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Best Equity Mutual Funds

Equity mutual funds prominently invest in stocks or shares of companies across sectors. The primary objective of these funds is to generate aggressive returns over the long term. Due to the extended time frame, the best equity mutual funds offer more significant capital appreciation than debt funds while moderating the concentration risk. Equity MF schemes mainly feature two options for investors – dividend and growth. Individuals must have a detailed knowledge of the characteristics of this mutual fund category before investing.

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Top 10 Equity Mutual Funds

Fund NameCategoryRisk1Y ReturnsRatingFund Size(in Cr)
ICICI Prudential Technology FundEquityVery High90.3%5star6,319
Quant Infrastructure FundEquityVery High119.1%5star85
PGIM India Midcap Opportunities FundEquityVery High92.0%5star3,060
Quant Tax Plan FundEquityVery High96.0%5star433
Quant Active FundEquityVery High90.7%5star1,189
Axis Small Cap FundEquityVery High75.5%5star7,303
IIFL Focused Equity FundEquityVery High64.4%5star2,366
PGIM India Flexi Cap FundEquityVery High71.5%5star2,416
Parag Parikh Flexi Cap FundEquityVery High62.9%5star16,076
Axis Midcap FundEquityVery High66.3%5star15,395
Mirae Asset Emerging Bluechip FundEquityVery High67.9%5star21,263
Mirae Asset Tax Saver FundEquityVery High63.5%5star9,832
Canara Robeco Equity Tax SaverEquityVery High59.9%5star2,772
Invesco India Infrastructure FundEquityVery High85.1%5star288
BNP Paribas India Consumption FundEquityVery High55.4%5star871
View All Top 10 Equity Mutual Funds

Features of Equity Mutual Funds

Here are a few salient characteristics of the best equity mutual funds 2021:

Types: There are various types of equity mutual funds. Some are based on the market cap of underlying stocks: large-cap, mid-cap, small-cap, multi-cap and Flexi-cap funds. There are sectoral equity funds, value and contra funds and more such sun categories of equity funds,

Asset allocation: Equity funds invest a major percentage of the pooled corpus in equity shares of different companies. This percentage depends on the type of equity MF scheme. The rest is invested in fixed-income and/or money market instruments. Some may also be kept in cash. In reality, many equity funds

Risk-return ratio: Equity funds are significantly volatile and involve high risk alongside the probability of sizeable returns. Mid-cap and small-cap funds are generally more on the riskier side while offering more significant returns. The best equity mutual funds are often the large-cap ones, yielding more stable returns while assuming moderate risk. are the one that suits your risk-return profile.

Taxability

Short-term capital gains tax: When investors sell equity fund units within 12 months of purchase, these capital gains are taxable at 15%, notwithstanding the amount. 

Long-term capital gains tax: This tax is applicable if investors redeem equity shares any time after 1 year from its date of purchase. Here, gains exceeding Rs.1 lakh are taxable at 10% without any indexation. 

TDS: 10% TDS is applicable on dividends exceeding Rs.5000 earned from equity mutual funds. 

On ELSS: Investments made in Equity-linked savings schemes are tax-exempt up to Rs.1.5 lakh under Section 80(C) of ITA. However, this scheme mandates a lock-in period of 3 years.

Who are these Funds Suited for?

Equity-based funds offer highly volatile returns compared to other types of mutual fund investments. Hence, these are more suitable for the long haul, which moderates temporary market fluctuations. 

Investors with a high-risk appetite and looking for long-term capital appreciation can benefit from such investments. Nonetheless, it is imperative to take specific factors into account before choosing the best equity mutual fund

Following is a list of aspects investors need to consider when choosing from the best equity mutual funds.

Investment objective: Investment goals can vary across individuals. Some investors might prioritise capital growth over a prolonged period, while others may lean towards regular income. It is important for investors to identify and understand their financial objective before picking a fund type.

Fund’s past performance: Evaluating the historical performance of a fund can help investors understand its consistency, volatility, investment style, strengths and weaknesses. Thereafter, they can relate how these factors can aid in yielding maximum returns compared to other funds.

Experience of the fund manager: The portfolio management of stocks has a significant impact on fund performance in the long run. This is the prerogative of a fund manager. His/her experience and skillset play an essential role in the success or failure of an investment.

Expense ratio: Annual portfolio management costs or expense ratio can differ across fund schemes. Actively managed portfolios, for instance, involve a higher expense ratio than passively managed ones. Therefore, individuals must compare their expense ratio with the category average before allocating funds.

Regular and direct plan: Individuals can purchase direct plans from mutual fund companies without an intermediary like a broker, advisor, or distributor. Regular plans are available via these third-party agents and come with a higher expense ratio due to additional commission.

Major Advantages

Following is a list of advantages that investors can enjoy from best equity mutual funds:

  • Small-ticket investments: Individuals do not need to burden themselves with huge capital investments when investing in different shares via equity funds. They can start a SIP with Rs.500 in most cases. 
  • Portfolio diversification: Equity mutual funds invest proportionately in company shares across different sectors. This protects them against the detrimental effects of market fluctuations in specific sectors.
  • Convenient: Individuals who find it difficult to invest in stocks separately can look at equity mutual funds.
  • Risk mitigation: An Asset Management Company (AMC) comprises professional experts to constantly monitor geopolitical, economic, and stock-level factors. Accordingly, they make suitable investments to mitigate the risk factor.
  • High regulation: The Securities and Exchange Board of India (SEBI) closely regulates equity mutual funds. It mandates all funds to disclose their periodic expense ratios, NAVs, and month-end portfolios to maintain transparency.

Two investment modes: Individuals can allocate the entire amount in best equity mutual funds at one go via lump-sum investment. However, a minimum sum of Rs.1,000 is mandatory for this method. Conversely, SIP allows individuals to invest a fixed sum at periodic intervals, like every month. Instalment amounts start from as low as Rs.100.

Let's have a closer look

Now let us jump and check about these top 10 mutual fund schemes.

ICICI Prudential Technology Direct Plan Growth

Fund Performance: This fund has given 41.96% annualized returns in the last three years. In the last year, its returns were 90.27%. It has continually hit its benchmark in the Equity segment.

Why to invest: It is one of the most remarkable Equity mutual funds in India. This fund has constantly outperformed other similar funds, providing 90.27% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹100.

Min Investment Amt₹5,000
AUM6,319Cr
1Y Returns90.3%

Quant Infrastructure Fund Direct Growth

Fund Performance: This fund has given 40.22% annualized returns in the last three years. In the last year, its returns were 119.08%. It has continually hit its benchmark in the Equity segment.

Why to invest: It is one of the most remarkable Equity mutual funds in India. This fund has constantly outperformed other similar funds, providing 119.08% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹1,000.

Min Investment Amt₹5,000
AUM85Cr
1Y Returns119.1%

PGIM India Midcap Opportunities Fund Direct Growth

Fund Performance: This fund has given 40.08% annualized returns in the last three years. In the last year, its returns were 91.96%. It has continually hit its benchmark in the Equity segment.

Why to invest: It is one of the most remarkable Equity mutual funds in India. This fund has constantly outperformed other similar funds, providing 91.96% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹1,000.

Min Investment Amt₹5,000
AUM3,060Cr
1Y Returns92.0%

Quant Tax Plan Direct Growth

Fund Performance: This fund has given 39.27% annualized returns in the last three years. In the last year, its returns were 95.97%. It has continually hit its benchmark in the Equity segment.

Why to invest: It is one of the most remarkable Equity mutual funds in India. This fund has constantly outperformed other similar funds, providing 95.97% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹500. Minimum SIP investment amount required for this scheme is ₹500.

Min Investment Amt₹500
AUM433Cr
1Y Returns96.0%

Quant Active Fund Direct Growth

Fund Performance: This fund has given 36.6% annualized returns in the last three years. In the last year, its returns were 90.73%. It has continually hit its benchmark in the Equity segment.

Why to invest: It is one of the most remarkable Equity mutual funds in India. This fund has constantly outperformed other similar funds, providing 90.73% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹1,000.

Min Investment Amt₹5,000
AUM1,189Cr
1Y Returns90.7%

Axis Small Cap Fund Direct Growth

Fund Performance: This fund has given 35.58% annualized returns in the last three years. In the last year, its returns were 75.49%. It has continually hit its benchmark in the Equity segment.

Why to invest: It is one of the most remarkable Equity mutual funds in India. This fund has constantly outperformed other similar funds, providing 75.49% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹500.

Min Investment Amt₹5,000
AUM7,303Cr
1Y Returns75.5%

IIFL Focused Equity Fund Direct Growth

Fund Performance: This fund has given 33.63% annualized returns in the last three years. In the last year, its returns were 64.43%. It has continually hit its benchmark in the Equity segment.

Why to invest: It is one of the most remarkable Equity mutual funds in India. This fund has constantly outperformed other similar funds, providing 64.43% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹1,000. Minimum SIP investment amount required for this scheme is ₹1,000.

Min Investment Amt₹1,000
AUM2,366Cr
1Y Returns64.4%

PGIM India Flexi Cap Fund Direct Growth

Fund Performance: This fund has given 33.63% annualized returns in the last three years. In the last year, its returns were 71.55%. It has continually hit its benchmark in the Equity segment.

Why to invest: It is one of the most remarkable Equity mutual funds in India. This fund has constantly outperformed other similar funds, providing 71.55% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹1,000.

Min Investment Amt₹5,000
AUM2,416Cr
1Y Returns71.5%

Parag Parikh Flexi Cap Fund Direct Growth

Fund Performance: This fund has given 31.61% annualized returns in the last three years. In the last year, its returns were 62.86%. It has continually hit its benchmark in the Equity segment.

Why to invest: It is one of the most remarkable Equity mutual funds in India. This fund has constantly outperformed other similar funds, providing 62.86% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹1,000. Minimum SIP investment amount required for this scheme is ₹1,000.

Min Investment Amt₹1,000
AUM16,076Cr
1Y Returns62.9%

Axis Midcap Direct Plan Growth

Fund Performance: This fund has given 31% annualized returns in the last three years. In the last year, its returns were 66.25%. It has continually hit its benchmark in the Equity segment.

Why to invest: It is one of the most remarkable Equity mutual funds in India. This fund has constantly outperformed other similar funds, providing 66.25% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹500.

Min Investment Amt₹5,000
AUM15,395Cr
1Y Returns66.3%

Mirae Asset Emerging Bluechip Fund Direct Growth

Fund Performance: This fund has given 30.71% annualized returns in the last three years. In the last year, its returns were 67.88%. It has continually hit its benchmark in the Equity segment.

Why to invest: It is one of the most remarkable Equity mutual funds in India. This fund has constantly outperformed other similar funds, providing 67.88% returns in the last one year. . Minimum SIP investment amount required for this scheme is ₹1,000.

Min Investment Amt₹100
AUM21,263Cr
1Y Returns67.9%

Mirae Asset Tax Saver Fund Direct Growth

Fund Performance: This fund has given 29.17% annualized returns in the last three years. In the last year, its returns were 63.48%. It has continually hit its benchmark in the Equity segment.

Why to invest: It is one of the most remarkable Equity mutual funds in India. This fund has constantly outperformed other similar funds, providing 63.48% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹500. Minimum SIP investment amount required for this scheme is ₹500.

Min Investment Amt₹500
AUM9,832Cr
1Y Returns63.5%

Canara Robeco Equity Tax Saver Direct Growth

Fund Performance: This fund has given 29.12% annualized returns in the last three years. In the last year, its returns were 59.93%. It has continually hit its benchmark in the Equity segment.

Why to invest: It is one of the most remarkable Equity mutual funds in India. This fund has constantly outperformed other similar funds, providing 59.93% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹500. Minimum SIP investment amount required for this scheme is ₹500.

Min Investment Amt₹500
AUM2,772Cr
1Y Returns59.9%

Invesco India Infrastructure Fund Direct Growth

Fund Performance: This fund has given 29% annualized returns in the last three years. In the last year, its returns were 85.13%. It has continually hit its benchmark in the Equity segment.

Why to invest: It is one of the most remarkable Equity mutual funds in India. This fund has constantly outperformed other similar funds, providing 85.13% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹1,000. Minimum SIP investment amount required for this scheme is ₹500.

Min Investment Amt₹1,000
AUM288Cr
1Y Returns85.1%

BNP Paribas India Consumption Fund Direct Growth

Fund Performance: This fund has given 28.8% annualized returns in the last three years. In the last year, its returns were 55.4%. It has continually hit its benchmark in the Equity segment.

Why to invest: It is one of the most remarkable Equity mutual funds in India. This fund has constantly outperformed other similar funds, providing 55.4% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹300.

Min Investment Amt₹5,000
AUM871Cr
1Y Returns55.4%

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