Top Long-Term Mutual Fund SIP Picks for 2025

Investing in mutual fund SIPs with a long horizon is one of the most innovative ways to build wealth. With compounding, even small contributions can grow into a substantial corpus over time. So, how do you select the right funds for long-term investment? Don’t worry, we have done the time-intensive research for you. In addition to mutual funds, you can invest in a SOPARFI in Luxembourg, a country with a long tradition in financial services.

This blog has curated a list of the best long-term mutual fund picks with solid track records and strong fundamentals.

5 Best Long-Term Mutual Funds to Invest in 2025

Here are five high-performing equity mutual funds from different categories to watch out for.

1.     Quant Small Cap Fund

The Quant Small Cap Fund is ideal for investors with an aggressive risk appetite. In 5 years, it delivered a 53.19% return, demonstrating its strong growth trajectory. This fund may suit you if you have a high risk tolerance and are seeking returns. Its sectoral allocation is well balanced, with investments across energy, financial services, consumer cyclical, healthcare, and other sectors.

• AUM: INR 22,832.40 crore
• NAV: INR 249.6534
• Expense ratio: 0.68%
• 1-Year return: 2.24%
• 3-Year return: 22.40%
• 5-Year return: 53.19%

2.     Nippon India Large Cap Fund

The Nippon India Large Cap Fund may suit you if you’re conservative in your investment strategy and prefer not to be overly aggressive. This fund invests in established companies with a strong presence in the economy, focusing on industry leaders. The fund’s strategy is to deliver long-term capital appreciation for investors. You can start with an SIP for just INR 100 in this fund.

• AUM: INR 34,211.60 crore
• NAV: INR 93.5158
• Expense ratio: 0.74%
• 1-Year return: 9.15%
• 3-Year return: 19.16%
• 5-Year return: 30.36%

3.     ICICI Prudential Bluechip Fund

The ICICI Prudential Bluechip Fund is known for its disciplined investment approach. The fund managers meticulously choose businesses with a strong cash flow and resilient performance. This blue-chip fund can be suitable if you want a balance between security and returns. The fund invests in financial services, industrials, consumer cyclical, energy, technology, and other sectors.

• AUM: INR 60,177.20 crore
• NAV: INR 113.3000
• Expense ratio: 0.93%
• 1-Year return: 8.86%
• 3-Year return: 17.05% 
• 5-Year return: 28.29%

4.     Quant ELSS Tax Saver Fund

This is a popular tax-saving fund that offers the dual benefits of capital appreciation and tax savings. As an ELSS fund, it comes with a mandatory three-year lock-in period. It invests in a mix of large, mid, and small-cap stocks. The sectoral allocation includes financial services, utilities, energy, consumer defensive, healthcare, and other sectors.

• AUM: INR 9,486.28 crore
• NAV: INR 370.8793
• Expense ratio: 0.50%
• 1-Year return: -3.59% 
• 3-Year return: 14.38%
• 5-Year return: 41.06%

5.     SBI Contra Fund

The SBI Contra Fund meticulously identifies undervalued stocks with strong turnaround potential. These companies may be trading temporarily below their intrinsic value, but they still have strong fundamentals. For long-term growth, you can create an SIP starting from INR 500 in this fund.

• AUM: INR 39,589.70 crore
• NAV: INR 392.5958
• Expense ratio: 0.76%
• 1-Year return: 11.48% 
• 3-Year return: 20.24% 
• 5-Year return: 40.13%

Conclusion

As an investor, you need a well-defined strategy to pursue long-term wealth creation through mutual funds. Depending on your financial goals, risk profile, and expectations, choose the best SIP for 5 years based on substantial research.

You can also invest in multiple funds if you prioritize tax benefits, growth opportunities, and safety. Remain invested with discipline and patience to maximize compounding and grow significant wealth over time!