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Best Mutual Funds to Invest in for Long Term

Updated on February 17, 2025 , 1694 views

If you are planning to make a long-term investment, then Mutual Funds are must to be considered! Mutual funds are a great investment option who wants to grow the value of their money over the long-run. Though, there is no such time frame for the duration of long-term, but it can be typically more than five years. So, let’s see some of the best mutual funds for long term investments.

Best Long Term Mutual Funds

A long-term investment is essential in a lot of ways. It helps in wealth creations, Retirement planning, and one can plan most of their Financial goals like buying house/car, child’s education, international trips, or any other assets. The most advised plan for the long-term is the equity mutual fund. These funds are known for its long-term wealth creation.

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Equities invest in shares and stocks of companies. The longer you invest in these funds, higher are the chances to earn good returns. But, one should always remember that with ‘high returns come high risk’, equities can be risky fund. Nevertheless, if planned well and for long-term, one can attain good returns and achieve their long-term goals.

Investing in Best Equity Mutual Funds can have many benefits like:

Diversification

With best Equity Funds investors can diversify their Portfolio through regularly investing. It means that they can invest in equity stocks of different economic sectors. There are many equity funds like large-cap, mid-cap, multi-cap, small cap, etc. So, even if a particular stock drops in value, the others may help in making up for that loss, depending on the Market situation.

Liquidity

Since stocks are actively traded across all major exchanges, every day, this makes equity funds a highly liquid investment. It provides investors, the convenience of buying and selling their stocks depending on the market situation. By investing in equity mutual funds, the money is usually credited to your Bank account in three days.

Dividend Income

Investing into blue-chip companies may help investors earn a steady Income in the form of dividends. A majority of such companies usually pay out regular dividends even in volatile market conditions, typically paid quarterly. Having a diversified portfolio can provide investors with a steady dividend income in the year.

Best Mutual Funds to Invest in for Long Term

Best Multi Cap Equity Funds

Fund	NAV	Net Assets (Cr)	Min SIP Investment	3 MO (%)	6 MO (%)	1 YR (%)	3 YR (%)	5 YR (%)	2023 (%)
Motilal Oswal Multicap 35 Fund Growth	₹54.8698 ↑ 0.38	₹11,855	500	-7.7	-4.1	18.1	18.6	14.5	45.7
Kotak Standard Multicap Fund Growth	₹74.35 ↑ 0.59	₹49,112	500	-4.5	-8.8	6.8	13	14.2	16.5
Mirae Asset India Equity Fund Growth	₹101.856 ↑ 0.34	₹37,845	1,000	-3.9	-7.1	6.5	9.7	13.4	12.7
BNP Paribas Multi Cap Fund Growth	₹73.5154 ↓ -0.01	₹588	300	-4.6	-2.6	19.3	17.3	13.6
IDFC Focused Equity Fund Growth	₹79.113 ↑ 0.66	₹1,717	100	-6.2	-3.3	10.4	14	14.2	30.3
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 19 Feb 25

Best ELSS (Tax Saving Mutual Funds)

Fund	NAV	Net Assets (Cr)	Min SIP Investment	3 MO (%)	6 MO (%)	1 YR (%)	3 YR (%)	5 YR (%)	2023 (%)
Tata India Tax Savings Fund Growth	₹39.8599 ↑ 0.36	₹4,398	500	-6.9	-9.6	6.3	12.9	15.3	19.5
IDFC Tax Advantage (ELSS) Fund Growth	₹138.223 ↑ 0.31	₹6,620	500	-5.3	-10.1	1.1	13	19.5	13.1
L&T Tax Advantage Fund Growth	₹118.435 ↑ 1.65	₹3,977	500	-8.3	-10.6	10.3	15.4	15.9	33
DSP BlackRock Tax Saver Fund Growth	₹125.806 ↑ 0.66	₹15,985	500	-5.4	-8	10	16.5	19	23.9
Principal Tax Savings Fund Growth	₹461.412 ↑ 1.48	₹1,299	500	-3.3	-7	6.1	12.5	17	15.8
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 19 Feb 25

Best Large Cap Funds

Fund	NAV	Net Assets (Cr)	Min SIP Investment	3 MO (%)	6 MO (%)	1 YR (%)	3 YR (%)	5 YR (%)	2023 (%)
SBI Bluechip Fund Growth	₹84.0135 ↑ 0.30	₹49,128	500	-3.7	-6.2	8	12	15.1	12.5
Nippon India Large Cap Fund Growth	₹80.9968 ↑ 0.45	₹35,667	100	-4.5	-7.7	6.6	17.6	18	18.2
ICICI Prudential Bluechip Fund Growth	₹100.12 ↑ 0.20	₹63,297	100	-3	-6.2	6.6	15.2	17.7	16.9
Aditya Birla Sun Life Frontline Equity Fund Growth	₹474.9 ↑ 1.12	₹28,081	100	-4.3	-7.7	6.3	12.3	15.3	15.6
Indiabulls Blue Chip Fund Growth	₹38.23 ↑ 0.01	₹119	500	-6.4	-10.3	0.7	10.4	11	12.5
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 19 Feb 25

Best Mid Cap Funds

Fund	NAV	Net Assets (Cr)	Min SIP Investment	3 MO (%)	6 MO (%)	1 YR (%)	3 YR (%)	5 YR (%)	2023 (%)
Kotak Emerging Equity Scheme Growth	₹114.816 ↑ 1.44	₹49,092	1,000	-10.9	-11.9	11.7	18.1	21.5	33.6
Sundaram Mid Cap Fund Growth	₹1,187.8 ↑ 11.54	₹11,638	100	-10	-11.5	7.1	20.4	19.1	32
L&T Midcap Fund Growth	₹328.182 ↑ 5.45	₹10,753	500	-13.5	-14.7	4.1	18.5	18.3	39.7
Taurus Discovery (Midcap) Fund Growth	₹105.07 ↑ 1.17	₹120	1,000	-10.3	-17.9	-6.9	14.7	17.3	11.3
Motilal Oswal Midcap 30 Fund Growth	₹92.5028 ↑ 0.71	₹24,488	500	-11.2	-7.1	21.6	27.7	26.1	57.1
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 19 Feb 25

Best Small Cap Funds

Fund	NAV	Net Assets (Cr)	Min SIP Investment	3 MO (%)	6 MO (%)	1 YR (%)	3 YR (%)	5 YR (%)	2023 (%)
SBI Small Cap Fund Growth	₹151.569 ↑ 1.94	₹31,227	500	-12.4	-15.7	1	14.2	21.4	24.1
L&T Emerging Businesses Fund Growth	₹71 ↑ 1.44	₹17,386	500	-15.2	-17	-2.1	17.5	25	28.5
Aditya Birla Sun Life Small Cap Fund Growth	₹72.6218 ↑ 1.36	₹4,585	1,000	-14.7	-17.7	-2.7	11.9	18	21.5
Nippon India Small Cap Fund Growth	₹145.932 ↑ 2.00	₹57,010	100	-13.7	-16.7	1.5	20.9	28.4	26.1
DSP BlackRock Small Cap Fund Growth	₹166.576 ↑ 2.86	₹14,996	500	-12.3	-15.6	0.8	16	23.7	25.6
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 19 Feb 25

Best Sector Funds

Fund	NAV	Net Assets (Cr)	Min SIP Investment	3 MO (%)	6 MO (%)	1 YR (%)	3 YR (%)	5 YR (%)	2023 (%)
ICICI Prudential Banking and Financial Services Fund Growth	₹118.61 ↑ 0.88	₹9,046	100	-1.1	-0.1	12.1	12.7	11.5	11.6
Sundaram Rural and Consumption Fund Growth	₹89.5236 ↑ 0.23	₹1,518	100	-6	-7.7	10.4	16.6	14.6	20.1
Aditya Birla Sun Life Banking And Financial Services Fund Growth	₹52.63 ↑ 0.53	₹3,101	1,000	-3.7	-4.2	4	11.7	11.2	8.7
IDFC Infrastructure Fund Growth	₹42.828 ↑ 0.58	₹1,641	100	-14.6	-23.1	2.7	22.5	25	39.3
Franklin Build India Fund Growth	₹122.067 ↑ 1.26	₹2,659	500	-10.6	-15	1.6	24.5	24.4	27.8
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 19 Feb 25

Best Focused Funds

Fund	NAV	Net Assets (Cr)	Min SIP Investment	3 MO (%)	6 MO (%)	1 YR (%)	3 YR (%)	5 YR (%)	2023 (%)
Axis Focused 25 Fund Growth	₹49.26 ↑ 0.21	₹12,350	500	-5.3	-7.7	4.9	4.7	8.7	14.8
Aditya Birla Sun Life Focused Equity Fund Growth	₹128.044 ↑ 0.26	₹7,354	1,000	-4.7	-6.4	6.6	12.6	14.8	18.7
Sundaram Select Focus Fund Growth	₹264.968 ↓ -1.18	₹1,354	100	-5	8.5	24.5	17	17.3
HDFC Focused 30 Fund Growth	₹207.8 ↑ 1.01	₹15,688	300	-2.7	-1.8	13.6	22.4	22.3	24
DSP BlackRock Focus Fund Growth	₹49.089 ↑ 0.29	₹2,393	500	-5.6	-7.3	8	14.5	13.7	18.5
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 19 Feb 25

Best Value Funds

Fund	NAV	Net Assets (Cr)	Min SIP Investment	3 MO (%)	6 MO (%)	1 YR (%)	3 YR (%)	5 YR (%)	2023 (%)
L&T India Value Fund Growth	₹95.8669 ↑ 0.66	₹12,849	500	-8.6	-10.8	3.6	19.1	20.9	25.9
Tata Equity PE Fund Growth	₹312.454 ↑ 2.23	₹8,068	150	-9.3	-14	1.9	17.6	17.7	21.7
JM Value Fund Growth	₹88.6997 ↑ 0.62	₹1,027	500	-9.8	-17.4	0.5	20.3	20.5	25.1
HDFC Capital Builder Value Fund Growth	₹655.17 ↑ 2.92	₹6,950	300	-6.4	-9.4	6	15.3	18.1	20.7
IDFC Sterling Value Fund Growth	₹135.382 ↑ 0.64	₹9,587	100	-5.9	-10.3	3.1	15.6	22.4	18
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 19 Feb 25

Best Dividend Yield Funds

Fund	NAV	Net Assets (Cr)	Min SIP Investment	3 MO (%)	6 MO (%)	1 YR (%)	3 YR (%)	5 YR (%)	2023 (%)
ICICI Prudential Dividend Yield Equity Fund Growth	₹47.56 ↑ 0.10	₹4,835	100	-3.1	-7.8	7.1	20.8	25.2	21
Templeton India Equity Income Fund Growth	₹130.681 ↑ 0.51	₹2,341	500	-3.9	-10.5	2.7	17	23.2	20.4
Principal Dividend Yield Fund Growth	₹124.015 ↑ 0.17	₹880	500	-7.3	-12.2	-0.6	13.7	17.2	15.7
UTI Dividend Yield Fund Growth	₹162.062 ↑ 0.32	₹3,959	500	-6.3	-11	10.5	16.3	19.3	24.7
Aditya Birla Sun Life Dividend Yield Fund Growth	₹412.66 ↓ -0.35	₹1,461	1,000	-7	-12.5	-0.1	18.9	20.4	18.2
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 19 Feb 25

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All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.