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Best Mutual Funds for Long Term Investment

Updated on August 28, 2025 , 29895 views

A long term Investment plan makes a lot of significance in your Portfolio. It is essential for a long-term wealth creation. When you plan for higher goals in life, like for instance, retirement, marriage, child’s education, purchase of a house, or a world tour, etc., long-term Mutual Fund schemes can help in fulfilling all of these. So, let’s know more about long-term investments, who & how should one plan to achieve their long-term goals and the best mutual funds to invest for long-term plan.

What is a Long Term Investment?

Generally, long-term plans come with an investment time frame of greater than 5 years. When a person wants to invest for a long-term there are a lot of objectives behind the investment. The aim could be for a long-term wealth creation, so that the person could feel secure in the future. It can be of achieving major goals in life or could be just to double the money by earning good returns on investment. The most advised plan for the long-term is the equity Mutual Fund.

equityfor-long-term

Why Equity Funds are Best for Long Term?

Equity Funds majorly invest in stocks/shares of companies. It is also one of the best ways to own a business (in a small portion) without you starting a business. But, these funds are highly risky in the short-run. Equity markets are sensitive to macroeconomic indicators and other factors such as Inflation, interest rates, currency exchange rates, tax rates, Bank policies to name a few. Any change or imbalance in these affect the performance of the companies and hence the stock prices. That’s why it is always suggested to stay invested in equity funds for minimum 5 years to max 10 years & above. Also, these funds are only recommended for investors who are willing to take a high level of risk in the investment.

Historically, equity funds have proven to deliver good returns in the long-run. The majority of blue chips companies helps investors earn a steady Income in the form of dividends. Such companies usually pay out regular dividends even in volatile Market conditions. These are typically paid quarterly. Having a diversified portfolio can provide investors with a steady dividend income in the year.

When planning to invest for a long-term, investors can invest in stocks of different economic sectors. So, even if a particular stock drops in value, the others may help investors make up for that loss. Some of the other benefits of equities are:

  • Low cost
  • Flexibility
  • Diversification
  • Convenience
  • liquidity
  • Expert money management

Best Mutual Funds to Invest for Long term

Following are the Best equity funds for long-term investment plans.

Large Cap Funds

These funds invest money in the stocks of large-sized companies. Large cap stocks are commonly referred as blue chip stocks. These funds invest in those firms that have potential to show year on year steady growth and high profits, which in turns also offers stability over a time. Large-cap stocks give steady returns over a long period of time. As these funds invest in well-established companies they are usually considered to be the safest investments compared to mid & Small cap funds. Investors with a moderate to high-risk appetite can prefer Investing in large-cap funds.

FundNAVNet Assets (Cr)Min SIP Investment3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2024 (%)Sharpe Ratio
IDBI India Top 100 Equity Fund Growth ₹44.16
↑ 0.05
₹655 500 9.212.515.421.912.6 1.09
Nippon India Large Cap Fund Growth ₹89.8671
↓ -0.18
₹44,165 100 0.7150.619.722.618.2-0.37
JM Core 11 Fund Growth ₹19.2966
↓ -0.06
₹284 500 011.4-8.918.618.524.3-0.75
ICICI Prudential Bluechip Fund Growth ₹108.84
↓ -0.36
₹71,788 100 -0.113-0.618.120.516.9-0.35
DSP TOP 100 Equity Growth ₹460.567
↓ -1.32
₹6,399 500 -2.69.2-117.417.820.5-0.38
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 28 Jul 23
Note: Ratio's shown as on 30 Jun 23

Research Highlights & Commentary of 5 Funds showcased

CommentaryIDBI India Top 100 Equity FundNippon India Large Cap FundJM Core 11 FundICICI Prudential Bluechip FundDSP TOP 100 Equity
Point 1Bottom quartile AUM (₹655 Cr).Upper mid AUM (₹44,165 Cr).Bottom quartile AUM (₹284 Cr).Highest AUM (₹71,788 Cr).Lower mid AUM (₹6,399 Cr).
Point 2Established history (13+ yrs).Established history (18+ yrs).Established history (17+ yrs).Established history (17+ yrs).Oldest track record among peers (22 yrs).
Point 3Rating: 3★ (bottom quartile).Top rated.Rating: 4★ (upper mid).Rating: 4★ (lower mid).Rating: 2★ (bottom quartile).
Point 4Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: High.Risk profile: Moderately High.Risk profile: Moderately High.
Point 55Y return: 12.61% (bottom quartile).5Y return: 22.63% (top quartile).5Y return: 18.50% (lower mid).5Y return: 20.51% (upper mid).5Y return: 17.82% (bottom quartile).
Point 63Y return: 21.88% (top quartile).3Y return: 19.70% (upper mid).3Y return: 18.60% (lower mid).3Y return: 18.10% (bottom quartile).3Y return: 17.41% (bottom quartile).
Point 71Y return: 15.39% (top quartile).1Y return: 0.57% (upper mid).1Y return: -8.89% (bottom quartile).1Y return: -0.58% (lower mid).1Y return: -1.02% (bottom quartile).
Point 8Alpha: 2.11 (top quartile).Alpha: 0.61 (lower mid).Alpha: -4.99 (bottom quartile).Alpha: 1.58 (upper mid).Alpha: 0.42 (bottom quartile).
Point 9Sharpe: 1.09 (top quartile).Sharpe: -0.37 (lower mid).Sharpe: -0.75 (bottom quartile).Sharpe: -0.35 (upper mid).Sharpe: -0.38 (bottom quartile).
Point 10Information ratio: 0.14 (bottom quartile).Information ratio: 1.84 (top quartile).Information ratio: 0.40 (bottom quartile).Information ratio: 1.50 (upper mid).Information ratio: 0.84 (lower mid).

IDBI India Top 100 Equity Fund

  • Bottom quartile AUM (₹655 Cr).
  • Established history (13+ yrs).
  • Rating: 3★ (bottom quartile).
  • Risk profile: Moderately High.
  • 5Y return: 12.61% (bottom quartile).
  • 3Y return: 21.88% (top quartile).
  • 1Y return: 15.39% (top quartile).
  • Alpha: 2.11 (top quartile).
  • Sharpe: 1.09 (top quartile).
  • Information ratio: 0.14 (bottom quartile).

Nippon India Large Cap Fund

  • Upper mid AUM (₹44,165 Cr).
  • Established history (18+ yrs).
  • Top rated.
  • Risk profile: Moderately High.
  • 5Y return: 22.63% (top quartile).
  • 3Y return: 19.70% (upper mid).
  • 1Y return: 0.57% (upper mid).
  • Alpha: 0.61 (lower mid).
  • Sharpe: -0.37 (lower mid).
  • Information ratio: 1.84 (top quartile).

JM Core 11 Fund

  • Bottom quartile AUM (₹284 Cr).
  • Established history (17+ yrs).
  • Rating: 4★ (upper mid).
  • Risk profile: High.
  • 5Y return: 18.50% (lower mid).
  • 3Y return: 18.60% (lower mid).
  • 1Y return: -8.89% (bottom quartile).
  • Alpha: -4.99 (bottom quartile).
  • Sharpe: -0.75 (bottom quartile).
  • Information ratio: 0.40 (bottom quartile).

ICICI Prudential Bluechip Fund

  • Highest AUM (₹71,788 Cr).
  • Established history (17+ yrs).
  • Rating: 4★ (lower mid).
  • Risk profile: Moderately High.
  • 5Y return: 20.51% (upper mid).
  • 3Y return: 18.10% (bottom quartile).
  • 1Y return: -0.58% (lower mid).
  • Alpha: 1.58 (upper mid).
  • Sharpe: -0.35 (upper mid).
  • Information ratio: 1.50 (upper mid).

DSP TOP 100 Equity

  • Lower mid AUM (₹6,399 Cr).
  • Oldest track record among peers (22 yrs).
  • Rating: 2★ (bottom quartile).
  • Risk profile: Moderately High.
  • 5Y return: 17.82% (bottom quartile).
  • 3Y return: 17.41% (bottom quartile).
  • 1Y return: -1.02% (bottom quartile).
  • Alpha: 0.42 (bottom quartile).
  • Sharpe: -0.38 (bottom quartile).
  • Information ratio: 0.84 (lower mid).

Mid & Small Cap Funds

These are the funds that invest in the stocks of mid-sized and small/start-up companies, respectively. Mid cap & small cap funds have gained a huge attention in the past few years. Their potential for fast business growth has caught the eyes of many investors. Such companies are flexible in adapting changes than the larger companies, hence they can show rapid growth. But, these funds are risker than Large cap funds. If mid & small cap companies are unable to deliver exceptional returns in a bull market phase than they may suffer badly. Hence, investors with a high-risk appetite should only prefer investing in these funds.

FundNAVNet Assets (Cr)Min SIP Investment3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2024 (%)Sharpe Ratio
Motilal Oswal Midcap 30 Fund  Growth ₹101.99
↓ -0.51
₹33,609 500 1.9150.128.132.257.1-0.11
Nippon India Small Cap Fund Growth ₹164.4
↓ -0.52
₹65,922 100 -0.617.9-7.9233126.1-0.51
HDFC Small Cap Fund Growth ₹139.273
↓ -0.17
₹36,353 300 3.222.4-12328.920.4-0.17
Franklin India Smaller Companies Fund Growth ₹165.63
↓ -0.12
₹13,825 500 -3.115.6-10.222.62823.2-0.59
Edelweiss Mid Cap Fund Growth ₹98.569
↓ -0.42
₹11,027 500 0.518.9-0.323.727.938.9-0.06
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 29 Aug 25
Note: Ratio's shown as on 31 Jul 25

Research Highlights & Commentary of 5 Funds showcased

CommentaryMotilal Oswal Midcap 30 Fund Nippon India Small Cap FundHDFC Small Cap FundFranklin India Smaller Companies FundEdelweiss Mid Cap Fund
Point 1Lower mid AUM (₹33,609 Cr).Highest AUM (₹65,922 Cr).Upper mid AUM (₹36,353 Cr).Bottom quartile AUM (₹13,825 Cr).Bottom quartile AUM (₹11,027 Cr).
Point 2Established history (11+ yrs).Established history (14+ yrs).Established history (17+ yrs).Oldest track record among peers (19 yrs).Established history (17+ yrs).
Point 3Rating: 3★ (bottom quartile).Top rated.Rating: 4★ (upper mid).Rating: 4★ (lower mid).Rating: 3★ (bottom quartile).
Point 4Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: High.
Point 55Y return: 32.15% (top quartile).5Y return: 31.05% (upper mid).5Y return: 28.86% (lower mid).5Y return: 28.04% (bottom quartile).5Y return: 27.93% (bottom quartile).
Point 63Y return: 28.09% (top quartile).3Y return: 22.96% (lower mid).3Y return: 22.95% (bottom quartile).3Y return: 22.63% (bottom quartile).3Y return: 23.65% (upper mid).
Point 71Y return: 0.15% (top quartile).1Y return: -7.92% (bottom quartile).1Y return: -0.95% (lower mid).1Y return: -10.16% (bottom quartile).1Y return: -0.26% (upper mid).
Point 8Alpha: 3.70 (upper mid).Alpha: -3.84 (bottom quartile).Alpha: 0.00 (lower mid).Alpha: -5.51 (bottom quartile).Alpha: 5.32 (top quartile).
Point 9Sharpe: -0.11 (upper mid).Sharpe: -0.51 (bottom quartile).Sharpe: -0.17 (lower mid).Sharpe: -0.59 (bottom quartile).Sharpe: -0.06 (top quartile).
Point 10Information ratio: 0.44 (top quartile).Information ratio: 0.00 (lower mid).Information ratio: 0.00 (bottom quartile).Information ratio: -0.06 (bottom quartile).Information ratio: 0.20 (upper mid).

Motilal Oswal Midcap 30 Fund 

  • Lower mid AUM (₹33,609 Cr).
  • Established history (11+ yrs).
  • Rating: 3★ (bottom quartile).
  • Risk profile: Moderately High.
  • 5Y return: 32.15% (top quartile).
  • 3Y return: 28.09% (top quartile).
  • 1Y return: 0.15% (top quartile).
  • Alpha: 3.70 (upper mid).
  • Sharpe: -0.11 (upper mid).
  • Information ratio: 0.44 (top quartile).

Nippon India Small Cap Fund

  • Highest AUM (₹65,922 Cr).
  • Established history (14+ yrs).
  • Top rated.
  • Risk profile: Moderately High.
  • 5Y return: 31.05% (upper mid).
  • 3Y return: 22.96% (lower mid).
  • 1Y return: -7.92% (bottom quartile).
  • Alpha: -3.84 (bottom quartile).
  • Sharpe: -0.51 (bottom quartile).
  • Information ratio: 0.00 (lower mid).

HDFC Small Cap Fund

  • Upper mid AUM (₹36,353 Cr).
  • Established history (17+ yrs).
  • Rating: 4★ (upper mid).
  • Risk profile: Moderately High.
  • 5Y return: 28.86% (lower mid).
  • 3Y return: 22.95% (bottom quartile).
  • 1Y return: -0.95% (lower mid).
  • Alpha: 0.00 (lower mid).
  • Sharpe: -0.17 (lower mid).
  • Information ratio: 0.00 (bottom quartile).

Franklin India Smaller Companies Fund

  • Bottom quartile AUM (₹13,825 Cr).
  • Oldest track record among peers (19 yrs).
  • Rating: 4★ (lower mid).
  • Risk profile: Moderately High.
  • 5Y return: 28.04% (bottom quartile).
  • 3Y return: 22.63% (bottom quartile).
  • 1Y return: -10.16% (bottom quartile).
  • Alpha: -5.51 (bottom quartile).
  • Sharpe: -0.59 (bottom quartile).
  • Information ratio: -0.06 (bottom quartile).

Edelweiss Mid Cap Fund

  • Bottom quartile AUM (₹11,027 Cr).
  • Established history (17+ yrs).
  • Rating: 3★ (bottom quartile).
  • Risk profile: High.
  • 5Y return: 27.93% (bottom quartile).
  • 3Y return: 23.65% (upper mid).
  • 1Y return: -0.26% (upper mid).
  • Alpha: 5.32 (top quartile).
  • Sharpe: -0.06 (top quartile).
  • Information ratio: 0.20 (upper mid).

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Diversified Funds or Multi Cap Funds

These funds invest across all the market caps— large, mid & small cap funds. They typically invest anywhere between 40-60% in large cap stocks, 10-40% in mid-cap stocks and about 10% in small-cap stocks. Since these funds are a combination of all the caps, they master in balancing the portfolio. Historically, Diversified Funds have come as a winner in the most market conditions. Due to its diversified nature, these funds have the potential to survive the tough market phase. Investors with a moderate to high level of risk appetite can ideally invest in these funds.

FundNAVNet Assets (Cr)Min SIP Investment3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2024 (%)Sharpe Ratio
Nippon India Multi Cap Fund Growth ₹295.877
↓ -0.29
₹45,881 100 0.518-0.123.42825.8-0.27
Motilal Oswal Multicap 35 Fund Growth ₹61.1164
↑ 0.04
₹13,727 500 1.415.83.42318.845.70.11
IDBI Diversified Equity Fund Growth ₹37.99
↑ 0.14
₹382 500 10.213.213.522.712 1.01
HDFC Equity Fund Growth ₹1,970.16
↓ -2.47
₹80,642 300 0.913.64.722.426.423.5-0.02
JM Multicap Fund Growth ₹95.5116
↓ -0.21
₹5,957 500 -1.310.4-11.322.124.233.3-1.04
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 29 Aug 25
Note: Ratio's shown as on 31 Jul 25

Research Highlights & Commentary of 5 Funds showcased

CommentaryNippon India Multi Cap FundMotilal Oswal Multicap 35 FundIDBI Diversified Equity FundHDFC Equity FundJM Multicap Fund
Point 1Upper mid AUM (₹45,881 Cr).Lower mid AUM (₹13,727 Cr).Bottom quartile AUM (₹382 Cr).Highest AUM (₹80,642 Cr).Bottom quartile AUM (₹5,957 Cr).
Point 2Established history (20+ yrs).Established history (11+ yrs).Established history (11+ yrs).Oldest track record among peers (30 yrs).Established history (16+ yrs).
Point 3Rating: 2★ (bottom quartile).Top rated.Rating: 2★ (bottom quartile).Rating: 3★ (lower mid).Rating: 4★ (upper mid).
Point 4Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: Moderately High.
Point 55Y return: 28.03% (top quartile).5Y return: 18.76% (bottom quartile).5Y return: 12.03% (bottom quartile).5Y return: 26.43% (upper mid).5Y return: 24.24% (lower mid).
Point 63Y return: 23.43% (top quartile).3Y return: 22.96% (upper mid).3Y return: 22.73% (lower mid).3Y return: 22.44% (bottom quartile).3Y return: 22.09% (bottom quartile).
Point 71Y return: -0.15% (bottom quartile).1Y return: 3.43% (lower mid).1Y return: 13.54% (top quartile).1Y return: 4.74% (upper mid).1Y return: -11.30% (bottom quartile).
Point 8Alpha: 2.00 (lower mid).Alpha: 10.18 (top quartile).Alpha: -1.07 (bottom quartile).Alpha: 4.65 (upper mid).Alpha: -9.56 (bottom quartile).
Point 9Sharpe: -0.27 (bottom quartile).Sharpe: 0.11 (upper mid).Sharpe: 1.01 (top quartile).Sharpe: -0.02 (lower mid).Sharpe: -1.04 (bottom quartile).
Point 10Information ratio: 0.95 (upper mid).Information ratio: 0.80 (bottom quartile).Information ratio: -0.53 (bottom quartile).Information ratio: 1.60 (top quartile).Information ratio: 0.94 (lower mid).

Nippon India Multi Cap Fund

  • Upper mid AUM (₹45,881 Cr).
  • Established history (20+ yrs).
  • Rating: 2★ (bottom quartile).
  • Risk profile: Moderately High.
  • 5Y return: 28.03% (top quartile).
  • 3Y return: 23.43% (top quartile).
  • 1Y return: -0.15% (bottom quartile).
  • Alpha: 2.00 (lower mid).
  • Sharpe: -0.27 (bottom quartile).
  • Information ratio: 0.95 (upper mid).

Motilal Oswal Multicap 35 Fund

  • Lower mid AUM (₹13,727 Cr).
  • Established history (11+ yrs).
  • Top rated.
  • Risk profile: Moderately High.
  • 5Y return: 18.76% (bottom quartile).
  • 3Y return: 22.96% (upper mid).
  • 1Y return: 3.43% (lower mid).
  • Alpha: 10.18 (top quartile).
  • Sharpe: 0.11 (upper mid).
  • Information ratio: 0.80 (bottom quartile).

IDBI Diversified Equity Fund

  • Bottom quartile AUM (₹382 Cr).
  • Established history (11+ yrs).
  • Rating: 2★ (bottom quartile).
  • Risk profile: Moderately High.
  • 5Y return: 12.03% (bottom quartile).
  • 3Y return: 22.73% (lower mid).
  • 1Y return: 13.54% (top quartile).
  • Alpha: -1.07 (bottom quartile).
  • Sharpe: 1.01 (top quartile).
  • Information ratio: -0.53 (bottom quartile).

HDFC Equity Fund

  • Highest AUM (₹80,642 Cr).
  • Oldest track record among peers (30 yrs).
  • Rating: 3★ (lower mid).
  • Risk profile: Moderately High.
  • 5Y return: 26.43% (upper mid).
  • 3Y return: 22.44% (bottom quartile).
  • 1Y return: 4.74% (upper mid).
  • Alpha: 4.65 (upper mid).
  • Sharpe: -0.02 (lower mid).
  • Information ratio: 1.60 (top quartile).

JM Multicap Fund

  • Bottom quartile AUM (₹5,957 Cr).
  • Established history (16+ yrs).
  • Rating: 4★ (upper mid).
  • Risk profile: Moderately High.
  • 5Y return: 24.24% (lower mid).
  • 3Y return: 22.09% (bottom quartile).
  • 1Y return: -11.30% (bottom quartile).
  • Alpha: -9.56 (bottom quartile).
  • Sharpe: -1.04 (bottom quartile).
  • Information ratio: 0.94 (lower mid).

Sector Funds

These are the riskiest of all the equity funds. Thus, an investor who has an ability to take a high risk in the investment should only prefer investing in sector funds. These funds are sector-specific. They invest in a particular sector like infra, pharma, banking, finance, etc. An investor who thinks a particular sector can make a high growth or has a potential to generate good returns in the near future can prefer investing in these funds.

FundNAVNet Assets (Cr)Min SIP Investment3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2024 (%)Sharpe Ratio
SBI Banking & Financial Services Fund Growth ₹41.2785
↓ -0.10
₹8,450 500 0.3159.818.319.619.60.48
Baroda Pioneer Banking And Financial Services Fund Growth ₹46.2292
↓ -0.20
₹297 500 -2.412.78.316.117.412.50.5
ICICI Prudential Banking and Financial Services Fund Growth ₹129.98
↓ -0.36
₹9,930 100 -2.112.36.515.418.911.60.37
TATA Banking and Financial Services Fund Growth ₹41.2461
↓ -0.15
₹2,895 150 -2.512.46.117.318.390.36
UTI Banking and Financial Services Fund Growth ₹182.255
↓ -0.34
₹1,305 500 -2.612.86.115.718.611.10.27
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 29 Aug 25
Note: Ratio's shown as on 31 Jul 25

Research Highlights & Commentary of 5 Funds showcased

CommentarySBI Banking & Financial Services FundBaroda Pioneer Banking And Financial Services FundICICI Prudential Banking and Financial Services FundTATA Banking and Financial Services FundUTI Banking and Financial Services Fund
Point 1Upper mid AUM (₹8,450 Cr).Bottom quartile AUM (₹297 Cr).Highest AUM (₹9,930 Cr).Lower mid AUM (₹2,895 Cr).Bottom quartile AUM (₹1,305 Cr).
Point 2Established history (10+ yrs).Established history (13+ yrs).Established history (17+ yrs).Established history (9+ yrs).Oldest track record among peers (21 yrs).
Point 3Not Rated.Rating: 2★ (lower mid).Top rated.Not Rated.Rating: 3★ (upper mid).
Point 4Risk profile: High.Risk profile: High.Risk profile: High.Risk profile: High.Risk profile: High.
Point 55Y return: 19.58% (top quartile).5Y return: 17.44% (bottom quartile).5Y return: 18.94% (upper mid).5Y return: 18.26% (bottom quartile).5Y return: 18.64% (lower mid).
Point 63Y return: 18.29% (top quartile).3Y return: 16.09% (lower mid).3Y return: 15.42% (bottom quartile).3Y return: 17.31% (upper mid).3Y return: 15.69% (bottom quartile).
Point 71Y return: 9.80% (top quartile).1Y return: 8.32% (upper mid).1Y return: 6.54% (lower mid).1Y return: 6.09% (bottom quartile).1Y return: 6.08% (bottom quartile).
Point 8Alpha: -2.42 (upper mid).Alpha: -2.36 (top quartile).Alpha: -3.35 (lower mid).Alpha: -4.10 (bottom quartile).Alpha: -5.63 (bottom quartile).
Point 9Sharpe: 0.48 (upper mid).Sharpe: 0.50 (top quartile).Sharpe: 0.37 (lower mid).Sharpe: 0.36 (bottom quartile).Sharpe: 0.27 (bottom quartile).
Point 10Information ratio: 0.59 (top quartile).Information ratio: 0.33 (lower mid).Information ratio: 0.18 (bottom quartile).Information ratio: 0.59 (upper mid).Information ratio: 0.23 (bottom quartile).

SBI Banking & Financial Services Fund

  • Upper mid AUM (₹8,450 Cr).
  • Established history (10+ yrs).
  • Not Rated.
  • Risk profile: High.
  • 5Y return: 19.58% (top quartile).
  • 3Y return: 18.29% (top quartile).
  • 1Y return: 9.80% (top quartile).
  • Alpha: -2.42 (upper mid).
  • Sharpe: 0.48 (upper mid).
  • Information ratio: 0.59 (top quartile).

Baroda Pioneer Banking And Financial Services Fund

  • Bottom quartile AUM (₹297 Cr).
  • Established history (13+ yrs).
  • Rating: 2★ (lower mid).
  • Risk profile: High.
  • 5Y return: 17.44% (bottom quartile).
  • 3Y return: 16.09% (lower mid).
  • 1Y return: 8.32% (upper mid).
  • Alpha: -2.36 (top quartile).
  • Sharpe: 0.50 (top quartile).
  • Information ratio: 0.33 (lower mid).

ICICI Prudential Banking and Financial Services Fund

  • Highest AUM (₹9,930 Cr).
  • Established history (17+ yrs).
  • Top rated.
  • Risk profile: High.
  • 5Y return: 18.94% (upper mid).
  • 3Y return: 15.42% (bottom quartile).
  • 1Y return: 6.54% (lower mid).
  • Alpha: -3.35 (lower mid).
  • Sharpe: 0.37 (lower mid).
  • Information ratio: 0.18 (bottom quartile).

TATA Banking and Financial Services Fund

  • Lower mid AUM (₹2,895 Cr).
  • Established history (9+ yrs).
  • Not Rated.
  • Risk profile: High.
  • 5Y return: 18.26% (bottom quartile).
  • 3Y return: 17.31% (upper mid).
  • 1Y return: 6.09% (bottom quartile).
  • Alpha: -4.10 (bottom quartile).
  • Sharpe: 0.36 (bottom quartile).
  • Information ratio: 0.59 (upper mid).

UTI Banking and Financial Services Fund

  • Bottom quartile AUM (₹1,305 Cr).
  • Oldest track record among peers (21 yrs).
  • Rating: 3★ (upper mid).
  • Risk profile: High.
  • 5Y return: 18.64% (lower mid).
  • 3Y return: 15.69% (bottom quartile).
  • 1Y return: 6.08% (bottom quartile).
  • Alpha: -5.63 (bottom quartile).
  • Sharpe: 0.27 (bottom quartile).
  • Information ratio: 0.23 (bottom quartile).

Taxation in Long Term Mutual Funds

Referring to the above equity funds, the taxation implication are as follows:

Equity Schemes Holding Period Tax Rate
Long Term Capital Gains (LTCG) More than 1 Year 10% (with no indexation)*****
Short Term Capital Gains (STCG) Less than or equal to a year 15%
Tax on Distributed Dividend - 10%#

Gains up to INR 1 lakh are free of tax. Tax at 10% applies to gains above INR 1 lakh. Earlier rate was 0% cost calculated as closing price on Jan 31, 2018. #Dividend tax of 10% + Surcharge 12% + Cess 4% =11.648% Health & Education Cess of 4% introduced. Earlier, education Cess was 3*%

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Ganesan, posted on 23 Sep 20 10:51 AM

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