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.
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.

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:
Following are the Best equity funds for long-term investment plans.
Fund Selection Methodology used to find 5 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.
Fund NAV Net Assets (Cr) Min SIP Investment 3 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 9.2 12.5 15.4 21.9 12.6 1.09 Invesco India Largecap Fund Growth ₹68.68
↓ -0.15 ₹2,021 100 -2.6 9.7 0.3 11.5 9 5.5 0.25 Bandhan Large Cap Fund Growth ₹74.572
↓ -0.23 ₹2,145 100 -2.3 5.4 -1.8 10.6 8.5 8.2 0.05 JM Core 11 Fund Growth ₹19.4398
↑ 0.03 ₹293 500 -1.3 11.4 -1.5 9.5 10.5 -1.9 0.17 BNP Paribas Large Cap Fund Growth ₹210.164
↓ -0.55 ₹2,641 300 -2.9 3.8 -2.5 9.1 8.4 4.4 0.01 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
Commentary IDBI India Top 100 Equity Fund Invesco India Largecap Fund Bandhan Large Cap Fund JM Core 11 Fund BNP Paribas Large Cap Fund Point 1 Bottom quartile AUM (₹655 Cr). Lower mid AUM (₹2,021 Cr). Upper mid AUM (₹2,145 Cr). Bottom quartile AUM (₹293 Cr). Highest AUM (₹2,641 Cr). Point 2 Established history (14+ yrs). Established history (17+ yrs). Established history (20+ yrs). Established history (18+ yrs). Oldest track record among peers (22 yrs). Point 3 Rating: 3★ (upper mid). Rating: 3★ (lower mid). Rating: 2★ (bottom quartile). Top rated. Rating: 3★ (bottom quartile). Point 4 Risk profile: Moderately High. Risk profile: Moderately High. Risk profile: Moderately High. Risk profile: High. Risk profile: Moderately High. Point 5 5Y return: 12.61% (top quartile). 5Y return: 9.01% (lower mid). 5Y return: 8.46% (bottom quartile). 5Y return: 10.50% (upper mid). 5Y return: 8.38% (bottom quartile). Point 6 3Y return: 21.88% (top quartile). 3Y return: 11.51% (upper mid). 3Y return: 10.61% (lower mid). 3Y return: 9.49% (bottom quartile). 3Y return: 9.14% (bottom quartile). Point 7 1Y return: 15.39% (top quartile). 1Y return: 0.26% (upper mid). 1Y return: -1.81% (bottom quartile). 1Y return: -1.48% (lower mid). 1Y return: -2.51% (bottom quartile). Point 8 Alpha: 2.11 (bottom quartile). Alpha: 6.54 (top quartile). Alpha: 2.93 (upper mid). Alpha: 2.82 (lower mid). Alpha: 2.25 (bottom quartile). Point 9 Sharpe: 1.09 (top quartile). Sharpe: 0.25 (upper mid). Sharpe: 0.05 (bottom quartile). Sharpe: 0.17 (lower mid). Sharpe: 0.01 (bottom quartile). Point 10 Information ratio: 0.14 (bottom quartile). Information ratio: 0.98 (top quartile). Information ratio: 0.90 (upper mid). Information ratio: 0.08 (bottom quartile). Information ratio: 0.53 (lower mid). IDBI India Top 100 Equity Fund
Invesco India Largecap Fund
Bandhan Large Cap Fund
JM Core 11 Fund
BNP Paribas Large Cap Fund
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.
Fund NAV Net Assets (Cr) Min SIP Investment 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2024 (%) Sharpe Ratio Motilal Oswal Midcap 30 Fund Growth ₹98.8978
↑ 0.04 ₹42,852 500 5.8 19.1 0.1 16.5 18.9 -12.1 0.06 Nippon India Small Cap Fund Growth ₹180.979
↑ 0.21 ₹82,580 100 0.7 20.4 8.9 13.8 17.5 -4.7 0.44 Invesco India Mid Cap Fund Growth ₹189.82
↓ -1.04 ₹14,721 500 -1.5 18.6 7.6 21 17.5 6.3 0.29 DSP Small Cap Fund Growth ₹229.045
↓ -0.43 ₹21,659 500 6.4 28.3 19.3 16.6 16.8 -2.8 0.71 IDBI Small Cap Fund Growth ₹34.9377
↑ 0.04 ₹832 500 4.8 32.1 16.3 16.6 16.4 -13.4 0.7 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 30 Sep 26 Note: Ratio's shown as on 31 Aug 26 Research Highlights & Commentary of 5 Funds showcased
Commentary Motilal Oswal Midcap 30 Fund Nippon India Small Cap Fund Invesco India Mid Cap Fund DSP Small Cap Fund IDBI Small Cap Fund Point 1 Upper mid AUM (₹42,852 Cr). Highest AUM (₹82,580 Cr). Bottom quartile AUM (₹14,721 Cr). Lower mid AUM (₹21,659 Cr). Bottom quartile AUM (₹832 Cr). Point 2 Established history (12+ yrs). Established history (16+ yrs). Oldest track record among peers (19 yrs). Established history (19+ yrs). Established history (9+ yrs). Point 3 Rating: 3★ (lower mid). Top rated. Rating: 2★ (bottom quartile). Rating: 4★ (upper mid). Not Rated. Point 4 Risk profile: Moderately High. Risk profile: Moderately High. Risk profile: Moderately High. Risk profile: Moderately High. Risk profile: Moderately High. Point 5 5Y return: 18.93% (top quartile). 5Y return: 17.54% (upper mid). 5Y return: 17.50% (lower mid). 5Y return: 16.77% (bottom quartile). 5Y return: 16.36% (bottom quartile). Point 6 3Y return: 16.45% (bottom quartile). 3Y return: 13.80% (bottom quartile). 3Y return: 20.98% (top quartile). 3Y return: 16.63% (upper mid). 3Y return: 16.63% (lower mid). Point 7 1Y return: 0.13% (bottom quartile). 1Y return: 8.87% (lower mid). 1Y return: 7.56% (bottom quartile). 1Y return: 19.28% (top quartile). 1Y return: 16.33% (upper mid). Point 8 Alpha: -7.99 (bottom quartile). Alpha: 1.64 (lower mid). Alpha: 0.00 (bottom quartile). Alpha: 9.89 (top quartile). Alpha: 8.28 (upper mid). Point 9 Sharpe: 0.06 (bottom quartile). Sharpe: 0.44 (lower mid). Sharpe: 0.29 (bottom quartile). Sharpe: 0.71 (top quartile). Sharpe: 0.70 (upper mid). Point 10 Information ratio: 0.16 (lower mid). Information ratio: -0.15 (bottom quartile). Information ratio: 0.00 (bottom quartile). Information ratio: 0.47 (top quartile). Information ratio: 0.29 (upper mid). Motilal Oswal Midcap 30 Fund
Nippon India Small Cap Fund
Invesco India Mid Cap Fund
DSP Small Cap Fund
IDBI Small Cap Fund
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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.
Fund NAV Net Assets (Cr) Min SIP Investment 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2024 (%) Sharpe Ratio IDBI Diversified Equity Fund Growth ₹37.99
↑ 0.14 ₹382 500 10.2 13.2 13.5 22.7 12 1.01 Aditya Birla Sun Life Manufacturing Equity Fund Growth ₹39.1
↓ -0.09 ₹1,402 1,000 6.3 24.5 22.3 19.7 14 3.5 1.22 BNP Paribas Multi Cap Fund Growth ₹73.5154
↓ -0.01 ₹588 300 -4.6 -2.6 19.3 17.3 13.6 2.86 Motilal Oswal Multicap 35 Fund Growth ₹61.4331
↑ 0.01 ₹14,160 500 5.8 17.5 2.5 16.5 11.3 -5.6 0.13 Mahindra Badhat Yojana Growth ₹38.189
↓ -0.11 ₹7,662 500 2 16.4 11.1 14.8 13.5 3.4 0.72 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
Commentary IDBI Diversified Equity Fund Aditya Birla Sun Life Manufacturing Equity Fund BNP Paribas Multi Cap Fund Motilal Oswal Multicap 35 Fund Mahindra Badhat Yojana Point 1 Bottom quartile AUM (₹382 Cr). Lower mid AUM (₹1,402 Cr). Bottom quartile AUM (₹588 Cr). Highest AUM (₹14,160 Cr). Upper mid AUM (₹7,662 Cr). Point 2 Established history (12+ yrs). Established history (11+ yrs). Oldest track record among peers (21 yrs). Established history (12+ yrs). Established history (9+ yrs). Point 3 Rating: 2★ (lower mid). Not Rated. Rating: 4★ (upper mid). Top rated. Not Rated. Point 4 Risk profile: Moderately High. Risk profile: High. Risk profile: Moderately High. Risk profile: Moderately High. Risk profile: Moderately High. Point 5 5Y return: 12.03% (bottom quartile). 5Y return: 13.96% (top quartile). 5Y return: 13.57% (upper mid). 5Y return: 11.33% (bottom quartile). 5Y return: 13.51% (lower mid). Point 6 3Y return: 22.73% (top quartile). 3Y return: 19.68% (upper mid). 3Y return: 17.28% (lower mid). 3Y return: 16.49% (bottom quartile). 3Y return: 14.79% (bottom quartile). Point 7 1Y return: 13.54% (lower mid). 1Y return: 22.32% (top quartile). 1Y return: 19.34% (upper mid). 1Y return: 2.47% (bottom quartile). 1Y return: 11.08% (bottom quartile). Point 8 Alpha: -1.07 (bottom quartile). Alpha: 0.00 (lower mid). Alpha: 0.00 (bottom quartile). Alpha: 1.30 (upper mid). Alpha: 9.37 (top quartile). Point 9 Sharpe: 1.01 (lower mid). Sharpe: 1.22 (upper mid). Sharpe: 2.86 (top quartile). Sharpe: 0.13 (bottom quartile). Sharpe: 0.72 (bottom quartile). Point 10 Information ratio: -0.53 (bottom quartile). Information ratio: 0.00 (lower mid). Information ratio: 0.00 (bottom quartile). Information ratio: 0.71 (top quartile). Information ratio: 0.71 (upper mid). IDBI Diversified Equity Fund
Aditya Birla Sun Life Manufacturing Equity Fund
BNP Paribas Multi Cap Fund
Motilal Oswal Multicap 35 Fund
Mahindra Badhat Yojana
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.
Fund NAV Net Assets (Cr) Min SIP Investment 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2024 (%) Sharpe Ratio SBI Healthcare Opportunities Fund Growth ₹505.906
↓ -10.30 ₹5,796 500 5.4 22.5 23.1 22.5 17.3 -3.5 1.17 UTI Healthcare Fund Growth ₹333.05
↓ -7.48 ₹1,444 500 5.5 23.7 19.7 22.4 14.9 -3.1 0.94 BOI AXA Manufacturing and Infrastructure Fund Growth ₹66.17
↓ -0.30 ₹949 1,000 2.2 18.7 17.7 20 19.4 7.8 0.91 SBI Magnum Global Fund Growth ₹399.06
↓ -1.41 ₹6,718 500 2.6 19.6 15.6 6.2 7.5 -5.6 0.78 Nippon India Pharma Fund Growth ₹559.852
↓ -9.61 ₹9,479 100 2.9 14.9 14.4 17.3 13.2 -3.3 0.68 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 30 Sep 26 Note: Ratio's shown as on 31 Aug 26 Research Highlights & Commentary of 5 Funds showcased
Commentary SBI Healthcare Opportunities Fund UTI Healthcare Fund BOI AXA Manufacturing and Infrastructure Fund SBI Magnum Global Fund Nippon India Pharma Fund Point 1 Lower mid AUM (₹5,796 Cr). Bottom quartile AUM (₹1,444 Cr). Bottom quartile AUM (₹949 Cr). Upper mid AUM (₹6,718 Cr). Highest AUM (₹9,479 Cr). Point 2 Established history (21+ yrs). Oldest track record among peers (27 yrs). Established history (16+ yrs). Established history (21+ yrs). Established history (22+ yrs). Point 3 Top rated. Rating: 1★ (bottom quartile). Not Rated. Rating: 2★ (upper mid). Rating: 2★ (lower mid). Point 4 Risk profile: High. Risk profile: High. Risk profile: High. Risk profile: Moderately High. Risk profile: High. Point 5 5Y return: 17.27% (upper mid). 5Y return: 14.90% (lower mid). 5Y return: 19.39% (top quartile). 5Y return: 7.47% (bottom quartile). 5Y return: 13.17% (bottom quartile). Point 6 3Y return: 22.51% (top quartile). 3Y return: 22.39% (upper mid). 3Y return: 20.00% (lower mid). 3Y return: 6.24% (bottom quartile). 3Y return: 17.34% (bottom quartile). Point 7 1Y return: 23.09% (top quartile). 1Y return: 19.75% (upper mid). 1Y return: 17.73% (lower mid). 1Y return: 15.55% (bottom quartile). 1Y return: 14.41% (bottom quartile). Point 8 Alpha: 4.67 (upper mid). Alpha: 1.26 (lower mid). Alpha: 0.00 (bottom quartile). Alpha: 6.24 (top quartile). Alpha: -2.25 (bottom quartile). Point 9 Sharpe: 1.17 (top quartile). Sharpe: 0.94 (upper mid). Sharpe: 0.91 (lower mid). Sharpe: 0.78 (bottom quartile). Sharpe: 0.68 (bottom quartile). Point 10 Information ratio: 0.08 (upper mid). Information ratio: 0.18 (top quartile). Information ratio: 0.00 (lower mid). Information ratio: -0.80 (bottom quartile). Information ratio: -1.16 (bottom quartile). SBI Healthcare Opportunities Fund
UTI Healthcare Fund
BOI AXA Manufacturing and Infrastructure Fund
SBI Magnum Global Fund
Nippon India Pharma Fund
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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