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Best Equity Funds

Best Equity Mutual Funds - Consider the best performing equity mutual funds to invest in 2024 with Scripbox.com. Find the list of best equity funds in India on the basis of Returns, Latest Nav, Ratings, Performance etc.

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Best Equity Mutual Funds to Invest in 2024

Fund Name5Y ReturnsExpense Ratio
HDFC Large and Mid Cap Fund (G)
HDFC Large and Mid Cap Fund (G)
20.0%1.70
DSP ELSS Tax Saver Fund (G)
DSP ELSS Tax Saver Fund (G)
18.6%1.66
Mirae Asset ELSS Tax Saver Fund (G)
Mirae Asset ELSS Tax Saver Fund (G)
18.2%1.58
Canara Robeco Bluechip Equity Fund (G)
Canara Robeco Bluechip Equity Fund (G)
16.8%1.70
PGIM India Midcap Opportunities Fund (G)
PGIM India Midcap Opportunities Fund (G)
23.9%1.72
Parag Parikh Flexi Cap fund (G)
Parag Parikh Flexi Cap fund (G)
22.4%1.31
DSP India T I G E R Fund (G)
DSP India T I G E R Fund (G)
23.0%1.98
Templeton India Value Fund (G)
Templeton India Value Fund (G)
19.5%2.11
PGIM India Flexi Cap Fund (G)
PGIM India Flexi Cap Fund (G)
18.3%1.79
360 ONE Focused Equity Fund (G)
360 ONE Focused Equity Fund (G)
21.2%1.84
Motilal Oswal Midcap fund (G)
Motilal Oswal Midcap fund (G)
25.1%1.75
ICICI Prudential Dividend Yield Equity Fund (G)
ICICI Prudential Dividend Yield Equity Fund (G)
21.6%1.90
Union ELSS Tax Saver Fund (G)
Union ELSS Tax Saver Fund (G)
18.3%2.33
ICICI Prudential Infrastructure Fund (G)
ICICI Prudential Infrastructure Fund (G)
25.6%1.94
SBI Large & Midcap Fund (G)
SBI Large & Midcap Fund (G)
18.2%1.66
Quant Small Cap Fund (G)
Quant Small Cap Fund (G)
34.2%1.67
Bank of India Manufacturing & Infra fund (G)
Bank of India Manufacturing & Infra fund (G)
24.0%2.43
Union Flexi Cap Fund (G)
Union Flexi Cap Fund (G)
18.1%2.07
Quant Flexi Cap Fund (G)
Quant Flexi Cap Fund (G)
28.6%1.87
Bandhan Sterling Value Fund (G)
Bandhan Sterling Value Fund (G)
20.2%1.76

Note : *NA implies that Fund is relatively new. Not enough data available

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Things to Consider Before Investing in Equity Funds

Equity mutual funds invest in the shares of companies. The very nature of equity mutual funds makes them volatile and potentially high risk. Therefore, before adding one such fund to the investment portfolio, every investor needs to consider the following aspects.

  1. Fund Objective: The differentiating factor in choosing the right category among different equity mutual funds depends on the fund objective. Best equity mutual funds are structured to accumulate wealth through strategic investments. Each fund manager has his style of stock picking. It can be either growth investing or value investing. Therefore, aligning both investment objectives and fund objectives is essential.
  2. Fund Type: The different types of equity mutual funds are large cap, mid cap, small cap, and multi cap. Each of these categories serves a different objective. Large cap funds invest in the top 100 companies by market capitalisation. They hence are least risky amongst other equity funds categories. Small and mid cap funds carry the highest risk, while also offering high returns. On the other hand, Multi cap funds invest across market capitalisations and provide a more diversified option for the investor.
  3. Investment Objective: Always linking investment to a financial goal is the best way of investing. Equity mutual funds are ideal for long term goals. Identify long term goals and pick the best-suited equity mutual fund as they can generate wealth during the period.
  4. Investment Horizon: Equity mutual funds are only for long term investment horizons. These funds are highly volatile in the short run. Thus, to earn good returns, the investor has to stay invested for a minimum of 5 years. The long haul averages out the risk and has an excellent potential to earn a higher return.
  5. Risk: Mutual fund investments are subject to market risk. Amongst all the categories of mutual funds, equity mutual funds are the riskiest. Equity funds are affected by NIFTY and Sensex movements. The market fluctuations have a very high impact on the funds. Only with a long term investment horizon, this risk can be minimized.
  6. Cost: For actively managed equity mutual funds, SEBI has capped the total expense ratio at 2.5%. Fund houses also charge exit load for redeeming investments before a specific period. For equity, it is mostly one year, and 1% is charged for all withdrawals before one year.
  7. Expense ratio: The expense ratio of the fund is calculated as a percentage of the NAV. The returns of the fund are affected. Hence investors have to be careful while choosing a fund. Choose a fund with a lower expense ratio.
  8. Analyze Fund performance: Analysing the fund’s performance is very important. Investors invest in good returns. Fund return is all that they look at. The fund should be able to earn returns that are consistently outperforming the benchmark and its peers over a period of 5 years.
  9. Fund history: Investing in a fund that comes from an old and reputed fund house is essential. This builds investor confidence that the fund house can handle the performance of the fund in any market condition. The fund house should have a clean business with no track of any fraud.
  10. Identify how comfortable you are with risk: Investors need to access how they will react to slight fluctuations in the market. Will they be okay with losses in the short term? Will they be willing to invest for longer horizons despite drastic market movements?
  11. Taxation: Equity mutual funds are taxed based on the holding period of the investment. In the short term (less than one year), the gains are taxable at 15% (plus 4% cess). In the long run, the gains above INR 1,00,000 are taxable at 10% (plus 4% cess). Effective from 1st April 2020, dividends are taxable in the hands of investors at the income tax slab rate. And dividends above INR 5,000 are subject to TDS of 10%. Equity mutual funds are subject to securities transaction tax of 0.001% if investors sell the units. Investors should take advantage of investing for longer horizons and earn higher returns and enjoy tax benefits.

How to Invest in Equity Funds Through Scripbox

Investing in equity mutual funds in India can be done directly or through an agent. You can invest online through the direct method by logging on to the fund houses’ website and investing in the fund. On the other hand, you can invest through offline mode by visiting the nearest branch of the fund house. Investing through an intermediary can be done both online and offline.

There are multiple online platforms to invest in the best equity funds, and one of them is Scripbox. Scripbox allows investors to invest in the best equity funds carefully picked after thorough research using their robotic technology. 

You can invest in Scripbox’s recommended best equity mutual funds in India by following the below-mentioned steps:

  1. Login to Scripbox
  2. Click on ‘Invest’
  3. Begin your investment journey by choosing ‘A plan to invest in’ or ‘I want to choose my own funds’
  4. Select the mode of investment, i.e., monthly SIP, one-time or STP
  5. Enter the amount of investment
  6. Based on the amount of investment, the recommended funds will be provided. You can change the funds and the distribution of the amount.
  7. Select the payment mode and complete the transaction to set up your investment.

Overview of the Top Equity Funds in India

DSP ELSS Tax Saver Fund

The scheme’s objective is to generate medium to long-term capital appreciation through a diverse portfolio of mainly equity and equity-related securities. It also aims to enable investors to avail of income deduction benefits under the Income Tax Act 1961.

The fund has a mandatory lock-in period of 3 years. After maturity, you can either withdraw the funds or stay invested in the scheme. 

HDFC Large and Mid Cap Fund

The fund’s objective is to generate long-term capital appreciation/income from a portfolio, predominantly invested in equity and equity related instruments.

Thus, the fund targets investors with a minimum 5 to 7 year horizon. Expect short-term investment volatility due to the nature of the asset class. Also, the fund’s benchmark is Nifty LargeMidcap 250 TR INR.

Mirae Asset ELSS Tax Saver Fund

The investment objective of the scheme is to generate long term capital appreciation from a diversified portfolio of predominantly equity and equity related instruments. 

The fund has a lock-in period of 3 years and is suitable for investors seeking long-term growth and tax savings.

Canara Robeco Bluechip Equity Fund

The investment objective of the fund is to provide capital appreciation by predominantly investing in companies having a large market capitalization. These companies have a well-established track record of performance and potential for future growth and appreciation.

The scheme has consistently provided inflation beating returns in the long term. 

PGIM India Midcap Opportunities Fund

The primary objective of the Scheme is to achieve long-term capital appreciation by predominantly investing in equity & equity related instruments of mid cap companies.

The fund is suitable for a 5-7 year horizon, and you can anticipate short-term investment volatility due to the asset class. Also, the fund’s benchmark is Nifty Midcap 150 TR INR.

Parag Parikh Flexi Cap Fund

The fund’s objective is long-term capital growth from an actively managed portfolio primarily of Equity and Equity Related Securities. The scheme shall invest in Indian equities, foreign equities and related instruments and debt securities.

Thus, the fund is more suitable for an investor who is seeking investment for a minimum period of 5 years.

Union ELSS Tax Saver Fund

The fund’s objective is to generate income and long-term capital appreciation by investing substantially in a portfolio consisting of equity and equity related securities. 

The fund requires a three-year lock-in period and is suitable for investors seeking long-term growth and tax savings.

DSP India T I G E R Fund

The fund’s objective is to generate capital appreciation by investing in a portfolio mainly composed of equity securities and related instruments. It aims to benefit from structural changes resulting from ongoing liberalization in government economic policies and sustained investments in infrastructure by both public and private sectors.

Templeton India Value Fund

The Investment objective of the scheme is to provide long-term capital appreciation to its Unitholders by following a value investment strategy.

Thus, the fund is suitable for investors with a high tolerance for risk and a minimum investment horizon of 5-7 years. Also, the fund’s benchmark is Nifty 500 TR INR.

360 ONE Focused Equity Fund

The investment objective of the scheme is to generate long term capital appreciation for investors from a portfolio of equity and equity related securities.

Since it has a focused investment strategy, the fund is suitable for investors with a high risk tolerance level and a long term investment horizon. Also, the fund’s benchmark is S&P BSE 500 India TR INR.

Frequently Asked Questions

How much should one invest in equity mutual funds?

Always attach a monetary value to the goals; this will help in deciding the amount to invest. Since equity mutual funds are risky, staying invested for longer durations will help in earning higher returns. Therefore, attaching a monetary value and staying invested for long durations will help in understanding the amount that needs to be invested in equity mutual funds.

Which equity fund is the best to buy?

Fund selection is always a subjective choice and differs from investor to investor. However, the best equity funds are the ones that have been offering consistent returns in the past with proper fund management and low cost of acquisition.

Where can I find the best equity mutual funds to invest in?

Multiple online portals use algorithms to fund the best mutual funds to invest in. Scripbox is one such portal that suggests the best funds based on the investor’s profile.

Which is the best equity fund for SIP?

Every investor is unique. What is best for one might not be best for the other. Hence investors have to find a fund that best suits their goals and investment horizon.