A period of 3-5 years is considered long when it comes to long-term investment in mutual funds. You can have longer time spans than these, but it’s better to go by 3-5 year as they show good return values. Another thing you can do is mix it up in your mutual fund’s portfolio so that you can have multiple funds sitting in various time spans. India has seen a high rise in mutual fund investors in a short period. Not long ago we were skeptical about the investment options available in our country, largely because we weren’t familiar with the investment options available. But the low-cost options to invest in mutual funds have made the processes very attractive to the youth as well as the elderly. Since now people can start spending from as low as Rs. 500/- on mutual funds, more and more people have begun investing in mutual funds, read this to know more about the low-cost investment options available in the country.
It has been found that the age group who invest in long-term mutual funds are aged between 30 and 50. This shows the mature side of the population. The logic behind this trend is that when you invest for such a long span of time, you will be generating income from your daily job and profit from the investment. The key factor is knowing where to invest. The answer can’t be said in a single word. The profit or loss of a share depends upon the commodity you are investing upon. Before investing in a certain mutual fund, check out their previous track record. Study their performance in the past few months or past few years if the data is available. This gives the overall information about their market trend performance. If it is in a steady state of rising, by all means, you can invest in them. But if negative fluctuations are high, it’s better not to take the risk.
Here is a comprehensive list of the best long-term investment options available to the public as of 2017.
Large cap:
- SBI Bluechip Fund: SBI Bluechip Fund has a return value of 19% for a five-year plan and 20% for a three-year plan, as of March 2017. The investments have very low risk and high return grade.
- Birla SL front line Equity Fund: another good mutual fund scheme, having a return value of 19% for a five-year plan and 17% for a three-year plan, as of March 2017. The investments have below average risk and above average return grade.
Diversified:
- Franklin Prima Plus Fund: This scheme has a return value of 18% for a five-year plan and 21% for a three-year plan, as of March 2017. The investments have low risk and above average return grade.
- ICICI prudential value discovery fund: This scheme has a return value of 24% for a five-year plan and 27% for a three-year plan, as of March 2017. The investments have below average risk and high return grade.
Mid-cap and small-cap Equity
- HDFC Mid-cap Opportunities Fund: This scheme has a return value of 25% for a five-year plan and 30% for a three-year plan, as of March 2017. The investments have below average risk and above average return grade.
- Franklin Smaller Companies Fund: This scheme has a return value of 31% for a five-year plan and 34% for a three-year plan, as of March 2017. The investments have low risk and average return grade.
Equity Linked Saving Scheme (ELSS)
- Franklin Tax Shield Fund: This scheme has a return value of 18% for a five-year plan and 21% for a three-year plan, as of March 2017. The investments have low risk and average return grade.
- Axis Long Term Equity Fund: This scheme has a return value of 22% for a five-year plan and 22% for a three-year plan, as of March 2017. The investments have low risk and high return grade.