Investing in Mutual Funds is the safest thing in the stock market. This is especially become more valuable if you don’t have much knowledge about the stocks.
Also, in the past few years, investment in mutual funds and indexes has increased rapidly and has become the first line of choice for wealth creation in India.
There are a plethora of options available in the market, but choosing the right one for long-term growth can be a daunting task for investors like us. You have to do thorough research and read the upcoming market trends to maximize your returns through mutual funds.
So, if you are confused and scratching your head while thinking about which fund you need to choose to invest in for long-term growth in India, then you can check out the list of top mutual funds for long term that we have mentioned below.
What are Mutual Funds?
These are basically earning rockets that pool money from various investors like you to invest in well-researched and diversified stocks, bonds, money markets, or sometimes a combination of these assets.
Mutual Funds are managed by professional fund managers who make sure your money gets invested into the right thing and make decisions on your behalf.
Now, talking about holdings, there are two types of holdings in mutual funds: short-term holdings and long-term holdings. As the name sounds, short-term holdings of mutual funds occur when anyone invests and holds his/her assets for up to one year.
On the other hand, long-term holdings are when anyone holds and invests his/her money every month for a longer period, which is more than 1 year. The longer you invest and hold a fund, the bigger the return you will get.
What Are The Key Factors We Need to Check Before Investing?
There are many things that we need to check before investing in mutual funds for the long term, such as XIRR, interest rate, locking period, etc. Let’s check out these things in detail:
- Fund Performance: The initial thing you need to evaluate is whether the fund you are going to invest in is giving a good return to its existing users. So, you must first open your broker app, whichever you are using, such as Grow, UpStocks, etc., and then check the historical performance of the fund over different market cycles. Remember, consistency is the key to success. So, make sure to choose a fund that is consistent.
- Expense Ratio: Always check the expense ratio of any particular fund that you are choosing. The lower expense ratio is directly proportional to higher returns. So, do deep research and find a fund that has a low expense ratio compared to its peers.
- Fund Manager Expertise: Fund manager is the third most crucial thing that you need to check. Google the mutual fund and check the fund manager’s expertise. A skilful fund manager can help you grow your investment by tackling market volatility and capitalizing on growth opportunities.
- Investment Strategy: You must always check whether your fund is growth-oriented, value-focused, or a blend of different strategies. In my experience, investing in a mix of all these strategies can help you increase your wealth.
- Risk Profile: Check the risk profile of that mutual fund or how much risk you can tolerate. Always choose a fund that aligns with your risk appetite. Don’t ever go with any equity that offers higher growth, as it possibly depends on higher volatility. So, risk chances are also high. Therefore, if you don’t have that much capacity to take risks, avoid this kind of funds.
Best Mutual Funds for Long-Term Growth in India
Note: Mutual Funds are subjected to market risk and can give you heavy losses. So, before start investing, please read all the documents carefully and do your own research.
- Axis Bluechip Fund:
- Fund Type: Large Cap Equity
- Fund Manager: Shreyash Devalkar
- Investment Strategy: Invests predominantly in large-cap stocks with a focus on quality companies with sustainable growth prospects.
- Performance: Has consistently outperformed its benchmark index and peers over the long term.
- Expense Ratio: Competitive expense ratio compared to similar funds in the category.
- Mirae Asset Emerging Bluechip Fund:
- Fund Type: Mid-Cap Equity
- Fund Manager: Neelesh Surana
- Investment Strategy: Invests in high-growth mid-cap companies with the potential to become future leaders.
- Performance: Demonstrated strong performance over the years, beating its benchmark index by a significant margin.
- Expense Ratio: Offers attractive expense ratio considering the returns generated.
- SBI Small Cap Fund:
- Fund Type: Small Cap Equity
- Fund Manager: R. Srinivasan
- Investment Strategy: Focuses on investing in small-cap companies with strong growth potential and sound fundamentals.
- Performance: Has delivered impressive returns over the long term, albeit with higher volatility typical of small-cap funds.
- Expense Ratio: Competitive expense ratio compared to peers in the small-cap category.
- ICICI Prudential Bluechip Fund:
- Fund Type: Large Cap Equity
- Fund Manager: Rajat Chandak
- Investment Strategy: Invests in bluechip companies with established track records, aiming for capital appreciation over the long term.
- Performance: Consistently outperforms its benchmark index and peers, with a focus on risk-adjusted returns.
- Expense Ratio: Offers a competitive expense ratio relative to its peers.
- HDFC Hybrid Equity Fund:
- Fund Type: Hybrid Equity
- Fund Manager: Chirag Setalvad
- Investment Strategy: Maintains a balanced portfolio of equity and debt instruments to provide stable returns with potential capital appreciation.
- Performance: Offers a blend of equity growth and debt stability, suitable for long-term investors seeking a balanced approach.
- Expense Ratio: Competitive expense ratio compared to similar hybrid funds.
Also Read:
So, that’s all we have for you on what are the best mutual funds to invest in for long-term growth. It’s our hope that this guide has helped you. For more info, comment below.
