Best Companies To Invest In Mutual Funds

Best Companies To Invest In Mutual Funds 2023

Mutual funds investing in equity require a fixed tenure to give better returns to the investors. We give list of best Companies To Invest In Mutual Funds 2023. These mutual funds work best over the long term as it gives your holdings time to grow and perform. Over the years, mutual funds have gained popularity for long term investments as per the market demand.

Time periods of 5 years or more are generally considered long term. Within the mutual fund category, mid cap and small cap funds tend to perform best in the long term. This is because such companies have more growth potential than large cap companies.

Apart from this, Equity Linked Savings Scheme (ELSS) are also considered as mutual funds for long term investment as they have a lock-in period of 3 years. So, if you want to save tax as well as earn higher returns/profits, you can opt for investing in ELSS. best performing mutual funds india, top 10 mutual fund companies in india, best mutual funds to invest in 2023 india, best mutual funds to invest in 2023

5 Best Mutual Funds for Long Term Investment

Here are the five most popular mutual funds for long term investment in the year 2023

Fund NameAUM ( crore )year return (%)Year Return (%)Year Return (%)
L&T Midcap Fund₹ 5,9929.158.8211.04
HDFC Small Cap Fund₹ 9,232-4.519.4110.22
Tata Retirement Savings Fund₹ 1,15712.5411.4910.78
Franklin India Small Companies₹ 6,9290.332.707.40
DSP Small Cap Fund₹ 4,9189.961.478.82

1. HDFC Small Cap Fund

Small cap funds are known to be one of the riskiest funds. However, this risk reduces when the fund is kept invested for a long period of time. HDFC Small Cap Fund is designed to help investors reach their long term financial goals. This fund has emerged as a consistent out-performer by a wide margin. It has given 7% higher returns than the benchmark in 5-years and 9% in 3-years.

Returnyear (%)years (%)years (%)

If you invest Rs 1,00,000 in this fund for 5 years. 1,62,667, the accumulated fund is Rs. (Considering 10.22% CAGR till February 4, 2020)

  • Under a professionally managed fund, the fund aims to invest in smaller companies such as NIIT Technology, Sonata Software, INOX Leisure, DCB Bank etc. for higher growth.
  • The fund invests in 5 service sectors, Chemicals, Financials, Technology and Engineering.
  • This fund invests in equity securities of companies with potential growth potential in future hence you can earn consistent returns from this scheme over a long period of time.

2. L& T Midcap Fund

Midcap funds invest in India’s 101st largest to 250th largest listed companies. Such companies account for 15-20% of the total market capitalization of India. L& T Midcap Fund is one such mutual fund which has the potential to become the bluechip company of tomorrow.

Returnyear (%)years (%)years (%)

If you invest Rs.2,00,000 in this fund for 5 years. 3,37,619, the accumulated fund is Rs. (Considering 11.04% CAGR till February 4, 2020)

  • The fund has given 11.04% returns in 5 years and 8.82% in 3 years; Both of these are higher than the returns from its benchmark.
  • The fund managers, Soumendra Nath Lahiri and Vihang Naik, do not rely on a few concentrated bets to generate these returns and have instead created a diversified portfolio of 84 stocks.
  • Finance, construction, healthcare, chemicals and engineering are the major investment sectors in this fund’s portfolio with City Union Bank, Cholamandalam Invest & Fin, Manappuram Finance and Jindal Steel & Power being the top issuers.
  • Investors in this fund have a good chance of multiplying their wealth. But, it is suggested that one should not choose this fund for less than 7 years.

3. Franklin India Smaller Companies Fund

Franklin Templeton Asset Management Company (AMC) is one of the strongest research and process fund houses in India. Franklin India Smaller Company is one of the flagship funds of Franklin Templeton AMC.

Returnyear (%)years (%)years (%)

If you invest Rs 1,00,000 in this fund for 5 years. 1,42,897, then your accumulated fund will be Rs. (Considering the 7.40% CAGR till February 4, 2020)

  • This fund was launched in January 2006. It has given an annualized return of 17.83% since inception.
  • In the last 5 years, it has given higher returns of 7.40%. Moreover, the scheme has outperformed its benchmark by 2.70% over a period of 3 years.
  • Fund’s R. Janakiraman, who has over a decade of experience. In May 2016, Hari Shyamsundar joined the fund as a manager, adding to its professional presence.
  • With 71 stocks and a highly diversified approach, it is in the market and remains consistent during market volatility. The fund’s core investments are HDFC Bank, Deepak Nitrite, Brigade Enterprises, Nesco and JB Chemicals & Pharma Fund I have done The main investment sectors of the fund are finance, construction, chemicals and services sectors.

4. DSP Small Cap Fund

This fund was closed in February 2017 even after being successful. It was reintroduced for SIP and STP only in September 2018. This fund primarily invests in smaller companies.

Returnyear (%)years (%)years (%)

If you invest Rs.2,00,000 in this fund for 5 years. If you have invested, then your accumulated fund is Rs.3,5,192. (Considering 8.82% CAGR till Jan 4, 2020)

  • The fund’s 5 year annualized returns/gains of 8.82% are around 5% higher than the returns earned by its benchmark.
  • The fund has made core investments in sectors such as chemicals, textiles, automobiles, construction and healthcare.
  • Considering their past performance and successful track record, this fund has full potential to generate higher returns in future.

5. Tata Retirement Savings Fund

Tailored towards the retirement goals of the investor, this fund is an alternative to other traditional retirement plans. It is a hybrid fund that invests in equities of multiple companies. This is a suitable fund for high risk appetite investors who want to earn good returns over the long term.

Returnyear (%)years (%)years (%)

If you invest Rs.2,00,000 in this fund for 5 years. 3,33,685, the accumulated fund is Rs. (Considering 10.78% CAGR till February 4, 2020)

  • The fund has exposure to sectors such as finance sector and other defensive sectors such as FMCG, construction and energy.
  • The manager has advised to invest in SOV, AAA rated security and cash.
  • This is a Hybrid Aggressive Mutual Fund aimed at moderate to high risk appetite.

Tax on mutual funds for long term

In India, gains from equity funds held for more than 1 year are taxed at 10% under Long Term Capital Gains Tax (LTCG) and up to Rs.1 lakh. Tax exemption is available on profits up to Rs.

Benefits of Investing in Mutual Funds for the Long Term

The profit outlook is different for short term and long term investments. Since the rate of return/profit is likely to change and remain volatile in the short term, long term investments prove to be comparatively less volatile and have the potential to give higher returns. The absolute stability associated with long term investments makes it ideal for investors with long term goals.

If the fund is invested for more than 1 year, there is tax relief on the profit earned, if it exceeds Rs.1 lakh. Till then. The Government of India has also provided tax exemption on equity mutual funds under section 80C of the Income Tax Act so i hope you understand now why you should choose this Best Companies To Invest In Mutual Funds.

Given below is the list of more mutual fund schemes for long term investment:

Scheme Name1 year return3 year return5 year returnAUM (crore)
Axis Bluechip Fund – Direct Plan – Growth19%21%12%₹9,481.19
Axis Bluechip Fund Growth18%20%1 1%₹9,481.19
Mirae Asset Tax Saver Fund – Direct Plan16%19%₹ 2,877.16
Axis Midcap Fund – Direct Plan – Growth15%19%12%₹ 3,859.37
Mirae Asset Tax Saver Fund – Regular Plan14%18%₹ 2,877.16
Axis Long Term Equity Fund – Direct Plan14%17%13%₹ 21,159.93
Mirae Asset Emerging Bluechip Fund – Direct Plan15%17%17%₹ 9,229.46
Axis Midcap Fund – Growth14%17%1 1%₹ 3,859.37
Canara Robeco Bluechip Equity Fund – Direct Plan17%17%1 1%₹ 269.32
Invesco India Growth Opportunities Fund – Direct Plan13%17%13%₹ 2,107.91
Kotak India EQ Contra Fund – Direct Plan12%17%1 1%₹ 882.66
Mirae Asset Emerging Bluechip Fund – Regular Growth14%16%16%₹ 9,229.46
IIFL Focused Equity Fund – Direct Plan29%16%13%₹ 476.45
Axis Long Term Equity Fund – Growth13%16%12%₹ 21,159.93
Canara Robeco Equity Diversified – Direct Plan14%16%10%₹ 1,587.39
BNP Paribas Large Cap Fund – Direct Plan19%16%10%₹ 812.67
JM Tax Advantage Fund – Direct Growth15%16%12%₹ 34.56
Canara Robeco Bluechip Equity Fund – Regular Plan16%16%10%₹ 269.32
JM Multicap Fund – Direct Growth17%15%12%₹ 141.82
Canara Robeco Equity Diversified – Regular Plan12%15%9%₹ 1,587.39
Invesco India Growth Opportunities Fund – Growth12%15%1 1%₹ 2,107.91
Axis Small Cap Fund – Direct Plan – Growth20%15%13%₹ 1,366.45
JM Tax Gain Fund – Growth14%15%1 1%₹ 34.56
Kotak India EQ Contra Fund Growth10%15%10%₹ 882.66
IIFL Focused Equity Fund – Regular Growth27%15%1 1%₹ 476.45
DSP Equity Fund – Direct Plan – Growth18%15%10%₹ 3,176.37
JM Multicap Fund – Growth16%14%1 1%₹ 141.82
Axis Small Cap Fund – Growth18%14%12%₹ 1,366.45
DSP Equity Fund – Regular Plan – Growth17%14%10%₹ 3,176.37
Invesco India Mid Cap Fund – Direct Plan6%13%1 1%₹ 644.95
LIC MF Infrastructure Fund – Direct Plan16%12%6%₹ 55.97
Tata Mid Cap Growth Fund – Regular Plan9%1 1%9%₹ 767.69
Invesco India Infrastructure Fund – Direct Plan9%10%8%₹ 40.59
LIC MF Infrastructure Fund – Growth16%10%5%₹ 55.97
Sundaram Rural & Consumption Fund – Direct Plan4%10%12%₹ 2,047.06
Sundaram Rural and Consumption Fund – Development4%9%12%₹ 2,047.06
Invesco India Infrastructure Fund – Growth7%9%6%₹ 40.59
DSP Natural Resources and New Energy Fund – Direct Plan4%6%13%₹ 363.17
DSP Natural Resources and New Energy Fund – Regular Plan3%5%12%₹ 363.17

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