Best Long Term Mutual Funds

5 Best Long Term Mutual Funds In India You Are Looking Out

Investors today find investing in mutual funds a safer option. These investments are diversified in various stocks and therefore are less risky in comparison to trading in shares. They also yield a good profit. You can invest in 5 best long term mutual funds such as Franklin India prima fund and others for a long time.

The investments for a short period are called short term investments, and the finances for an extended period are called long term investments.

Long term mutual funds

The investment in mutual funds for at least five years is called long term investment. The mutual funds that are suitable to be bought and held for five years and more are termed as long term mutual funds. It is essential that you choose those mutual funds that you can invest at a stretch for five years or more.

If you do not withdraw any money from your brokerage account for at least five years, then you will be called a long term investor. The long term mutual funds are known to yield a good return and here are 5 best long term mutual funds for you,

How can you become a long term investor?

A long term investor has the mentality of buying and holding stocks. They choose and purchase those funds that they do not sell for at least five years. They mostly follow the lazy portfolio strategy.

A lazy portfolio strategy implies the collection of mutual funds that need very little processing. As these investments are made for an extended period of 5 years and more, therefore, they do not need much maintenance. It is an excellent strategy as you will suffer less loss. It also prevents from taking wrong decisions of investment.

The 5 best long term mutual funds to invest in 2019 are:

  • Axis Long Term Equity Fund– it is an outstanding fund to invest in as it has yielded a good profit of 17.76% in 5 years.
  • Kotak Standard Multicap Fund– it has given a good return of 18.24% in 5 years.
  • HDFC Small Cap Fund– it has yielded an excellent profit of 18.54% in 5 years.
  • Franklin India Prima Fund– it has returned a good gain of 18.30% in 5 years.
  • Axis Bluechip Fund– it has given a return of 14.22% in 5 years.

These are some of the best returning long term mutual funds to invest in. But you should go through the market risks thoroughly before investing in any fund. Source

Due to the poor return of the banks, people are looking for a smarter way of investment. Nevertheless, there are a lot of options that people can try out to have a good return, but there is risk associated with it. In India, mutual funds have drawn the attention of many investors in the recent past. The slashing of bank interest rates has been the reason for it.

If you have in-depth knowledge about these funds, then you can make your wealth from here. There are indeed underperforming funds as well, but this is where a competent financial advisor can help you out.

Franklin India prima fund witnessed a rapid growth

Franklin India prima fund

Out of so many top performing funds, Franklin India prima fund is one such fund that nobody can miss out. The fund has been the consistent performer and has yielded solid return in 1 year, three years and 5-year category.

Benefits of investing

Investing in mutual funds is always subjected to risk, but if you are concerned about the market and carry out some financial analysis, you will surely hold the last laugh. People who invested in this fund were lucky enough as they got a consistent return.

The Franklin India prima fund has an AUM of more than 65000 crores with 1.85 percent Expense Ratio, making it one of the stands out mutual fund performer in India.

Top three holdings of the fund

The top three holdings of this fund comprise of HDFC bank, City Union Bank, and And Ramco Cement. The three stocks performed well in the stock market over the past couple of years and were the main reason behind the significant growth of this mutual fund.

Making its name under the banner of the mid-cap fund, which has corrected to a great extent, this fund will surely provide opportunities to its investors. The 25 years old fund has a range of stocks under its portfolio to cope up with the market risk well. In its long-run career, the fund stuns the investors by giving a staggering 19.56 percent return annually.

The portfolio of this fund is spread over 65 to 70 stock. To keep the risk appetite, low fund managers have allocated not more than 4-5% in each stock.  With the recent surge in Dalal Street because of the strong performance of BJP, investors will eye on Franklin India prima fund to have a handsome return in the long run.

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