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Best Long-Term Mutual Fund to Invest…!!

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Best Long-Term Mutual Fund to Invest

What are the Long-Term Mutual Fund? 

A mutual fund that is held for a longer period, ideally more than one year is known as Long Term Mutual Fund. 

How to choose Long Term Mutual Fund 

To choose Long Term Mutual Fund, an investor needs to follow these certain guidelines: 

  • An investor first needs to decide their financial goals and their risk tolerance. 
  • Then look for the team management, as well as experienced of the fund manager. 
  • An investor should also look upon their previous returns before investing in any scheme. 
  • Make sure to avoid those mutual funds with high turnover ratio. 
  • Buy those mutual funds with having no load. 

What are the benefits of investing in Long Term Mutual Funds? 

The benefits of investing in Long Term Mutual funds are: 

  •  Long Term mutual funds are designed to serve certain specific long-term financial goals. Any investor can invest small amounts at regular interval like per month through SIP (Systematic Investment Plan). It has a potential to deliver risk- adjusted returns in the long term. 
  • Return rate always fluctuates and remain volatile on short term mutual funds, however long-term mutual funds are comparatively less volatile and hold great returns. 
  • Long term mutual funds provide better tax benefits in mutual funds. It is always advisable for investors to invest in the long term to avoid heavy tax rates. 

What are the things to consider before investing in any Long-Term mutual Fund?

The things to consider before investing in any Long Term Mutual Fund: – 

  •  Performance against Benchmark: 

An investor before selecting any Long-Term Mutual Fund must look upon its performance against a benchmark. A benchmark index of the mutual fund is a standard against which its performance and stock allocation are compared.   

  • Performance Consistency: 

The consistency in the performance of mutual fund should play an important role before selecting any mutual fund. So, before investing in any long-term mutual fund, an investor must track down the previous returns of that fund.  

  • Expense Ratio: 

It is one of the critical factors before considering any investment in any long-term mutual fund. The expense ratio of a fund is basically the fee charged by an AMC for the administration, management, promotion and distribution of a mutual fund. 

  • AMC Track Record (Including AUM)  

An AMC does play an important role in the managing of the mutual fund. The track record of AMC plays a crucial and vital role in determining the future of returns. A good AMC with better management and experience team will provide a better result to their investor.  

Best Mutual Fund to invest for Long Term:

Ans: – Here is the list of best mutual funds to invest for Long Term in 2019, according to economic times: 

  • L&T Tax Advantage Fund. 
  • ICICI Prudential Bluechip Fund. 
  • SBI Magnum MultiCap Fund. 
  • Aditya Birla Sun Life Tax Relief 96. 
  • L&T India Value Fund. 
  • SBI Bluechip Fund. 

 

Thinking about Investments. Click here to know what is the right investment for you

 

*Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing.

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