Top 10 Best Mutual Funds to Invest in 2021 India for Long Term

Top Mutual Funds in India

Best Mutual Funds for Long Term

Amid the pandemic situation that we are currently working in, there has been a lot of uncertainty seen in the market today. People that had been taking the route of a fixed investment are also facing less because inflation is constantly high. Now for enough return generation, careful mutual fund investment seems to be a right choice.

If you are constantly working for an understanding of the best mutual funds that can provide a good return. Consulting with an Investment expert can help you get clarity on your risk preferences and also this guide will surely give you all of the information that you had been looking for.

How to Choose Top Performing Mutual Funds

An investor has to go through a specific selection process that’s guided by four factors.

1. Investment Objective

The investor should be able to sort the personal life objectives and an investment plan should be chosen accordingly. Each of the schemes stays different and should serve varied purposes. Understand that long-term goals won’t work with a short-term investment scheme. All of the required details of the scheme, asset allocation, goals as well as strategy are provided with the information document. Go through it carefully.

2. Fund History

The recorded history of the performance of a specific fund including the market highs and lows is the fund history. This gives information on the strength it had in difficult times. If a fund is recently launched, chances are that it won’t survive when the market is low. Whereas a fund that has a quality history of consistent return generation shows its precision on investment strategies. So if your goal is to invest for the next 5 years, check the record of a specific fund for the past 5 years.

3. Expense Ratio

The annual fees that are charged by the manager of the fund house of investors fund are known as the expense ratio. The final payoff that the investor gets, includes returns generated, from which the expense ratio is subtracted. So if the expense ratio is high, it means that you will get lower returns.

4. Fund Manager Performances

The involvement of the fund manager is critical for fund performance. It’s the responsibility of fund manager to show everything is working fine. So check for the fund manager’s track record. Good fund management means less loss and consistent returns.

Best Mutual Funds to Invest in 2021 India

Here we shall see in detail the best mutual funds that have been giving a consistent performance for the past 10 years. We shall also take a look at the top 10 performing mutual funds that will give you higher returns in the next 10 years. The data is going to be highly beneficial for the financial investments you’re trying to make.

  • Mirae Asset Emerging Bluechip Fund

  • ICICI Prudential Technology Fund

  • Nippon India Pharma Fund

  • DSP Small Cap  Fund

  • Invesco India Mid Cap Fund

  • Edelweiss Mid Cap Fund

  • HDFC Mid-Cap Opportunities Fund

  • BNP Paribas Mid Cap Fund

  • Aditya Birla Sun Life Digital India Fund

  • Franklin India Smaller Companies Fund

Let’s have a look all the best mutual funds to invest in 2021 with their category and annualized rate of returns (5 years, 10 years) in India for long term by the help of table.

S. No List of Mutual Funds Category / Sector  AUM (in Crores) Returns in 5Y Returns in 10Y
1 Mirae Asset Emerging Bluechip Fund – Growth Large & Mid Cap Fund 13,405.13 17% 20%
2 ICICI Prudential Technology Fund – Growth Sectoral/Thematic 938.05 19% 17%
3 Nippon India Pharma Fund – Growth Sectoral/Thematic 4,150.97 11% 16%
4 DSP Small Cap  Fund – Growth Small Cap Fund 5,791.42 10% 15%
5 Invesco India Mid Cap Fund – Growth Mid Cap Fund 1,141.51 12% 15%
6 Edelweiss Mid Cap Fund – Growth Mid Cap Fund 1,022.74 12% 15%
7 HDFC Mid-Cap Opportunities Fund-Growth Mid Cap Fund 24,215.26 11% 15%
8 BNP Paribas Mid Cap Fund – Growth Mid Cap Fund 766.95 9% 15%
9 Aditya Birla Sun Life Digital India Fund – Growth Sectoral/Thematic 735.06 19% 15%
10 Franklin India Smaller Companies Fund – Growth Small Cap Fund 6,151.90 8% 14%
Average Annualized Returns: 13% 16%

Note: AUM or Assets Under Management is the whole market value of the investment that an entity or person manages on the client’s behalf. The definition of AUM, as well as the formula, can vary with the company.

Different Kinds of Mutual Funds

SEBI has announced a re-categorization of the mutual fund scheme in the year 2017. This was done for having uniformity in the mutual fund house. You can find such investments easy and one can do so by keeping risk tolerance and investment objectives in mind. These are broadly divided into Equity mutual funds and Debt mutual funds. And then there are several subcategories like.

  • Large Cap funds

  • Small-cap funds

  • Mid-cap funds

  • Contra funds

  • Focused funds

Best Performing Mutual Funds in Last 10 Years

Here the guide will help you to understand that if you want to invest INR 10 Lacks for the next 20 years. Take a look at the table below to understand the returns you will gain in this span.

Sr. No. Investment / Returns Details Investment / Returns Amount Annualized Returns
1 Initial Investment Amount

(Principal Invest in the 2021 year)

10,00,000.00 0%
2 Returns on Investment

(in next 10 years – 2031 year)

49,00,940.91 16%
3 Returns on Investment

(in next 10 years – 2041 year)

2,40,19,221.82 16%

If you follow the model above, depending on the performance of mutual funds that we mentioned, you can get 16% of annual returns for 10 years.

Final Thoughts..

So this was the list of best mutual funds to invest in 2021 India for the long term. There are not one but several benefits to mutual fund investment that helps investor for increasing the money. It assists with long-term and short-term investment goals as well. There are several fund options that you can go through and then make an informed decision that varies from low to high-risk schemes.

About Sashi 178 Articles
Sashi Singh is content contributor and editor at IP. She has an amazing experience in content marketing from last many years. Read her contribution and leave comment.

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