Top Mutual Funds for Long-Term Investment in 2025
Investing in mutual funds over the long term has consistently proven to be an effective way to build wealth. With numerous funds available, selecting the right ones can be daunting. To help investors make informed choices, here is a curated list of top-performing funds in various categories such as large-cap, mid-cap, small-cap, flexi-cap, multi-cap, and global funds. These funds have demonstrated consistent returns and are suitable for long-term investment strategies.
Benefits of Long-Term Investments in Mutual Funds
Long-term investments in mutual funds will have the benefit of steady compounding, which maximizes returns through investment. It allows investing through the storm of market volatility with steady financial growth. To reap these benefits, selecting the best-performing funds aligned to the financial goals should be pursued.
How to Choose Mutual Funds for Long-Term Goals?
The choice of mutual funds should be based on financial goals, investment horizon, and risk appetite. Any other method may not produce the best results.
Best Mutual Funds for Long-Term Investment in 2025
Large-cap Mutual Funds
Large-cap funds invest in established companies. These companies provide stable and consistent returns.
1. Nippon India Large Cap Fund
This fund focuses mainly on investing in large-cap stocks to seek long-term capital appreciation.
Fund Details:
- % of Asset allocation: 98.76% in domestic equity (64.6% in Large-Cap, 11.39% in Mid-Cap, 3.34% in Small-Cap)
- Return’s Performance: 21.3% in 1 year, 22.0% in 3 years, 20.4% in 5 years, 17.0% since inception.
- SIP Returns: 24.8% in 3 years, 25.6% in 5 years on an annualized basis.
- Expense ratio: 0.66%
- Size: Rs.35,270.2 cr.
- SIP: Rs.100
- Exit load: 1% if redeemed within 7 days.
The scheme is good for investors in search of growth along with regular returns over long periods.
2. Invesco India Large Cap Fund
Investment in the large-cap category helps to sustain capital appreciation. This fund invests in large-cap stocks for regular capital appreciation.
- Asset distribution: 98.3% in domestic equity (52.7% in large-cap, 11.1% in mid-cap, 5.3% small-cap)
- Returns: 24.9% in 1 year, 16.6% in 3 years, 19.5% in 5 years, 16.4% since inception.
- SIP returns: 23.9% in 3 years, 22.4% in 5 years on an annualized basis.
- Expense ratio: 0.75%
- Fund size: Rs.1,316.6 crore
- Minimum SIP: Rs.100
- Exit load: none
This fund is appropriate for investors with a stable growth objective who want to invest at a minimal cost without paying any exit load.
Mid-Cap Mutual Funds
These mid-cap funds are invested in those companies that have a lot of growth potential, and therefore the returns are pretty high, with a moderate risk involved.
1. Motilal Oswal Midcap Fund
This fund invests primarily in mid-cap stocks for long-term growth.
- Asset allocation: 99.39% in domestic equities (10.59% large-cap, 12.71% mid-cap, 20.9% small-cap)
- Returns: 61.6% in 1 year, 37.08% in 3 years, 35.0% in 5 years, 26.6% since inception.
- SIP returns: 48.4% in 3 years, 43.3% in 5 years on an annualized basis.
- Expense ratio: 0.57%
- Fund size: Rs.22,897.62 crore
- Minimum SIP: Rs.500
- Exit load: 1% if redeemed in less than a year.
2. Invesco India Mid Cap Fund
This fund is focused on the mid-cap mode of investment as a method of high capital appreciation.
- Returns: 47.5% in 1 year, 26.7% in 3 years, 29.9% in 5 years, 22.8% since inception.
- SIP returns: 38.5% in 3 years, 33.6% in 5 years on an annualized basis.
- Expense ratio: 0.58%
- Fund size: Rs.5,624.96 crore
- Minimum SIP: Rs.1,000
- Exit load: none after 1 year
Small-cap Mutual Funds
Small-cap funds invest in companies with high growth potential but carry higher risk.
1. Bank of India Small Cap Fund
This fund invests in small-cap companies for long-term growth.
- Returns: 34.1% in 1 year, 24.3% in 3 years, 38.6% in 5 years, 32.7% since inception.
- SIP returns: 34.1% in 3 years, 36.2% in 5 years on an annualized basis.
- Expense ratio: 0.46%
- Fund size: Rs.1,613.3 crore
- Minimum SIP: Rs.1,000
- Exit load: none after 1 year
2. Nippon India Small Cap Fund
This fund focuses on small-cap stocks for aggressive growth.
- Returns: 28.3% in 1 year, 27.5% in 3 years, 36.0% in 5 years, 23.1 % since inception.
- SIP returns: 34.2% in 3 years, 38.0% in 5 years on an annualized basis.
- Expense ratio: 0.68%
- Fund size: Rs.61,646.3 crore
- Minimum SIP: Rs.100
- Exit load: 1% if redeemed within 1 year
Flexi-cap mutual funds
Flexi-cap funds provide diversification across market capitalizations.
1. Parag Parikh Flexi Cap Fund
This fund invests in a balanced portfolio of large, mid, and small-cap stocks.
- Returns: 26.4% in 1 year, 17.7% in 3 years, 26.0% in 5 years, 20.7% since inception.
- SIP returns: 26.2% in 3 years, annualized, 26.9% in 5 years on an annualized basis.
- Expense ratio: 0.63%
- Fund size: Rs.84,640 crore
2. JM Flexi Cap Fund
The fund invests across market capitalizations.
- Returns: 37.3% in 1 year, 28.2% in 3 years, 25.8% in 5 years, 19.6% since inception.
- SIP returns: 35.8% in 3 years, 31.9% in 5 years on an annualized basis.
- Expense ratio: 0.52%
- Fund size: Rs.5,012 crore
Multi-cap mutual funds
Multi-cap funds invest across large-cap, mid-cap, and small-cap stocks.
1. Mahindra Manulife Multi Cap Fund
It offers diversification for medium to long-term growth.
- Returns: 26.1% in 1 year, 21.5% in 3 years, 26.5% in 5 years, 20.1% since inception.
- SIP returns: 3-year: 28.2% annualized, 5-year: 28.8% annualized
- Expense ratio: 0.43%
- Fund size: Rs.4,857.81 crore
Global Mutual Funds
The Global Fund offers international exposure to markets.
1. Motilal Oswal Nasdaq 100 Fund of Funds
This fund tracks the Nasdaq-100 Index, concentrating on technology stocks.
- Returns: 53.5% in 1 year, 20.1% in 3 years, 27.6% in 5 years, 27.8% since inception.
- SIP returns: 41.3% in 3 years, 29.1% in 5 years on an annualised basis.
- Expense ratio: 0.20%
- Fund size: Rs.5,468 crore
Investment in these funds will enable investors to align their portfolios with their long-term financial goals and achieve significant growth over time. Starting a systematic investment plan in any of these funds is the prudent way to build wealth.
