Mutual funds are ideal for wealth generation in the long-term. In this article, we look at the best mutual funds to invest in for the long term in 2018. These are all equity mutual funds. When investing for the long-term, investing in equity funds is a good option.

So here’s a list of best mutual funds you can invest in for better returns

Best Mutual Funds to Invest for the Long Term

 

Large-cap funds

These are the funds which invest in stocks of reputed companies, which have been in business for a long period of time and hence the risk is low when compared to other funds.

Read more: Advantages and Disadvantages of Large-cap Funds.

The following are the 2 best funds in this category when compared their returns with NIFTY 50 benchmark returns

1) SBI Bluechip Fund

Minimum amount to invest Rs. 500
Type Equity Large Cap
Risk Moderately High
Returns 3 Year 11.54% p.a.
Returns 5 Year 17.98% p.a.

 

2) Mirae Asset India Opportunities Fund

Minimum amount to invest Rs. 1000
Type Equity Large Cap
Risk Moderately High
Returns 3 Year 14.13% p.a.
Returns 5 Year 20.73% p.a.

More: 10 Best Large-cap Funds for 2018. 

 

Mid Cap Funds:

The stocks of companies in mid-cap funds have a good potential to return higher as compared to benchmark returns, but these companies have lower market capitalization as compared to large-cap funds and hence the risk is slightly high.

Read more: Advantages and Disadvantages of Mid-cap Funds

Following are the 2 best mid-cap funds to invest in

1) Aditya Birla Sunlife Small & Mid Cap Fund

Minimum amount to invest Rs. 1000
Type Equity Mid Cap
Risk  High
Returns 3 Year 21.73% p.a.
Returns 5 Year 27.34% p.a..

 

2) L&T Midcap Fund

Minimum amount to invest Rs. 500
Type Equity Mid Cap
Risk  High
Returns 3 Year 20.37% p.a.
Returns 5 Year 28.84% p.a.

More: 10 Top Mid-cap Funds to Invest in 2018.

Small Cap funds

Small-cap funds have the lowest capitalization as compared to that of large and mid-cap ones and hence risk is high here. Correspondingly, their returns have also been one of the highest in history.

Read more: Advantages and Disadvantages of Small-cap Funds

Following 2 funds have performed way better as compared to benchmark returns.

1) L&T Emerging Businesses Fund

Minimum amount to invest Rs. 500
Type Equity Small Cap
Risk  High
Returns 1 Year 39.88%
Returns 3 Year 25.75% p.a.

 

2) HDFC Small Cap Fund

Minimum amount to invest Rs. 500
Type Equity Small Cap
Risk  High
Returns 1 Year 44.15%
Returns 3 Year 22.01% p.a.

More: 5 Best Small-cap Funds

 

Multi-cap Funds

Multi-cap funds diversify their risk by investing in small-cap, mid-cap, and large-cap companies. They are very flexible in their investment methods. In terms of risk, they fall somewhere between large-cap funds and mid-cap funds.

Read more: Large-cap funds or multi-cap funds for lump-sum investment?

Following are the 2 best multi-cap funds to invest in 2018

1) Motilal Oswal MOSt Focused Multicap 35 Fund

Minimum amount to invest Rs. 1000
Type Equity Multi-Cap
Risk  High
Returns 1 Year 23.94%
Returns 3 Year 18.81% p.a

2) Aditya Birla Sun Life Advantage Fund

Minimum amount to invest Rs. 1000
Type Equity Multi-Cap
Risk  High
Returns 3 Year 13.80% p.a.
Returns 5 Year 21.87% p.a.

More: 3 Best Multi-cap Funds to Invest in 2018. 

 

To see more top funds to invest in 2018 from every mutual fund category, check out: 30 Best Funds to Invest in 2018: Groww 30.

Happy investing!

Disclaimer: the views expressed here are of the author and do not reflect those of Groww.