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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 High83.5%5₹6,887
Quant Infrastructure FundEquityVery High95.8%5₹147
Quant Tax Plan FundEquityVery High75.2%5₹487
PGIM India Midcap Opportunities FundEquityVery High68.5%5₹3,388
Axis Small Cap FundEquityVery High61.7%5₹7,362
Quant Active FundEquityVery High70.6%5₹1,304
PGIM India Flexi Cap FundEquityVery High50.9%5₹2,706
IIFL Focused Equity FundEquityVery High41.4%5₹2,480
Parag Parikh Flexi Cap FundEquityVery High49.0%5₹17,220
Axis Growth Opportunities FundEquityVery High51.1%5₹5,006
Axis Midcap FundEquityVery High46.8%5₹15,988
Invesco India Infrastructure FundEquityVery High62.6%5₹334
Mirae Asset Emerging Bluechip FundEquityVery High46.1%5₹21,635
Nippon India Pharma FundEquityVery High24.7%5₹5,210
UTI Flexi Cap FundEquityVery High43.5%5₹24,212
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: The ICICI Prudential Technology Fund has given 43.32% annualized returns in the past three years and 34.7% in the last 5 years. The ICICI Prudential Technology Fund belongs to the Equity category of ICICI Prudential Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in ICICI Prudential Technology Fund via lump sum is ₹5,000 and via SIP is ₹100.

Min Investment Amt₹5,000
AUM₹6,887Cr
1Y Returns83.5%

Quant Infrastructure Fund Direct Growth

Fund Performance: The Quant Infrastructure Fund has given 37.92% annualized returns in the past three years and 26.81% 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₹147Cr
1Y Returns95.8%

Quant Tax Plan Direct Growth

Fund Performance: The Quant Tax Plan Fund has given 36.62% annualized returns in the past three years and 27.09% 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₹487Cr
1Y Returns75.2%

PGIM India Midcap Opportunities Fund Direct Growth

Fund Performance: The PGIM India Midcap Opportunities Fund has given 36.61% annualized returns in the past three years and 24.35% 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₹3,388Cr
1Y Returns68.5%

Axis Small Cap Fund Direct Growth

Fund Performance: The Axis Small Cap Fund has given 34.27% annualized returns in the past three years and 24.85% 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 ₹5,000 and via SIP is ₹500.

Min Investment Amt₹5,000
AUM₹7,362Cr
1Y Returns61.7%

Quant Active Fund Direct Growth

Fund Performance: The Quant Active Fund has given 34.06% annualized returns in the past three years and 26.91% in the last 5 years. The Quant Active Fund belongs to the Equity category of Quant Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Quant Active Fund via lump sum is ₹5,000 and via SIP is ₹1,000.

Min Investment Amt₹5,000
AUM₹1,304Cr
1Y Returns70.6%

PGIM India Flexi Cap Fund Direct Growth

Fund Performance: The PGIM India Flexi Cap Fund has given 30.51% annualized returns in the past three years and 23.62% 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₹2,706Cr
1Y Returns50.9%

IIFL Focused Equity Fund Direct Growth

Fund Performance: The IIFL Focused Equity Fund has given 30.46% annualized returns in the past three years and 21.89% in the last 5 years. The IIFL Focused Equity Fund belongs to the Equity category of IIFL Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in IIFL Focused Equity Fund via lump sum is ₹1,000 and via SIP is ₹1,000.

Min Investment Amt₹1,000
AUM₹2,480Cr
1Y Returns41.4%

Parag Parikh Flexi Cap Fund Direct Growth

Fund Performance: The Parag Parikh Flexi Cap Fund has given 30.18% annualized returns in the past three years and 23.83% 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₹17,220Cr
1Y Returns49.0%

Axis Growth Opportunities Fund Direct Growth

Fund Performance: The Axis Growth Opportunities Fund has given 29.26% annualized returns in the past three years and null% in the last 5 years. The Axis Growth Opportunities Fund belongs to the Equity category of Axis Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Axis Growth Opportunities Fund via lump sum is ₹5,000 and via SIP is ₹1,000.

Min Investment Amt₹5,000
AUM₹5,006Cr
1Y Returns51.1%

Axis Midcap Direct Plan Growth

Fund Performance: The Axis Midcap Fund has given 28.01% annualized returns in the past three years and 24.72% in the last 5 years. The Axis Midcap Fund belongs to the Equity category of Axis Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Axis Midcap Fund via lump sum is ₹5,000 and via SIP is ₹500.

Min Investment Amt₹5,000
AUM₹15,988Cr
1Y Returns46.8%

Invesco India Infrastructure Fund Direct Growth

Fund Performance: The Invesco India Infrastructure Fund has given 26.68% annualized returns in the past three years and 20.64% in the last 5 years. The Invesco India Infrastructure Fund belongs to the Equity category of Invesco Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Invesco India Infrastructure Fund via lump sum is ₹1,000 and via SIP is ₹500.

Min Investment Amt₹1,000
AUM₹334Cr
1Y Returns62.6%

Mirae Asset Emerging Bluechip Fund Direct Growth

Fund Performance: The Mirae Asset Emerging Bluechip Fund has given 26.38% annualized returns in the past three years and 23.16% in the last 5 years. The Mirae Asset Emerging Bluechip Fund belongs to the Equity category of Mirae Asset Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Mirae Asset Emerging Bluechip Fund via lump sum is ₹100 and via SIP is ₹1,000.

Min Investment Amt₹100
AUM₹21,635Cr
1Y Returns46.1%

Nippon India Pharma Fund Direct Growth

Fund Performance: The Nippon India Pharma Fund has given 26.33% annualized returns in the past three years and 17.09% in the last 5 years. The Nippon India Pharma Fund belongs to the Equity category of Nippon India Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Nippon India Pharma Fund via lump sum is ₹5,000 and via SIP is ₹100.

Min Investment Amt₹5,000
AUM₹5,210Cr
1Y Returns24.7%

UTI Flexi Cap Fund Direct Growth

Fund Performance: The UTI Flexi Cap Fund has given 26.08% annualized returns in the past three years and 21.76% in the last 5 years. The UTI Flexi Cap Fund belongs to the Equity category of UTI Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in UTI Flexi Cap Fund via lump sum is ₹5,000 and via SIP is ₹500.

Min Investment Amt₹5,000
AUM₹24,212Cr
1Y Returns43.5%

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