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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| Fund Name | Category | Risk | 1Y Returns | Rating | Fund Size(in Cr) | |
|---|---|---|---|---|---|---|
| DSP Midcap Fund | Equity | Moderately High | 12.2% | 5star | ₹7,883 | |
| Mirae Asset Tax Saver Fund | Equity | Moderately High | 6.3% | 5star | ₹4,181 | |
| DSP Natural Resources and New Energy Fund | Equity | High | -11.6% | 5star | ₹326 | |
| Axis Long Term Equity Fund | Equity | Moderately High | -2.6% | 5star | ₹21,905 | |
| Aditya Birla Sun Life India GenNext Fund | Equity | High | -2.6% | 5star | ₹1,551 | |
| Canara Robeco Emerging Equities | Equity | Moderately High | 8.9% | 5star | ₹5,878 | |
| Canara Robeco Equity Tax Saver | Equity | Moderately High | 10.2% | 5star | ₹1,122 | |
| Invesco India Mid Cap Fund | Equity | Moderately High | 12.5% | 5star | ₹935 | |
| Axis Bluechip Fund | Equity | Moderately High | -1.1% | 5star | ₹16,764 | |
| BOI AXA Manufacturing & Infrastructure Fund | Equity | High | 8.3% | 5star | ₹40 | |
| BOI AXA Tax Advantage Fund | Equity | Moderately High | 15.5% | 5star | ₹299 | |
| Sundaram Select Focus | Equity | Moderately High | -2.5% | 5star | ₹1,064 | |
| UTI Transportation and Logistics Fund | Equity | High | -1.7% | 5star | ₹1,260 | |
| IIFL Focused Equity Fund | Equity | Moderately High | 6.5% | 5star | ₹930 | |
| ICICI Prudential Technology Fund | Equity | High | 38.4% | 5star | ₹545 | |
| 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.
Now let us jump and check about these top 10 mutual fund schemes.
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 |
|---|---|
| AUM | ₹7,883Cr |
| 1Y Returns | 12.2% |
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 |
|---|---|
| AUM | ₹4,181Cr |
| 1Y Returns | 6.3% |
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 |
|---|---|
| AUM | ₹326Cr |
| 1Y Returns | -11.6% |
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 |
|---|---|
| AUM | ₹21,905Cr |
| 1Y Returns | -2.6% |
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 |
|---|---|
| AUM | ₹1,551Cr |
| 1Y Returns | -2.6% |
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 |
|---|---|
| AUM | ₹5,878Cr |
| 1Y Returns | 8.9% |
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 |
|---|---|
| AUM | ₹1,122Cr |
| 1Y Returns | 10.2% |
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 |
|---|---|
| AUM | ₹935Cr |
| 1Y Returns | 12.5% |
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 |
|---|---|
| AUM | ₹16,764Cr |
| 1Y Returns | -1.1% |
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 |
|---|---|
| AUM | ₹40Cr |
| 1Y Returns | 8.3% |
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 |
|---|---|
| AUM | ₹299Cr |
| 1Y Returns | 15.5% |
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 |
|---|---|
| AUM | ₹1,064Cr |
| 1Y Returns | -2.5% |
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 |
|---|---|
| AUM | ₹1,260Cr |
| 1Y Returns | -1.7% |
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 |
|---|---|
| AUM | ₹930Cr |
| 1Y Returns | 6.5% |
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 |
|---|---|
| AUM | ₹545Cr |
| 1Y Returns | 38.4% |
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