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Best Mutual Funds for Long Term Investment

Updated on August 17, 2026 , 30845 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.

Fund Selection Methodology used to find 5 funds

  • Category: Equity
  • Sub-category: Large%20Cap
  • AUM Range: 100 to 100000 Cr
  • Sorted On : 3-year return (high to low)
  • Tags: fcpro
  • No Of Funds: 5

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 (%)2025 (%)Sharpe Ratio
IDBI India Top 100 Equity Fund Growth ₹44.16
↑ 0.05
₹655 500 9.212.515.421.912.6 1.09
Invesco India Largecap Fund Growth ₹72.88
↓ -0.22
₹1,847 100 8.93.5614.411.45.5-0.25
Bandhan Large Cap Fund Growth ₹79.062
↓ -0.26
₹2,061 100 6.1-1.12.713.410.88.2-0.35
JM Core 11 Fund Growth ₹20.6784
↓ -0.12
₹289 500 9.92.86.313.213.8-1.90.05
ICICI Prudential Bluechip Fund Growth ₹109.06
↓ -0.51
₹80,962 100 3.4-4.7-1.612.512.211.3-0.3
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 FundInvesco India Largecap FundBandhan Large Cap FundJM Core 11 FundICICI Prudential Bluechip Fund
Point 1Bottom quartile AUM (₹655 Cr).Lower mid AUM (₹1,847 Cr).Upper mid AUM (₹2,061 Cr).Bottom quartile AUM (₹289 Cr).Highest AUM (₹80,962 Cr).
Point 2Established history (14+ yrs).Established history (17+ yrs).Oldest track record among peers (20 yrs).Established history (18+ yrs).Established history (18+ yrs).
Point 3Rating: 3★ (lower mid).Rating: 3★ (bottom quartile).Rating: 2★ (bottom quartile).Top rated.Rating: 4★ (upper mid).
Point 4Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: High.Risk profile: Moderately High.
Point 55Y return: 12.61% (upper mid).5Y return: 11.43% (bottom quartile).5Y return: 10.76% (bottom quartile).5Y return: 13.77% (top quartile).5Y return: 12.24% (lower mid).
Point 63Y return: 21.88% (top quartile).3Y return: 14.44% (upper mid).3Y return: 13.37% (lower mid).3Y return: 13.15% (bottom quartile).3Y return: 12.46% (bottom quartile).
Point 71Y return: 15.39% (top quartile).1Y return: 5.98% (lower mid).1Y return: 2.69% (bottom quartile).1Y return: 6.26% (upper mid).1Y return: -1.57% (bottom quartile).
Point 8Alpha: 2.11 (bottom quartile).Alpha: 3.75 (top quartile).Alpha: 2.34 (upper mid).Alpha: 2.22 (lower mid).Alpha: -2.08 (bottom quartile).
Point 9Sharpe: 1.09 (top quartile).Sharpe: -0.25 (lower mid).Sharpe: -0.35 (bottom quartile).Sharpe: 0.05 (upper mid).Sharpe: -0.30 (bottom quartile).
Point 10Information ratio: 0.14 (bottom quartile).Information ratio: 0.82 (top quartile).Information ratio: 0.63 (lower mid).Information ratio: 0.16 (bottom quartile).Information ratio: 0.67 (upper mid).

IDBI India Top 100 Equity Fund

  • Bottom quartile AUM (₹655 Cr).
  • Established history (14+ yrs).
  • Rating: 3★ (lower mid).
  • Risk profile: Moderately High.
  • 5Y return: 12.61% (upper mid).
  • 3Y return: 21.88% (top quartile).
  • 1Y return: 15.39% (top quartile).
  • Alpha: 2.11 (bottom quartile).
  • Sharpe: 1.09 (top quartile).
  • Information ratio: 0.14 (bottom quartile).

Invesco India Largecap Fund

  • Lower mid AUM (₹1,847 Cr).
  • Established history (17+ yrs).
  • Rating: 3★ (bottom quartile).
  • Risk profile: Moderately High.
  • 5Y return: 11.43% (bottom quartile).
  • 3Y return: 14.44% (upper mid).
  • 1Y return: 5.98% (lower mid).
  • Alpha: 3.75 (top quartile).
  • Sharpe: -0.25 (lower mid).
  • Information ratio: 0.82 (top quartile).

Bandhan Large Cap Fund

  • Upper mid AUM (₹2,061 Cr).
  • Oldest track record among peers (20 yrs).
  • Rating: 2★ (bottom quartile).
  • Risk profile: Moderately High.
  • 5Y return: 10.76% (bottom quartile).
  • 3Y return: 13.37% (lower mid).
  • 1Y return: 2.69% (bottom quartile).
  • Alpha: 2.34 (upper mid).
  • Sharpe: -0.35 (bottom quartile).
  • Information ratio: 0.63 (lower mid).

JM Core 11 Fund

  • Bottom quartile AUM (₹289 Cr).
  • Established history (18+ yrs).
  • Top rated.
  • Risk profile: High.
  • 5Y return: 13.77% (top quartile).
  • 3Y return: 13.15% (bottom quartile).
  • 1Y return: 6.26% (upper mid).
  • Alpha: 2.22 (lower mid).
  • Sharpe: 0.05 (upper mid).
  • Information ratio: 0.16 (bottom quartile).

ICICI Prudential Bluechip Fund

  • Highest AUM (₹80,962 Cr).
  • Established history (18+ yrs).
  • Rating: 4★ (upper mid).
  • Risk profile: Moderately High.
  • 5Y return: 12.24% (lower mid).
  • 3Y return: 12.46% (bottom quartile).
  • 1Y return: -1.57% (bottom quartile).
  • Alpha: -2.08 (bottom quartile).
  • Sharpe: -0.30 (bottom quartile).
  • Information ratio: 0.67 (upper 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 (%)2025 (%)Sharpe Ratio
Motilal Oswal Midcap 30 Fund  Growth ₹103.87
↓ -0.37
₹40,036 500 14.311.11.220.922-12.1-0.24
Invesco India Mid Cap Fund Growth ₹199.73
↑ 0.69
₹14,721 500 119.19.924.619.86.30.29
Nippon India Small Cap Fund Growth ₹186.066
↑ 0.19
₹78,957 100 9.613.111.217.119.6-4.70.12
Edelweiss Mid Cap Fund Growth ₹110.467
↓ -0.21
₹18,693 500 66.19.522.318.63.80.27
IDBI Small Cap Fund Growth ₹34.9481
↑ 0.11
₹758 500 14.220.618.519.118.3-13.40.26
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 18 Aug 26
Note: Ratio's shown as on 31 Jul 26

Research Highlights & Commentary of 5 Funds showcased

CommentaryMotilal Oswal Midcap 30 Fund Invesco India Mid Cap FundNippon India Small Cap FundEdelweiss Mid Cap FundIDBI Small Cap Fund
Point 1Upper mid AUM (₹40,036 Cr).Bottom quartile AUM (₹14,721 Cr).Highest AUM (₹78,957 Cr).Lower mid AUM (₹18,693 Cr).Bottom quartile AUM (₹758 Cr).
Point 2Established history (12+ yrs).Oldest track record among peers (19 yrs).Established history (15+ yrs).Established history (18+ yrs).Established history (9+ yrs).
Point 3Rating: 3★ (upper mid).Rating: 2★ (bottom quartile).Top rated.Rating: 3★ (lower mid).Not Rated.
Point 4Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: High.Risk profile: Moderately High.
Point 55Y return: 22.01% (top quartile).5Y return: 19.80% (upper mid).5Y return: 19.62% (lower mid).5Y return: 18.60% (bottom quartile).5Y return: 18.26% (bottom quartile).
Point 63Y return: 20.91% (lower mid).3Y return: 24.61% (top quartile).3Y return: 17.08% (bottom quartile).3Y return: 22.28% (upper mid).3Y return: 19.11% (bottom quartile).
Point 71Y return: 1.15% (bottom quartile).1Y return: 9.91% (lower mid).1Y return: 11.21% (upper mid).1Y return: 9.49% (bottom quartile).1Y return: 18.53% (top quartile).
Point 8Alpha: -9.71 (bottom quartile).Alpha: 0.00 (bottom quartile).Alpha: 0.80 (upper mid).Alpha: 0.40 (lower mid).Alpha: 4.12 (top quartile).
Point 9Sharpe: -0.24 (bottom quartile).Sharpe: 0.29 (top quartile).Sharpe: 0.12 (bottom quartile).Sharpe: 0.27 (upper mid).Sharpe: 0.26 (lower mid).
Point 10Information ratio: 0.06 (upper mid).Information ratio: 0.00 (lower mid).Information ratio: -0.26 (bottom quartile).Information ratio: 0.68 (top quartile).Information ratio: -0.07 (bottom quartile).

Motilal Oswal Midcap 30 Fund 

  • Upper mid AUM (₹40,036 Cr).
  • Established history (12+ yrs).
  • Rating: 3★ (upper mid).
  • Risk profile: Moderately High.
  • 5Y return: 22.01% (top quartile).
  • 3Y return: 20.91% (lower mid).
  • 1Y return: 1.15% (bottom quartile).
  • Alpha: -9.71 (bottom quartile).
  • Sharpe: -0.24 (bottom quartile).
  • Information ratio: 0.06 (upper mid).

Invesco India Mid Cap Fund

  • Bottom quartile AUM (₹14,721 Cr).
  • Oldest track record among peers (19 yrs).
  • Rating: 2★ (bottom quartile).
  • Risk profile: Moderately High.
  • 5Y return: 19.80% (upper mid).
  • 3Y return: 24.61% (top quartile).
  • 1Y return: 9.91% (lower mid).
  • Alpha: 0.00 (bottom quartile).
  • Sharpe: 0.29 (top quartile).
  • Information ratio: 0.00 (lower mid).

Nippon India Small Cap Fund

  • Highest AUM (₹78,957 Cr).
  • Established history (15+ yrs).
  • Top rated.
  • Risk profile: Moderately High.
  • 5Y return: 19.62% (lower mid).
  • 3Y return: 17.08% (bottom quartile).
  • 1Y return: 11.21% (upper mid).
  • Alpha: 0.80 (upper mid).
  • Sharpe: 0.12 (bottom quartile).
  • Information ratio: -0.26 (bottom quartile).

Edelweiss Mid Cap Fund

  • Lower mid AUM (₹18,693 Cr).
  • Established history (18+ yrs).
  • Rating: 3★ (lower mid).
  • Risk profile: High.
  • 5Y return: 18.60% (bottom quartile).
  • 3Y return: 22.28% (upper mid).
  • 1Y return: 9.49% (bottom quartile).
  • Alpha: 0.40 (lower mid).
  • Sharpe: 0.27 (upper mid).
  • Information ratio: 0.68 (top quartile).

IDBI Small Cap Fund

  • Bottom quartile AUM (₹758 Cr).
  • Established history (9+ yrs).
  • Not Rated.
  • Risk profile: Moderately High.
  • 5Y return: 18.26% (bottom quartile).
  • 3Y return: 19.11% (bottom quartile).
  • 1Y return: 18.53% (top quartile).
  • Alpha: 4.12 (top quartile).
  • Sharpe: 0.26 (lower mid).
  • Information ratio: -0.07 (bottom quartile).

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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 (%)2025 (%)Sharpe Ratio
IDBI Diversified Equity Fund Growth ₹37.99
↑ 0.14
₹382 500 10.213.213.522.712 1.01
Aditya Birla Sun Life Manufacturing Equity Fund Growth ₹40.47
↑ 0.14
₹1,288 1,000 14.119.127.822.615.63.50.85
Motilal Oswal Multicap 35 Fund Growth ₹63.3752
↓ -0.20
₹13,940 500 158.33.420.512.5-5.6-0.26
Mahindra Badhat Yojana Growth ₹39.606
↓ -0.02
₹7,184 500 9.89.212.817.715.83.40.25
ICICI Prudential Multicap Fund Growth ₹871.58
↓ -1.36
₹18,769 100 6.67.410.217.615.65.70.21
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 Diversified Equity FundAditya Birla Sun Life Manufacturing Equity FundMotilal Oswal Multicap 35 FundMahindra Badhat YojanaICICI Prudential Multicap Fund
Point 1Bottom quartile AUM (₹382 Cr).Bottom quartile AUM (₹1,288 Cr).Upper mid AUM (₹13,940 Cr).Lower mid AUM (₹7,184 Cr).Highest AUM (₹18,769 Cr).
Point 2Established history (12+ yrs).Established history (11+ yrs).Established history (12+ yrs).Established history (9+ yrs).Oldest track record among peers (31 yrs).
Point 3Rating: 2★ (lower mid).Not Rated.Top rated.Not Rated.Rating: 3★ (upper mid).
Point 4Risk profile: Moderately High.Risk profile: High.Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: Moderately High.
Point 55Y return: 12.03% (bottom quartile).5Y return: 15.56% (lower mid).5Y return: 12.47% (bottom quartile).5Y return: 15.77% (top quartile).5Y return: 15.60% (upper mid).
Point 63Y return: 22.73% (top quartile).3Y return: 22.64% (upper mid).3Y return: 20.50% (lower mid).3Y return: 17.71% (bottom quartile).3Y return: 17.61% (bottom quartile).
Point 71Y return: 13.54% (upper mid).1Y return: 27.83% (top quartile).1Y return: 3.41% (bottom quartile).1Y return: 12.82% (lower mid).1Y return: 10.23% (bottom quartile).
Point 8Alpha: -1.07 (bottom quartile).Alpha: 0.00 (lower mid).Alpha: -3.79 (bottom quartile).Alpha: 3.91 (top quartile).Alpha: 3.61 (upper mid).
Point 9Sharpe: 1.01 (top quartile).Sharpe: 0.85 (upper mid).Sharpe: -0.26 (bottom quartile).Sharpe: 0.25 (lower mid).Sharpe: 0.21 (bottom quartile).
Point 10Information ratio: -0.53 (bottom quartile).Information ratio: 0.00 (bottom quartile).Information ratio: 0.70 (top quartile).Information ratio: 0.62 (upper mid).Information ratio: 0.54 (lower mid).

IDBI Diversified Equity Fund

  • Bottom quartile AUM (₹382 Cr).
  • Established history (12+ yrs).
  • Rating: 2★ (lower mid).
  • Risk profile: Moderately High.
  • 5Y return: 12.03% (bottom quartile).
  • 3Y return: 22.73% (top quartile).
  • 1Y return: 13.54% (upper mid).
  • Alpha: -1.07 (bottom quartile).
  • Sharpe: 1.01 (top quartile).
  • Information ratio: -0.53 (bottom quartile).

Aditya Birla Sun Life Manufacturing Equity Fund

  • Bottom quartile AUM (₹1,288 Cr).
  • Established history (11+ yrs).
  • Not Rated.
  • Risk profile: High.
  • 5Y return: 15.56% (lower mid).
  • 3Y return: 22.64% (upper mid).
  • 1Y return: 27.83% (top quartile).
  • Alpha: 0.00 (lower mid).
  • Sharpe: 0.85 (upper mid).
  • Information ratio: 0.00 (bottom quartile).

Motilal Oswal Multicap 35 Fund

  • Upper mid AUM (₹13,940 Cr).
  • Established history (12+ yrs).
  • Top rated.
  • Risk profile: Moderately High.
  • 5Y return: 12.47% (bottom quartile).
  • 3Y return: 20.50% (lower mid).
  • 1Y return: 3.41% (bottom quartile).
  • Alpha: -3.79 (bottom quartile).
  • Sharpe: -0.26 (bottom quartile).
  • Information ratio: 0.70 (top quartile).

Mahindra Badhat Yojana

  • Lower mid AUM (₹7,184 Cr).
  • Established history (9+ yrs).
  • Not Rated.
  • Risk profile: Moderately High.
  • 5Y return: 15.77% (top quartile).
  • 3Y return: 17.71% (bottom quartile).
  • 1Y return: 12.82% (lower mid).
  • Alpha: 3.91 (top quartile).
  • Sharpe: 0.25 (lower mid).
  • Information ratio: 0.62 (upper mid).

ICICI Prudential Multicap Fund

  • Highest AUM (₹18,769 Cr).
  • Oldest track record among peers (31 yrs).
  • Rating: 3★ (upper mid).
  • Risk profile: Moderately High.
  • 5Y return: 15.60% (upper mid).
  • 3Y return: 17.61% (bottom quartile).
  • 1Y return: 10.23% (bottom quartile).
  • Alpha: 3.61 (upper mid).
  • Sharpe: 0.21 (bottom quartile).
  • Information ratio: 0.54 (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 (%)2025 (%)Sharpe Ratio
DSP Natural Resources and New Energy Fund Growth ₹108.318
↓ -0.29
₹2,441 500 -1.90.522.520.915.517.50.93
BOI AXA Manufacturing and Infrastructure Fund Growth ₹67.66
↑ 0.21
₹893 1,000 8.413.12223.420.77.80.7
SBI Healthcare Opportunities Fund Growth ₹521.18
↑ 4.24
₹5,400 500 12.322.820.223.517.7-3.50.71
SBI Magnum Global Fund Growth ₹416.064
↑ 1.46
₹6,481 500 1216.717.18.69.2-5.60.39
DSP India T.I.G.E.R Fund Growth ₹365.049
↓ -0.56
₹6,325 500 5.911.91721.721.9-2.50.52
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 18 Aug 26
Note: Ratio's shown as on 31 Jul 26

Research Highlights & Commentary of 5 Funds showcased

CommentaryDSP Natural Resources and New Energy FundBOI AXA Manufacturing and Infrastructure FundSBI Healthcare Opportunities FundSBI Magnum Global FundDSP India T.I.G.E.R Fund
Point 1Bottom quartile AUM (₹2,441 Cr).Bottom quartile AUM (₹893 Cr).Lower mid AUM (₹5,400 Cr).Highest AUM (₹6,481 Cr).Upper mid AUM (₹6,325 Cr).
Point 2Established history (18+ yrs).Established history (16+ yrs).Established history (21+ yrs).Established history (21+ yrs).Oldest track record among peers (22 yrs).
Point 3Top rated.Not Rated.Rating: 2★ (lower mid).Rating: 2★ (bottom quartile).Rating: 4★ (upper mid).
Point 4Risk profile: High.Risk profile: High.Risk profile: High.Risk profile: Moderately High.Risk profile: High.
Point 55Y return: 15.53% (bottom quartile).5Y return: 20.73% (upper mid).5Y return: 17.72% (lower mid).5Y return: 9.20% (bottom quartile).5Y return: 21.90% (top quartile).
Point 63Y return: 20.92% (bottom quartile).3Y return: 23.41% (upper mid).3Y return: 23.55% (top quartile).3Y return: 8.60% (bottom quartile).3Y return: 21.70% (lower mid).
Point 71Y return: 22.49% (top quartile).1Y return: 22.02% (upper mid).1Y return: 20.15% (lower mid).1Y return: 17.08% (bottom quartile).1Y return: 17.01% (bottom quartile).
Point 8Alpha: 0.00 (upper mid).Alpha: 0.00 (lower mid).Alpha: 3.75 (top quartile).Alpha: -2.12 (bottom quartile).Alpha: 0.00 (bottom quartile).
Point 9Sharpe: 0.93 (top quartile).Sharpe: 0.70 (lower mid).Sharpe: 0.71 (upper mid).Sharpe: 0.39 (bottom quartile).Sharpe: 0.52 (bottom quartile).
Point 10Information ratio: 0.00 (upper mid).Information ratio: 0.00 (lower mid).Information ratio: 0.02 (top quartile).Information ratio: -0.77 (bottom quartile).Information ratio: 0.00 (bottom quartile).

DSP Natural Resources and New Energy Fund

  • Bottom quartile AUM (₹2,441 Cr).
  • Established history (18+ yrs).
  • Top rated.
  • Risk profile: High.
  • 5Y return: 15.53% (bottom quartile).
  • 3Y return: 20.92% (bottom quartile).
  • 1Y return: 22.49% (top quartile).
  • Alpha: 0.00 (upper mid).
  • Sharpe: 0.93 (top quartile).
  • Information ratio: 0.00 (upper mid).

BOI AXA Manufacturing and Infrastructure Fund

  • Bottom quartile AUM (₹893 Cr).
  • Established history (16+ yrs).
  • Not Rated.
  • Risk profile: High.
  • 5Y return: 20.73% (upper mid).
  • 3Y return: 23.41% (upper mid).
  • 1Y return: 22.02% (upper mid).
  • Alpha: 0.00 (lower mid).
  • Sharpe: 0.70 (lower mid).
  • Information ratio: 0.00 (lower mid).

SBI Healthcare Opportunities Fund

  • Lower mid AUM (₹5,400 Cr).
  • Established history (21+ yrs).
  • Rating: 2★ (lower mid).
  • Risk profile: High.
  • 5Y return: 17.72% (lower mid).
  • 3Y return: 23.55% (top quartile).
  • 1Y return: 20.15% (lower mid).
  • Alpha: 3.75 (top quartile).
  • Sharpe: 0.71 (upper mid).
  • Information ratio: 0.02 (top quartile).

SBI Magnum Global Fund

  • Highest AUM (₹6,481 Cr).
  • Established history (21+ yrs).
  • Rating: 2★ (bottom quartile).
  • Risk profile: Moderately High.
  • 5Y return: 9.20% (bottom quartile).
  • 3Y return: 8.60% (bottom quartile).
  • 1Y return: 17.08% (bottom quartile).
  • Alpha: -2.12 (bottom quartile).
  • Sharpe: 0.39 (bottom quartile).
  • Information ratio: -0.77 (bottom quartile).

DSP India T.I.G.E.R Fund

  • Upper mid AUM (₹6,325 Cr).
  • Oldest track record among peers (22 yrs).
  • Rating: 4★ (upper mid).
  • Risk profile: High.
  • 5Y return: 21.90% (top quartile).
  • 3Y return: 21.70% (lower mid).
  • 1Y return: 17.01% (bottom quartile).
  • Alpha: 0.00 (bottom quartile).
  • Sharpe: 0.52 (bottom quartile).
  • Information ratio: 0.00 (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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