Mutual funds are among one of the best if your in it to earn wealth over the next decade or so. They offer professional fund management and diversification – so you can potentially grow your savings steadily.
In this post, we will look at the best 5 mutual funds in India for 2025 which are good for long term and can provide solid average returns to investors.
1. Parag Parikh Flexi Cap Fund
This fund provides exposure to the global markets, investing in large-cap and mid-cap stocks, and international stocks. Run by seasoned professionals, it has consistently surpassed market averages.
Why It’s a Good Pick:
- Consistent long-term performance
- This exposure can include Alpha bets and Amazon
- Great for long term investors (5+ years)
2. Axis Bluechip Fund
A reliable large-cap fund that invests in fundamentally strong companies like Infosys, HDFC Bank and Reliance Industries. It is known for being stable when markets are volatile.
Why It’s a Good Pick:
- Suitable for moderate-risk investors
- Strong record of steady growth
- Managed by top-performing fund managers
3. Mirae Asset Large Cap Fund
Being one of the most popular large-cap funds in India,Mirae Asset prefers to invest in quality blue-chip stocks which provide stable returns over time.
Why It’s a Good Pick:
- Low expense ratio
- Great for long-term wealth creation
- Consistent 5-year return history
4. SBI Small Cap Fund
Subject to approval of the underlying funds, such investments will be made in small and emerging companies with significant growth potential. It’s a little more dangerous, but potentially even more profitable for investors who are patient.
Why It’s a Good Pick:
- High growth potential
- Perfect for aggressive investors
- Suitability Suitable for investment time frame of 7-10 years.
5. HDFC Flexi Cap Fund
This fund invests in various market caps – large, mid and small – providing balanced exposure. It’s perfect for investors who desire both safety and growth.
Why It’s a Good Pick:
- Balanced risk and reward
- Excellent long-term track record
- Diversified portfolio
Advice for Long-Term Mutual Fund Investors
- Be consistent: SIP regularly and invest.
- Do Not Withdraw Frequently: Allow the power of compounding working for you.
- Rebalance annually: Assess the performance of your funds once a year.
- Be Patient: Long term is defined as holding an investment for 5–10 years.
FAQs:
Q1: Which is the best return mutual fund in India?
SBI Small Cap Fund and Parag Parikh Flexi Cap Fund are some of the best long-term performers.
Q2: Are mutual funds safe than fixed deposits?
Yes, for long-term growth. FDs are secure but provide lower returns.
Q3: How much should I invest in mutual funds each month?
You can begin with ₹500-₹1,000 per month through SIP and start increasing with your earnings.
Q4: Safe for beginners?
Yes… especially large-cap, flexi-cap funds given their low risk.