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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| Fund Name | Category | Risk | 1Y Returns | Rating | Fund Size(in Cr) |
|---|---|---|---|---|---|
| Quant Small Cap Fund | Equity | Very High | 4.5% | 5 | ₹2,870 |
| Quant Infrastructure Fund | Equity | Very High | 7.2% | 5 | ₹854 |
| Quant Tax Plan Fund | Equity | Very High | 5.9% | 5 | ₹2,506 |
| Canara Robeco Small Cap Fund | Equity | Very High | 3.4% | 5 | ₹4,568 |
| Quant Mid Cap Fund | Equity | Very High | 11.8% | 5 | ₹1,330 |
| PGIM India Midcap Opportunities Fund | Equity | Very High | -0.8% | 5 | ₹7,558 |
| SBI Contra Fund | Equity | Very High | 12.3% | 5 | ₹7,635 |
| Parag Parikh Tax Saver Fund | Equity | Moderately High | 8.9% | 5 | ₹942 |
| Quant Large and Mid Cap Fund | Equity | Very High | 10.1% | 5 | ₹549 |
| Axis Small Cap Fund | Equity | Very High | 3.7% | 5 | ₹11,390 |
| Parag Parikh Flexi Cap Fund | Equity | Very High | 0.8% | 5 | ₹28,248 |
| Quant Focused Fund | Equity | Very High | 8.4% | 5 | ₹197 |
| PGIM India Flexi Cap Fund | Equity | Very High | -4.7% | 5 | ₹5,284 |
| Nippon India Consumption Fund | Equity | Very High | 11.8% | 5 | ₹304 |
| Mahindra Manulife Multi Cap Badhat Yojana Fund | Equity | Very High | -1.8% | 5 | ₹1,545 |
| View All |
Here are a few salient characteristics of the best equity mutual funds 2022:
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.
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.
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.
Following is a list of advantages that investors can enjoy from best equity mutual funds:
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.
Now let us jump and check about these top 15 mutual fund schemes.
Fund Performance: The Quant Small Cap Fund has given 48.16% annualized returns in the past three years and 23.58% in the last 5 years. The Quant Small Cap Fund belongs to the Equity category of Quant Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Quant Small Cap Fund via lump sum is ₹5,000 and via SIP is ₹1,000.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹2,870Cr |
| 1Y Returns | 4.5% |
Fund Performance: The Quant Infrastructure Fund has given 37.33% annualized returns in the past three years and 19.22% in the last 5 years. The Quant Infrastructure Fund belongs to the Equity category of Quant Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Quant Infrastructure Fund via lump sum is ₹5,000 and via SIP is ₹1,000.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹854Cr |
| 1Y Returns | 7.2% |
Fund Performance: The Quant Tax Plan Fund has given 36.43% annualized returns in the past three years and 21.01% in the last 5 years. The Quant Tax Plan Fund belongs to the Equity category of Quant Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Quant Tax Plan Fund via lump sum is ₹500 and via SIP is ₹500.
| Min Investment Amt | ₹500 |
|---|---|
| AUM | ₹2,506Cr |
| 1Y Returns | 5.9% |
Fund Performance: The Canara Robeco Small Cap Fund belongs to the Equity category of Canara Robeco Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Canara Robeco Small Cap Fund via lump sum is ₹5,000 and via SIP is ₹1,000.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹4,568Cr |
| 1Y Returns | 3.4% |
Fund Performance: The Quant Mid Cap Fund has given 32.9% annualized returns in the past three years and 19.51% in the last 5 years. The Quant Mid Cap Fund belongs to the Equity category of Quant Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Quant Mid Cap Fund via lump sum is ₹5,000 and via SIP is ₹1,000.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹1,330Cr |
| 1Y Returns | 11.8% |
Fund Performance: The PGIM India Midcap Opportunities Fund has given 31.57% annualized returns in the past three years and 17.57% in the last 5 years. The PGIM India Midcap Opportunities Fund belongs to the Equity category of PGIM India Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in PGIM India Midcap Opportunities Fund via lump sum is ₹5,000 and via SIP is ₹1,000.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹7,558Cr |
| 1Y Returns | -0.8% |
Fund Performance: The SBI Contra Fund has given 28.89% annualized returns in the past three years and 13.17% in the last 5 years. The SBI Contra Fund belongs to the Equity category of SBI Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in SBI Contra Fund via lump sum is ₹5,000 and via SIP is ₹500.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹7,635Cr |
| 1Y Returns | 12.3% |
Fund Performance: The Parag Parikh Tax Saver Fund belongs to the Equity category of PPFAS Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Parag Parikh Tax Saver Fund via lump sum is ₹500 and via SIP is ₹1,000.
| Min Investment Amt | ₹500 |
|---|---|
| AUM | ₹942Cr |
| 1Y Returns | 8.9% |
Fund Performance: The Quant Large and Mid Cap Fund has given 23.7% annualized returns in the past three years and 13.61% in the last 5 years. The Quant Large and Mid Cap Fund belongs to the Equity category of Quant Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Quant Large and Mid Cap Fund via lump sum is ₹5,000 and via SIP is ₹1,000.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹549Cr |
| 1Y Returns | 10.1% |
Fund Performance: The Axis Small Cap Fund has given 23.6% annualized returns in the past three years and 18.85% in the last 5 years. The Axis Small Cap Fund belongs to the Equity category of Axis Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Axis Small Cap Fund via lump sum is ₹500 and via SIP is ₹100.
| Min Investment Amt | ₹500 |
|---|---|
| AUM | ₹11,390Cr |
| 1Y Returns | 3.7% |
Fund Performance: The Parag Parikh Flexi Cap Fund has given 22.24% annualized returns in the past three years and 16.01% in the last 5 years. The Parag Parikh Flexi Cap Fund belongs to the Equity category of PPFAS Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Parag Parikh Flexi Cap Fund via lump sum is ₹1,000 and via SIP is ₹1,000.
| Min Investment Amt | ₹1,000 |
|---|---|
| AUM | ₹28,248Cr |
| 1Y Returns | 0.8% |
Fund Performance: The Quant Focused Fund has given 22.02% annualized returns in the past three years and 12.56% in the last 5 years. The Quant Focused Fund belongs to the Equity category of Quant Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Quant Focused Fund via lump sum is ₹5,000 and via SIP is ₹1,000.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹197Cr |
| 1Y Returns | 8.4% |
Fund Performance: The PGIM India Flexi Cap Fund has given 21.91% annualized returns in the past three years and 14.19% in the last 5 years. The PGIM India Flexi Cap Fund belongs to the Equity category of PGIM India Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in PGIM India Flexi Cap Fund via lump sum is ₹5,000 and via SIP is ₹1,000.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹5,284Cr |
| 1Y Returns | -4.7% |
Fund Performance: The Nippon India Consumption Fund has given 21.73% annualized returns in the past three years and 13.08% in the last 5 years. The Nippon India Consumption Fund belongs to the Equity category of Nippon India Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Nippon India Consumption Fund via lump sum is ₹5,000 and via SIP is ₹100.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹304Cr |
| 1Y Returns | 11.8% |
Fund Performance: The Mahindra Manulife Multi Cap Badhat Yojana Fund has given 20.66% annualized returns in the past three years and 14.15% in the last 5 years. The Mahindra Manulife Multi Cap Badhat Yojana Fund belongs to the Equity category of Mahindra Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Mahindra Manulife Multi Cap Badhat Yojana Fund via lump sum is ₹1,000 and via SIP is ₹500.
| Min Investment Amt | ₹1,000 |
|---|---|
| AUM | ₹1,545Cr |
| 1Y Returns | -1.8% |
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