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Best Mutual Funds for Long Term Investment

Updated on February 11, 2026 , 30149 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 (%)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 ₹92.6201
↓ -1.05
₹50,876 100 -12.813.919.117.49.20.29
ICICI Prudential Bluechip Fund Growth ₹112.89
↓ -1.22
₹78,502 100 -1.83.212.21815.411.30.48
JM Core 11 Fund Growth ₹19.8072
↓ -0.23
₹299 500 -2.53.48.817.813.5-1.9-0.39
Invesco India Largecap Fund Growth ₹69.68
↓ -0.90
₹1,718 100 -2.72.611.917.713.85.50.04
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 FundICICI Prudential Bluechip FundJM Core 11 FundInvesco India Largecap Fund
Point 1Bottom quartile AUM (₹655 Cr).Upper mid AUM (₹50,876 Cr).Highest AUM (₹78,502 Cr).Bottom quartile AUM (₹299 Cr).Lower mid AUM (₹1,718 Cr).
Point 2Established history (13+ yrs).Oldest track record among peers (18 yrs).Established history (17+ yrs).Established history (17+ yrs).Established history (16+ 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: High.Risk profile: Moderately High.
Point 55Y return: 12.61% (bottom quartile).5Y return: 17.40% (top quartile).5Y return: 15.37% (upper mid).5Y return: 13.50% (bottom quartile).5Y return: 13.81% (lower mid).
Point 63Y return: 21.88% (top quartile).3Y return: 19.08% (upper mid).3Y return: 18.04% (lower mid).3Y return: 17.80% (bottom quartile).3Y return: 17.66% (bottom quartile).
Point 71Y return: 15.39% (top quartile).1Y return: 13.92% (upper mid).1Y return: 12.24% (lower mid).1Y return: 8.84% (bottom quartile).1Y return: 11.88% (bottom quartile).
Point 8Alpha: 2.11 (top quartile).Alpha: -0.94 (lower mid).Alpha: 1.30 (upper mid).Alpha: -9.25 (bottom quartile).Alpha: -5.05 (bottom quartile).
Point 9Sharpe: 1.09 (top quartile).Sharpe: 0.29 (lower mid).Sharpe: 0.48 (upper mid).Sharpe: -0.39 (bottom quartile).Sharpe: 0.04 (bottom quartile).
Point 10Information ratio: 0.14 (bottom quartile).Information ratio: 1.37 (top quartile).Information ratio: 1.26 (upper mid).Information ratio: 0.16 (bottom quartile).Information ratio: 0.67 (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 (₹50,876 Cr).
  • Oldest track record among peers (18 yrs).
  • Top rated.
  • Risk profile: Moderately High.
  • 5Y return: 17.40% (top quartile).
  • 3Y return: 19.08% (upper mid).
  • 1Y return: 13.92% (upper mid).
  • Alpha: -0.94 (lower mid).
  • Sharpe: 0.29 (lower mid).
  • Information ratio: 1.37 (top quartile).

ICICI Prudential Bluechip Fund

  • Highest AUM (₹78,502 Cr).
  • Established history (17+ yrs).
  • Rating: 4★ (upper mid).
  • Risk profile: Moderately High.
  • 5Y return: 15.37% (upper mid).
  • 3Y return: 18.04% (lower mid).
  • 1Y return: 12.24% (lower mid).
  • Alpha: 1.30 (upper mid).
  • Sharpe: 0.48 (upper mid).
  • Information ratio: 1.26 (upper mid).

JM Core 11 Fund

  • Bottom quartile AUM (₹299 Cr).
  • Established history (17+ yrs).
  • Rating: 4★ (lower mid).
  • Risk profile: High.
  • 5Y return: 13.50% (bottom quartile).
  • 3Y return: 17.80% (bottom quartile).
  • 1Y return: 8.84% (bottom quartile).
  • Alpha: -9.25 (bottom quartile).
  • Sharpe: -0.39 (bottom quartile).
  • Information ratio: 0.16 (bottom quartile).

Invesco India Largecap Fund

  • Lower mid AUM (₹1,718 Cr).
  • Established history (16+ yrs).
  • Rating: 3★ (bottom quartile).
  • Risk profile: Moderately High.
  • 5Y return: 13.81% (lower mid).
  • 3Y return: 17.66% (bottom quartile).
  • 1Y return: 11.88% (bottom quartile).
  • Alpha: -5.05 (bottom quartile).
  • Sharpe: 0.04 (bottom quartile).
  • Information ratio: 0.67 (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
Nippon India Small Cap Fund Growth ₹162.704
↓ -1.81
₹68,287 100 -4.2-1.98.721.123.8-4.7-0.42
Motilal Oswal Midcap 30 Fund  Growth ₹92.4734
↓ -1.97
₹36,880 500 -10.3-8.6-0.822.123.5-12.1-0.79
HDFC Mid-Cap Opportunities Fund Growth ₹202.201
↓ -2.37
₹92,642 300 -0.55.818.22623.26.80.12
Edelweiss Mid Cap Fund Growth ₹102.926
↓ -1.73
₹13,650 500 -0.83.617.625.921.73.8-0.02
Invesco India Mid Cap Fund Growth ₹180.86
↓ -2.22
₹10,296 500 -2.20.821.627.321.16.30.11
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 13 Feb 26
Note: Ratio's shown as on 31 Dec 25

Research Highlights & Commentary of 5 Funds showcased

CommentaryNippon India Small Cap FundMotilal Oswal Midcap 30 Fund HDFC Mid-Cap Opportunities FundEdelweiss Mid Cap FundInvesco India Mid Cap Fund
Point 1Upper mid AUM (₹68,287 Cr).Lower mid AUM (₹36,880 Cr).Highest AUM (₹92,642 Cr).Bottom quartile AUM (₹13,650 Cr).Bottom quartile AUM (₹10,296 Cr).
Point 2Established history (15+ yrs).Established history (11+ yrs).Oldest track record among peers (18 yrs).Established history (18+ yrs).Established history (18+ yrs).
Point 3Top rated.Rating: 3★ (upper mid).Rating: 3★ (lower mid).Rating: 3★ (bottom quartile).Rating: 2★ (bottom quartile).
Point 4Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: High.Risk profile: Moderately High.
Point 55Y return: 23.80% (top quartile).5Y return: 23.51% (upper mid).5Y return: 23.20% (lower mid).5Y return: 21.71% (bottom quartile).5Y return: 21.05% (bottom quartile).
Point 63Y return: 21.07% (bottom quartile).3Y return: 22.06% (bottom quartile).3Y return: 25.96% (upper mid).3Y return: 25.91% (lower mid).3Y return: 27.28% (top quartile).
Point 71Y return: 8.74% (bottom quartile).1Y return: -0.75% (bottom quartile).1Y return: 18.22% (upper mid).1Y return: 17.55% (lower mid).1Y return: 21.56% (top quartile).
Point 8Alpha: -1.23 (lower mid).Alpha: -18.12 (bottom quartile).Alpha: 0.63 (top quartile).Alpha: -1.98 (bottom quartile).Alpha: 0.00 (upper mid).
Point 9Sharpe: -0.42 (bottom quartile).Sharpe: -0.79 (bottom quartile).Sharpe: 0.12 (top quartile).Sharpe: -0.02 (lower mid).Sharpe: 0.11 (upper mid).
Point 10Information ratio: -0.02 (bottom quartile).Information ratio: 0.10 (lower mid).Information ratio: 0.44 (top quartile).Information ratio: 0.40 (upper mid).Information ratio: 0.00 (bottom quartile).

Nippon India Small Cap Fund

  • Upper mid AUM (₹68,287 Cr).
  • Established history (15+ yrs).
  • Top rated.
  • Risk profile: Moderately High.
  • 5Y return: 23.80% (top quartile).
  • 3Y return: 21.07% (bottom quartile).
  • 1Y return: 8.74% (bottom quartile).
  • Alpha: -1.23 (lower mid).
  • Sharpe: -0.42 (bottom quartile).
  • Information ratio: -0.02 (bottom quartile).

Motilal Oswal Midcap 30 Fund 

  • Lower mid AUM (₹36,880 Cr).
  • Established history (11+ yrs).
  • Rating: 3★ (upper mid).
  • Risk profile: Moderately High.
  • 5Y return: 23.51% (upper mid).
  • 3Y return: 22.06% (bottom quartile).
  • 1Y return: -0.75% (bottom quartile).
  • Alpha: -18.12 (bottom quartile).
  • Sharpe: -0.79 (bottom quartile).
  • Information ratio: 0.10 (lower mid).

HDFC Mid-Cap Opportunities Fund

  • Highest AUM (₹92,642 Cr).
  • Oldest track record among peers (18 yrs).
  • Rating: 3★ (lower mid).
  • Risk profile: Moderately High.
  • 5Y return: 23.20% (lower mid).
  • 3Y return: 25.96% (upper mid).
  • 1Y return: 18.22% (upper mid).
  • Alpha: 0.63 (top quartile).
  • Sharpe: 0.12 (top quartile).
  • Information ratio: 0.44 (top quartile).

Edelweiss Mid Cap Fund

  • Bottom quartile AUM (₹13,650 Cr).
  • Established history (18+ yrs).
  • Rating: 3★ (bottom quartile).
  • Risk profile: High.
  • 5Y return: 21.71% (bottom quartile).
  • 3Y return: 25.91% (lower mid).
  • 1Y return: 17.55% (lower mid).
  • Alpha: -1.98 (bottom quartile).
  • Sharpe: -0.02 (lower mid).
  • Information ratio: 0.40 (upper mid).

Invesco India Mid Cap Fund

  • Bottom quartile AUM (₹10,296 Cr).
  • Established history (18+ yrs).
  • Rating: 2★ (bottom quartile).
  • Risk profile: Moderately High.
  • 5Y return: 21.05% (bottom quartile).
  • 3Y return: 27.28% (top quartile).
  • 1Y return: 21.56% (top quartile).
  • Alpha: 0.00 (upper mid).
  • Sharpe: 0.11 (upper mid).
  • Information ratio: 0.00 (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 (%)2024 (%)Sharpe Ratio
IDBI Diversified Equity Fund Growth ₹37.99
↑ 0.14
₹382 500 10.213.213.522.712 1.01
HDFC Equity Fund Growth ₹2,072.88
↓ -16.31
₹96,295 300 0.35.315.422.320.611.40.53
Nippon India Multi Cap Fund Growth ₹297.613
↓ -2.74
₹50,352 100 -2.1-0.214.121.922.14.1-0.06
Motilal Oswal Multicap 35 Fund Growth ₹58.0221
↓ -0.98
₹13,862 500 -6.9-3.94.221.912.8-5.6-0.51
Aditya Birla Sun Life Manufacturing Equity Fund Growth ₹33.71
↓ -0.45
₹1,099 1,000 0.67.717.121.215.13.5-0.05
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 FundHDFC Equity FundNippon India Multi Cap FundMotilal Oswal Multicap 35 FundAditya Birla Sun Life Manufacturing Equity Fund
Point 1Bottom quartile AUM (₹382 Cr).Highest AUM (₹96,295 Cr).Upper mid AUM (₹50,352 Cr).Lower mid AUM (₹13,862 Cr).Bottom quartile AUM (₹1,099 Cr).
Point 2Established history (11+ yrs).Oldest track record among peers (31 yrs).Established history (20+ yrs).Established history (11+ yrs).Established history (11+ yrs).
Point 3Rating: 2★ (lower mid).Rating: 3★ (upper mid).Rating: 2★ (bottom quartile).Top rated.Not Rated.
Point 4Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: High.
Point 55Y return: 12.03% (bottom quartile).5Y return: 20.56% (upper mid).5Y return: 22.08% (top quartile).5Y return: 12.81% (bottom quartile).5Y return: 15.11% (lower mid).
Point 63Y return: 22.73% (top quartile).3Y return: 22.29% (upper mid).3Y return: 21.93% (lower mid).3Y return: 21.89% (bottom quartile).3Y return: 21.21% (bottom quartile).
Point 71Y return: 13.54% (bottom quartile).1Y return: 15.42% (upper mid).1Y return: 14.12% (lower mid).1Y return: 4.17% (bottom quartile).1Y return: 17.09% (top quartile).
Point 8Alpha: -1.07 (lower mid).Alpha: 3.70 (top quartile).Alpha: -1.30 (bottom quartile).Alpha: -12.91 (bottom quartile).Alpha: 0.00 (upper mid).
Point 9Sharpe: 1.01 (top quartile).Sharpe: 0.53 (upper mid).Sharpe: -0.05 (bottom quartile).Sharpe: -0.51 (bottom quartile).Sharpe: -0.05 (lower mid).
Point 10Information ratio: -0.53 (bottom quartile).Information ratio: 1.24 (top quartile).Information ratio: 0.64 (upper mid).Information ratio: 0.54 (lower mid).Information ratio: 0.00 (bottom quartile).

IDBI Diversified Equity Fund

  • Bottom quartile AUM (₹382 Cr).
  • Established history (11+ 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% (bottom quartile).
  • Alpha: -1.07 (lower mid).
  • Sharpe: 1.01 (top quartile).
  • Information ratio: -0.53 (bottom quartile).

HDFC Equity Fund

  • Highest AUM (₹96,295 Cr).
  • Oldest track record among peers (31 yrs).
  • Rating: 3★ (upper mid).
  • Risk profile: Moderately High.
  • 5Y return: 20.56% (upper mid).
  • 3Y return: 22.29% (upper mid).
  • 1Y return: 15.42% (upper mid).
  • Alpha: 3.70 (top quartile).
  • Sharpe: 0.53 (upper mid).
  • Information ratio: 1.24 (top quartile).

Nippon India Multi Cap Fund

  • Upper mid AUM (₹50,352 Cr).
  • Established history (20+ yrs).
  • Rating: 2★ (bottom quartile).
  • Risk profile: Moderately High.
  • 5Y return: 22.08% (top quartile).
  • 3Y return: 21.93% (lower mid).
  • 1Y return: 14.12% (lower mid).
  • Alpha: -1.30 (bottom quartile).
  • Sharpe: -0.05 (bottom quartile).
  • Information ratio: 0.64 (upper mid).

Motilal Oswal Multicap 35 Fund

  • Lower mid AUM (₹13,862 Cr).
  • Established history (11+ yrs).
  • Top rated.
  • Risk profile: Moderately High.
  • 5Y return: 12.81% (bottom quartile).
  • 3Y return: 21.89% (bottom quartile).
  • 1Y return: 4.17% (bottom quartile).
  • Alpha: -12.91 (bottom quartile).
  • Sharpe: -0.51 (bottom quartile).
  • Information ratio: 0.54 (lower mid).

Aditya Birla Sun Life Manufacturing Equity Fund

  • Bottom quartile AUM (₹1,099 Cr).
  • Established history (11+ yrs).
  • Not Rated.
  • Risk profile: High.
  • 5Y return: 15.11% (lower mid).
  • 3Y return: 21.21% (bottom quartile).
  • 1Y return: 17.09% (top quartile).
  • Alpha: 0.00 (upper mid).
  • Sharpe: -0.05 (lower mid).
  • Information ratio: 0.00 (bottom quartile).

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
DSP Natural Resources and New Energy Fund Growth ₹108.584
↓ -0.09
₹1,573 500 10.82335.72422.417.50.74
SBI PSU Fund Growth ₹35.8635
↓ -0.43
₹5,817 500 5.914.528.833.728.511.30.33
Invesco India PSU Equity Fund Growth ₹67.17
↓ -0.74
₹1,449 500 1.27.926.131.526.410.30.27
SBI Banking & Financial Services Fund Growth ₹46.3194
↓ -0.68
₹10,106 500 3.39.825.92214.220.41.08
UTI Transportation & Logistics Fund Growth ₹295.566
↓ -3.39
₹4,084 500 0.710.725.825.419.219.50.9
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 12 Feb 26
Note: Ratio's shown as on 31 Dec 25

Research Highlights & Commentary of 5 Funds showcased

CommentaryDSP Natural Resources and New Energy FundSBI PSU FundInvesco India PSU Equity FundSBI Banking & Financial Services FundUTI Transportation & Logistics Fund
Point 1Bottom quartile AUM (₹1,573 Cr).Upper mid AUM (₹5,817 Cr).Bottom quartile AUM (₹1,449 Cr).Highest AUM (₹10,106 Cr).Lower mid AUM (₹4,084 Cr).
Point 2Established history (17+ yrs).Established history (15+ yrs).Established history (16+ yrs).Established history (10+ yrs).Oldest track record among peers (21 yrs).
Point 3Top rated.Rating: 2★ (bottom quartile).Rating: 3★ (upper mid).Not Rated.Rating: 3★ (lower mid).
Point 4Risk profile: High.Risk profile: High.Risk profile: High.Risk profile: High.Risk profile: High.
Point 55Y return: 22.38% (lower mid).5Y return: 28.49% (top quartile).5Y return: 26.40% (upper mid).5Y return: 14.18% (bottom quartile).5Y return: 19.19% (bottom quartile).
Point 63Y return: 24.03% (bottom quartile).3Y return: 33.68% (top quartile).3Y return: 31.48% (upper mid).3Y return: 22.04% (bottom quartile).3Y return: 25.41% (lower mid).
Point 71Y return: 35.73% (top quartile).1Y return: 28.78% (upper mid).1Y return: 26.09% (lower mid).1Y return: 25.90% (bottom quartile).1Y return: 25.81% (bottom quartile).
Point 8Alpha: 0.00 (upper mid).Alpha: -0.22 (bottom quartile).Alpha: -1.90 (bottom quartile).Alpha: 1.96 (top quartile).Alpha: 0.00 (lower mid).
Point 9Sharpe: 0.74 (lower mid).Sharpe: 0.33 (bottom quartile).Sharpe: 0.27 (bottom quartile).Sharpe: 1.08 (top quartile).Sharpe: 0.90 (upper mid).
Point 10Information ratio: 0.00 (upper mid).Information ratio: -0.47 (bottom quartile).Information ratio: -0.37 (bottom quartile).Information ratio: 0.89 (top quartile).Information ratio: 0.00 (lower mid).

DSP Natural Resources and New Energy Fund

  • Bottom quartile AUM (₹1,573 Cr).
  • Established history (17+ yrs).
  • Top rated.
  • Risk profile: High.
  • 5Y return: 22.38% (lower mid).
  • 3Y return: 24.03% (bottom quartile).
  • 1Y return: 35.73% (top quartile).
  • Alpha: 0.00 (upper mid).
  • Sharpe: 0.74 (lower mid).
  • Information ratio: 0.00 (upper mid).

SBI PSU Fund

  • Upper mid AUM (₹5,817 Cr).
  • Established history (15+ yrs).
  • Rating: 2★ (bottom quartile).
  • Risk profile: High.
  • 5Y return: 28.49% (top quartile).
  • 3Y return: 33.68% (top quartile).
  • 1Y return: 28.78% (upper mid).
  • Alpha: -0.22 (bottom quartile).
  • Sharpe: 0.33 (bottom quartile).
  • Information ratio: -0.47 (bottom quartile).

Invesco India PSU Equity Fund

  • Bottom quartile AUM (₹1,449 Cr).
  • Established history (16+ yrs).
  • Rating: 3★ (upper mid).
  • Risk profile: High.
  • 5Y return: 26.40% (upper mid).
  • 3Y return: 31.48% (upper mid).
  • 1Y return: 26.09% (lower mid).
  • Alpha: -1.90 (bottom quartile).
  • Sharpe: 0.27 (bottom quartile).
  • Information ratio: -0.37 (bottom quartile).

SBI Banking & Financial Services Fund

  • Highest AUM (₹10,106 Cr).
  • Established history (10+ yrs).
  • Not Rated.
  • Risk profile: High.
  • 5Y return: 14.18% (bottom quartile).
  • 3Y return: 22.04% (bottom quartile).
  • 1Y return: 25.90% (bottom quartile).
  • Alpha: 1.96 (top quartile).
  • Sharpe: 1.08 (top quartile).
  • Information ratio: 0.89 (top quartile).

UTI Transportation & Logistics Fund

  • Lower mid AUM (₹4,084 Cr).
  • Oldest track record among peers (21 yrs).
  • Rating: 3★ (lower mid).
  • Risk profile: High.
  • 5Y return: 19.19% (bottom quartile).
  • 3Y return: 25.41% (lower mid).
  • 1Y return: 25.81% (bottom quartile).
  • Alpha: 0.00 (lower mid).
  • Sharpe: 0.90 (upper mid).
  • Information ratio: 0.00 (lower mid).

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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Disclaimer:
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.
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Ganesan, posted on 23 Sep 20 10:51 AM

Very useful

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