Equity funds are mutual funds that primarily invest in stocks and shares of companies across market capitalisation 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.
Listed below are the top performing equity mutual funds in India:
Fund Name | Features |
Navi Nifty 50 Index Fund | NAV: ₹23.55 Expense Ratio: 0.06% AUM: ₹620.74 Cr |
Quant Small Cap Fund | NAV: ₹140.08 Expense Ratio: 2.67% AUM: ₹2870.43 Cr |
Quant Tax Plan | NAV: ₹230.05 Expense Ratio: 2.62% AUM: ₹2506.48 Cr |
Quant Active Fund | NAV: ₹424.75 Expense Ratio: 2.63% AUM: ₹3544.03 Cr |
Quant Mid Cap Fund | NAV: ₹129.74 Expense Ratio: 2.68% AUM: ₹1329.97 Cr |
Motilal Oswal Midcap Fund | NAV: ₹49.60 Expense Ratio: 2.04% AUM: ₹3626.84 Cr |
Canara Robeco Equity Tax Saver Fund | NAV: ₹112.93 Expense Ratio: 1.98% AUM: ₹4562.79 Cr |
ICICI Prudential Value Discovery Fund | NAV: ₹276.74 Expense Ratio: 1.73% AUM: ₹27515.18 Cr |
Quant Large and Mid Cap Fund | NAV: ₹71.19 Expense Ratio: 2.31% AUM: ₹548.66 Cr |
Canara Robeco Bluechip Equity Fund | NAV: ₹40.87 Expense Ratio: 1.87% AUM: ₹8666.25 Cr |
SBI Contra Fund | NAV: ₹223.82 Expense Ratio: 1.92% AUM: ₹7635.09 Cr |
Canara Robeco Flexi Cap Fund | NAV: ₹218.15 Expense Ratio: 1.80% AUM: ₹8729.58 Cr |
Invesco India Infrastructure Fund | NAV: ₹31.64 Expense Ratio: 2.48% AUM: ₹440.30 Cr |
ICICI Prudential Large and Mid Cap Fund | NAV: ₹575.06 Expense Ratio: 2.03% AUM: ₹6210.34 Cr |
DSP Tax Saver Fund | NAV: ₹81.61 Expense Ratio: 1.75% AUM: ₹10444.91 Cr |
IDFC Tax Advantage (ELSS) Fund | NAV: ₹98.58 Expense Ratio: 2.01% AUM: ₹4025.95 Cr |
HDFC Flexi Cap Fund | NAV: ₹1126.31 Expense Ratio: 1.65% AUM: ₹32154.52 Cr |
UTI Flexi Cap Fund | NAV: ₹223.06 Expense Ratio: 1.69% AUM: ₹24929.40 Cr |
JM Flexi Cap Fund | NAV: ₹53.59 Expense Ratio: 2.59% AUM: ₹250.35 Cr |
DSP Flexi Cap Fund | NAV: ₹61.97 Expense Ratio: 1.84% AUM: ₹7909.88 Cr |
Before we move on, here’s something for you. If you are looking for hassle-free investing, try investing in index funds. Wondering how to select the best index funds? Navi Mutual Fund is home to a wide range of low-cost index funds. Each fund has a distinct objective, so you can explore and choose the fund scheme that suits your goal. Download the Navi app today, explore and start investing!
Disclaimer: Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
Quant Small Cap Fund is considered as one of the best equity mutual funds due to its past performance. The primary investment objective of the scheme is to seek 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:
Also considered as one of the best-performing equity mutual funds, Quant Tax Plan was first launched in March 2000. It’s an ELSS (Equity-Linked Saving Scheme) fund with a statutory lock-in period of 3 years and tax benefit. The investment objective of the scheme is to generate capital appreciation by investing predominantly in a well-diversified portfolio of Equity Shares with 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 the 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 nto the fund details:
Considered as one of the best equity funds due to its past performance, Quant Mid Cap Fund is an open-ended equity scheme predominantly investing 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 is ideal for investors with moderate to high risk appetite. Let’s look into the fund details:
Motilal Oswal Midcap Fund is also considered as one of the top 5 equity funds due to its performance. This fund is ideal for investors who want to invest in midcap stocks. The fund invests 65% of total assets in equity and its related securities of mid-cap firms. 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 Rs.1.5 lakh under Section 80C of the income tax act. Let’s check out the fund details:
This fund has 87.01% investment in domestic equities of which 62.61% is in large cap stocks, 10.22% is in mid cap stocks, 5.57% in small cap stocks. The fund has 1.01% investment in debt, of which 1.01% in Government securities. The scheme is 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. Launched in August 2010, the scheme aims to provide capital appreciation by predominantly investing in companies having a large market capitalisation. Let’s look into the scheme details:
SBI Contra Fund aims to provide investors with opportunities for long-term capital appreciation through an active management of investments following a contrarian investment strategy. The fund invests minimum of 65% in stocks of companies which follow the contrarian investment theme. SBI Contra Fund has the flexibility to invest up to 35% in other equities and/or debt or money market instruments. Let’s look into the scheme details:
Canara Robeco Flexi Cap Fund is a multi-cap mutual fund scheme from Canara Robeco Mutual Fund. This fund was launched on 1st January 2023 and has 95.83% investment in domestic equities.
This is a sectoral fund and is ideal for investors who have prior knowledge of India’s infrastructural growth. The fund has 97.24% investment in domestic equities. Here are the fund details:
This scheme is suitable for investors who want to invest in both large cap and 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 that allows you to avail a tax deduction on up to Rs 1.5 lakh annually under Sec 80C of Income Tax Act 1961. The fund invests 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 of 3 years and tax benefits of up to Rs.1.5 lakh under Section 80C of teh Income Tax Act.This fund is ideal for investors looking for an investment avenue that would help them save tax while getting exposure to the equity market. 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 capitalisation that offer an acceptable risk reward balance. Here are the fund details:
This scheme is ideal for investors who wish to build their core equity portfolio holding, that invests in quality businesses that have potential to generate economic value for a long period of time. 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 long term and those who would like to invest predominantly in equity and equity-related securities investing across market capitalisation.
This scheme is DSP’s oldest equity fund with a 24 year+ track record. This fund invests flexibly across carefully selected companies of different sizes- large, mid or small. Let’s look at the fund details:
This fund invests in a prudent mix of established (large sized) as well as emerging (mid sized) companies. It aims to invest close to 70% in companies offering potentially superior risk-reward outcomes & available at valuations providing sufficient margin of safety while ~30% or less is invested in stocks with strong growth & profitability metrics that may not meet the margin of safety criterion.
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 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:
Given below are the steps to invest in equity mutual funds offline:
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 funds based on your risk tolerance and investment objective. Every investment you make should be aligned to your goals.
Ans: ITo 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.
Ans: 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.
Ans: 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.
Ans: 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.
Ans: 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.
Ans: 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.
Ans: 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
Ans: 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.
Ans: 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.
Want to put your savings into action and kick-start your investment journey 💸 But don’t have time to do research? Invest now with Navi Nifty 50 Index Fund, sit back, and earn from the top 50 companies.
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.
What is Nifty Midcap 150 – Returns and Stock List 2023
What is Nifty Midcap 150? Nifty Midcap 150 is an index on the NSE (National Stock Exchange... Read More »What is Nifty Midcap 50 – Returns and Stock List 2023
What is Nifty Midcap 50? The Nifty 50 Midcap index comprises top 50 Indian companies based on ma... Read More »Index Funds – Types, Benefits, How does It Work and How to Invest in 2023
What Is Index Fund - Meaning and Definition An index fund is a passively-managed mutual fund tha... Read More »What are Large Cap Mutual Funds? – Features, Risk and Advantages
What are Large Cap Funds? Large cap mutual funds are equity funds that invest in the stocks and ... Read More »10 Best ULIP Plans in India to Invest in February 2023
ULIP (Unit-Linked Insurance Plan) is an excellent financial instrument that combines the benefits o... Read More »Best SWP Mutual Funds in India to Invest in February 2023
A Systematic Withdrawal Plan (SWP) is a type of investment strategy in which a set amount of money ... Read More »Mutual Fund: Meaning, Features, Types, Benefits & Working
There has been an increased awareness regarding mutual fund investments in India. According to a re... Read More »What is an Auto Sweep Facility? – Working, Taxation and Uses
A lot of people have money lying in their savings account earning a mere 3% to 4% annual rate of in... Read More »Alternative Investment Funds (AIF): Types, Features, Benefits and Working
Alternative investment funds (AIFs) are privately pooled investment funds that doesn’t fall under... Read More »3-in-1 Accounts: Savings, Demat and Online Trading
What is 3-in-1 Account? A 3-in-1 account is a combination of bank account, trading account and D... Read More »10 Best Lumpsum Mutual Funds in India to Invest in February 2023
Lump sum mutual fund investments involve making a single, bulk deposit in a mutual fund scheme as o... Read More »10 Best Nifty Next 50 Index Funds in India in February 2023
What is the Nifty Next 50 index fund? Nifty Next 50 index fund is a type of passively-mana... Read More »Top 10 Chit Fund Schemes in India in 2023
Chit funds are one of the most popular return-generating saving schemes in India. It is a financial... Read More »10 Best Gold ETFs to Invest in India in February 2023
Gold ETFs or Gold Exchange Traded Funds are passively managed funds that track the price of physica... Read More »Top 10 Demat Accounts in India [Lowest Brokerage Charges]
A Demat account was created to eliminate the time-consuming and inconvenient procedure of purchasin... Read More »20 Best Index Funds in India to Invest in 2023 (Updated on 31st Jan)
What is an Index Fund? An index fund is a type of mutual fund or exchange-traded fund (ETF) that... Read More »Best Arbitrage Mutual Funds to Invest in India: Returns and Taxation
Arbitrage funds are hybrid mutual fund schemes that aim to make low-risk profits by buying and sell... Read More »Best SIP Mutual Funds To Invest In India (2023) – Its Types And Taxation
A Systematic Investment Plan (SIP) is a convenient way to invest a fixed sum in mutual funds. For i... Read More »10 Best Corporate Bond Funds in India 2023 – With Returns
Corporate bond funds are debt funds that invest at least 80% of the investment corpus in companies ... Read More »10 Best Banks for Savings Account in India (2023)
A savings account keeps your money safe, and lets you earn interest every quarter. There are many b... Read More »All information is subject to specific conditions | © 2023 Navi Technologies Ltd. All rights are reserved.
Start Small. Dream Big.
Start your Investment Journey with just ₹10