Best Long Term Mutual Funds for Aggressive Investors

Best Long Term Mutual Funds for Aggressive InvestorsBest Long Term Mutual Funds for Aggressive Investors


Recent scams and NBFC financial crisis in India has created some confusion for investors whether to invest in mutual funds or not. While there is very little an investor can do on this, investors should always invest for long term where they would get greatly rewarded. If you are an aggressive investor and looking for some long term mutual funds, this article is for you. Here are the list of some of the Best Long Term Mutual Funds an aggressive investor can invest to multiply their money by 3x to 7x times.

Also Read: Best Largecap Mutual Funds to invest in 2019

Which is the best category of mutual funds for Aggressive Investor?


There are several categories of mutual funds like large cap, midcap, multi cap, small cap, balanced, debt funds and sector funds. While sector funds are high risk short term funds, the majority of the other funds are good, however would provide limited returns. Here come the midcap and small cap mutual funds. These provide superior returns compared to other mutual funds in the long term.

How we picked up these long term mutual funds to be invested by aggressive investors?


We have filtered based on below parameters.

1) We picked Mutual Fund schemes that invests in Midcap and small cap sectors.

2) Filtered Mutual Funds that outperformed in the medium to long term of 5-10 years.

3) Mutual Fund schemes that have good credit rating from Value Research are considered here.

4) Funds that has high alpha are considered here. This means, such funds can outperform benchmark indices and provide superior returns. However, some of the midcap and small cap mutual funds could not perform well due to “not so favor” sector in the last 1 year. We have re-rated some of these funds consider this.

5) Funds that have high AUM of over Rs 300 Crores is considered here. It would mean it has gained investors confidence over a period of time.

10 Best Long Term Mutual Funds for Aggressive Investors


Let us now quickly jump into the long term mutual fund schemes.

#1 – HDFC Mid-Cap Opportunities Fund


What is the fund strategy?

The mutual fund scheme aims to provide long-term capital appreciation/income by investing predominantly in Mid-Cap companies in India.

How is the Mutual Fund Performance?

This mutual fund gave 20% annualized returns in the last 10 years, 13% annualized returns in the last 5 years, 11% annualized returns in the last 3 years.

If you would have invested Rs 1 Lakh 3 years back, your investment would have grown to Rs 1.4 Lakhs. If you would have invested Rs 1 Lakh 5 years back, your investment would have grown to Rs 1.9 Lakhs. If you would have invested Rs 1 Lakh 10 years back, your investment would have grown to Rs 6.17 Lakhs. Means if you invested 10 years back, your money would have grown to 6x times.  

What are the key ratios of the fund?

This fund risk grade as per Value Research is “Below Average” and Return Grade is “Above Average”.

This mutual fund beta is 0.92 which means it is less volatile compared to the benchmark.

This mutual fund alpha is 0.98 which means it would perform little lower side with the benchmark.

Why to invest?

This mutual fund has been a consistent performer, which gave 20% annualized returns in the last 10 years and 15% annualized return since inception. Considering low beta and good alpha, this is one of the best long term mutual funds in India for aggressive investors.

#2 – Invesco India Mid Cap Fund


What is the fund strategy?

The MF scheme seeks to generate capital appreciation by investing predominantly in Midcap companies in India.

How is the Mutual Fund Performance?

This mutual fund gave 19% annualized returns in the last 10 years, 13% annualized returns in the last 5 years, 11% annualized returns in the last 3 years.

If you would have invested Rs 1 Lakh 3 years back, your investment would have grown to Rs 1.4 Lakhs. If you would have invested Rs 1 Lakh 5 years back, your investment would have grown to Rs 1.9 Lakhs. If you would have invested Rs 1 Lakh 10 years back, your investment would have grown to Rs 5.8 Lakhs. 

What are the key ratios of the fund?

This fund risk grade as per Value Research is “Below Average” and Return Grade is “Average”.

This mutual fund beta is 0.85 which means it is less volatile compared to the benchmark.

This mutual fund alpha is 1.06 which means it would outperform the benchmark.

Why to invest?

This mutual fund has been a consistent performer, which gave 19% annualized returns in the last 10 years and 14% annualized return since inception. Considering low beta and high alpha, this is one of the best long term mutual funds to invest in India for aggressive investors.

You may like: 7 types of SIP in Mutual Funds that can help you to grow your money

#3 – DSP Midcap Fund


What is the fund strategy?

The MF aims to generate long term capital appreciation from a portfolio of midcap companies in India.

How is the Mutual Fund Performance?

This mutual fund gave 18% annualized returns in the last 10 years, 14% annualized returns in the last 5 years, 11% annualized returns in the last 3 years.

If you would have invested Rs 1 Lakh 3 years back, your investment would have grown to Rs 1.3 Lakhs. If you would have invested Rs 1 Lakh 5 years back, your investment would have grown to Rs 1.9 Lakhs. If you would have invested Rs 1 Lakh 10 years back, your investment would have grown to Rs 5.3 Lakhs. 

What are the key ratios of the fund?

This fund risk grade as per Value Research is “Average” and Return Grade is “Above Average”.

This mutual fund beta is 0.86 which means it is less volatile compared to the benchmark.

This mutual fund alpha is 1.69 which means it would outperform the benchmark.

Why to invest?

This mutual fund has been a consistent performer, which gave 18% annualized returns in the last 10 years and 14% annualized return since inception. Considering low beta and high alpha, this is one of the best long term mutual funds for 2019.

#4 – Kotak Emerging Equity Scheme


What is the fund strategy?

The mutual fund scheme seeks to generate long-term capital appreciation from a portfolio of equity and equity related securities, by investing predominantly in mid companies in India.

How is the Mutual Fund Performance?

This mutual fund gave 18% annualized returns in the last 10 years, 16% annualized returns in the last 5 years, 11% annualized returns in the last 3 years.

If you would have invested Rs 1 Lakh 3 years back, your investment would have grown to Rs 1.3 Lakhs. If you would have invested Rs 1 Lakh 5 years back, your investment would have grown to Rs 2.1 Lakhs. If you would have invested Rs 1 Lakh 10 years back, your investment would have grown to Rs 5.1 Lakhs. 

What are the key ratios of the fund?

This fund risk grade as per Value Research is “Below Average” and Return Grade is “High”.

This mutual fund beta is 0.85 which means it is less volatile compared to the benchmark.

This mutual fund alpha is 0.94 which means it would perform the lower side compared to the benchmark.  

Why to invest?

This mutual fund has been a consistent performer, which gave 18% annualized returns in the last 10 years and 12% annualized return since inception. Considering low beta and good alpha, this is one of the best long term mutual funds for SIP for aggressive investors.

#5 – Axis Midcap Fund


What is the fund strategy?

The mutual fund aims to achieve long term capital appreciation by investing predominantly in equity & equity related instruments of Mid Cap companies.

How is the Mutual Fund Performance?

This mutual fund gave 13% annualized returns in the last 5 years and 14% annualized returns in the last 3 years.

If you would have invested Rs 1 Lakh 3 years back, your investment would have grown to Rs 1.4 Lakhs. If you would have invested Rs 1 Lakh 5 years back, your investment would have grown to Rs 1.9 Lakhs.

What are the key ratios of the fund?

This fund risk grade as per Value Research is “Low” and Return Grade is “Above Average”.

This mutual fund beta is 0.73 which means it is less volatile compared to the benchmark.

This mutual fund alpha is 3.47 which means it would outperform compared to benchmark.  

Why to invest?

This mutual fund has been a consistent performer, which gave 13% annualized returns in the last 5 years and 16% annualized return since inception. Considering low beta and very high alpha, this is one of the best mutual funds to invest for the long term by aggressive investors.

#6 – DSP Small Cap Fund


What is the fund strategy?

The aim of the MF is to get long-term capital appreciation by investing in a portfolio that is substantially constitutes of stocks of small cap companies.

How is the Mutual Fund Performance?

This mutual fund gave 21% annualized returns in the last 10 years, 16% annualized returns in the last 5 years, 6% annualized returns in the last 3 years.

If you would have invested Rs 1 Lakh 3 years back, your investment would have grown to Rs 1.1 Lakhs. If you would have invested Rs 1 Lakh 5 years back, your investment would have grown to Rs 2.1 Lakhs. If you would have invested Rs 1 Lakh 10 years back, your investment would have grown to Rs 6.76 Lakhs. 

What are the key ratios of the fund?

This fund risk grade as per Value Research is “Average” and Return Grade is “Average”.

This mutual fund beta is 0.88 which means it is less volatile compared to the benchmark.

This mutual fund alpha -1.61 (negative) which means it may under perform compared to benchmark.  This is because small cap and midcap were out of favor in the last 1 year. This could be a short term story, in the long term we believe that midcap and small caps to improve.

Why to invest?

This mutual fund has been a consistent performer, which gave 21% annualized returns in the last 10 years and 20% annualized return since inception. Considering low beta, this is one of the best long term mutual funds for aggressive investors.

#7 – HDFC Small Cap Fund


What is the fund strategy?

The fund seeks to provide long-term capital appreciation / income by investing predominantly in SmallCap cos in India.

How is the Mutual Fund Performance?

This mutual fund gave 16% annualized returns in the last 10 years, 15% annualized returns in the last 5 years, 15% annualized returns in the last 3 years.

If you would have invested Rs 1 Lakh 3 years back, your investment would have grown to Rs 1.5 Lakhs. If you would have invested Rs 1 Lakh 5 years back, your investment would have grown to Rs 2 Lakhs. If you would have invested Rs 1 Lakh 10 years back, your investment would have grown to Rs 4.4 Lakhs. 

What are the key ratios of the fund?

This fund risk grade as per Value Research is “Below Average” and Return Grade is “High”.

This mutual fund beta is 0.76 which means it is less volatile compared to the benchmark.

This mutual fund alpha  7.18 which means it can provide very high returns compared to benchmark

Why to invest?

This mutual fund has been a consistent performer, which gave 16% annualized returns in the last 10 years and 14% annualized return since inception. Considering low beta and very high alpha, this is one of the best long term mutual funds to invest in India in 2019 for aggressive investors.

#8 – SBI Small Cap Fund


What is the fund strategy?

The fund seeks to provide investors with opportunities for long-term growth in the capital along with the liquidity of an open-ended scheme by investing predominantly in a well diversified basket of equity stocks of small cap companies.

How is this Mutual Fund Performed?

This mutual fund gave 22% annualized returns in the last 5 years and 15% annualized returns in the last 3 years.

If you would have invested Rs 1 Lakh 3 years back, your investment would have grown to Rs 1.5 Lakhs. If you would have invested Rs 1 Lakh 5 years back, your investment would have grown to Rs 2.7 Lakhs.

What are the key ratios of the fund?

This fund risk grade as per Value Research is “Average” and Return Grade is “High”.

This mutual fund beta is 0.88 which means it is less volatile compared to the benchmark.

This mutual fund alpha  6.39 which means it can provide very high returns compared to benchmark

Why to invest?

This mutual fund has been a consistent performer, which gave 22% annualized returns in the last 5 years and 18% annualized return since inception. Considering low beta and very high alpha, this is one of the best long term mutual funds from the small cap segment.

#9 – Reliance Small Cap Fund


What is the fund strategy?

The scheme seeks to generate long term capital appreciation by investing predominantly in equity and equity related instruments of small cap companies.

How is this Mutual Fund Performed?

This mutual fund gave 17% annualized returns in the last 5 years and 14% annualized returns in the last 3 years.

If you would have invested Rs 1 Lakh 3 years back, your investment would have grown to Rs 1.5 Lakhs. If you would have invested Rs 1 Lakh 5 years back, your investment would have grown to Rs 2.2 Lakhs.

What are the key ratios of the fund?

This fund risk grade as per Value Research is “Average” and Return Grade is “Above Average”.

This mutual fund beta is 0.9 which means it is less volatile compared to the benchmark.

This mutual fund alpha  6.62 which means it can provide very high returns compared to benchmark

Why to invest?

This mutual fund has been a consistent performer, which gave 17% annualized returns in the last 5 years and 22% annualized return since inception. Considering low beta and very high alpha, this is one of the best long term small cap mutual funds in India for aggressive investors.

You may like: Best Largecap-Midcap Mutual Funds to invest in India

#10 – Axis Small Cap Fund


What is the fund strategy?

The fund aims to generate long-term capital appreciation from a diversified portfolio of predominantly equity & equity related instruments of small cap companies.

How is this Mutual Fund Performed?

This mutual fund gave 14% annualized returns in the last 5 years and 12% annualized returns in the last 3 years.

If you would have invested Rs 1 Lakh 3 years back, your investment would have grown to Rs 1.5 Lakhs. If you would have invested Rs 1 Lakh 5 years back, your investment would have grown to Rs 2 Lakhs.

What are the key ratios of the fund?

This fund risk grade as per Value Research is “Low” and Return Grade is “Above Average”.

This mutual fund beta is 0.62 which means it is less volatile compared to the benchmark.

This mutual fund alpha  3.58 which means it can provide very high returns compared to benchmark

Why to invest?

This mutual fund has been a consistent performer, which gave 14% annualized returns in the last 5 years and 21% annualized return since inception. Considering low beta and very high alpha, this is one of the best long term mutual funds in India from the small cap segment for aggressive investors.

Here is the summary of best mutual funds to invest for long term by aggressive investors


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Suresh

Best Long Term Mutual Funds for Aggressive Investors

Suresh KP

21 comments

  1. Hello Suresh,

    I have 2 questions to ask you.

    1. Could you please explain me in brief the difference between Distribution and Exchange source types in Mutual Funds?
    2. Which Source type is better if I am investing in Large, Small and Medium caps for 10yrs long term – Distribution or Exchange?

    Kindly help me understand this. Thank you in advance!

    Regards,
    Ajay

  2. Dear mahesh ji
    As an investor one can look that the fund has given negative returns in last 1 year but seasoned investors look this as an opportunity to build a portfolio when the valuation is down and stock or units are available at discounted price.
    Furthermore the investment in mf or stock is never for 1 or 2 years….
    We always discuss about 5 to 7 yrs investment horizon along with averaging approach….
    In current scenario investor should act as businessman who hold and add stock in his godown when price is low and hold it till the price go up….

    Choose wisely
    Buy on dip
    Hold till milestone or target price
    Once target achieved-sell

    Rgds
    Raghvendra

  3. Hi Suresh,
    My question might not be on the article written above but it is regarding investment.
    Is 20-30-50 – Budgeting Ratio applicable for India too considering high cost of living in metro cities and inflation?
    Is there any other budget ration available?

    Regards,
    Deepak P

  4. Most of the top Small cap funds, one year returns are negative, do you still suggest to invest in SC funds.

    1. Hi Mahesh, Small cap and midcap sectors are under performers in the last 1-2 years for various reasons. In long term, these can definitely multiply your money and give higher returns. If you are high risk investor, you can invest in these funds

  5. Thank you so much sir!
    Can you please highlight about L&T Emerging Business Fund as well. Is it good fund for long term

    1. Hi Nitesh, This is good fund. We have not listed as this fund came in 5 years back. We have taken most of the funds which came between 5 years to 10 years time frame.

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