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

Name withheld on request

The stock market has been range bound since October 2021 in the last one and a half years. The BSE Sensex then reached back close to 61,000 and is currently again close to the 61,000 mark. There were ups and downs in the market during this period. Hence, the returns are likely to be lower than what you expect. However, you must keep faith in the Indian stock market.

If I had the name of the mutual fund scheme in which you have invested, it would be helpful to share more insights. There is a myth that some investors follow: At the time of investing, only one Asset Management Company (AMC) is known by its name or brand. Each AMC has many different types of funds following different objectives. The performance of a fund depends on how it is managed, and the process followed by the AMC and the fund managers. Diversification of your investments is a better way to reduce the risk of poor performance and avoid excessive dependence on any one fund. If you continue to invest through SIP, which is a very good way of creating wealth over the long term, then you can consider some of the funds mentioned below:

• Parag Parikh Flexicap Fund

• SBI Large & Mid Cap Fund

• 360 A Concentrated Equity Fund

• HDFC Flexicap Fund

• Kotak Emerging Equity Fund

You should consider your investments in equity funds for the long term, i.e. more than five years to generate good returns, given that equities will generally outperform other asset classes over the long term.

Harshad Chetanwala is the co-founder of MyWealthGrowth.com.