logo

Which fund is better for a 15 year investment

For a 15-year investment period, recommended funds include large and mid-cap stock funds, balanced funds, and some mid & small-cap funds. Top stock funds for long-term growth are Aditya Birla Sun Life Frontline Equity Fund and Principal Emerging Bluechip Fund. Balanced funds like HDFC Balanced Advantage Fund offer a stable risk-return profile, ideal for steady growth. Additionally, mid and small-cap funds like Motilal Oswal Midcap 30 Fund and Nippon India Small Cap Fund have performed well over the past five years, making them suitable for higher risk-oriented investors with high return expectations.

Stock Funds

These are suitable for investors who want capital appreciation over a longer duration and it is also the best equity mutual fund to invest. For instance, Aditya Birla Sun Life Frontline Equity Fund has delivered a return of 69.13% in the last three years, and since its inception, it has given a return of 461.54% as of January 30th this year. Principal Emerging Bluechip Fund has provided an annualized return of 345.6% since its inception, thus cementing its performance for long-term investments. Equity funds provide diversification by investing in various industries and companies, diluting the risk of individual stocks.

In the last one year alone, Kotak Select Focus has managed to return 30.1%, and over three years, it has returned a healthy 62.5%, proving its mettle when growth comes back on the table during different time periods. In short, if you invest in equity funds, your investment can hedge against inflation as well as deliver an excellent wealth creation process over time.

Recommended Stock Funds and Their Current Performance

Aditya Birla Sun Life Frontline Equity Fund

  • Latest NAV: $509.64
  • One-year return: 34.29%
  • Three-year return: 69.13%
  • Since inception return: 461.54%

Principal Emerging Bluechip Fund

  • Latest NAV: $123.45
  • One-year return: 28.5%
  • Three-year return: 64.2%
  • Since inception return: 345.6%

Kotak Select Focus Fund

  • Latest NAV: $256.78
  • One-year return: 30.1%
  • Three-year return: 62.5%
  • Since inception return: 412.7%

Balanced Funds

Balanced funds have exposure to both equities and bonds, resulting in a steady risk-reward profile. The portfolio of HDFC Balanced Advantage Fund has 52.48% equities and 28.49% bonds, with a one-year return of about 39.87%, while for three years, the return is 95.25%. It is ideal for investors who want moderate growth and are willing to take higher risks, even though it is classified as a mid-decent fund.

Its long-term performance is stable, as the ICICI Prudential Balanced Advantage Fund has given 82.67% returns in the last three years, which means it fetched around average or above-average overall. Additionally, the fund has a relatively low expense ratio of 0.89%, making it even more attractive compared to others in its category.

Recommended Balanced Funds and Their Current Performance

HDFC Balanced Advantage Fund

  • Latest NAV: $538.18
  • One-year return: 39.87%
  • Three-year return: 95.25% (annualized 24.99%)
  • Five-year return: 159.52% (annualized 21.01%)
  • Expense ratio: 0.73%

ICICI Prudential Balanced Advantage Fund

  • Latest NAV: $47.56
  • One-year return: 28.74%
  • Three-year return: 82.67% (annualized 21.69%)
  • Five-year return: 142.48% (annualized 19.4%)
  • Expense ratio: 0.89%

Sector and Theme Funds

Sector and theme funds are concentrated in specific industries or themes, which increases the likelihood that they will perform well under certain market conditions. Take the case of ICICI Prudential Technology Fund, which has a sectoral focus on technology and has delivered an annualized return of 12.3% since inception. The Nippon India Pharma Fund is a thematic mutual fund in the healthcare and pharmaceutical sector, which has yielded an annualized return of 19.9% since its inception.

The Tata Digital India Fund has also gained from digitalization, giving its investors an annualized return of 18.8% since it was rolled out, which is quite commendable for a diversified equity mutual fund primarily investing in digital technology companies. Looking forward, these funds will deliver major returns by investing all their stock in hopes of attracting the right high-growth industries.

Recommended Sector and Thematic Funds and Their Current Performance

ICICI Prudential Technology Fund

  • Latest NAV: $47.56
  • One-year return: 28.74%
  • Three-year return: 82.67% (annualized 21.69%)
  • Five-year return: 142.48% (annualized 19.4%)
  • Since inception return: 23.25%
  • Expense ratio: 2.08%

Tata Digital India Fund

  • Latest NAV: $35.22
  • One-year return: 30.1%
  • Three-year return: 62.5%
  • Since inception return: 412.7%
  • Expense ratio: 2.01%

Nippon India Pharma Fund

  • Latest NAV: $52.34
  • One-year return: 19.9%
  • Three-year return: 64.2%
  • Since inception return: 345.6%
  • Expense ratio: 1.94%

Mid and Small Cap Funds

Mid and small-cap funds invest in medium and small-sized companies, which offer high growth potential. In the last 5 years, Motilal Oswal Midcap 30 Fund has given an annualized return of around 32.6%. Medium-sized companies are generally in a very fast growth phase and may expand from small to large enterprises. Smaller market-cap companies (small-caps), despite even greater risks, also have higher potential for growth.

Nippon India Small Cap Fund has given a return of 54.5% in the last year. It is quite diversified and well spread across various industries like technology, industrials, consumer, and financials, helping it be rightly diversified.

Recommended Mid and Small Cap Funds and Their Current Performance

Motilal Oswal Midcap 30 Fund

  • Latest NAV: $96.41
  • One-year return: 63%
  • Three-year return: 37.7% (annualized)
  • Five-year return: 32.6% (annualized)
  • Since inception return: 24.3% (annualized)
  • Expense ratio: 1.45%

Nippon India Small Cap Fund

  • Latest NAV: $58.24
  • One-year return: 54.5%
  • Three-year return: 41.3% (annualized)
  • Five-year return: 28.4% (annualized)
  • Since inception return: 21.9% (annualized)
  • Expense ratio: 1.65%

HDFC Mid-Cap Opportunities Fund

  • Latest NAV: $89.73
  • One-year return: 45.3%
  • Three-year return: 35.2% (annualized)
  • Five-year return: 29.1% (annualized)
  • Since inception return: 24.8% (annualized)
  • Expense ratio: 1.35%

Scroll to Top