20 Best Equity Mutual Funds in India to Invest in April 2023

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.

20 Top Equity Mutual Funds in India 2023 – Best Performing

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!

Also Read

20 Best Debt Mutual Funds to Invest in India (April 2023)

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Performance of Best Equity Mutual Funds Based on 5-Year Returns

1. Navi Nifty 50 Index Fund

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:

• NAV: ₹10.81
• Expense Ratio: 0.06%
• AUM: ₹697.46 Cr
• Type of Fund: Index fund
• Minimum Investment Amount: ₹10
• Minimum SIP: ₹10
• Returns:
  • Annualised 1-Year Return: -0.01%
  • Annualised 3-Year Return: NA%
  • Annualised 5-Year Return: NA%

2. Quant Small Cap 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:

• NAV: ₹146.61
• Expense Ratio: 0.62%
• AUM: ₹3,301.73 Cr
• Type of Fund: Small Cap Equity Fund
• Minimum Investment Amount: ₹5,000
• Minimum SIP: ₹1,000
• Returns:
  • Annualised 1-Year Return: 6.8%
  • Annualised 3-Year Return: 68.2%
  • Annualised 5-Year Return: 23.3%

3. Quant Tax Plan

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:

• NAV: ₹246.70
• Expense Ratio: 0.57%
• AUM: ₹2,779.06 Cr
• Type of Fund: ELSS
• Minimum Investment Amount: ₹500
• Minimum SIP: ₹500
• Returns:
  • Annualised 1-Year Return: 0.5%
  • Annualised 3-Year Return: 51.3%
  • Annualised 5-Year Return: 22.5%

4. Quant Active Fund

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:

• NAV: ₹438.88
• Expense Ratio: 0.58%
• AUM: ₹3,531.89 Cr
• Type of Fund: Multicap equity
• Minimum Investment Amount: ₹5,000
• Minimum SIP: ₹1,000
• Returns:
  • Annualised 1-Year Return: -1.9%
  • Annualised 3-Year Return: 46.4%
  • Annualised 5-Year Return: 20.1%

5. Quant Mid Cap Fund

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:

• NAV: ₹139.20
• Expense Ratio: 0.63%
• AUM: ₹1,550.74 Cr
• Type of Fund: MidCap Equity Fund
• Minimum Investment Amount: ₹5,000
• Minimum SIP: ₹1,000
• Returns:
  • Annualised 1-Year Return: 2.6%
  • Annualised 3-Year Return: 46.4%
  • Annualised 5-Year Return: 20.0%

6. Motilal Oswal Midcap Fund

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:

• NAV: ₹55.22
• Expense Ratio: 0.87%
• AUM: ₹3,769.30 Cr
• Type of Fund: Midcap Equity Fund
• Minimum Investment Amount: ₹500
• Minimum SIP: ₹500
• Returns:
  • Annualised 1-Year Return: 11.3%
  • Annualised 3-Year Return: 38.6%
  • Annualised 5-Year Return: 15.9%

7. Canara Robeco Equity Tax Saver Fund

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:

• NAV: ₹122.89
• Expense Ratio: 0.64%
• AUM: ₹4,685.85 Cr
• Type of Fund: ELSS Fund
• Minimum Investment Amount: ₹500
• Minimum SIP: ₹500
• Returns:
  • Annualised 1-Year Return: 0.8%
  • Annualised 3-Year Return: 29.2%
  • Annualised 5-Year Return: 15.6%

8. ICICI Prudential Value Discovery Fund

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:

• NAV: ₹297.14
• Expense Ratio: 1.22%
• AUM: ₹27,449.73 Cr
• Type of Fund: Equity Fund
• Minimum Investment Amount: ₹1,000
• Minimum SIP: ₹100
• Returns:
  • Annualised 1-Year Return: 8.5%
  • Annualised 3-Year Return: 38.1%
  • Annualised 5-Year Return: 15.2%

9. Quant Large and Mid Cap Fund

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:

• NAV: ₹73.21
• Expense Ratio: 0.56%
• AUM: ₹652.91 Cr
• Type of Fund: Large and Mid Cap Fund
• Minimum Investment Amount: ₹5,000
• Minimum SIP: ₹1,000
• Returns:
  • Annualised 1-Year Return: 0.8%
  • Annualised 3-Year Return: 33.4%
  • Annualised 5-Year Return: 14.3%

10. Canara Robeco Blue Chip Equity Fund

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:

• NAV: ₹45.66
• Expense Ratio: 0.48%
• AUM: ₹8,672.96 Cr
• Type of Fund: Large Cap Equity Fund
• Minimum Investment Amount: ₹5,000
• Minimum SIP: ₹1,000
• Returns:
  • Annualised 1-Year Return: 1.2%
  • Annualised 3-Year Return: 25.5%
  • Annualised 5-Year Return: 14.6%

11. SBI Contra Fund

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:

• NAV: ₹242.07
• Expense Ratio: 0.97%
• AUM: ₹8,340.65 Cr
• Type of Fund: Contra Fund
• Minimum Investment Amount: ₹5,000
• Minimum SIP: ₹500
• Returns:
  • Annualised 1-Year Return: 14.2%
  • Annualised 3-Year Return: 45.3%
  • Annualised 5-Year Return: 15.9%

12. Canara Robeco Flexi Cap Fund

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:

• NAV: ₹236.81
• Expense Ratio: 0.55%
• AUM: ₹8,630.89 Cr
• Type of Fund: Flexicap Fund
• Minimum Investment Amount: ₹5,000
• Minimum SIP: ₹1,000
• Returns:
  • Annualised 1-Year Return: -1.0%
  • Annualised 3-Year Return: 26.1%
  • Annualised 5-Year Return: 14.0%

13. Invesco India Infrastructure 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:

• NAV: ₹37.70
• Expense Ratio: 1.08%
• AUM: ₹445.72 Cr
• Type of Fund: Sectoral/thematic equity fund
• Minimum Investment Amount: ₹1,000
• Minimum SIP: ₹500
• Returns:
  • Annualised 1-Year Return: 7.2%
  • Annualised 3-Year Return: 35.3%
  • Annualised 5-Year Return: 14.8%

14. ICICI Prudential Large & Mid Cap Fund

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:

• NAV: ₹622.07
• Expense Ratio: 1.09%
• AUM: ₹7,044.14 Cr
• Type of Fund: Large and Mid Cap Fund
• Minimum Investment Amount: ₹5,000
• Minimum SIP: ₹100
• Returns:
  • Annualised 1-Year Return: 7.5%
  • Annualised 3-Year Return: 35.9%
  • Annualised 5-Year Return: 13.8%

15. DSP Tax Saver Fund

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.

• NAV: ₹87.19
• Expense Ratio: 0.82%
• AUM: ₹10,129.21 Cr
• Type of Fund: ELSS Fund
• Minimum Investment Amount: ₹500
• Minimum SIP: ₹500
• Returns:
  • Annualised 1-Year Return: 1.1%
  • Annualised 3-Year Return: 30.8%
  • Annualised 5-Year Return: 13.5%

16. Bandhan Tax Advantage (ELSS) Fund

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:

• NAV: ₹110.49
• Expense Ratio: 0.75%
• AUM: ₹4,024.37 Cr
• Type of Fund: ELSS Fund
• Minimum Investment Amount: ₹500
• Minimum SIP: ₹500
• Returns:
  • Annualised 1-Year Return: 1.9%
  • Annualised 3-Year Return: 39.7%
  • Annualised 5-Year Return: 13.2%

17. HDFC Flexi Cap Fund

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:

• NAV: ₹1,207.80
• Expense Ratio: 1.01%
• AUM: ₹31,672.65 Cr
• Type of Fund: Flexi Cap equity fund
• Minimum Investment Amount: ₹100
• Minimum SIP: ₹100
• Returns:
  • Annualised 1-Year Return: 11.6%
  • Annualised 3-Year Return: 35.7%
  • Annualised 5-Year Return: 14.4%

18. UTI Flexi Cap Fund

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:

• NAV: ₹232.46
• Expense Ratio: 0.90%
• AUM: ₹23,944.62 Cr
• Type of Fund: Flexi Cap Equity Fund
• Minimum Investment Amount: ₹5,000
• Minimum SIP: ₹500
• Returns:
  • Annualised 1-Year Return: -9.3%
  • Annualised 3-Year Return: 24.8%
  • Annualised 5-Year Return: 12.1%

19. JM Flexi Cap Fund

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.

• NAV: ₹59.59
• Expense Ratio: 1.62%
• AUM: ₹255.58 Cr
• Type of Fund: Flexi Cap Equity Fund
• Minimum Investment Amount: ₹5,000
• Minimum SIP: ₹500
• Returns:
  • Annualised 1-Year Return: 5.9%
  • Annualised 3-Year Return: 28.7%
  • Annualised 5-Year Return: 13.8%

20. DSP Flexi Cap Fund

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:

• NAV: ₹67.52
• Expense Ratio: 0.81%
• AUM: ₹7,725.75 Cr
• Type of Fund: Flexi Cap Equity Fund
• Minimum Investment Amount: ₹500
• Minimum SIP: ₹500
• Returns:
  • Annualised 1-Year Return: -0.5%
  • Annualised 3-Year Return: 25.6%
  • Annualised 5-Year Return: 12.3%

*Data correct as on 31st March, 2023

Disclaimer: Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.

How Do Equity Mutual Funds Work?

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:

• Equity fund investment depends greatly on the category of the fund. SEBI (Securities and Exchange Board of India) has formulated rules for each of the categories and equity funds need to strictly adhere to these rules.
• After the fund category, the investment universe is decided. Then, the portfolio manager decides on which stocks to pick from this pool of assets. This is where the expertise of the fund manager comes into play. He along with his team analyses the profitability of the company and how it can withstand challenging market situations. Based on this research, investment decisions are taken by the investor. 
• After the investor has purchased these stocks, it is the responsibility of the fund manager to track their performances. If a company does not perform as per initial expectations, they remove the stocks from its portfolio. If a company shows promise, the fund manager advises the investor to invest in them.

Example:

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.

Benefits of Investing in Best Equity Mutual Funds

Given below are the benefits of investing in equity mutual funds:

1. Diversification

Equity mutual funds are diversified across stocks and sectors. It provides adequate protection against market shocks. 

2. Convenience

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. 

Also Read

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Who Should Invest in Best Equity Mutual Funds?

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.

How to Invest in Best Equity Mutual Funds Online and Offline?

Given below are the online and offline steps to invest in equity mutual funds:

1. Invest in Equity Funds – Online Method

2. Invest in Equity Funds – Offline Method

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.

How to Choose the Right Equity Mutual Fund?

Given below are the crucial factors that an investor needs to look into while choosing equity mutual funds:

1. Risk Appetite

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. 

2. Investment Horizon

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.

3. Expense Ratio

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.

4. Fund Performance

Investors need to check the consistency in performance and fund managers’ expertise while choosing a mutual fund. 

Taxation on Equity Mutual Funds

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.

Final Word

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.

FAQs

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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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