Best Mutual Funds Long Term Investment Plans in India for 2025

Planning for long-term wealth creation is one of the smartest financial decisions you can make. With the right strategy, long-term investments can help you beat inflation, achieve life goals, and build a secure financial future. In 2025, Indian investors have access to a diverse set of instruments that balance returns, safety, and tax efficiency.

Here’s a detailed look at the best long term investment plans in India that can help you grow your wealth steadily over time.

1. Public Provident Fund (PPF)

Tenure: 15 years

Interest Rate (2025): ~7.1% (subject to change quarterly)

Tax Benefit: EEE (Exempt-Exempt-Exempt) under Section 80C

Why Invest:

PPF is a government-backed investment with attractive interest and tax-free returns. It’s ideal for conservative investors looking for assured long-term savings. You can invest as little as ₹500 per year and up to ₹1.5 lakh.

2. Equity Mutual Funds (ELSS & Flexi Cap Funds)

Tenure: Recommended 5–10+ years

Returns (past 5 years): 12–15% CAGR

Tax Benefit (ELSS): Up to ₹1.5 lakh under Section 80C

Why Invest:

Equity mutual funds, especially ELSS (Equity Linked Saving Schemes), are a great tax-saving and growth-oriented option. Flexi cap funds offer diversification and expert fund management. With SIPs (Systematic Investment Plans), even small monthly investments can yield high returns over time.

3. National Pension System (NPS)

Tenure: Until retirement (60 years)

Returns: 8–10% average

Tax Benefit: Up to ₹2 lakh Blogs on stock market in india under Sections 80C and 80CCD(1B)

Why Invest:

The NPS is ideal for retirement planning. It offers exposure to equity and debt markets with a low-cost structure. You also benefit from additional tax deductions beyond the 80C limit.

4. Stocks (Direct Equity Investment)

Tenure: Long-term (5–10+ years)

Returns: 12–20%+ (depending on company performance and market trends)

Taxation: 10% LTCG tax on gains above ₹1 lakh/year

Why Invest:

Investing in high-quality, fundamentally strong stocks for the long term can build massive wealth. Focus on sectors with future growth potential like technology, renewable energy, FMCG, and financial services.

5. Real Estate (REITs & Property Investment)

Tenure: 7–15 years

Returns: 8–12% (appreciation + rental yield)

Taxation: Varies based on type of investment

Why Invest:

Real estate has long been a preferred investment for Indians. In 2025, REITs (Real Estate Investment Trusts) have made property investment accessible with smaller ticket sizes and regular dividend income.

6. Unit Linked Insurance Plans (ULIPs)

Tenure: 10–15 years

Returns: 6–10% depending on market performance

Tax Benefit: Section 80C (up to ₹1.5 lakh)

Why Invest:

ULIPs combine insurance and investment. Though the returns may be lower than mutual funds, ULIPs offer disciplined savings and tax benefits Best Mutual Fund Apps to Invest in India with some insurance protection.

7. Fixed Deposits (Long-Term FD)

Tenure: 5+ years

Returns (2025): 6.5–7.5%

Taxation: Interest is taxable

Why Invest:

Bank and post office FDs offer capital safety with fixed returns. While they don’t beat inflation significantly, they remain suitable for risk-averse investors seeking steady income.

8. Sovereign Gold Bonds (SGBs)

Tenure: 8 years (with early exit after 5 years)

Returns: 2.5% annual interest + gold price appreciation

Tax Benefit: No capital gains tax on maturity

Why Invest:

SGBs allow you to invest in gold in digital form with interest income and capital appreciation. It’s safer than physical gold and ideal as a portfolio diversifier.

Choosing the Right Plan

Investment Type Ideal For Risk Level Returns (Est.)

PPF Conservative investors Low 7.1%

Equity Mutual Funds Growth seekers Moderate-High 12–15%

NPS Retirement planning Moderate 8–10%

Stocks Active, informed investors High 12–20%+

Real Estate / REITs Diversification & rental yield Moderate 8–12%

ULIPs Insurance-linked planning Moderate 6–10%

Fixed Deposits Capital preservation Low 6.5–7.5%

Sovereign Gold Bonds Hedge against inflation Low-Moderate 7–10% approx.

Final Thoughts

The best long-term investment plan Best performing mutual funds India depends on your financial goals, risk appetite, and time horizon. A mix of equity, debt, gold, and fixed-income products can provide both growth and stability. Use tools like SIPs, retirement calculators, and mutual fund apps to stay consistent and track your progress.