fincash logo SOLUTIONS
EXPLORE FUNDS
CALCULATORS
LOG IN
SIGN UP

Fincash » Mutual Funds » Long Term Investment Options

Best Long Term Investment Options

Updated on August 7, 2025 , 7974 views

Planning for a long term investment? But, how? Most investors look for the ‘best instrument’ to safeguard their hard earned money. But, before you invest, understanding the importance of the right investment is very significant. So, here is a list of some the best long term investment options with their investment purpose.

best-long-term-options

Top Long Term Investment Options in India

1. Public Provident Fund or PPF

Public Provident Fund (PPF) is one of the most popular long term investment options in India. Since it's backed by the Government of India, it is a safe investment with an attractive interest rate. Moreover, it offers tax benefits under Section 80C, of income tax 1961, and also the interest income is exempted from tax.

PPF comes with a maturity period of 15 years, however, it can be extended within a year of maturity for five years and more. Annual deposits of minimum INR 500 to maximum INR 1.5 lakh can be invested in PPF account.

2. Mutual Funds

A mutual fund is one of the best long term investment options in India. A Mutual Fund is a collective pool of money with a common objective for purchasing securities (via the fund). Mutual Funds are regulated by the Securities and Exchange Board of India (SEBI) and are managed by Asset Management Companies (AMC’s). Mutual Funds have gained immense popularity amongst investors over the past few years.

There are various Types of Mutual Funds like Equity Funds, Debt fund, Money market funds, Hybrid Fund and gold funds. Each has its own investment objective. However, people who look to balance risk and return, generally prefer to invest in equity and bond Mutual Funds.

The Systematic Investment plan (SIP) is also considered to be one of the best long term investment options to invest in a Mutual Fund. SIPs make an excellent tool for Investing hard earned money, especially for those earning salaries. There are various SIP calculators available in the market that try to help investors make investment plans.

Some of the best mutual funds to invest in India having Assets more than 300 Crore and having best CAGR returns for last 5 years are :

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2024 (%)
ICICI Prudential Infrastructure Fund Growth ₹190.55
↓ -0.94
₹8,0436.27.60.629.535.927.4
HDFC Infrastructure Fund Growth ₹46.767
↓ -0.20
₹2,5916.17.9-2.229.834.123
Nippon India Small Cap Fund Growth ₹164.669
↓ -1.81
₹66,6027.84.1-4.8243426.1
Motilal Oswal Midcap 30 Fund  Growth ₹99.4516
↓ -2.77
₹33,0534.32.11.827.433.357.1
Bandhan Infrastructure Fund Growth ₹49.006
↓ -0.53
₹1,7496.15.3-10.927.932.939.3
Franklin Build India Fund Growth ₹138.945
↓ -1.09
₹2,9686.18.1-128.832.827.8
DSP India T.I.G.E.R Fund Growth ₹305.144
↓ -3.22
₹5,51776.2-7.526.932.632.4
Canara Robeco Infrastructure Growth ₹157.91
↓ -1.70
₹9328.310.9-0.525.731.635.3
HDFC Small Cap Fund Growth ₹138.38
↓ -1.03
₹35,78113.67.82.524.131.520.4
Franklin India Smaller Companies Fund Growth ₹165.7
↓ -1.73
₹13,9954.80.9-7.123.131.323.2
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 8 Aug 25

Research Highlights & Commentary of 10 Funds showcased

CommentaryICICI Prudential Infrastructure FundHDFC Infrastructure FundNippon India Small Cap FundMotilal Oswal Midcap 30 Fund Bandhan Infrastructure FundFranklin Build India FundDSP India T.I.G.E.R FundCanara Robeco InfrastructureHDFC Small Cap FundFranklin India Smaller Companies Fund
Point 1Upper mid AUM (₹8,043 Cr).Bottom quartile AUM (₹2,591 Cr).Highest AUM (₹66,602 Cr).Upper mid AUM (₹33,053 Cr).Bottom quartile AUM (₹1,749 Cr).Lower mid AUM (₹2,968 Cr).Lower mid AUM (₹5,517 Cr).Bottom quartile AUM (₹932 Cr).Top quartile AUM (₹35,781 Cr).Upper mid AUM (₹13,995 Cr).
Point 2Established history (19+ yrs).Established history (17+ yrs).Established history (14+ yrs).Established history (11+ yrs).Established history (14+ yrs).Established history (15+ yrs).Oldest track record among peers (21 yrs).Established history (19+ yrs).Established history (17+ yrs).Established history (19+ yrs).
Point 3Rating: 3★ (lower mid).Rating: 3★ (bottom quartile).Rating: 4★ (upper mid).Rating: 3★ (bottom quartile).Top rated.Rating: 5★ (top quartile).Rating: 4★ (upper mid).Not Rated.Rating: 4★ (upper mid).Rating: 4★ (lower mid).
Point 4Risk profile: High.Risk profile: High.Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: High.Risk profile: High.Risk profile: High.Risk profile: High.Risk profile: Moderately High.Risk profile: Moderately High.
Point 55Y return: 35.89% (top quartile).5Y return: 34.10% (top quartile).5Y return: 34.05% (upper mid).5Y return: 33.29% (upper mid).5Y return: 32.92% (upper mid).5Y return: 32.79% (lower mid).5Y return: 32.58% (lower mid).5Y return: 31.61% (bottom quartile).5Y return: 31.53% (bottom quartile).5Y return: 31.31% (bottom quartile).
Point 63Y return: 29.47% (top quartile).3Y return: 29.80% (top quartile).3Y return: 23.96% (bottom quartile).3Y return: 27.39% (upper mid).3Y return: 27.94% (upper mid).3Y return: 28.76% (upper mid).3Y return: 26.90% (lower mid).3Y return: 25.67% (lower mid).3Y return: 24.13% (bottom quartile).3Y return: 23.08% (bottom quartile).
Point 71Y return: 0.64% (upper mid).1Y return: -2.17% (lower mid).1Y return: -4.79% (lower mid).1Y return: 1.83% (top quartile).1Y return: -10.90% (bottom quartile).1Y return: -1.01% (upper mid).1Y return: -7.54% (bottom quartile).1Y return: -0.49% (upper mid).1Y return: 2.46% (top quartile).1Y return: -7.14% (bottom quartile).
Point 8Alpha: 0.00 (top quartile).Alpha: 0.00 (upper mid).Alpha: -2.86 (bottom quartile).Alpha: 3.89 (top quartile).Alpha: 0.00 (upper mid).Alpha: 0.00 (upper mid).Alpha: 0.00 (lower mid).Alpha: 0.00 (lower mid).Alpha: 0.00 (bottom quartile).Alpha: -7.46 (bottom quartile).
Point 9Sharpe: 0.01 (upper mid).Sharpe: -0.23 (lower mid).Sharpe: -0.10 (upper mid).Sharpe: 0.23 (top quartile).Sharpe: -0.29 (bottom quartile).Sharpe: -0.29 (lower mid).Sharpe: -0.36 (bottom quartile).Sharpe: -0.17 (upper mid).Sharpe: 0.07 (top quartile).Sharpe: -0.33 (bottom quartile).
Point 10Information ratio: 0.00 (top quartile).Information ratio: 0.00 (upper mid).Information ratio: -0.10 (bottom quartile).Information ratio: 0.44 (top quartile).Information ratio: 0.00 (upper mid).Information ratio: 0.00 (upper mid).Information ratio: 0.00 (lower mid).Information ratio: 0.00 (lower mid).Information ratio: 0.00 (bottom quartile).Information ratio: -0.13 (bottom quartile).

ICICI Prudential Infrastructure Fund

  • Upper mid AUM (₹8,043 Cr).
  • Established history (19+ yrs).
  • Rating: 3★ (lower mid).
  • Risk profile: High.
  • 5Y return: 35.89% (top quartile).
  • 3Y return: 29.47% (top quartile).
  • 1Y return: 0.64% (upper mid).
  • Alpha: 0.00 (top quartile).
  • Sharpe: 0.01 (upper mid).
  • Information ratio: 0.00 (top quartile).

HDFC Infrastructure Fund

  • Bottom quartile AUM (₹2,591 Cr).
  • Established history (17+ yrs).
  • Rating: 3★ (bottom quartile).
  • Risk profile: High.
  • 5Y return: 34.10% (top quartile).
  • 3Y return: 29.80% (top quartile).
  • 1Y return: -2.17% (lower mid).
  • Alpha: 0.00 (upper mid).
  • Sharpe: -0.23 (lower mid).
  • Information ratio: 0.00 (upper mid).

Nippon India Small Cap Fund

  • Highest AUM (₹66,602 Cr).
  • Established history (14+ yrs).
  • Rating: 4★ (upper mid).
  • Risk profile: Moderately High.
  • 5Y return: 34.05% (upper mid).
  • 3Y return: 23.96% (bottom quartile).
  • 1Y return: -4.79% (lower mid).
  • Alpha: -2.86 (bottom quartile).
  • Sharpe: -0.10 (upper mid).
  • Information ratio: -0.10 (bottom quartile).

Motilal Oswal Midcap 30 Fund 

  • Upper mid AUM (₹33,053 Cr).
  • Established history (11+ yrs).
  • Rating: 3★ (bottom quartile).
  • Risk profile: Moderately High.
  • 5Y return: 33.29% (upper mid).
  • 3Y return: 27.39% (upper mid).
  • 1Y return: 1.83% (top quartile).
  • Alpha: 3.89 (top quartile).
  • Sharpe: 0.23 (top quartile).
  • Information ratio: 0.44 (top quartile).

Bandhan Infrastructure Fund

  • Bottom quartile AUM (₹1,749 Cr).
  • Established history (14+ yrs).
  • Top rated.
  • Risk profile: High.
  • 5Y return: 32.92% (upper mid).
  • 3Y return: 27.94% (upper mid).
  • 1Y return: -10.90% (bottom quartile).
  • Alpha: 0.00 (upper mid).
  • Sharpe: -0.29 (bottom quartile).
  • Information ratio: 0.00 (upper mid).

Franklin Build India Fund

  • Lower mid AUM (₹2,968 Cr).
  • Established history (15+ yrs).
  • Rating: 5★ (top quartile).
  • Risk profile: High.
  • 5Y return: 32.79% (lower mid).
  • 3Y return: 28.76% (upper mid).
  • 1Y return: -1.01% (upper mid).
  • Alpha: 0.00 (upper mid).
  • Sharpe: -0.29 (lower mid).
  • Information ratio: 0.00 (upper mid).

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

  • Lower mid AUM (₹5,517 Cr).
  • Oldest track record among peers (21 yrs).
  • Rating: 4★ (upper mid).
  • Risk profile: High.
  • 5Y return: 32.58% (lower mid).
  • 3Y return: 26.90% (lower mid).
  • 1Y return: -7.54% (bottom quartile).
  • Alpha: 0.00 (lower mid).
  • Sharpe: -0.36 (bottom quartile).
  • Information ratio: 0.00 (lower mid).

Canara Robeco Infrastructure

  • Bottom quartile AUM (₹932 Cr).
  • Established history (19+ yrs).
  • Not Rated.
  • Risk profile: High.
  • 5Y return: 31.61% (bottom quartile).
  • 3Y return: 25.67% (lower mid).
  • 1Y return: -0.49% (upper mid).
  • Alpha: 0.00 (lower mid).
  • Sharpe: -0.17 (upper mid).
  • Information ratio: 0.00 (lower mid).

HDFC Small Cap Fund

  • Top quartile AUM (₹35,781 Cr).
  • Established history (17+ yrs).
  • Rating: 4★ (upper mid).
  • Risk profile: Moderately High.
  • 5Y return: 31.53% (bottom quartile).
  • 3Y return: 24.13% (bottom quartile).
  • 1Y return: 2.46% (top quartile).
  • Alpha: 0.00 (bottom quartile).
  • Sharpe: 0.07 (top quartile).
  • Information ratio: 0.00 (bottom quartile).

Franklin India Smaller Companies Fund

  • Upper mid AUM (₹13,995 Cr).
  • Established history (19+ yrs).
  • Rating: 4★ (lower mid).
  • Risk profile: Moderately High.
  • 5Y return: 31.31% (bottom quartile).
  • 3Y return: 23.08% (bottom quartile).
  • 1Y return: -7.14% (bottom quartile).
  • Alpha: -7.46 (bottom quartile).
  • Sharpe: -0.33 (bottom quartile).
  • Information ratio: -0.13 (bottom quartile).

3. Post Office Savings Schemes

Post Office Saving Schemes are considered to be one of the best long term investment options for government employees, salaried class and businessmen. They offer a moderate rate of interest and tax benefits under section 80C of Income Tax Act as well.

Some of the most popular Post Office Saving Schemes are as follows-

4. Bonds

Bonds are a part of long term investment options. A bond is an investing instrument used to borrow money. It’s a long-term debt instrument, used by the companies to raise Capital from the public. In return, bonds offer a fixed interest rate on investment. The principle amount is paid back to the investor at the maturity period.

So, investing in long-term bonds is considered as a good alternative for earning decent returns on your investment.

Ready to Invest?
Talk to our investment specialist
Disclaimer:
By submitting this form I authorize Fincash.com to call/SMS/email me about its products and I accept the terms of Privacy Policy and Terms & Conditions.

5. Fixed Deposit (FD)

Fixed deposit is a good to go as one of the best long term investment options as it is considered to be the easiest and common instrument. It is yet another option for risk-free investment. Investors can invest any amount in an FD for a maximum period of 10 years. But, the interest varies depending on the amount of investment and also the tenure.

6. Gold

Indian investors often look for Investing in Gold and it's also one of the good long term investment options. Gold is used as an Inflation hedge. Investing in gold can be done via buying physical gold, gold deposit scheme, gold ETF, Gold Bar or gold Mutual Fund. Some of the best underlying Gold ETFs in India are as follows:

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2024 (%)
SBI Gold Fund Growth ₹29.7522
↑ 0.14
₹4,4104.21845.223.611.319.6
Aditya Birla Sun Life Gold Fund Growth ₹29.5606
↑ 0.28
₹6364.317.745.423.411.318.7
Axis Gold Fund Growth ₹29.6549
↑ 0.10
₹1,1214.317.544.123.411.519.2
HDFC Gold Fund Growth ₹30.3889
↑ 0.14
₹4,2724.1184523.41118.9
ICICI Prudential Regular Gold Savings Fund Growth ₹31.5118
↑ 0.14
₹2,2744.217.945.423.311.219.5
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 8 Aug 25

Research Highlights & Commentary of 5 Funds showcased

CommentarySBI Gold FundAditya Birla Sun Life Gold FundAxis Gold FundHDFC Gold FundICICI Prudential Regular Gold Savings Fund
Point 1Highest AUM (₹4,410 Cr).Bottom quartile AUM (₹636 Cr).Bottom quartile AUM (₹1,121 Cr).Upper mid AUM (₹4,272 Cr).Lower mid AUM (₹2,274 Cr).
Point 2Oldest track record among peers (13 yrs).Established history (13+ yrs).Established history (13+ yrs).Established history (13+ yrs).Established history (13+ yrs).
Point 3Rating: 2★ (upper mid).Top rated.Rating: 1★ (lower mid).Rating: 1★ (bottom quartile).Rating: 1★ (bottom quartile).
Point 4Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: Moderately High.
Point 55Y return: 11.27% (lower mid).5Y return: 11.33% (upper mid).5Y return: 11.47% (top quartile).5Y return: 11.05% (bottom quartile).5Y return: 11.22% (bottom quartile).
Point 63Y return: 23.59% (top quartile).3Y return: 23.44% (upper mid).3Y return: 23.43% (lower mid).3Y return: 23.39% (bottom quartile).3Y return: 23.31% (bottom quartile).
Point 71Y return: 45.21% (lower mid).1Y return: 45.36% (top quartile).1Y return: 44.12% (bottom quartile).1Y return: 45.00% (bottom quartile).1Y return: 45.35% (upper mid).
Point 81M return: 4.37% (lower mid).1M return: 4.25% (bottom quartile).1M return: 4.44% (upper mid).1M return: 4.33% (bottom quartile).1M return: 4.56% (top quartile).
Point 9Alpha: 0.00 (top quartile).Alpha: 0.00 (upper mid).Alpha: 0.00 (lower mid).Alpha: 0.00 (bottom quartile).Alpha: 0.00 (bottom quartile).
Point 10Sharpe: 1.73 (upper mid).Sharpe: 1.79 (top quartile).Sharpe: 1.70 (lower mid).Sharpe: 1.69 (bottom quartile).Sharpe: 1.67 (bottom quartile).

SBI Gold Fund

  • Highest AUM (₹4,410 Cr).
  • Oldest track record among peers (13 yrs).
  • Rating: 2★ (upper mid).
  • Risk profile: Moderately High.
  • 5Y return: 11.27% (lower mid).
  • 3Y return: 23.59% (top quartile).
  • 1Y return: 45.21% (lower mid).
  • 1M return: 4.37% (lower mid).
  • Alpha: 0.00 (top quartile).
  • Sharpe: 1.73 (upper mid).

Aditya Birla Sun Life Gold Fund

  • Bottom quartile AUM (₹636 Cr).
  • Established history (13+ yrs).
  • Top rated.
  • Risk profile: Moderately High.
  • 5Y return: 11.33% (upper mid).
  • 3Y return: 23.44% (upper mid).
  • 1Y return: 45.36% (top quartile).
  • 1M return: 4.25% (bottom quartile).
  • Alpha: 0.00 (upper mid).
  • Sharpe: 1.79 (top quartile).

Axis Gold Fund

  • Bottom quartile AUM (₹1,121 Cr).
  • Established history (13+ yrs).
  • Rating: 1★ (lower mid).
  • Risk profile: Moderately High.
  • 5Y return: 11.47% (top quartile).
  • 3Y return: 23.43% (lower mid).
  • 1Y return: 44.12% (bottom quartile).
  • 1M return: 4.44% (upper mid).
  • Alpha: 0.00 (lower mid).
  • Sharpe: 1.70 (lower mid).

HDFC Gold Fund

  • Upper mid AUM (₹4,272 Cr).
  • Established history (13+ yrs).
  • Rating: 1★ (bottom quartile).
  • Risk profile: Moderately High.
  • 5Y return: 11.05% (bottom quartile).
  • 3Y return: 23.39% (bottom quartile).
  • 1Y return: 45.00% (bottom quartile).
  • 1M return: 4.33% (bottom quartile).
  • Alpha: 0.00 (bottom quartile).
  • Sharpe: 1.69 (bottom quartile).

ICICI Prudential Regular Gold Savings Fund

  • Lower mid AUM (₹2,274 Cr).
  • Established history (13+ yrs).
  • Rating: 1★ (bottom quartile).
  • Risk profile: Moderately High.
  • 5Y return: 11.22% (bottom quartile).
  • 3Y return: 23.31% (bottom quartile).
  • 1Y return: 45.35% (upper mid).
  • 1M return: 4.56% (top quartile).
  • Alpha: 0.00 (bottom quartile).
  • Sharpe: 1.67 (bottom quartile).

Whether it's buying a house, gold, car or any asset, investing is an important decision of life and also a necessity. While, each long term investment option has its own benefits and risks, plan and explore the best investment options as mentioned above and enhance your financial security.

Conclusion

Keep focused Financial goals and also remember while choosing best long term investment options you have to plan for a diversified investment strategy. This will minimise your risks. So, start investing a good part of your Earnings in long term investment plans!

One looking for Long Term investments in various asset classes as described above. Illustration with timeframe:

Horizon Asset Class Risk
> 10 Years Equity Mutual Funds High
> 5 Years Equity Mutual Funds High
3 - 5 Years Bonds/Gold/FD/Debt Mutual Funds Low
2 -3 Years Bonds/Gold/Debt Mutual Funds Low
1 - 2 Year Ultra Short Debt Mutual Funds/ FD Low
< 1 Year Ultra Short/Liquid Debt Mutual Funds / FD Low

Best-Long-Term-Investment-Plans

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.
How helpful was this page ?
Rated 3.8, based on 5 reviews.
POST A COMMENT

J.T.Thorat , posted on 19 Nov 22 10:23 PM

Best information, Thanks

1 - 1 of 1