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)
Axis Midcap FundEquityModerately High19.8%5star4,141
Axis Focused 25 FundEquityModerately High24.0%5star9,110
L&T Infrastructure FundEquityHigh5.9%5star1,625
ICICI Prudential Technology FundEquityHigh3.5%5star409
JM Core 11 FundEquityHigh17.2%5star56
Axis Bluechip FundEquityModerately High23.3%5star10,212
Kotak Emerging Equity SchemeEquityModerately High17.4%5star5,888
Mirae Asset Emerging Bluechip FundEquityModerately High20.7%5star9,516
L&T Midcap FundEquityHigh7.6%5star5,992
Motilal Oswal Focused 25 FundEquityModerately High20.7%5star1,205
UTI Transportation and Logistics FundEquityHigh-2.0%5star1,360
Tata India Tax Savings FundEquityModerately High17.3%5star2,094
SBI Focused Equity FundEquityModerately High22.5%5star6,924
Motilal Oswal Multicap 35 FundEquityModerately High10.8%5star13,131
Franklin Build India FundEquityHigh8.7%5star1,220
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.

Axis Midcap Direct Plan Growth

Fund Performance: This fund has given 19.47% annualized returns in the last three years. In the last year, its returns were 19.81%. 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 19.81% 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
AUM4,141Cr
1Y Returns19.8%

Axis Focused 25 Direct Plan Growth

Fund Performance: This fund has given 20.43% annualized returns in the last three years. In the last year, its returns were 23.97%. 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 23.97% 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
AUM9,110Cr
1Y Returns24.0%

L&T Infrastructure Fund Direct Growth

Fund Performance: This fund has given 9.92% annualized returns in the last three years. In the last year, its returns were 5.93%. 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 5.93% 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 ₹500.

Min Investment Amt₹5,000
AUM1,625Cr
1Y Returns5.9%

ICICI Prudential Technology Direct Plan Growth

Fund Performance: This fund has given 16.76% annualized returns in the last three years. In the last year, its returns were 3.45%. 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 3.45% 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 ₹100.

Min Investment Amt₹5,000
AUM409Cr
1Y Returns3.5%

JM Core 11 Direct Plan Growth

Fund Performance: This fund has given 14.3% annualized returns in the last three years. In the last year, its returns were 17.16%. 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 17.16% 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
AUM56Cr
1Y Returns17.2%

Axis Bluechip Fund Direct Plan Growth

Fund Performance: This fund has given 21.5% annualized returns in the last three years. In the last year, its returns were 23.34%. 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 23.34% 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
AUM10,212Cr
1Y Returns23.3%

Kotak Emerging Equity Fund Direct Growth

Fund Performance: This fund has given 13.06% annualized returns in the last three years. In the last year, its returns were 17.35%. 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 17.35% 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
AUM5,888Cr
1Y Returns17.4%

Mirae Asset Emerging Bluechip Fund Direct Growth

Fund Performance: This fund has given 18.08% annualized returns in the last three years. In the last year, its returns were 20.72%. 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 20.72% returns in the last one year. . Minimum SIP investment amount required for this scheme is ₹1,000.

Min Investment Amt₹100
AUM9,516Cr
1Y Returns20.7%

L&T Midcap Fund Direct Growth

Fund Performance: This fund has given 11.53% annualized returns in the last three years. In the last year, its returns were 7.64%. 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 7.64% 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
AUM5,992Cr
1Y Returns7.6%

Motilal Oswal Focused 25 Fund Direct Growth

Fund Performance: This fund has given 14.74% annualized returns in the last three years. In the last year, its returns were 20.74%. 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 20.74% 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
AUM1,205Cr
1Y Returns20.7%

UTI Transportation and Logistics Fund Direct Growth

Fund Performance: This fund has given 1.41% annualized returns in the last three years. In the last year, its returns were -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 -2% 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
AUM1,360Cr
1Y Returns-2.0%

Tata India Tax Savings Fund Direct Growth

Fund Performance: This fund has given 15.31% annualized returns in the last three years. In the last year, its returns were 17.28%. 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 17.28% 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
AUM2,094Cr
1Y Returns17.3%

SBI Focused Equity Fund Direct Plan Growth

Fund Performance: This fund has given 18.51% annualized returns in the last three years. In the last year, its returns were 22.5%. 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 22.5% 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
AUM6,924Cr
1Y Returns22.5%

Motilal Oswal Multicap 35 Fund Direct Growth

Fund Performance: This fund has given 12.23% annualized returns in the last three years. In the last year, its returns were 10.8%. 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 10.8% 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
AUM13,131Cr
1Y Returns10.8%

Franklin Build India Direct Fund Growth

Fund Performance: This fund has given 11.16% annualized returns in the last three years. In the last year, its returns were 8.66%. 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 8.66% 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
AUM1,220Cr
1Y Returns8.7%

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