I am 34 year old with one girl child of 1 yr old want to invest in wealth creation mutual funds for long term

Mutual funds can help you meet both your long term wealth creation goals, as well as any short term goals that you may have. For your short term goals, depending on the nature of the goal, your risk tolerance and your investment horizon, you can invest in debt funds. Debt funds offer a wide spectrum of solutions to a variety of investment requirements. To know more about risk return characteristics of different debt funds, please read our article, Demystifying debt mutual funds. We have discussed top performing debt funds, both long term and short term in our posts, Top 6 long term income funds in 2015 and Top 5 short term debt mutual funds in 2015.

For long term capital appreciation or wealth creation, equity mutual funds are the best investment choices. If you have a long investment horizon, you should choose consistent performers. You can choose between large cap, diversified equity and small/midcap funds, based on your risk tolerance level. Small/midcap funds are more risky than large cap and diversified equity funds, but they can give higher long term returns. Large cap funds are less volatile than other equity fund categories, but usually underperform diversified and midcap funds in bull markets. The risk return characteristics of diversified equity funds, lie somewhere between large cap and small/midcap funds. We have reviewed consistent performers in each of these categories in our blog. Please check the following articles below:-

Best mutual fund consistent performers in 2015: Large Cap Funds

Best Small and Midcap Mutual Funds: Consistent performers for investment in 2015

Best Diversified Equity Mutual Funds: Consistent Performers for investment in 2015

For your Rs 5000 monthly SIP, you can choose one or two funds, from one or two categories and continue to invest over a long time period.