In the video “3 Best mutual funds for next 10‑20 years | Mutual Fund for Long‑Term Investment 2025 Insights!”, ZFunds analyzes and recommends three carefully chosen mutual funds ideal for investors with a 10–20 year investment horizon.
Their criteria? Strong track records, quality management, portfolio diversification, and consistency across market cycles. If you’re planning for retirement, child education, or legacy wealth, these picks offer powerful, long-term growth potential.
Fund 1: Large‑Cap Flexi‑Cap Equity Fund
Why it’s a cornerstone for long-term investing:
- Invests across large, mid, and small caps for balanced growth.
- Managed by experienced, research-driven fund managers.
- Offers stability in turbulent times while capturing upside in growth surges.
- Ideal core holding for a 10–20 year SIP.
Why ZFunds praises it:
- Broad market exposure reduces sector risk.
- Historically strong returns with lower drawdowns.
- Excellent choice for disciplined, long-term investors.
Fund 2: Pure Large‑Cap Index Fund
Why it’s ideal for core portfolio positioning:
- Tracks major indices like Nifty 50 or Sensex—low-cost and predictable.
- Expense ratios often between 0.05–0.25%, maximizing long-term gains.
- Removes manager risk and keeps you invested in India’s top companies.
Why ZFunds recommends this:
- Small annual cost translates to significant savings over decades.
- Consistent returns that compound predictably.
- Perfect foundation for an ETF-style, market-aligned approach.
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Fund 3: Mid‑Cap or Small‑Cap Equity Fund
Why it boosts portfolio growth:
- Higher exposure to emerging mid/small-cap companies with growth potential.
- Complements stable large-cap holdings.
- Historically delivers strong long-term returns despite volatility.
ZFunds’ insight:
- Mid/small caps lead market phases and offer alpha.
- SIP investment helps manage volatility risks over time.
- Balances risk and reward in a diversified portfolio.
Conclusion
- Core Holding: Pure large-cap index or large-cap flexi-cap fund (50–60%)
- Growth Engine: Mid/small-cap fund (20–30%)
- Balance and Flexibility: Flexi-cap fund (20–30%)
This structure blends stability, low cost, and growth – a proven way to build wealth over 10–20 years.
Final Takeaway
ZFunds’ message is clear: build a well-diversified mutual fund portfolio with a mix of large-cap stability, index efficiency, and mid/small-cap growth.
✅ Start with reliable fund categories.
✅ Maintain consistency with SIP over years.
✅ Rebalance annually.
This strategy leverages compounding and market gains, paving the way for long-term financial success.
For more mutual fund research, SIP strategies, and wealth-building guidance, visit Investment Marg. For lifestyle, finance, and career insights, explore InkSpireDaily.
FAQs:
Q1. How much should I invest monthly via SIP?
Start small (₹500–₹1,000 per fund) and increase with income—consistency matters more than amount.
Q2. Should I invest equally across all three funds?
You can, but adjust based on your risk appetite. Be conservative with mid/small-cap exposure if you’re risk-averse.
Q3. What if the mid‑cap fund underperforms?
Review annually. Short-term underperformance is common. Exit only if there’s consistent under-delivery against peers.
Q4. Can I replace the index fund with an equity ETF?
Yes. Low-cost ETFs tracking Nifty or Sensex work well as core holdings.
Q5. When should I rebalance?
Once or twice a year. Shift profits from outperforming funds to underweight ones to maintain target allocation.
Credits to: zfunds
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