The news is by your side.

How to choose the right MF for long-term investment success?


I invested approx 1.4 lakh in ICICI mutual funds (MF) through systematic investment plan (SIP), in 2021. Unfortunately, for the last 1.5 years, this MF has been underperforming, and my current investment value is approx. 1.1 lakh. Could you please guide which MF I should consider switching to for long term investment?

— Name withheld on request

For the past year and a half, since October 2021, the stock market has been range bound. The BSE Sensex peaked at that time at around 61,000 and is currently close to the 61,000 mark again. During this time the market was also volatile. Therefore, the returns are likely to be less compared to what you would expect. However, you should continue to have faith in the Indian stock market.

If the name of the mutual fund scheme you are invested in, it would be helpful to share more insights. There is a myth that some investors follow: simply going under the name or brand of an asset management company (AMC) at the time of investment. Each AMC has many different types of funds that are pursuing different objectives. The performance of a fund is based on how it is managed, and the process followed by the AMC and the fund managers. Diversifying your investment is a better way to reduce the risk of underperformance and avoid over-reliance on a fund. If you continue to invest through SIPs, which is a very good way to build wealth in the long term, you can consider some of the funds mentioned below:

• Parag Parikh Flexicap Fund

• SBI Large & Mid Cap Fund

• 360 Focus Only Equity Fund

• HDFC Flexicap Fund

• Kotak Emerging Equity Fund

You need to consider your investment in equity funds for the long term, that is, more than five years to deliver good returns, bearing in mind that in the long term equity will generally outperform other asset classes .

Harshad Chetanwala is the co-founder of

Get all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download the Mint News App for Daily Market Updates.


Denial of responsibility! is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – at The content will be deleted within 24 hours.

Read original article here

Leave A Reply

Your email address will not be published.