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)
DSP Midcap FundEquityModerately High12.2%5star7,883
Mirae Asset Tax Saver FundEquityModerately High6.3%5star4,181
DSP Natural Resources and New Energy FundEquityHigh-11.6%5star326
Axis Long Term Equity FundEquityModerately High-2.6%5star21,905
Aditya Birla Sun Life India GenNext FundEquityHigh-2.6%5star1,551
Canara Robeco Emerging EquitiesEquityModerately High8.9%5star5,878
Canara Robeco Equity Tax SaverEquityModerately High10.2%5star1,122
Invesco India Mid Cap FundEquityModerately High12.5%5star935
Axis Bluechip FundEquityModerately High-1.1%5star16,764
BOI AXA Manufacturing & Infrastructure FundEquityHigh8.3%5star40
BOI AXA Tax Advantage FundEquityModerately High15.5%5star299
Sundaram Select FocusEquityModerately High-2.5%5star1,064
UTI Transportation and Logistics FundEquityHigh-1.7%5star1,260
IIFL Focused Equity FundEquityModerately High6.5%5star930
ICICI Prudential Technology FundEquityHigh38.4%5star545
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.

DSP Midcap Direct Plan Growth

Fund Performance: This fund has given 6.04% annualized returns in the last three years. In the last year, its returns were 12.2%. 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 12.2% 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
AUM7,883Cr
1Y Returns12.2%

Mirae Asset Tax Saver Fund Direct Growth

Fund Performance: This fund has given 8.49% annualized returns in the last three years. In the last year, its returns were 6.33%. 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 6.33% 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
AUM4,181Cr
1Y Returns6.3%

DSP Natural Resources and New Energy Fund Direct Plan Growth

Fund Performance: This fund has given -7.04% annualized returns in the last three years. In the last year, its returns were -11.57%. 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 -11.57% 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
AUM326Cr
1Y Returns-11.6%

Axis Long Term Equity Direct Plan Growth

Fund Performance: This fund has given 6.22% annualized returns in the last three years. In the last year, its returns were -2.63%. 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 -2.63% 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
AUM21,905Cr
1Y Returns-2.6%

Aditya Birla Sun Life India GenNext Direct Fund Growth

Fund Performance: This fund has given 4.88% annualized returns in the last three years. In the last year, its returns were -2.62%. 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 -2.62% 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
AUM1,551Cr
1Y Returns-2.6%

Canara Robeco Emerging Equities Fund Direct Growth

Fund Performance: This fund has given 5.11% annualized returns in the last three years. In the last year, its returns were 8.94%. 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 8.94% 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
AUM5,878Cr
1Y Returns8.9%

Canara Robeco Equity Tax Saver Direct Growth

Fund Performance: This fund has given 9.65% annualized returns in the last three years. In the last year, its returns were 10.22%. 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 10.22% 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
AUM1,122Cr
1Y Returns10.2%

Invesco India Mid Cap Fund Direct Growth

Fund Performance: This fund has given 7.76% annualized returns in the last three years. In the last year, its returns were 12.51%. 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 12.51% 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
AUM935Cr
1Y Returns12.5%

Axis Bluechip Fund Direct Plan Growth

Fund Performance: This fund has given 9.73% annualized returns in the last three years. In the last year, its returns were -1.08%. 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 -1.08% 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 ₹500.

Min Investment Amt₹5,000
AUM16,764Cr
1Y Returns-1.1%

BOI AXA Manufacturing & Infrastructure Direct Growth

Fund Performance: This fund has given 2.52% annualized returns in the last three years. In the last year, its returns were 8.27%. 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 8.27% 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 ₹1,000.

Min Investment Amt₹5,000
AUM40Cr
1Y Returns8.3%

BOI AXA Tax Advantage Direct Growth

Fund Performance: This fund has given 7.32% annualized returns in the last three years. In the last year, its returns were 15.54%. 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 15.54% 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
AUM299Cr
1Y Returns15.5%

Sundaram Select Focus Fund Direct Growth

Fund Performance: This fund has given 5.41% annualized returns in the last three years. In the last year, its returns were -2.5%. 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 -2.5% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹100. Minimum SIP investment amount required for this scheme is ₹100.

Min Investment Amt₹100
AUM1,064Cr
1Y Returns-2.5%

UTI Transportation and Logistics Fund Direct Growth

Fund Performance: This fund has given -7.78% annualized returns in the last three years. In the last year, its returns were -1.73%. 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 -1.73% 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 ₹500.

Min Investment Amt₹5,000
AUM1,260Cr
1Y Returns-1.7%

IIFL Focused Equity Fund Direct Growth

Fund Performance: This fund has given 9.21% annualized returns in the last three years. In the last year, its returns were 6.52%. 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 6.52% 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
AUM930Cr
1Y Returns6.5%

ICICI Prudential Technology Direct Plan Growth

Fund Performance: This fund has given 26.79% annualized returns in the last three years. In the last year, its returns were 38.37%. 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 38.37% 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
AUM545Cr
1Y Returns38.4%

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