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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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List of Equity Mutual Funds in India

Fund NameCategoryRisk1Y ReturnsRatingFund Size(in Cr)
Quant Small Cap FundEquityVery High4.5%5₹2,870
Quant Infrastructure FundEquityVery High7.2%5₹854
Quant Tax Plan FundEquityVery High5.9%5₹2,506
Canara Robeco Small Cap FundEquityVery High3.4%5₹4,568
Quant Mid Cap FundEquityVery High11.8%5₹1,330
PGIM India Midcap Opportunities FundEquityVery High-0.8%5₹7,558
SBI Contra FundEquityVery High12.3%5₹7,635
Parag Parikh Tax Saver FundEquityModerately High8.9%5₹942
Quant Large and Mid Cap FundEquityVery High10.1%5₹549
Axis Small Cap FundEquityVery High3.7%5₹11,390
Parag Parikh Flexi Cap FundEquityVery High0.8%5₹28,248
Quant Focused FundEquityVery High8.4%5₹197
PGIM India Flexi Cap FundEquityVery High-4.7%5₹5,284
Nippon India Consumption FundEquityVery High11.8%5₹304
Mahindra Manulife Multi Cap Badhat Yojana FundEquityVery High-1.8%5₹1,545
View All

Features of Equity Mutual Funds

Here are a few salient characteristics of the best equity mutual funds 2022:

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 15 mutual fund schemes.

Quant Small Cap Fund Direct Plan Growth

Fund Performance: The Quant Small Cap Fund has given 48.16% annualized returns in the past three years and 23.58% in the last 5 years. The Quant Small Cap Fund belongs to the Equity category of Quant Mutual Funds.

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

Min Investment Amt₹5,000
AUM₹2,870Cr
1Y Returns4.5%

Quant Infrastructure Fund Direct Growth

Fund Performance: The Quant Infrastructure Fund has given 37.33% annualized returns in the past three years and 19.22% 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₹854Cr
1Y Returns7.2%

Quant Tax Plan Direct Growth

Fund Performance: The Quant Tax Plan Fund has given 36.43% annualized returns in the past three years and 21.01% 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₹2,506Cr
1Y Returns5.9%

Canara Robeco Small Cap Fund Direct Growth

Fund Performance: The Canara Robeco Small Cap Fund belongs to the Equity category of Canara Robeco Mutual Funds.

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

Min Investment Amt₹5,000
AUM₹4,568Cr
1Y Returns3.4%

Quant Mid Cap Fund Direct Growth

Fund Performance: The Quant Mid Cap Fund has given 32.9% annualized returns in the past three years and 19.51% in the last 5 years. The Quant Mid Cap Fund belongs to the Equity category of Quant Mutual Funds.

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

Min Investment Amt₹5,000
AUM₹1,330Cr
1Y Returns11.8%

PGIM India Midcap Opportunities Fund Direct Growth

Fund Performance: The PGIM India Midcap Opportunities Fund has given 31.57% annualized returns in the past three years and 17.57% 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₹7,558Cr
1Y Returns-0.8%

SBI Contra Direct Plan Growth

Fund Performance: The SBI Contra Fund has given 28.89% annualized returns in the past three years and 13.17% in the last 5 years. The SBI Contra Fund belongs to the Equity category of SBI Mutual Funds.

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

Min Investment Amt₹5,000
AUM₹7,635Cr
1Y Returns12.3%

Parag Parikh Tax Saver Fund Direct Growth

Fund Performance: The Parag Parikh Tax Saver Fund belongs to the Equity category of PPFAS Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Parag Parikh Tax Saver Fund via lump sum is ₹500 and via SIP is ₹1,000.

Min Investment Amt₹500
AUM₹942Cr
1Y Returns8.9%

Quant Large and Mid Cap Fund Direct Growth

Fund Performance: The Quant Large and Mid Cap Fund has given 23.7% annualized returns in the past three years and 13.61% in the last 5 years. The Quant Large and Mid Cap Fund belongs to the Equity category of Quant Mutual Funds.

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

Min Investment Amt₹5,000
AUM₹549Cr
1Y Returns10.1%

Axis Small Cap Fund Direct Growth

Fund Performance: The Axis Small Cap Fund has given 23.6% annualized returns in the past three years and 18.85% 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 ₹500 and via SIP is ₹100.

Min Investment Amt₹500
AUM₹11,390Cr
1Y Returns3.7%

Parag Parikh Flexi Cap Fund Direct Growth

Fund Performance: The Parag Parikh Flexi Cap Fund has given 22.24% annualized returns in the past three years and 16.01% 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₹28,248Cr
1Y Returns0.8%

Quant Focused Fund Direct Growth

Fund Performance: The Quant Focused Fund has given 22.02% annualized returns in the past three years and 12.56% in the last 5 years. The Quant Focused Fund belongs to the Equity category of Quant Mutual Funds.

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

Min Investment Amt₹5,000
AUM₹197Cr
1Y Returns8.4%

PGIM India Flexi Cap Fund Direct Growth

Fund Performance: The PGIM India Flexi Cap Fund has given 21.91% annualized returns in the past three years and 14.19% 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₹5,284Cr
1Y Returns-4.7%

Nippon India Consumption Fund Direct Growth

Fund Performance: The Nippon India Consumption Fund has given 21.73% annualized returns in the past three years and 13.08% in the last 5 years. The Nippon India Consumption Fund belongs to the Equity category of Nippon India Mutual Funds.

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

Min Investment Amt₹5,000
AUM₹304Cr
1Y Returns11.8%

Mahindra Manulife Multi Cap Badhat Yojana Direct Growth

Fund Performance: The Mahindra Manulife Multi Cap Badhat Yojana Fund has given 20.66% annualized returns in the past three years and 14.15% in the last 5 years. The Mahindra Manulife Multi Cap Badhat Yojana Fund belongs to the Equity category of Mahindra Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Mahindra Manulife Multi Cap Badhat Yojana Fund via lump sum is ₹1,000 and via SIP is ₹500.

Min Investment Amt₹1,000
AUM₹1,545Cr
1Y Returns-1.8%

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