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Best Equity Funds

Equity fund is a class of mutual funds that predominantly deals with equity shares. In other words, equity funds are essentially listed stock market securities. These funds are preferred to generate long term returns.

According to the apex mutual fund body, Association of Mutual Funds in India (AMFI), the total investment in equity funds has clocked over Rs. 8 lakh crore as of December 2018. The reason behind their soaring popularity is that in the long run, the best performing equity funds typically generate much higher returns compared to debt funds or even fixed deposits.

There are several types of equity funds based on market capitalization, investment style, tax treatment, geographical markers, management style, and growth prospects. Some of the best equity mutual funds are even sector-specific investments; such funds are called sectoral fund.

The cost of an equity fund is determined by subtracting the liabilities from its net asset value (NAV). An individual may invest in the best equity mutual funds available in India, with a relatively small pool of capital.

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Top 10 Equity Mutual Funds

Fund NameCategoryRisk1Y ReturnsRatingFund Size(in Cr)
ICICI Prudential Technology FundEquityVery High136.9%5star1,818
Nippon India Pharma FundEquityVery High54.5%5star4,261
Quant Tax Plan FundEquityVery High109.1%5star106
Quant Active FundEquityVery High100.0%5star260
Parag Parikh Flexi Cap FundEquityVery High67.7%5star8,182
IIFL Focused Equity FundEquityVery High55.0%5star1,623
Axis Small Cap FundEquityVery High66.4%5star4,485
PGIM India Midcap Opportunities FundEquityVery High93.9%5star1,108
Mirae Asset Tax Saver FundEquityVery High66.3%5star6,934
Axis Midcap FundEquityVery High55.6%5star10,432
Mirae Asset Emerging Bluechip FundEquityVery High66.1%5star16,190
UTI Flexi Cap FundEquityVery High69.2%5star16,717
Canara Robeco Equity Tax SaverEquityVery High56.5%5star1,961
Canara Robeco Bluechip Equity FundEquityVery High50.5%5star2,156
Axis Bluechip FundEquityVery High41.8%5star24,598
View All Top 10 Equity Mutual Funds

Features of Equity Funds

Like all other investment instruments, the primary purpose of investing in the equity funds is to generate high returns. These funds achieve this objective by investing 65% of the assets in equity shares of listed companies. It is in tune with SEBI’s investment dictate. The other 35% of assets are usually invested in debt instruments.

Taxability

There are two types of earnings an investor can avail through equity funds, namely Dividends and Capital Gain. The tax on dividends, known as Dividend Distribution Tax or DDT, is cleared by the Asset Management Company (AMC), and investors need to pay any other taxes on those returns.

Capital gain is taxable but not in its entirety. Long Term Capital Gain (LTCG) on Equity-Linked Saving Scheme (ELSS) comes with certain tax benefits. Up to Rs. 1 Lakh in LTCG is tax-exempt. Anything above that comes under a tax slab of 10% as per section 80C of the Income Tax Act. Do note that there is a lock-in period of 3 years applicable on ELSS, which implies that you cannot redeem your returns before 3 years.

Short-Term Capital Gain is taxed at 15% in case the investor redeems his/her returns within a year.

Who Are These Funds Suited For?

These funds are ideal investment instruments for individuals looking for long term gains. It should, however, align with the investor's risk appetite and investment goals.

It is usually preferred by a majority of retail investors as it does not require a substantial capital pool. Because the funds’ portfolio is diversified, and the capital required is comparatively low, the risk factor is severely undercut. Also, the long-term nature of these funds allows them the time to ride out any temporary market fluctuations.

Major Advantages

Based on past returns we can narrow down the best performing equity funds that you can invest in via SIP.There are several advantages of investing in such funds. Some of them are mentioned below.

Equity funds are generally managed by professional fund management entities known as Asset Management Companies (AMC). These AMCs research, analyse and invest on behalf of their clients. They are privy to industry insights that an individual investor cannot possibly be.

  • The risk factor is substantially mitigated if you invest in the best equity mutual funds. AMCs monitor several risk parameters such as concentration, volatility, liquidity, etc., and invest accordingly.
  • The small ticket size ensures that an investor is not burdened beyond their means by this type of investment. In India, you can start an SIP in best equity mutual funds with as low as Rs 500.
  • These mutual funds are closely monitored by the SEBI, which ensures unmatched transparency in all transactions. All funds are mandated to publish their daily NAV and monthly portfolios on their websites.
  • The sheer number of equity funds gives investors ample choices. As of 2018, there are over 9,500 equity mutual funds available currently. The best among these funds have recorded over 25% gains over a 3 year period.
  • The tax benefits of ELSS funds are unavailable on other investment instruments. Investors can save taxation of up to Rs. 1 Lakh through these investments.
  • Capital losses on an equity scheme are adjustable against the capital gains on another equity fund in the same year. This feature is also unavailable on any other investment scheme.

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 29.15% annualized returns in the last three years. In the last year, its returns were 136.87%. 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 136.87% 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
AUM1,818Cr
1Y Returns136.9%

Nippon India Pharma Fund Direct Growth

Fund Performance: This fund has given 25.04% annualized returns in the last three years. In the last year, its returns were 54.48%. 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 54.48% 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
AUM4,261Cr
1Y Returns54.5%

Quant Tax Plan Direct Growth

Fund Performance: This fund has given 22.63% annualized returns in the last three years. In the last year, its returns were 109.13%. 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 109.13% 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
AUM106Cr
1Y Returns109.1%

Quant Active Fund Direct Growth

Fund Performance: This fund has given 20.87% annualized returns in the last three years. In the last year, its returns were 99.96%. 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 99.96% 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
AUM260Cr
1Y Returns100.0%

Parag Parikh Flexi Cap Fund Direct Growth

Fund Performance: This fund has given 20.02% annualized returns in the last three years. In the last year, its returns were 67.73%. 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 67.73% 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
AUM8,182Cr
1Y Returns67.7%

IIFL Focused Equity Fund Direct Growth

Fund Performance: This fund has given 17.55% annualized returns in the last three years. In the last year, its returns were 55.04%. 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 55.04% 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
AUM1,623Cr
1Y Returns55.0%

Axis Small Cap Fund Direct Growth

Fund Performance: This fund has given 17.28% annualized returns in the last three years. In the last year, its returns were 66.39%. 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 66.39% 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
AUM4,485Cr
1Y Returns66.4%

PGIM India Midcap Opportunities Fund Direct Growth

Fund Performance: This fund has given 16.87% annualized returns in the last three years. In the last year, its returns were 93.93%. 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 93.93% 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
AUM1,108Cr
1Y Returns93.9%

Mirae Asset Tax Saver Fund Direct Growth

Fund Performance: This fund has given 16.6% annualized returns in the last three years. In the last year, its returns were 66.29%. 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 66.29% 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
AUM6,934Cr
1Y Returns66.3%

Axis Midcap Direct Plan Growth

Fund Performance: This fund has given 16.6% annualized returns in the last three years. In the last year, its returns were 55.6%. 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 55.6% 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
AUM10,432Cr
1Y Returns55.6%

Mirae Asset Emerging Bluechip Fund Direct Growth

Fund Performance: This fund has given 16.5% annualized returns in the last three years. In the last year, its returns were 66.12%. 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 66.12% returns in the last one year. . Minimum SIP investment amount required for this scheme is ₹1,000.

Min Investment Amt₹100
AUM16,190Cr
1Y Returns66.1%

UTI Flexi Cap Fund Direct Growth

Fund Performance: This fund has given 16.2% annualized returns in the last three years. In the last year, its returns were 69.23%. 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 69.23% 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
AUM16,717Cr
1Y Returns69.2%

Canara Robeco Equity Tax Saver Direct Growth

Fund Performance: This fund has given 15.94% annualized returns in the last three years. In the last year, its returns were 56.49%. 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 56.49% 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
AUM1,961Cr
1Y Returns56.5%

Canara Robeco Bluechip Equity Fund Direct Growth

Fund Performance: This fund has given 15.78% annualized returns in the last three years. In the last year, its returns were 50.45%. 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 50.45% 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
AUM2,156Cr
1Y Returns50.5%

Axis Bluechip Fund Direct Plan Growth

Fund Performance: This fund has given 14.83% annualized returns in the last three years. In the last year, its returns were 41.84%. 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 41.84% 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
AUM24,598Cr
1Y Returns41.8%

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