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Best Mutual Funds to Invest in for Long Term

Updated on May 13, 2025 , 1798 views

If you are planning to make a long-term investment, then Mutual Funds are must to be considered! Mutual funds are a great investment option who wants to grow the value of their money over the long-run. Though, there is no such time frame for the duration of long-term, but it can be typically more than five years. So, let’s see some of the best mutual funds for long term investments.

Best Long Term Mutual Funds

A long-term investment is essential in a lot of ways. It helps in wealth creations, Retirement planning, and one can plan most of their Financial goals like buying house/car, child’s education, international trips, or any other assets. The most advised plan for the long-term is the equity mutual fund. These funds are known for its long-term wealth creation.

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Equities invest in shares and stocks of companies. The longer you invest in these funds, higher are the chances to earn good returns. But, one should always remember that with ‘high returns come high risk’, equities can be risky fund. Nevertheless, if planned well and for long-term, one can attain good returns and achieve their long-term goals.

Investing in Best Equity Mutual Funds can have many benefits like:

Diversification

With best Equity Funds investors can diversify their Portfolio through regularly investing. It means that they can invest in equity stocks of different economic sectors. There are many equity funds like large-cap, mid-cap, multi-cap, small cap, etc. So, even if a particular stock drops in value, the others may help in making up for that loss, depending on the Market situation.

Liquidity

Since stocks are actively traded across all major exchanges, every day, this makes equity funds a highly liquid investment. It provides investors, the convenience of buying and selling their stocks depending on the market situation. By investing in equity mutual funds, the money is usually credited to your Bank account in three days.

Dividend Income

Investing into blue-chip companies may help investors earn a steady Income in the form of dividends. A majority of such companies usually pay out regular dividends even in volatile market conditions, typically paid quarterly. Having a diversified portfolio can provide investors with a steady dividend income in the year.

Best Mutual Funds to Invest in for Long Term

Best Multi Cap Equity Funds

Fund	NAV	Net Assets (Cr)	Min SIP Investment	3 MO (%)	6 MO (%)	1 YR (%)	3 YR (%)	5 YR (%)	2024 (%)
Motilal Oswal Multicap 35 Fund Growth	₹60.1363 ↑ 0.13	₹12,267	500	9.5	2.5	19.1	26.4	24.2	45.7
Mirae Asset India Equity Fund Growth	₹111.335 ↑ 0.25	₹37,778	1,000	9.4	4.9	14.2	16.6	22	12.7
Kotak Standard Multicap Fund Growth	₹83.318 ↑ 0.34	₹49,130	500	12.4	6.1	11.9	20.8	23.5	16.5
BNP Paribas Multi Cap Fund Growth	₹73.5154 ↓ -0.01	₹588	300	-4.6	-2.6	19.3	17.3	13.6
IDFC Focused Equity Fund Growth	₹84.686 ↑ 0.40	₹1,685	100	6.5	0.8	16.8	21.4	22.5	30.3
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 16 May 25

Best ELSS (Tax Saving Mutual Funds)

Fund	NAV	Net Assets (Cr)	Min SIP Investment	3 MO (%)	6 MO (%)	1 YR (%)	3 YR (%)	5 YR (%)	2024 (%)
Tata India Tax Savings Fund Growth	₹43.4528 ↑ 0.04	₹4,335	500	9	1.2	13.2	20	24.3	19.5
IDFC Tax Advantage (ELSS) Fund Growth	₹149.911 ↑ 0.29	₹6,597	500	8.7	2.4	7.4	19.1	29.4	13.1
DSP BlackRock Tax Saver Fund Growth	₹138.435 ↑ 0.41	₹16,218	500	10.2	4	16.7	23.7	28	23.9
L&T Tax Advantage Fund Growth	₹131.398 ↑ 0.71	₹3,871	500	11.4	1.8	12.8	23.7	25.1	33
Aditya Birla Sun Life Tax Relief '96 Growth	₹58.62 ↑ 0.15	₹14,462	500	10.9	3.5	11.3	16.8	17.2	16.4
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 16 May 25

Best Large Cap Funds

Fund	NAV	Net Assets (Cr)	Min SIP Investment	3 MO (%)	6 MO (%)	1 YR (%)	3 YR (%)	5 YR (%)	2024 (%)
Aditya Birla Sun Life Frontline Equity Fund Growth	₹521.49 ↑ 0.51	₹28,106	100	9.9	5.1	13.9	19.5	24.2	15.6
ICICI Prudential Bluechip Fund Growth	₹109.36 ↓ -0.01	₹64,963	100	9.5	5.9	12.9	22.3	26.2	16.9
SBI Bluechip Fund Growth	₹91.499 ↑ 0.27	₹49,394	500	8.7	4.7	12.7	18.3	23.5	12.5
Nippon India Large Cap Fund Growth	₹89.0774 ↑ 0.25	₹37,546	100	10.2	4.8	11.7	24.4	28.8	18.2
Indiabulls Blue Chip Fund Growth	₹41.96 ↑ 0.16	₹120	500	9.2	2.5	6.6	17.5	19.9	12.5
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 16 May 25

Best Mid Cap Funds

Fund	NAV	Net Assets (Cr)	Min SIP Investment	3 MO (%)	6 MO (%)	1 YR (%)	3 YR (%)	5 YR (%)	2024 (%)
Kotak Emerging Equity Scheme Growth	₹127.825 ↑ 0.86	₹48,129	1,000	11.5	-1.4	14.1	24.3	32	33.6
Sundaram Mid Cap Fund Growth	₹1,332.52 ↑ 9.09	₹11,333	100	12.2	1.2	14	28.2	31	32
L&T Midcap Fund Growth	₹370.562 ↑ 2.35	₹10,362	500	14	-1.6	9.7	26.2	27.9	39.7
Taurus Discovery (Midcap) Fund Growth	₹118.31 ↑ 1.12	₹114	1,000	13.4	1.2	0.5	21.1	25.2	11.3
Edelweiss Mid Cap Fund Growth	₹97.167 ↑ 0.46	₹8,634	500	12.9	1.8	19.9	29.1	34	38.9
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 16 May 25

Best Small Cap Funds

Fund	NAV	Net Assets (Cr)	Min SIP Investment	3 MO (%)	6 MO (%)	1 YR (%)	3 YR (%)	5 YR (%)	2024 (%)
Aditya Birla Sun Life Small Cap Fund Growth	₹82.2683 ↑ 0.50	₹4,416	1,000	12.7	-3.7	5.2	20.6	30.3	21.5
SBI Small Cap Fund Growth	₹166.76 ↑ 0.68	₹30,829	500	9	-3.5	4.8	19.8	30.9	24.1
L&T Emerging Businesses Fund Growth	₹78.4816 ↑ 1.02	₹13,334	500	9	-6.9	2.8	24	36.9	28.5
DSP BlackRock Small Cap Fund Growth	₹184.142 ↑ 1.67	₹14,269	500	9.2	-3.8	8.5	21	34.1	25.6
HDFC Small Cap Fund Growth	₹132.441 ↑ 1.36	₹30,223	300	9.9	-2.3	6.7	26.6	36.6	20.4
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 16 May 25

Best Sector Funds

Fund	NAV	Net Assets (Cr)	Min SIP Investment	3 MO (%)	6 MO (%)	1 YR (%)	3 YR (%)	5 YR (%)	2024 (%)
ICICI Prudential Banking and Financial Services Fund Growth	₹131.81 ↑ 0.22	₹9,008	100	11.8	10.1	21.3	21.2	25.8	11.6
Aditya Birla Sun Life Banking And Financial Services Fund Growth	₹59.86 ↑ 0.09	₹3,248	1,000	14.4	9.6	16.4	21.8	26.1	8.7
Sundaram Rural and Consumption Fund Growth	₹97.0711 ↑ 0.31	₹1,445	100	7.1	2.5	16.3	22.7	23.3	20.1
Franklin Build India Fund Growth	₹138.189 ↑ 0.42	₹2,642	500	13.8	1.3	4.7	33.5	36.5	27.8
IDFC Infrastructure Fund Growth	₹50.063 ↑ 0.44	₹1,563	100	15.6	0.1	3.9	32	37.5	39.3
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 16 May 25

Best Focused Funds

Fund	NAV	Net Assets (Cr)	Min SIP Investment	3 MO (%)	6 MO (%)	1 YR (%)	3 YR (%)	5 YR (%)	2024 (%)
Axis Focused 25 Fund Growth	₹54.6 ↑ 0.11	₹12,347	500	10.4	5.1	12.1	13.5	17.5	14.8
Aditya Birla Sun Life Focused Equity Fund Growth	₹140.334 ↓ -0.26	₹7,360	1,000	9.7	4.8	15.9	19.7	23.4	18.7
Sundaram Select Focus Fund Growth	₹264.968 ↓ -1.18	₹1,354	100	-5	8.5	24.5	17	17.3
HDFC Focused 30 Fund Growth	₹226.419 ↑ 0.46	₹17,227	300	9.5	5.9	18.1	27.3	32.2	24
DSP BlackRock Focus Fund Growth	₹54.175 ↑ 0.10	₹2,447	500	10.4	4.7	15.8	21.9	23.4	18.5
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 16 May 25

Best Value Funds

Fund	NAV	Net Assets (Cr)	Min SIP Investment	3 MO (%)	6 MO (%)	1 YR (%)	3 YR (%)	5 YR (%)	2024 (%)
L&T India Value Fund Growth	₹106.621 ↑ 0.29	₹12,600	500	11.2	1.8	10.9	27.2	31.2	25.9
Tata Equity PE Fund Growth	₹341.139 ↑ 2.15	₹8,004	150	9.5	-1.6	5.8	23.6	25.8	21.7
JM Value Fund Growth	₹97.0807 ↑ 0.44	₹988	500	9.1	-2.2	4.4	28.7	31	25.1
HDFC Capital Builder Value Fund Growth	₹723.391 ↑ 1.38	₹6,806	300	10.3	3.3	13.4	23	27.7	20.7
IDFC Sterling Value Fund Growth	₹146.805 ↑ 0.41	₹9,430	100	8.6	1.8	7.7	21.5	35.1	18
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 16 May 25

Best Dividend Yield Funds

Fund	NAV	Net Assets (Cr)	Min SIP Investment	3 MO (%)	6 MO (%)	1 YR (%)	3 YR (%)	5 YR (%)	2024 (%)
ICICI Prudential Dividend Yield Equity Fund Growth	₹51.7 ↑ 0.11	₹4,995	100	9	5	11.3	27	34.3	21
Templeton India Equity Income Fund Growth	₹138.208 ↑ 0.98	₹2,286	500	6.7	0.9	7.1	20	30.8	20.4
Principal Dividend Yield Fund Growth	₹134.603 ↑ 0.39	₹863	500	8.2	0.4	6.1	19.4	24.2	15.7
UTI Dividend Yield Fund Growth	₹173.039 ↑ 1.14	₹3,855	500	6.6	-0.5	13.5	21.6	25.9	24.7
Aditya Birla Sun Life Dividend Yield Fund Growth	₹433.82 ↑ 3.87	₹1,404	1,000	5.3	-3	5.5	24	27.4	18.2
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 16 May 25

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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.