing in equity and equity related securities of small and midcap companies.
The minimum investment of this fund is Rs.1000 and what makes it more attractive is that it is an open- ended fund. The fund manager is Mr.Jayesh Gandhi.
Since these funds invest in small and mid-cap companies, they are more volatile in nature.
However, they promise much higher returns than investing in largecap companies.
But since you are investing for a long-term, you must be acquainted with your long-term goals and you must analyze the market accordingly.
Year | Returns |
Year 3 | 21.82% |
Year 5 | 28.35% |
This is a small cap fund which was incepted on 1st January, 2013.
The fund managers are Dhrumil Shah and Samir Rachh.
The fund provides only open-ended schemes and has three schemes in total. As of now, the track record of this scheme has been good and has garnered good market returns
As mentioned above, small cap funds are comparatively riskier than large and mid cap funds and this fund has been rated as ‘moderately risky’. However, this fund is ideal for investors who are looking for a long term capital growth.
Year |
Returns |
Year 3 | 24.12% |
Year 5 | 36.74 % |
The objective of this fund is to generate long- term capital. They mostly invest in equity and equity-related securities. It was launched on 12th May,2014. This scheme also invests in foreign securities. The returns are taxed at 15%.
The fund has high risk because it primarily invests in equities. Also because it invest in emerging businesses.
Year |
Returns |
Year 1 | 19.27% |
Year 3 | 25.77% |
It consists of a diversified portfolio which invests in equities, debts and hybrid stocks. Why many people choose multicap funds is because it balances out the risk and is recommended if one wants to invest for a longer period of time. It was launched in 4th January,2013
The investment strategy follows a bottom-up approach and it chooses companies from various sectors.
The risk factor can be adjusted in between low to moderate. However, the returns will not be as high as some of the other funds that have been analyzed.
Year |
Returns |
Year 3 | 14.77% |
Year 5 | .20.97% |
Happy Investing!
Disclaimer: the views expressed here are of the author and do not reflect those of Groww.