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Best Mutual Funds for Long Term Investment

Updated on April 16, 2026 , 30328 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 ₹89.7995
↑ 0.77
₹51,404 100 -2.5-3.96.217.817.69.21.23
Invesco India Largecap Fund Growth ₹68.72
↑ 0.42
₹1,702 100 -2.1-4.36.117.214.55.50.97
JM Core 11 Fund Growth ₹19.2615
↑ 0.17
₹286 500 -2.7-6.62.917.114.1-1.90.48
ICICI Prudential Bluechip Fund Growth ₹109
↑ 0.65
₹77,452 100 -3.9-3.94.416.815.411.31.07
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 FundInvesco India Largecap FundJM Core 11 FundICICI Prudential Bluechip Fund
Point 1Bottom quartile AUM (₹655 Cr).Upper mid AUM (₹51,404 Cr).Lower mid AUM (₹1,702 Cr).Bottom quartile AUM (₹286 Cr).Highest AUM (₹77,452 Cr).
Point 2Established history (13+ yrs).Oldest track record among peers (18 yrs).Established history (16+ yrs).Established history (18+ yrs).Established history (17+ yrs).
Point 3Rating: 3★ (bottom quartile).Top rated.Rating: 3★ (bottom quartile).Rating: 4★ (upper mid).Rating: 4★ (lower 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% (bottom quartile).5Y return: 17.64% (top quartile).5Y return: 14.47% (lower mid).5Y return: 14.12% (bottom quartile).5Y return: 15.41% (upper mid).
Point 63Y return: 21.88% (top quartile).3Y return: 17.76% (upper mid).3Y return: 17.23% (lower mid).3Y return: 17.07% (bottom quartile).3Y return: 16.76% (bottom quartile).
Point 71Y return: 15.39% (top quartile).1Y return: 6.22% (upper mid).1Y return: 6.13% (lower mid).1Y return: 2.94% (bottom quartile).1Y return: 4.45% (bottom quartile).
Point 8Alpha: 2.11 (upper mid).Alpha: 2.67 (top quartile).Alpha: -0.05 (bottom quartile).Alpha: -5.42 (bottom quartile).Alpha: 0.83 (lower mid).
Point 9Sharpe: 1.09 (upper mid).Sharpe: 1.23 (top quartile).Sharpe: 0.97 (bottom quartile).Sharpe: 0.48 (bottom quartile).Sharpe: 1.07 (lower mid).
Point 10Information ratio: 0.14 (bottom quartile).Information ratio: 1.27 (top quartile).Information ratio: 0.44 (lower mid).Information ratio: -0.03 (bottom quartile).Information ratio: 0.92 (upper 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 (upper mid).
  • Sharpe: 1.09 (upper mid).
  • Information ratio: 0.14 (bottom quartile).

Nippon India Large Cap Fund

  • Upper mid AUM (₹51,404 Cr).
  • Oldest track record among peers (18 yrs).
  • Top rated.
  • Risk profile: Moderately High.
  • 5Y return: 17.64% (top quartile).
  • 3Y return: 17.76% (upper mid).
  • 1Y return: 6.22% (upper mid).
  • Alpha: 2.67 (top quartile).
  • Sharpe: 1.23 (top quartile).
  • Information ratio: 1.27 (top quartile).

Invesco India Largecap Fund

  • Lower mid AUM (₹1,702 Cr).
  • Established history (16+ yrs).
  • Rating: 3★ (bottom quartile).
  • Risk profile: Moderately High.
  • 5Y return: 14.47% (lower mid).
  • 3Y return: 17.23% (lower mid).
  • 1Y return: 6.13% (lower mid).
  • Alpha: -0.05 (bottom quartile).
  • Sharpe: 0.97 (bottom quartile).
  • Information ratio: 0.44 (lower mid).

JM Core 11 Fund

  • Bottom quartile AUM (₹286 Cr).
  • Established history (18+ yrs).
  • Rating: 4★ (upper mid).
  • Risk profile: High.
  • 5Y return: 14.12% (bottom quartile).
  • 3Y return: 17.07% (bottom quartile).
  • 1Y return: 2.94% (bottom quartile).
  • Alpha: -5.42 (bottom quartile).
  • Sharpe: 0.48 (bottom quartile).
  • Information ratio: -0.03 (bottom quartile).

ICICI Prudential Bluechip Fund

  • Highest AUM (₹77,452 Cr).
  • Established history (17+ yrs).
  • Rating: 4★ (lower mid).
  • Risk profile: Moderately High.
  • 5Y return: 15.41% (upper mid).
  • 3Y return: 16.76% (bottom quartile).
  • 1Y return: 4.45% (bottom quartile).
  • Alpha: 0.83 (lower mid).
  • Sharpe: 1.07 (lower mid).
  • Information ratio: 0.92 (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 (%)2024 (%)Sharpe Ratio
Motilal Oswal Midcap 30 Fund  Growth ₹92.7609
↑ 0.44
₹33,689 500 -4.8-11.42.122.523.9-12.1-0.29
Nippon India Small Cap Fund Growth ₹167.514
↑ 2.15
₹67,642 100 3.8-1.18.821.322.9-4.70.76
HDFC Mid-Cap Opportunities Fund Growth ₹198.885
↑ 1.66
₹94,257 300 -1.70.614.224.722.16.81.65
Invesco India Mid Cap Fund Growth ₹178.97
↑ 2.18
₹10,772 500 0.1-3.515.826.721.56.31.21
Edelweiss Mid Cap Fund Growth ₹102.909
↑ 1.20
₹14,355 500 0.10.51325.721.33.81.33
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 17 Apr 26
Note: Ratio's shown as on 28 Feb 26

Research Highlights & Commentary of 5 Funds showcased

CommentaryMotilal Oswal Midcap 30 Fund Nippon India Small Cap FundHDFC Mid-Cap Opportunities FundInvesco India Mid Cap FundEdelweiss Mid Cap Fund
Point 1Lower mid AUM (₹33,689 Cr).Upper mid AUM (₹67,642 Cr).Highest AUM (₹94,257 Cr).Bottom quartile AUM (₹10,772 Cr).Bottom quartile AUM (₹14,355 Cr).
Point 2Established history (12+ yrs).Established history (15+ yrs).Established history (18+ yrs).Oldest track record among peers (19 yrs).Established history (18+ yrs).
Point 3Rating: 3★ (upper mid).Top rated.Rating: 3★ (lower mid).Rating: 2★ (bottom quartile).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: 23.90% (top quartile).5Y return: 22.92% (upper mid).5Y return: 22.13% (lower mid).5Y return: 21.49% (bottom quartile).5Y return: 21.25% (bottom quartile).
Point 63Y return: 22.52% (bottom quartile).3Y return: 21.32% (bottom quartile).3Y return: 24.67% (lower mid).3Y return: 26.69% (top quartile).3Y return: 25.72% (upper mid).
Point 71Y return: 2.06% (bottom quartile).1Y return: 8.78% (bottom quartile).1Y return: 14.23% (upper mid).1Y return: 15.79% (top quartile).1Y return: 12.95% (lower mid).
Point 8Alpha: -20.09 (bottom quartile).Alpha: 2.58 (upper mid).Alpha: 3.83 (top quartile).Alpha: 0.00 (bottom quartile).Alpha: 1.12 (lower mid).
Point 9Sharpe: -0.29 (bottom quartile).Sharpe: 0.76 (bottom quartile).Sharpe: 1.65 (top quartile).Sharpe: 1.21 (lower mid).Sharpe: 1.33 (upper mid).
Point 10Information ratio: -0.36 (bottom quartile).Information ratio: -0.10 (bottom quartile).Information ratio: 0.45 (top quartile).Information ratio: 0.00 (lower mid).Information ratio: 0.33 (upper mid).

Motilal Oswal Midcap 30 Fund 

  • Lower mid AUM (₹33,689 Cr).
  • Established history (12+ yrs).
  • Rating: 3★ (upper mid).
  • Risk profile: Moderately High.
  • 5Y return: 23.90% (top quartile).
  • 3Y return: 22.52% (bottom quartile).
  • 1Y return: 2.06% (bottom quartile).
  • Alpha: -20.09 (bottom quartile).
  • Sharpe: -0.29 (bottom quartile).
  • Information ratio: -0.36 (bottom quartile).

Nippon India Small Cap Fund

  • Upper mid AUM (₹67,642 Cr).
  • Established history (15+ yrs).
  • Top rated.
  • Risk profile: Moderately High.
  • 5Y return: 22.92% (upper mid).
  • 3Y return: 21.32% (bottom quartile).
  • 1Y return: 8.78% (bottom quartile).
  • Alpha: 2.58 (upper mid).
  • Sharpe: 0.76 (bottom quartile).
  • Information ratio: -0.10 (bottom quartile).

HDFC Mid-Cap Opportunities Fund

  • Highest AUM (₹94,257 Cr).
  • Established history (18+ yrs).
  • Rating: 3★ (lower mid).
  • Risk profile: Moderately High.
  • 5Y return: 22.13% (lower mid).
  • 3Y return: 24.67% (lower mid).
  • 1Y return: 14.23% (upper mid).
  • Alpha: 3.83 (top quartile).
  • Sharpe: 1.65 (top quartile).
  • Information ratio: 0.45 (top quartile).

Invesco India Mid Cap Fund

  • Bottom quartile AUM (₹10,772 Cr).
  • Oldest track record among peers (19 yrs).
  • Rating: 2★ (bottom quartile).
  • Risk profile: Moderately High.
  • 5Y return: 21.49% (bottom quartile).
  • 3Y return: 26.69% (top quartile).
  • 1Y return: 15.79% (top quartile).
  • Alpha: 0.00 (bottom quartile).
  • Sharpe: 1.21 (lower mid).
  • Information ratio: 0.00 (lower mid).

Edelweiss Mid Cap Fund

  • Bottom quartile AUM (₹14,355 Cr).
  • Established history (18+ yrs).
  • Rating: 3★ (bottom quartile).
  • Risk profile: High.
  • 5Y return: 21.25% (bottom quartile).
  • 3Y return: 25.72% (upper mid).
  • 1Y return: 12.95% (lower mid).
  • Alpha: 1.12 (lower mid).
  • Sharpe: 1.33 (upper mid).
  • Information ratio: 0.33 (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
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 ₹34.79
↑ 0.36
₹1,107 1,000 6.75.220.622.515.33.51.35
Mahindra Badhat Yojana Growth ₹36.1617
↑ 0.41
₹6,174 500 0.31.11121.318.53.41.15
Nippon India Multi Cap Fund Growth ₹295.968
↑ 2.57
₹50,820 100 1.4-2.68.421.321.74.11.02
Motilal Oswal Multicap 35 Fund Growth ₹56.6884
↑ 0.23
₹12,890 500 -5.1-9.90.621.112.6-5.60.13
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 FundMahindra Badhat YojanaNippon India Multi Cap FundMotilal Oswal Multicap 35 Fund
Point 1Bottom quartile AUM (₹382 Cr).Bottom quartile AUM (₹1,107 Cr).Lower mid AUM (₹6,174 Cr).Highest AUM (₹50,820 Cr).Upper mid AUM (₹12,890 Cr).
Point 2Established history (12+ yrs).Established history (11+ yrs).Established history (8+ yrs).Oldest track record among peers (21 yrs).Established history (11+ yrs).
Point 3Rating: 2★ (upper mid).Not Rated.Not Rated.Rating: 2★ (lower mid).Top rated.
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: 15.26% (lower mid).5Y return: 18.49% (upper mid).5Y return: 21.68% (top quartile).5Y return: 12.62% (bottom quartile).
Point 63Y return: 22.73% (top quartile).3Y return: 22.51% (upper mid).3Y return: 21.35% (lower mid).3Y return: 21.29% (bottom quartile).3Y return: 21.10% (bottom quartile).
Point 71Y return: 13.54% (upper mid).1Y return: 20.63% (top quartile).1Y return: 11.04% (lower mid).1Y return: 8.37% (bottom quartile).1Y return: 0.63% (bottom quartile).
Point 8Alpha: -1.07 (bottom quartile).Alpha: 0.00 (lower mid).Alpha: 2.49 (top quartile).Alpha: 1.47 (upper mid).Alpha: -11.42 (bottom quartile).
Point 9Sharpe: 1.01 (bottom quartile).Sharpe: 1.35 (top quartile).Sharpe: 1.15 (upper mid).Sharpe: 1.02 (lower mid).Sharpe: 0.13 (bottom quartile).
Point 10Information ratio: -0.53 (bottom quartile).Information ratio: 0.00 (bottom quartile).Information ratio: 0.39 (upper mid).Information ratio: 0.52 (top quartile).Information ratio: 0.33 (lower mid).

IDBI Diversified Equity Fund

  • Bottom quartile AUM (₹382 Cr).
  • Established history (12+ yrs).
  • Rating: 2★ (upper 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 (bottom quartile).
  • Information ratio: -0.53 (bottom quartile).

Aditya Birla Sun Life Manufacturing Equity Fund

  • Bottom quartile AUM (₹1,107 Cr).
  • Established history (11+ yrs).
  • Not Rated.
  • Risk profile: High.
  • 5Y return: 15.26% (lower mid).
  • 3Y return: 22.51% (upper mid).
  • 1Y return: 20.63% (top quartile).
  • Alpha: 0.00 (lower mid).
  • Sharpe: 1.35 (top quartile).
  • Information ratio: 0.00 (bottom quartile).

Mahindra Badhat Yojana

  • Lower mid AUM (₹6,174 Cr).
  • Established history (8+ yrs).
  • Not Rated.
  • Risk profile: Moderately High.
  • 5Y return: 18.49% (upper mid).
  • 3Y return: 21.35% (lower mid).
  • 1Y return: 11.04% (lower mid).
  • Alpha: 2.49 (top quartile).
  • Sharpe: 1.15 (upper mid).
  • Information ratio: 0.39 (upper mid).

Nippon India Multi Cap Fund

  • Highest AUM (₹50,820 Cr).
  • Oldest track record among peers (21 yrs).
  • Rating: 2★ (lower mid).
  • Risk profile: Moderately High.
  • 5Y return: 21.68% (top quartile).
  • 3Y return: 21.29% (bottom quartile).
  • 1Y return: 8.37% (bottom quartile).
  • Alpha: 1.47 (upper mid).
  • Sharpe: 1.02 (lower mid).
  • Information ratio: 0.52 (top quartile).

Motilal Oswal Multicap 35 Fund

  • Upper mid AUM (₹12,890 Cr).
  • Established history (11+ yrs).
  • Top rated.
  • Risk profile: Moderately High.
  • 5Y return: 12.62% (bottom quartile).
  • 3Y return: 21.10% (bottom quartile).
  • 1Y return: 0.63% (bottom quartile).
  • Alpha: -11.42 (bottom quartile).
  • Sharpe: 0.13 (bottom quartile).
  • Information ratio: 0.33 (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
DSP Natural Resources and New Energy Fund Growth ₹109.248
↑ 0.46
₹1,990 500 71632.723.819.317.52.4
BOI AXA Manufacturing and Infrastructure Fund Growth ₹61.57
↑ 0.52
₹689 1,000 5.86.421.826.122.97.81.56
SBI Magnum COMMA Fund Growth ₹115.338
↑ 0.94
₹999 500 4.28.920.420.915.212.31.99
SBI PSU Fund Growth ₹36.2641
↑ 0.41
₹6,545 500 6.110.718.532.728.111.31.9
LIC MF Infrastructure Fund Growth ₹51.3591
↑ 0.41
₹1,007 1,000 7.32.617.929.424.8-3.71.13
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 16 Apr 26
Note: Ratio's shown as on 28 Feb 26

Research Highlights & Commentary of 5 Funds showcased

CommentaryDSP Natural Resources and New Energy FundBOI AXA Manufacturing and Infrastructure FundSBI Magnum COMMA FundSBI PSU FundLIC MF Infrastructure Fund
Point 1Upper mid AUM (₹1,990 Cr).Bottom quartile AUM (₹689 Cr).Bottom quartile AUM (₹999 Cr).Highest AUM (₹6,545 Cr).Lower mid AUM (₹1,007 Cr).
Point 2Established history (17+ yrs).Established history (16+ yrs).Oldest track record among peers (20 yrs).Established history (15+ yrs).Established history (18+ yrs).
Point 3Top rated.Not Rated.Rating: 4★ (upper mid).Rating: 2★ (lower mid).Not Rated.
Point 4Risk profile: High.Risk profile: High.Risk profile: High.Risk profile: High.Risk profile: High.
Point 55Y return: 19.32% (bottom quartile).5Y return: 22.90% (lower mid).5Y return: 15.19% (bottom quartile).5Y return: 28.14% (top quartile).5Y return: 24.76% (upper mid).
Point 63Y return: 23.78% (bottom quartile).3Y return: 26.07% (lower mid).3Y return: 20.93% (bottom quartile).3Y return: 32.67% (top quartile).3Y return: 29.37% (upper mid).
Point 71Y return: 32.68% (top quartile).1Y return: 21.82% (upper mid).1Y return: 20.40% (lower mid).1Y return: 18.46% (bottom quartile).1Y return: 17.90% (bottom quartile).
Point 8Alpha: 0.00 (bottom quartile).Alpha: 0.00 (bottom quartile).Alpha: 5.27 (top quartile).Alpha: 0.92 (lower mid).Alpha: 4.76 (upper mid).
Point 9Sharpe: 2.40 (top quartile).Sharpe: 1.56 (bottom quartile).Sharpe: 1.99 (upper mid).Sharpe: 1.90 (lower mid).Sharpe: 1.13 (bottom quartile).
Point 10Information ratio: 0.00 (upper mid).Information ratio: 0.00 (lower mid).Information ratio: -0.25 (bottom quartile).Information ratio: -0.27 (bottom quartile).Information ratio: 0.34 (top quartile).

DSP Natural Resources and New Energy Fund

  • Upper mid AUM (₹1,990 Cr).
  • Established history (17+ yrs).
  • Top rated.
  • Risk profile: High.
  • 5Y return: 19.32% (bottom quartile).
  • 3Y return: 23.78% (bottom quartile).
  • 1Y return: 32.68% (top quartile).
  • Alpha: 0.00 (bottom quartile).
  • Sharpe: 2.40 (top quartile).
  • Information ratio: 0.00 (upper mid).

BOI AXA Manufacturing and Infrastructure Fund

  • Bottom quartile AUM (₹689 Cr).
  • Established history (16+ yrs).
  • Not Rated.
  • Risk profile: High.
  • 5Y return: 22.90% (lower mid).
  • 3Y return: 26.07% (lower mid).
  • 1Y return: 21.82% (upper mid).
  • Alpha: 0.00 (bottom quartile).
  • Sharpe: 1.56 (bottom quartile).
  • Information ratio: 0.00 (lower mid).

SBI Magnum COMMA Fund

  • Bottom quartile AUM (₹999 Cr).
  • Oldest track record among peers (20 yrs).
  • Rating: 4★ (upper mid).
  • Risk profile: High.
  • 5Y return: 15.19% (bottom quartile).
  • 3Y return: 20.93% (bottom quartile).
  • 1Y return: 20.40% (lower mid).
  • Alpha: 5.27 (top quartile).
  • Sharpe: 1.99 (upper mid).
  • Information ratio: -0.25 (bottom quartile).

SBI PSU Fund

  • Highest AUM (₹6,545 Cr).
  • Established history (15+ yrs).
  • Rating: 2★ (lower mid).
  • Risk profile: High.
  • 5Y return: 28.14% (top quartile).
  • 3Y return: 32.67% (top quartile).
  • 1Y return: 18.46% (bottom quartile).
  • Alpha: 0.92 (lower mid).
  • Sharpe: 1.90 (lower mid).
  • Information ratio: -0.27 (bottom quartile).

LIC MF Infrastructure Fund

  • Lower mid AUM (₹1,007 Cr).
  • Established history (18+ yrs).
  • Not Rated.
  • Risk profile: High.
  • 5Y return: 24.76% (upper mid).
  • 3Y return: 29.37% (upper mid).
  • 1Y return: 17.90% (bottom quartile).
  • Alpha: 4.76 (upper mid).
  • Sharpe: 1.13 (bottom quartile).
  • Information ratio: 0.34 (top 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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