{"id":944,"date":"2024-04-19T05:54:59","date_gmt":"2024-04-19T05:54:59","guid":{"rendered":"https:\/\/jamawealth.com\/askguru\/?p=944"},"modified":"2026-03-02T19:29:34","modified_gmt":"2026-03-02T19:29:34","slug":"which-type-of-mutual-funds-are-best-for-25-years","status":"publish","type":"post","link":"https:\/\/maxiomwealth.com\/askguru\/2024\/04\/19\/which-type-of-mutual-funds-are-best-for-25-years\/","title":{"rendered":"Which type of mutual funds are best for 25 years?"},"content":{"rendered":"\n

The best mutual fund for long term is one that is likely to last and provide above average returns consistently.<\/p>\n\n\n\n

The top 5 things you are looking for are:<\/p>\n\n\n\n

  1. Consistency<\/strong>: Why not the top performer? That is because this years top performer is unlikely to be next years top one. Like in cricket, batting averages really matter.<\/li>
  2. Good sequence of returns<\/strong>: Because a bad couple of years can hit you really bad. If a fund goes down by 50% in one year, it needs to rise by 100% just to recover fully. That is tough and nearly impossible. This is related to #1 above but is worth imbibing again.<\/li>
  3. Low expense ratio<\/strong>: A lean fund is the best. A mean fund is not! Often high expense ratios hide other unsavoury aspects and it is better to avoid such funds.<\/li>
  4. Direct Plans only<\/strong>: Avoiding broker commissions of 1% to 1.5% each year means you gain by upto 40% or more! So avoid any fund that does not have the word \u201cDirect Plan\u201d in it. [Disclosure: I am with jama.co.in<\/a> which offers only direct plan mutual funds with advisory support]<\/li>
  5. Fund House Reputation<\/strong>: The best fund houses have the better fund managers and also have better processes which in turn ensure consistency.<\/li><\/ol>\n\n\n\n

    Some of the funds from a 20 year perspective would be (in our view) as of now:<\/p>\n\n\n\n