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Tata Capital > Blog > Which Mutual funds to Invest in For Long Term Growth?

Which Mutual funds to Invest in For Long Term Growth?

Which Mutual funds to Invest in For Long Term Growth?

Mutual funds have garnered immense popularity in the past few years. And rightly so! They offer handsome returns on your hard-earned money, and you can find schemes that fit your risk profile and investment horizon well.

But when it comes to long-term growth and investment, you need to put in more thought and consider your investment objectives. Next, you must go through different MF schemes and compare them with their counterparts to make an informed choice.

If you’re still confused about which mutual fund schemes to invest in for long-term growth, this article can be your guide.

Why invest in long-term mutual fund schemes?

As you know, investment not only helps you grow your wealth, but it also helps instil financial discipline. And investing with a long-term horizon can fetch you higher returns on your deposit. This is where long-term mutual funds come into the picture.

These funds have excellent potential for long-term growth and can use compounding interest to generate optimum gains in the long run. However, these funds also come with higher risks as they are highly volatile in nature. Therefore, be mindful of your risk appetite before investing in long-term MFs, and thoroughly review the fund’s performance regularly.

Additional Read: Long Term Mutual Fund Strategy

Which mutual funds are best for long-term growth?

Long-term investments have a massive significance in your portfolio and help fulfil major life goals, such as retirement, purchasing a house, or financing your child’s education. Essentially, they aim to finance distant financial goals. Hence, you must choose a fund that has high growth potential. This is where equity funds can help you.

These funds invest in shares or stocks of a company and are also called ‘stock funds’ or ‘growth funds’. Like any other mutual fund, equity funds are also managed by a fund manager who studies the market and analyses the performance of the companies before investing in stocks.

Here are a few advantages of investing in equity funds:

  • Liquidity – Most equity fund units can be redeemed easily at any time by the investor, making them highly convenient.
  • Diversification – By investing in equity funds, you get exposure to various stocks. Hence, even if some stocks don’t perform well, you can still achieve capital gains from other stocks.
  • Cost-effectiveness – Equity funds are also easy on your pocket as you can invest through a Systematic Investment Plan (SIP) and make a small investment as low as Rs 500 a month.
  • Tax benefits – Lastly, you can even enjoy tax benefits by investing in equity funds known as ELSS under Section 80C of the Income Tax Act.

Additional Read: What All Needs to Take into Consideration while Investing in Mutual Funds

Over to you

A long-term investment is your best bet to yield maximum returns in the long run. Remember, starting early and staying in the market for long is the key to success in the world of investment. And equity funds can help you reach your goals by growing your wealth effectively.

Want to start investing in equity funds? Start right away by downloading Tata Capital’s Moneyfy app. You can compare and keep track of different funds from the comfort of your home and make profitable investment decisions!

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