List of Top Long Term Mutual Funds in India

Long-term investment involves holding assets for years or decades. This strategy leverages compounding for substantial returns, helps investors weather market volatility, and provides stability against short-term fluctuations. For those aiming for overall wealth accumulation, mutual funds for long term investment provide consistent and steady growth. This article will explore a list of the top mutual funds for long term investment in 2025, fund overviews, and guidance on how to invest in these options.

Top 10 Long Term Mutual Funds in 2026 

The following is an educational list of the best mutual funds for long term investment, based on their 3-yr, 5-yr, and 10-yr CAGR:

Note: The data on the list is from 2nd February 2026. This data is derived from the Tickertape Mutual Fund Screener.

• Plan: Growth
• 3Y CAGR: Sorted from Highest to Lowest
• 5Y CAGR: Positive (Set lower limit to 0)
• 10Y CAGR: Positive (Set lower limit to 0)

🚀 Pro Tip: You can use Tickertape’s Mutual Fund Screener to research and evaluate funds with over 50+ pre-loaded filters and parameters.l Fund Screener to research and evaluate funds with over 50+ pre-loaded filters and parameters.

Overview of the Best Long Term Mutual Funds

DSP World Gold Mining Overseas Equity Omni FoF

DSP World Gold Mining Overseas Equity Omni FoF invests in overseas equity funds that focus on gold mining companies worldwide. This fund-of-funds targets companies involved in mining and producing gold, offering exposure to mining operations rather than just gold prices.

LIC MF Gold ETF FoF

LIC MF Gold ETF FoF invests in gold exchange-traded funds to provide exposure to domestic gold prices. This fund-of-funds allows investors to participate in gold price movements without holding physical gold or maintaining a demat account.

Aditya Birla SL Gold Fund

Aditya Birla SL Gold Fund invests in gold and gold-related instruments to track domestic gold prices. The fund provides investors with exposure to gold as an asset class through units that mirror gold price movements.

Nippon India Gold Savings Fund

Nippon India Gold Savings Fund invests primarily in gold exchange-traded funds and gold-related securities. The fund tracks domestic gold prices and offers investors a way to invest in gold without dealing with physical storage or purity concerns.

ICICI Pru Regular Gold Savings Fund

ICICI Pru Gold ETF FOF invests in gold exchange-traded funds, specifically the ICICI Prudential Gold ETF. This fund-of-funds provides exposure to domestic gold prices without requiring investors to open a demat account.

SBI Gold

SBI Gold invests in gold and gold-related instruments to provide returns that correspond to gold price movements. The fund tracks domestic gold prices and allows investors to participate in the gold market through mutual fund units.

HDFC Gold ETF FoF

HDFC Gold ETF FoF invests in the HDFC Gold Exchange Traded Fund to provide exposure to domestic gold prices. This fund-of-funds structure eliminates the need for investors to hold a demat account while investing in gold.

Quantum Gold Saving Fund

Quantum Gold Saving Fund invests in gold exchange-traded funds and physical gold to track domestic gold prices. The fund provides investors with exposure to gold as an asset class through a simple mutual fund structure.

Invesco India Gold ETF FoF

Invesco India Gold ETF FoF invests in gold exchange-traded funds, specifically the Invesco India Gold ETF. This fund-of-funds provides exposure to domestic gold prices without requiring investors to hold physical gold or maintain a demat account.

Axis Gold Fund

Axis Gold Fund invests primarily in gold and gold-related securities to track domestic gold price movements. The fund offers investors a way to gain exposure to gold through mutual fund units that reflect changes in gold prices.

How to Invest in Mutual Funds for the Long Term?

You can easily invest in mutual funds for the long term by following these steps:

1. To invest in mutual funds for the long term, you can visit an equity investment platform such as smallcase or Tickertape.
2. The next step would be to research and identify the top mutual funds to invest for long term that align with your investment thesis. You can easily select and learn more about these mutual funds to invest for long term with the help of a financial tool like the Tickertape Mutual Fund Screener. With 50+ pre-loaded filters, it helps you to create a comprehensive list by giving insights about the fund’s performance and allows users to compare SBI MF mutual funds.
3. Once you have selected the long term mutual funds to invest based on different metrics and parameters, go to smallcase.com or the smallcase app, and login via your phone number. Click on ‘Discover‘ and enter the name of the specific mutual fund name in the search bar and hit enter. To start the long term mutual funds SIP, you can click on ‘invest now’ and select whether you want to invest a lump sum amount or start an SIP and start investing!

Here are a few popular smallcases among new investors:

What are Long Term Mutual Funds?

Long-term investment mutual funds span over three years, with equity mutual funds and hybrid funds often being among the best funds for long term investment. These long-term mutual funds generally provide higher growth potential compared to debt mutual funds and traditional savings instruments. However, like all investments, long-term mutual fund investments are subject to market risks and do not guarantee returns. Understanding which type of mutual fund is best for long term helps in making prudent choices that can withstand market fluctuations over extended periods.

Features of the Best Mutual Fund For the Long Term

Long-term mutual funds work differently from short-term or mid-term investment options. When you understand these key characteristics, you can pick the right funds and make better decisions for your financial future:

• Built for the Long Haul: These funds work best when you’re planning for major life goals, think retirement, your child’s college education, or wedding expenses. A good long-term SIP mutual fund helps you reach these goals more efficiently.
• The Risk Factor: You’ll face higher risks with long-term mutual funds compared to shorter-term options. Interest rate changes affect them significantly. Plus, they carry credit risk because they invest in government and corporate bonds for extended periods. Picking quality funds in India helps you manage these risks better.
• Return Potential: Long-term investments in top-performing mutual funds can deliver higher returns, often hitting double digits over time. You can use SIP and lumpsum calculators to estimate how your chosen funds might perform over the years.

Advantages of Investing in the Best Mutual Fund For Long Term

Growth-oriented mutual fund schemes offer several benefits that match different financial needs and goals:

• Planning Your Financial Future: Long-term mutual funds require you to plan ahead. When you address your future financial goals early, you build a strong foundation for achieving major life milestones without stress. A clear roadmap makes you financially prepared for the journey ahead. Tools like SIP and lumpsum calculators help you estimate returns and choose stable funds for long-term growth.
• Compounding Works Its Magic: Long-term SIP mutual funds tap into the power of compounding—your earnings generate more earnings. Over 5, 10, or 30 years, compounding can multiply your returns significantly. Systematic investment plans (SIPs) boost this effect even further, especially in quality funds.
• Riding Out Market Swings: Long-term SIP investments include strategies that handle market volatility well. You develop a better understanding of how markets work and don’t panic during short-term ups and downs. This approach leads to more stable returns over time, particularly with equity funds focused on long-term growth.
• Making Big Goals More Affordable: When you start investing early in quality mutual funds for major objectives like retirement, education, or marriage, you lighten the financial load. Early investments use compounding to your advantage, reducing the total amount you need to invest while improving your overall returns. Investing in strong mutual funds for 2025 also gives you better protection against short-term market turbulence.

Who Should Invest in Mutual Funds for the Long Term?

• You Have Time on Your Side: Long-term equity funds work perfectly if you have years ahead to invest. These funds help you achieve major life goals—buying a house or car, paying for your child’s education or wedding, building your retirement savings, or preparing for other big expenses. Choosing the right funds ensures you maximize your potential returns.
• You Want Growth, Not Quick Wins: Long-term equity funds in India typically invest around 65% in equities. Markets tend to perform well over extended periods, so equities often deliver higher returns. This makes these funds a strong choice for 2025 if you’re looking for significant investment growth.
• You Don’t Need Guaranteed Returns: Unlike debt funds that offer predictable returns, long-term equity funds invest primarily in equities. They don’t provide fixed returns, which makes them better suited for investors who don’t need regular income and want their money to grow over many years.

Risks of Investing in the Best Mutual Fund to Invest in Long Term

When you consider long-term mutual fund options, understanding the risks matters. Here’s what you should watch out for:

• Market Ups and Downs: Long-term mutual fund schemes, even the best funds in India for 2025, carry higher market-linked risks, especially those heavily invested in equities. Your investment value can swing significantly based on how the stocks in your fund perform. Understanding what stocks your chosen fund holds becomes crucial.
• No Return Guarantees: Even top-performing long-term mutual funds don’t guarantee high returns. Your fund might lose money one year but perform exceptionally the next year. When you average out the returns over your entire investment period, the overall yield might not look as impressive. This emphasises why selecting quality funds matters.
• Withdrawals Depend on Current Value: You can withdraw from long-term investment plans in India, but the amount you get depends on the current net asset value (NAV). If your fund has incurred losses—even if it’s considered a top long-term fund—those losses will reduce your investment corpus proportionally.

Taxation on the Best Mutual Funds for Long Term Growth as per the Union Budget 2024-25

The taxation on capital gains from your mutual fund investments are based on their holding periods and asset allocation. A few revisions were made to the tax rates, depending on their types, in the Union Budget 2024-25. In order to select the best mutual fund to invest for long term, it is important to learn about these revisions as well. They include:

Equity Mutual Funds

Debt Mutual Funds

Hybrid Mutual Funds

Note: Mutual fund schemes where neither the equity nor debt orientation exceeds 65% will now be classified as long-term investments after 24 months. The previous holding period for these funds was 36 months. These will be taxed at the revised LTCG tax rate of 12.5%.

Differences Between Long and Short-Term Mutual Funds

The following table demonstrates a comparative analysis of long and short term investment options in mutual funds:

Factors to Consider When Choosing Long-Term Mutual Funds

Risk Tolerance

Assess how much risk you can handle. Long-term mutual funds in India come with varying risk levels. Consider how comfortable you feel with market fluctuations, then choose funds in India that match your risk profile.

Fund Type

Explore the different types of long-term mutual fund options in India, equity funds, debt funds, and hybrid funds. Each type serves a specific purpose. Select a fund type that matches both your risk appetite and your investment goals for long-term commitments.

Fund Manager Expertise

The fund manager plays a critical role in how your fund performs. Investigate the track record and expertise of the manager handling equity funds for long-term growth. This step ensures you’re trusting your investment to a capable professional, whether you’re investing in equity, hybrid, or consumption-focused funds.

Expense Ratio

The expense ratio directly impacts your returns. Lower expense ratios mean more of your money goes toward generating returns. Compare expense ratios across funds to make cost-effective choices.

To Wrap It Up…

In conclusion, long-term mutual funds offer an effective strategy for investors with specific long-term financial goals and risk appetites. Their potential for higher returns, coupled with the power of compounding, makes them an attractive choice for those willing to commit for the long term. However, aligning these funds with your financial objectives and carefully assessing your risk tolerance is crucial. Whether you’re planning for retirement, your child’s education, or simply looking to harness the benefits of compounding, long-term mutual funds may be a valuable addition to your investment portfolio. However, it is always recommended for investors to consult a financial advisor and conduct thorough research before investing.

Looking for a Loan Against Mutual Funds (LAMF)? Explore LAMF on smallcase – 

You can now apply for a loan against mutual funds (LAMF) on smallcase. Explore the quick and paperless process with the following articles about the eligibility criteria, documents required, features, benefits and more on LAMF at smallcase!

Frequently Asked Questions (FAQs) on Long Term Mutual Funds