Equity funds are mutual funds that primarily invest in stocks and shares of companies across market capitalisations in a bid to offer investors a diversified portfolio and generate capital growth in the long term. Equity funds could be both actively managed and passively managed – example index funds. The best equity mutual funds are those that offer better capital appreciation than other funds due to diversified and strategic asset allocation.
We have curated a list of the top 20 equity funds that you could consider investing in.
|Navi Nifty 50 Index Fund||NAV: ₹10.81|
Expense Ratio: 0.06%
AUM: ₹697.46 Cr
|Quant Small Cap Fund||NAV: ₹146.61|
Expense Ratio: 0.62%
AUM: ₹3,301.73 Cr
|Quant Tax Plan||NAV: ₹246.70|
Expense Ratio: 0.57%
AUM: ₹2,779.06 Cr
|Quant Active Fund||NAV: ₹438.88|
Expense Ratio: 0.58%
AUM: ₹3,531.89 Cr
|Quant Mid Cap Fund||NAV: ₹139.20|
Expense Ratio: 0.63%
AUM: ₹1,550.74 Cr
|Motilal Oswal Midcap Fund||NAV: ₹55.22 |
Expense Ratio: 0.87%
AUM: ₹3,769.30 Cr
|Canara Robeco Equity Tax Saver Fund||NAV: ₹122.89|
Expense Ratio: 0.64%
AUM: ₹4,685.85 Cr
|ICICI Prudential Value Discovery Fund||NAV: ₹297.14|
Expense Ratio: 1.22%
AUM: ₹27,449.73 Cr
|Quant Large and Mid Cap Fund||NAV: ₹73.21 |
Expense Ratio: 0.56%
AUM: ₹652.91 Cr
|Canara Robeco Bluechip Equity Fund||NAV: ₹45.66|
Expense Ratio: 0.48%
AUM: ₹8,672.96 Cr
|SBI Contra Fund||NAV: ₹242.07|
Expense Ratio: 0.97%
AUM: ₹8,340.65 Cr
|Canara Robeco Flexi Cap Fund Direct Growth||NAV: ₹236.81|
Expense Ratio: 0.55%
AUM: ₹8,630.89 Cr
|Invesco India Infrastructure Fund||NAV: ₹37.70|
Expense Ratio: 1.08%
AUM: ₹445.72 Cr
|ICICI Prudential Large & Mid Cap Fund||NAV: ₹622.07|
Expense Ratio: 1.09%
AUM: ₹7,044.14 Cr
|DSP Tax Saver Fund||NAV: ₹87.19 |
Expense Ratio: 0.82%
AUM: ₹10,129.21 Cr
|Bandhan Tax Advantage (ELSS) Fund||NAV: ₹110.49|
Expense Ratio: 0.75%
AUM: ₹4,024.37 Cr
|HDFC Flexi Cap Fund||NAV: ₹1,207.80|
Expense Ratio: 1.01%
AUM: ₹31,672.65 Cr
|UTI Flexi Cap Fund||NAV: ₹232.46|
Expense Ratio: 0.90%
AUM: ₹23,944.62 Cr
|JM Flexi Cap Fund||NAV: ₹59.59|
Expense Ratio: 1.62%
AUM: ₹255.58 Cr
|DSP Flexi Cap Fund||NAV: ₹67.52|
Expense Ratio: 0.81%
AUM: ₹7,725.75 Cr
Before we move on, here’s something for you. If you are looking for hassle-free investing, try investing in index funds. Navi Mutual Fund is a one-stop destination for a wide range of low-cost index funds. Being passively managed, these funds are affordable and extremely transparent. Download the Navi app today to invest in index funds, starting at just ₹10!
Want exposure to India’s top 50 companies, in terms of total market capitalisation? With Navi Nifty 50 Index Fund, you could maximise the profit margin of your investments, in line with the performance of the Nifty 50 Index, in a low-cost and convenient manner. Being technology-backed, the fund has little to no human intervention, and boasts of low tracking error. To get started, simply download the Navi App today and start your investment journey, starting at just ₹10. Here are some important details about the fund:
Quant Small Cap Fund could be considered as one of the best equity mutual funds based on its past performance. The primary objective of the scheme is to generate capital appreciation and provide long-term growth opportunities by investing in a portfolio of small cap companies. Let’s look into the fund details:
Looking to maximise the returns potential of your investment portfolio while also maximising your tax savings under Section 80C of I-T Act, 1961? Then, Quant Tax Plan could be an option for you. It was first launched in March 2000. It’s an ELSS (Equity-Linked Saving Scheme) fund with a statutory lock-in period of 3 years. The investment objective of the scheme is to generate capital appreciation by investing predominantly in a well-diversified portfolio of equity shares with high growth potential. Let’s look into the fund details:
Quant Active Fund is an open-ended equity scheme that was launched in March 2001. The primary investment objective of this multicap scheme is to generate capital appreciation and provide long-term growth opportunities by investing in a portfolio of large cap, mid cap and small cap companies. Let’s look into the fund details:
Often named alongside the best equity funds, due to its past performance, Quant Mid Cap Fund is an open-ended equity scheme which invests predominantly in mid-cap stocks. The primary investment objective of the scheme is to generate capital appreciation and provide long-term growth opportunities by investing in a portfolio of mid-cap companies. This scheme could be ideal for investors with moderate to high risk appetite. Let’s look into the fund details:
Motilal Oswal Midcap Fund is often considered among the top 5 equity funds due to its consistent performance in the past. This fund is ideal for investors who want to invest in midcap stocks. Currently, the fund invests 84.1% in equity and 9.7% in debt. Let’s check out the fund details:
Canara Robeco Equity Tax Saver Fund is an ELSS scheme that aims to provide long-term capital appreciation by predominantly investing in equities. Investors can also claim tax benefits on their investments of up to ₹1.5 lakh under Section 80C of the Income Tax Act, 1961. Let’s check out the fund details:
This fund currently invests 92.3% of its corpus in domestic equities of which 23.3% is invested in the financial sector, 17.9% in energy, and 15.2% in healthcare. The fund has also invested 1% of its corpus in debt instruments, while 6.7% is held as cash. The scheme could be suitable for Investors who have advanced knowledge of macro trends and prefer to take selective bets for higher returns compared to other equity funds. Let’s look into the scheme details:
The primary investment objective of the scheme is to generate capital growth and provide long-term growth opportunities by investing in a portfolio of large-cap and mid-cap companies. Here are the scheme details:
Launched in August 2010, this is an open-ended equity scheme predominantly investing in large cap stocks. Since its inception, the fund has delivered an absolute return of almost 290% p.a. Let’s look into the scheme details:
SBI Contra Fund aims to provide investors with opportunities for long-term capital appreciation through active management of investments in line with a contrarian investment strategy. Currently, the fund invests 91.4% in stocks of companies which follow the contrarian investment theme. It has also invested 6.2% in debt instruments for risk diversification purposes. Let’s look into the scheme details:
As the name suggests, Canara Robeco Flexi Cap Fund is a flexicap mutual fund. Flexicap funds have the flexibility to invest in a variety of large-, mid-, and small-cap equities. This fund was launched on 1st January 2023 and currently has 96.8% of the corpus invested in equities. Here are some important details about the fund:
This is a sectoral fund and could be ideal for investors who want to be a part of India’s growth story. The fund has 97.2% investment in domestic equities. Here are the fund details:
This scheme could be suitable for investors who want to benefit from the relative stability of large cap stocks and the higher growth potential of midcap stocks. Investors with moderate to high risk appetite could consider investing in these funds. Let’s look into the fund details:
This is an ELSS scheme with which you can gain maximum tax savings annually under Section 80C of Income Tax Act, 1961. The fund aims to invest in established as well as emerging companies across market caps to provide a combination of growth and stability.
This is an open-ended equity-linked saving scheme with a statutory lock-in period of 3 years and tax deductions of up to ₹1.5 lakh under Section 80C of the Income Tax Act, 1961.This fund could be ideal for investors looking for an investment avenue into the equity market, while also maximising tax savings under the section stated above. Here are the fund details:
It’s an open-ended dynamic equity scheme investing across large-cap, mid-cap, small-cap stocks. The scheme follows an equity strategy to build a portfolio, representing a cross section of companies diversified across major industries, economic sectors, and market capitalisations. The aim is to maximise returns potential in line with the performance of the underlying assets and asset classes. Here are the fund details:
This scheme could be ideal for investors who want to maximuse the returns potential of their portfolio with exposure to quality businesses across market capitalisations, themes, and sectors. Here are the scheme details:
Launched in September 2008, JM Flexi Cap Fund is an open-ended dynamic equity scheme investing across large-cap, mid-cap, and small-cap stocks. The scheme could be ideal for investors looking for capital appreciation over the long term and those who would like to invest predominantly in equity and equity-related securities investing across market capitalisations.
This scheme is DSP’s oldest equity fund which was launched way back on 29th April, 1997. This fund invests flexibly across carefully selected companies of different sizes- large, mid or small. Let’s look at the fund details:
*Data correct as on 31st March, 2023
Disclaimer: Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
Equity funds invest in equity shares of various companies. When someone invests in an equity fund, he/she becomes part-owner of the company.
Given below are the important steps related to how equity mutual funds works:
HDFC Flexi Cap Fund has 91.54% investment in domestic equities of which 71.54% is in large cap stocks, 4.48% is in mid cap stocks, 4.93% in small cap stocks.
Given below are the benefits of investing in equity mutual funds:
Equity mutual funds are diversified across stocks and sectors. It provides adequate protection against market shocks.
Investing in mutual funds is more convenient than buying various stocks. Furthermore, a demat account or brokerage account is not a compulsory requirement, unlike stock investments.
Regulation: SEBI regulates and closely monitors every mutual fund. As a result, there is a level of transparency. As per SEBI’s mandate, AMCs need to upload their month-end portfolios, periodic expense ratios and NAVs on their website.
Equity savings funds offer highly volatile returns when compared to other mutual fund investment options and are suitable to hold long-term to escape market fluctuations.
Investors who have a high-risk appetite and wish to generate wealth in the long haul can choose to invest in the best equity mutual funds.
People having an investment horizon of 5 or more years and willing to invest in high-risk stocks can benefit from the best equity mutual funds.
Given below are the online and offline steps to invest in equity mutual funds:
To invest in equity funds online, follow these steps:
Visit the official website of the Asset Management Company (AMC)
Fill up the application form, upload PAN and Aadhar details and complete eKYC
Invest in a mutual fund scheme with your online bank account
Given below are the steps to invest in equity mutual funds offline:
Step 1: Visit the nearest branch of the fund house
Step 2: Fill up the mutual fund application form with your name, bank details and mobile number
Step 3: Submit self-attested address/identity proof and passport size photographs and complete the KYC process
Step 4: Submit the cheque
Step 5: Don’t forget to collect the PIN and folio number
Investors can also approach a mutual fund distributor for their investments.
Given below are the crucial factors that an investor needs to look into while choosing equity mutual funds:
Investors should base their decisions on the level of risk they are willing to take. The risk level of equity mutual funds varies.
Mid-cap and small-cap mutual funds are very risky while aggressive hybrid mutual funds are not so. Large-cap funds provide moderate returns at low risk. If the investor wishes to take high risk, he/she should opt for mid-cap and small-cap mutual funds.
The choice of a mutual fund depends greatly on the investment horizon of an individual. Equity mutual funds are the best option for long-term goals. For short term goals, one can opt for a debt mutual fund.
Investors need to choose an equity mutual fund with a low expense ratio. It is the fee that a fund house charges the investor for managing their fund. A fund with a low expense ratio ensures that the investor saves/invests more money.
Investors need to check the consistency in performance and fund managers’ expertise while choosing a mutual fund.
When it comes to taxation, equity mutual funds have a dedicated tax structure:
The capital gains earned on exit within 1 year are treated as Short Term Capital Gains (STCG) and are taxed at 15 percent.
If an investor holds investments for more than a year, the gains are classified as Long Term Capital Gains (LTCG) and are free if the profits fall under Rs. 1 Lakh, but taxed at 10 percent if the gains exceed Rs. 1 Lakh.
10 percent TDS (Tax Deducted at Source) is deducted on dividends exceeding Rs.5000 earned.
Investments made in Equity-linked savings schemes are exempt from taxes up to Rs. 1.5 Lakhs on a lock-in period of 3 years.
Equity funds have the potential to generate better returns than debt funds, however, the risks associated are in the higher bracket as well compared to debt funds. To mitigate risk, diversify your portfolio by investing in schemes with diverse asset allocations. Also, select the best equity mutual funds 2023 based on your risk tolerance and investment objective. Every investment you make should be aligned to your goals. If you want to get a taste of investing in mutual funds, you can start with as little as ₹10 with Navi Mutual Fund.
To strike a balance between risk and returns, one needs to take calculated risks to get the desired returns. It is a good idea to assess one’s risk appetite regularly as it is bound to change at every stage of life.
Portfolio diversification is an effective tool to reduce risks and carries the possibility of generating higher returns. In addition, a long investment horizon minimizes risks because it gives the fund more time to deal with market fluctuations.
The investment period depends on the financial goals of the individual. Financial advisers consider equity mutual funds to be ideal options for long-term investments. Furthermore, investing in equity schemes for the short term can be quite risky as these funds are volatile by nature. If the market spirals downwards, then the investments will be negatively affected.
In India, the majority of mutual funds do not come with a lock-in period. However, ELSS or equity-linked savings schemes are an exception. These mutual funds come with a lock-in period of 3 years. Another exception is close-ended funds, where investors can exit their investments for a certain period.
The minimum investment amount varies from one AMC (asset management company) to another. There are some mutual funds where investors can start investing via SIP (Systematic Investment Plan) with only Rs. 100. However, for most fund houses, the minimum amount is Rs. 500 for SIPs and Rs. 5000 for lumpsum investments.
Returns generated by an equity mutual fund depend on market-related factors and the investment horizon. Financial advisers advise a long investment horizon to get higher returns from these funds. An equity fund may offer 12% returns over a long horizon.
Equity mutual funds are a type of mutual fund schemes that invest in stocks and shares of companies in order to provide optimal returns to investors. These funds could be passively or actively managed funds.
Here are the top 5 equity mutual funds:
1. Quant Small Cap Fund
2. Quant Active Fund
3. Quant Mid Cap Fund
4. Motilal Oswal Midcap Fund
5. Motilal Oswal Midcap Fund
Equity mutual funds have the potential to provide highest returns compared to other mutual funds. Any investor looking to grow their money and enjoy inflation-beating returns should invest in equity funds. However, it’s recommended to keep your portfolio diversified to mitigate risks.
Equity funds are market-linked instruments and are subject to market volatility. However, this risk could be significantly mitigated if you stay invested for the long term.
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Disclaimer: Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
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