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Top Long-Term Mutual Funds in India

Indian mutual fund AUM has crossed ₹50 lakh cr in recent years, reflecting steady growth in long-term investing participation. Equity-oriented schemes have delivered strong 5–10 year returns across market cycles, while hybrid and multi-asset funds have attracted investors seeking smoother outcomes. Long-term mutual funds focus on capital growth over extended holding periods, allowing investors to benefit from compounding and disciplined asset allocation rather than short-term market timing.

Top Long Term Mutual Funds in 2026

Top Long‑Term Mutual Funds in India 2026

Explore a list of the best long‑term mutual funds in India, sorted by 5‑year CAGR. Get detailed data on past returns, expense ratio, AUM and more.

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Showing 1 - 20 of 838 results

last updated at 8:00 AM IST 
NameMFs (838)↓↓Sub CategorySub Category↓↓PlanPlan↓↓AUMAUM↓↓CAGR 5YCAGR 5Y↓↓Expense RatioExpense Ratio↓↓CAGR 3YCAGR 3Y↓
1.SBI PSU Fund
SBI PSU Fund
Thematic Fund
Thematic Fund
Growth
Growth
6,545.08
6,545.08
26.68
26.68
0.80
0.80
31.53
31.53
2.Aditya Birla SL PSU Equity Fund
Aditya Birla SL PSU Equity Fund
Thematic Fund
Thematic Fund
Growth
Growth
6,085.65
6,085.65
25.92
25.92
0.59
0.59
28.30
28.30
3.ICICI Pru Infrastructure Fund
ICICI Pru Infrastructure Fund
Sectoral Fund - Infrastructure
Sectoral Fund - Infrastructure
Growth
Growth
8,097.89
8,097.89
24.75
24.75
1.15
1.15
22.41
22.41
4.Invesco India PSU Equity Fund
Invesco India PSU Equity Fund
Thematic Fund
Thematic Fund
Growth
Growth
1,510.76
1,510.76
24.74
24.74
0.89
0.89
28.96
28.96
5.Canara Rob Infrastructure Fund
Canara Rob Infrastructure Fund
Sectoral Fund - Infrastructure
Sectoral Fund - Infrastructure
Growth
Growth
933.71
933.71
23.29
23.29
1.03
1.03
24.98
24.98
6.LIC MF Infra Fund
LIC MF Infra Fund
Sectoral Fund - Infrastructure
Sectoral Fund - Infrastructure
Growth
Growth
1,006.68
1,006.68
23.21
23.21
0.98
0.98
27.59
27.59
7.DSP India T.I.G.E.R Fund
DSP India T.I.G.E.R Fund
Sectoral Fund - Infrastructure
Sectoral Fund - Infrastructure
Growth
Growth
5,459.77
5,459.77
23.18
23.18
0.74
0.74
24.75
24.75
8.Quant Small Cap Fund
Quant Small Cap Fund
Small Cap Fund
Small Cap Fund
Growth
Growth
27,653.65
27,653.65
23.09
23.09
0.83
0.83
19.15
19.15
9.Franklin Build India Fund
Franklin Build India Fund
Sectoral Fund - Infrastructure
Sectoral Fund - Infrastructure
Growth
Growth
3,173.61
3,173.61
22.95
22.95
0.95
0.95
25.49
25.49
10.Nippon India Power & Infra Fund
Nippon India Power & Infra Fund
Sectoral Fund - Energy & Power
Sectoral Fund - Energy & Power
Growth
Growth
7,127.91
7,127.91
22.76
22.76
0.95
0.95
24.61
24.61
11.HDFC Infrastructure Fund
HDFC Infrastructure Fund
Sectoral Fund - Infrastructure
Sectoral Fund - Infrastructure
Growth
Growth
2,417.41
2,417.41
22.68
22.68
1.15
1.15
24.32
24.32
12.Bandhan Small Cap Fund
Bandhan Small Cap Fund
Small Cap Fund
Small Cap Fund
Growth
Growth
20,474.12
20,474.12
22.60
22.60
0.49
0.49
29.48
29.48
13.Bank of India Mfg & Infra Fund
Bank of India Mfg & Infra Fund
Sectoral Fund - Infrastructure
Sectoral Fund - Infrastructure
Growth
Growth
689.06
689.06
21.93
21.93
0.62
0.62
25.02
25.02
14.ICICI Pru India Opp Fund
ICICI Pru India Opp Fund
Thematic Fund
Thematic Fund
Growth
Growth
35,665.82
35,665.82
21.82
21.82
0.65
0.65
21.45
21.45
15.Motilal Oswal Midcap Fund
Motilal Oswal Midcap Fund
Mid Cap Fund
Mid Cap Fund
Growth
Growth
33,689.20
33,689.20
21.74
21.74
0.82
0.82
20.21
20.21
16.Nippon India Small Cap Fund
Nippon India Small Cap Fund
Small Cap Fund
Small Cap Fund
Growth
Growth
67,641.50
67,641.50
21.20
21.20
0.65
0.65
19.31
19.31
17.ICICI Pru Dividend Yield Equity Fund
ICICI Pru Dividend Yield Equity Fund
Dividend Yield Fund
Dividend Yield Fund
Growth
Growth
6,531.48
6,531.48
21.12
21.12
0.57
0.57
20.86
20.86
18.Invesco India Smallcap Fund
Invesco India Smallcap Fund
Small Cap Fund
Small Cap Fund
Growth
Growth
9,716.40
9,716.40
20.93
20.93
0.40
0.40
22.66
22.66
19.ICICI Pru Commodities Fund
ICICI Pru Commodities Fund
Thematic Fund
Thematic Fund
Growth
Growth
3,677.09
3,677.09
20.81
20.81
0.97
0.97
19.02
19.02
20.Sundaram LT Tax Adv Fund-Sr III
Sundaram LT Tax Adv Fund-Sr III
Equity Linked Savings Scheme (ELSS)
Equity Linked Savings Scheme (ELSS)
Growth
Growth
31.88
31.88
20.80
20.80
1.18
1.18
17.32
17.32
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Analyse Long Term Mutual Funds Further

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Disclaimer: Please note that the above table is for informational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing. The data is derived from Tickertape Mutual Fund Screener and is subject to real-time updates.

Selection criteria: 5Y CAGR: Highest to Lowest, Plan: Growth, Category: Equity

What are Long Term Mutual Funds?

Long-term mutual funds are schemes designed for investors who plan to stay invested for several years, typically five years or more. These funds invest in equities, debt, or a mix of assets to build wealth over an extended period through compounding and market growth.

Overview of the Best Long Term Mutual Funds

SBI PSU Fund

This fund primarily invests in public sector undertaking (PSU) companies across various industries. It aims to deliver long‑term capital growth by focusing on strong, government‑linked businesses with established track records.

Aditya Birla SL PSU Equity Fund

This fund invests mainly in PSU stocks across sectors like energy, banking, and infrastructure. It aims to generate long‑term returns by backing well‑positioned public sector companies.

Invesco India PSU Equity Fund

This fund focuses on investing in PSU companies that offer stable earnings and growth potential. It aims to grow capital over time by selecting quality public sector stocks expected to benefit from economic developments.

ICICI Pru Infrastructure Fund

This fund primarily invests in companies related to infrastructure development, focusing on sectors like construction, power, and transport. It aims to provide long‑term capital appreciation by investing in high‑growth infrastructure stocks.

Canara Rob Infrastructure Fund

This fund seeks to invest in the infrastructure sector, focusing on companies in industries like energy, transportation, and real estate. It aims to capitalise on the growth of the Indian infrastructure space and provide capital gains over time.

How to Invest in Long-Term Mutual Funds?

Here's how you can identify and invest in the best mutual funds for long-term investment with Tickertape Mutual Fund Screener -

  1. Create an account on the Tickertape or log in if you already have one.
  2. Open Long-Term Mutual Funds Screener
  3. Filter out the best long-term mutual funds based on over 50 fundamental and technical filters.
  4. After identifying the long-term mutual fund that aligns with your investment thesis, click on "Place Order" to invest in the mutual fund.

With Tickertape Mutual Fund Screener, you can invest via 'lumpsum' or start a 'SIP' in long-term mutual funds. Moreover, by connecting your portfolio, you can do a deep analysis of your portfolio and assess its performance.

Taxation on Best Long Term Mutual Funds in India

Long-term capital gains tax applies when investors hold mutual fund units beyond the specified holding period. The applicable holding period and tax rate depend on whether the fund qualifies as equity-oriented or non-equity.

Fund Type Holding Period for Long Term Tax Treatment
Equity-Oriented Mutual Funds More than 12 months Gains taxed at 12.5%. The first ₹1.25 lakh of long-term gains in a financial year is exempt.
Non-Equity Mutual Funds More than 24 months Gains taxed at 12.5% without indexation.

Benefits of Investing in Best Long Term Mutual Funds

Compounding Effect

Long-term equity funds like Parag Parikh Flexi Cap and HDFC Mid Cap have historically outpaced short-term returns. For example, many large-cap and flexible-cap funds delivered 12–15%+ CAGR over 5–10 years compared to ~7–8% in short horizons, highlighting compounding benefits with time in the market.

Reduced Long-Term Volatility

Data shows that equity mutual funds exhibit higher standard deviation in 1-year returns (~20–25%), but this volatility compresses over 5+ years (~10–12%). SBI Equity Hybrid, with its equity+debt mix, also shows smoother results over long holding periods vs short intervals.

Dynamic Risk Control

Balanced Advantage funds like HDFC Balanced Advantage have demonstrated lower drawdowns during corrections. Over market stress phases, dynamic allocation helped reduce downside vs pure equity, showing better long-term risk-adjusted performance.

Multi-Asset Cushioning

ICICI Pru Multi-Asset Fund's ability to allocate across equity, debt, and commodities (incl. gold) has historically reduced negative correlation effects. In sideways equity markets, allocation to non-equity assets has cushioned returns better than pure equity funds.

Risks of Investing in Best Long Term Mutual Funds

Drawdown Risk

Funds like HDFC Mid Cap can deliver strong long-term CAGR but also suffer steep short-term drawdowns. Mid-cap indices have dropped ~25–30% in market corrections historically, meaning NAVs in mid-cap funds can swing widely before recovery.

Allocation Lag

Parag Parikh Flexi Cap Fund's global allocation can underperform domestic-only strategies during phases when global markets lag. For example, when Indian markets outperform global peers, foreign exposure can dilute returns.

Global Exposure Impact

SBI Equity Hybrid and HDFC Balanced Advantage often hold debt portions. In strong bull equity markets, this defensive allocation can lead to underperformance vs pure equity funds, especially over medium horizons.

Model Dependence

ICICI Pru Multi-Asset shifts between asset classes. If macro signals misfire (e.g., rising equity when the model favours debt), short-term returns can lag simpler equity or hybrid funds.

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Factors to Consider Before Investing in Best Long Term Mutual Funds

Long-Term Track Record

Performance consistency across longer horizons highlights strategy durability. For example, a 5-year CAGR that remains above the category average, such as in the case of Parag Parikh Flexi Cap, reflects sustained relative performance over time.

Expense Ratio

Ongoing charges directly affect realised returns. A difference such as 0.75% versus 0.60% creates a 0.15% annual cost gap, which compounds over extended holding periods and influences net outcomes.

Volatility Metrics

Asset allocation patterns shape performance across market phases. Balanced Advantage structures, such as HDFC Balanced Advantage, have historically shown relative resilience in sideways conditions, while pure equity funds have tended to participate more strongly in bull markets.

Asset Allocation Style

Standard deviation and downside deviation measure fluctuation levels over longer periods. Lower long-term volatility, as observed in funds such as SBI Equity Hybrid or ICICI Prudential Multi-Asset, has corresponded with comparatively smoother return patterns.

Conclusion

The best mutual fund for long-term aims to build wealth through sustained exposure to equities, hybrid strategies, or diversified asset allocation. Historical data shows that longer holding periods tend to smooth volatility and improve return consistency. However, interim drawdowns and allocation shifts remain part of market cycles. Investors should assess fund strategy, risk profile, and long-term objectives before allocating capital to such schemes.

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Frequently Asked Questions About Best Long Term Mutual Funds

  1. What are long-term mutual funds?

    Long-term mutual funds are schemes designed for investors who plan to stay invested for five years or more. These funds typically invest in equities, hybrid strategies, or multiple asset classes with the objective of generating capital growth through compounding across market cycles.

  2. Which mutual fund is best for long term?

    The following are the best long-term mutual funds based on 1-year returns:
    1. DSP World Gold Mining Overseas Equity Omni FoF
    2. SBI Silver ETF FOF
    3. HDFC Silver ETF FoF
    4. Kotak Silver ETF FoF
    5. ICICI Pru Silver ETF FOF

    Disclaimer: Please note that this long-term funds list is for educational purposes only, and is not recommendatory.

  3. What are the advantages of investing in long-term mutual funds?

    Long-term mutual funds allow investors to benefit from compounding, smoother volatility over extended periods, and professional portfolio management. Hybrid and multi-asset funds can also adjust allocation across market cycles, which may help manage drawdowns compared to short-term investing.

  4. What are the risks of investing for the long term in mutual funds?

    Long-term investing does not eliminate market risk. Equity and mid-cap funds can face significant interim drawdowns. Allocation strategies may underperform in certain cycles, and higher expense ratios can impact compounded returns over time.

  5. Who can consider investing in funds for the long term?

    Investors with long-term financial goals such as retirement, wealth creation, or major life expenses may evaluate these funds based on their risk profile and allocation strategy. Many individuals invest through a long-term SIP to invest regularly and stay disciplined across market cycles.

    Disclaimer: This response is for general awareness only and should not be treated as investment advice. Investors should assess suitability independently or consult a financial advisor.

Disclaimer: This article is for informational purposes only. The content of the article including securities/investment products mentioned if any, should not in any manner be construed as an investment advice, recommendation, offer, solicitation to buy/hold/sell any securities/investment products. The securities quoted if any, are for illustration only and are not recommendatory. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Please consult a SEBI-registered financial advisor before investing.