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 FundEquityHigh-2.3%5star450
Aditya Birla Sun Life India Opportunities FundEquityHigh32.6%5star144
Aditya Birla Sun Life India Opportunities FundEquityHigh31.4%5star144
SBI Banking & Financial Services FundEquityHigh3.6%5star1,015
Mirae Asset Tax Saver FundEquityModerately High0.8%5star2,306
SBI Banking & Financial Services FundEquityHigh2.3%5star1,015
Axis Bluechip FundEquityModerately High5.0%5star7,005
Mirae Asset Tax Saver FundEquityModerately High-0.4%5star2,306
Axis Bluechip FundEquityModerately High5.0%5star7,005
SBI Banking & Financial Services FundEquityHigh2.5%5star1,015
Mirae Asset Tax Saver FundEquityModerately High-0.9%5star2,306
SBI Small Cap FundEquityModerately High-8.4%5star2,413
Mirae Asset Emerging Bluechip FundEquityModerately High1.4%5star7,759
Axis Focused 25 FundEquityModerately High-3.7%5star7,841
SBI Banking & Financial Services FundEquityHigh1.3%5star1,015
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 consistently beaten its benchmark in Sectoral/Thematic segment and provided 16.87% annualized returns in the last 3 years. In the last 1 year, it gave -2.26% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -2.26% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹100. This is one of the best Equity mutual fund in India.

Launch Date
Min Investment Amt₹NaN
AUM450Cr
1Y Returns-2.3%

Aditya Birla Sun Life India Opportunities Direct Fund Growth

Fund Performance: This fund has consistently beaten its benchmark in Sectoral/Thematic segment and provided 15.59% annualized returns in the last 3 years. In the last 1 year, it gave 32.57% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 32.57% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹1,000. This is one of the best Equity mutual fund in India.

Launch Date
Min Investment Amt₹NaN
AUM144Cr
1Y Returns32.6%

Aditya Birla Sun Life India Opportunities Fund Growth

Fund Performance: This fund has consistently beaten its benchmark in Sectoral/Thematic segment and provided 14.7% annualized returns in the last 3 years. In the last 1 year, it gave 31.38% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 31.38% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹1,000. This is one of the best Equity mutual fund in India.

Launch Date
Min Investment Amt₹NaN
AUM144Cr
1Y Returns31.4%

SBI Banking & Financial Services Fund Direct Dividend

Fund Performance: This fund has consistently beaten its benchmark in Sectoral/Thematic segment and provided 14.41% annualized returns in the last 3 years. In the last 1 year, it gave 3.57% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 3.57% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Equity mutual fund in India.

Launch Date
Min Investment Amt₹NaN
AUM1,015Cr
1Y Returns3.6%

Mirae Asset Tax Saver Fund Direct Dividend

Fund Performance: This fund has consistently beaten its benchmark in ELSS segment and provided 14.36% annualized returns in the last 3 years. In the last 1 year, it gave 0.8% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 0.8% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Equity mutual fund in India.

Launch Date
Min Investment Amt₹NaN
AUM2,306Cr
1Y Returns0.8%

SBI Banking & Financial Services Fund Direct Growth

Fund Performance: This fund has consistently beaten its benchmark in Sectoral/Thematic segment and provided 13.58% annualized returns in the last 3 years. In the last 1 year, it gave 2.32% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 2.32% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Equity mutual fund in India.

Launch Date
Min Investment Amt₹NaN
AUM1,015Cr
1Y Returns2.3%

Axis Bluechip Fund Direct Plan Dividend

Fund Performance: This fund has consistently beaten its benchmark in Diversified segment and provided 13.55% annualized returns in the last 3 years. In the last 1 year, it gave 4.99% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 4.99% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹1,000. This is one of the best Equity mutual fund in India.

Launch Date
Min Investment Amt₹NaN
AUM7,005Cr
1Y Returns5.0%

Mirae Asset Tax Saver Fund Direct Growth

Fund Performance: This fund has consistently beaten its benchmark in ELSS segment and provided 13.51% annualized returns in the last 3 years. In the last 1 year, it gave -0.39% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -0.39% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Equity mutual fund in India.

Launch Date
Min Investment Amt₹NaN
AUM2,306Cr
1Y Returns-0.4%

Axis Bluechip Fund Direct Plan Growth

Fund Performance: This fund has consistently beaten its benchmark in Large Cap segment and provided 13.13% annualized returns in the last 3 years. In the last 1 year, it gave 5% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 5% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹1,000. This is one of the best Equity mutual fund in India.

Launch Date
Min Investment Amt₹NaN
AUM7,005Cr
1Y Returns5.0%

SBI Banking & Financial Services Fund Regular Dividend

Fund Performance: This fund has consistently beaten its benchmark in Sectoral/Thematic segment and provided 13.07% annualized returns in the last 3 years. In the last 1 year, it gave 2.5% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 2.5% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Equity mutual fund in India.

Launch Date
Min Investment Amt₹NaN
AUM1,015Cr
1Y Returns2.5%

Mirae Asset Tax Saver Fund Regular Dividend

Fund Performance: This fund has consistently beaten its benchmark in ELSS segment and provided 12.79% annualized returns in the last 3 years. In the last 1 year, it gave -0.88% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -0.88% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Equity mutual fund in India.

Launch Date
Min Investment Amt₹NaN
AUM2,306Cr
1Y Returns-0.9%

SBI Small Cap Fund Direct Dividend

Fund Performance: This fund has consistently beaten its benchmark in Small Cap segment and provided 12.75% annualized returns in the last 3 years. In the last 1 year, it gave -8.43% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -8.43% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Equity mutual fund in India.

Launch Date
Min Investment Amt₹NaN
AUM2,413Cr
1Y Returns-8.4%

Mirae Asset Emerging Bluechip Fund Direct Dividend

Fund Performance: This fund has consistently beaten its benchmark in Large & Mid Cap segment and provided 12.71% annualized returns in the last 3 years. In the last 1 year, it gave 1.36% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 1.36% returns in the last 1 year. . Minimum SIP investment amount for this scheme is ₹1,000. This is one of the best Equity mutual fund in India.

Launch Date
Min Investment AmtN.A
AUM7,759Cr
1Y Returns1.4%

Axis Focused 25 Direct Plan Dividend

Fund Performance: This fund has consistently beaten its benchmark in Focused segment and provided 12.48% annualized returns in the last 3 years. In the last 1 year, it gave -3.74% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -3.74% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹1,000. This is one of the best Equity mutual fund in India.

Launch Date
Min Investment Amt₹NaN
AUM7,841Cr
1Y Returns-3.7%

SBI Banking & Financial Services Fund Regular Growth

Fund Performance: This fund has consistently beaten its benchmark in Sectoral/Thematic segment and provided 12.26% annualized returns in the last 3 years. In the last 1 year, it gave 1.27% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 1.27% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Equity mutual fund in India.

Launch Date
Min Investment Amt₹NaN
AUM1,015Cr
1Y Returns1.3%

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