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

— 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 MyWealthGrowth.com.